# Hello Group Inc. American (MOMO) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $5.37, market value $710 million.

## Valuation
- **P/E (trailing): 5.3×** (5-yr avg 14.4×, 3-yr avg 15.0×). Hello Group Inc. American trades at 5.3× trailing earnings, well below its own five-year average of 14.4×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 5.1×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.5×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **Free-cash-flow yield: 87.7%** (5-yr avg 7.5%). Free cash flow equals 87.7% of the market value, above its five-year average of 7.5%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 18.8%**. The inverse of the P/E: 18.8% of the price is earned each year.

## Profitability
- **Gross margin: 38.0%**. Hello Group Inc. American keeps 38.0% of revenue after the direct cost of what it sells.
- **Operating margin: 13.3%**. 13.3% of revenue is left after running the business.
- **Net margin: 7.8%**. 7.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 7.3%**. 7.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 82.7%**. Return on all capital, debt included, is 82.7%: comfortably above what that capital costs.
- **Return on assets: 37.4%**. Each dollar of assets produces 37.4% of profit.

## Growth
- **Revenue growth (1 yr): 2.4%** (3-yr -7.0%/yr, 5-yr -8.4%/yr). Revenue grew 2.4% over the last year, against -8.4% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -10.5%** (3-yr -13.8%/yr, 5-yr -14.4%/yr). Earnings per share fell 10.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -15.9%/yr**. Free cash flow has compounded at -15.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Hello Group Inc. American holds more cash than debt.
- **Interest coverage: 32.6×**. Operating profit covers interest 32.6× over, a safe margin.
- **Altman Z-score: 3.31**. A Z-score of 3.31 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Hello Group Inc. American does not currently pay a dividend, but it returned 106.0% of its market value through buybacks over the last year.

## Analyst view
- **Analyst consensus: strong_buy** (7 analysts). 7 analysts cover Hello Group Inc. American; the consensus is strong_buy, with an average price target of $8.02 (+49% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -32.6%** (YTD -14.1%, 3-mo -4.3%). The shares are down 32.6% over twelve months including dividends.
- **From 52-week high: -33.0%** (6.3% above the low). Trading 33% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 38**. An RSI of 38 is neutral.
- **Beta (1 yr): 0.68** (volatility 29%). Beta of 0.68 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MOMO · Page: https://foliofundamentals.com/stocks/momo

Not investment advice.
