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Deep Value: cash covers more than 100% of the stock price

This company holds roughly $1.5B in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Hello Group logo

Hello Group

MOMO
47
Internet Content & Information · Communication Services
Exchange
NASDAQ
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Strong
Stability
Exceptional
Valuation
Strong
Dividends
Good

Winston Score History

The full picture

Hello Group Inc. is a Chinese technology company that runs social networking and live-streaming apps. Its two main platforms are Momo, a location-based social app that helps strangers meet and connect, and Tantan, which works like a dating app where users swipe to find matches. The company serves mostly young adults in China looking for social connections or romantic relationships.

Hello Group makes money primarily by selling virtual gifts that users send to live-streamers, along with membership subscriptions and in-app purchases on both platforms. It operates almost entirely within China, generating roughly $1.4 billion in annual revenue, which makes it a mid-sized player in China's crowded social and dating app market. The company faces real pressure from competition by larger Chinese platforms like ByteDance and Tencent, as well as ongoing regulatory scrutiny from Chinese authorities over online content and data practices, both of which could limit future growth.

Score breakdown

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Quality

Profit per sale
Gross Margin
38.7%
Modest — 38.7% gross margin
Profit after running costs
Operating Margin
13.0%
Healthy — 13.0% operating margin
Return on the money invested
ROCE
12.6%
Good — 12.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-2.8%
Shrinking sales (-2.8% YoY)
Profit growth
EPS YoY
-42.6%
Earnings shrinking (-42.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
150%
Turns 150% of profit into real cash
Spare cash per sale
FCF Margin
6.1%
Modest free cash flow (6.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.00
Conservative — low debt load (0.00)
Covers its interest
Interest Cover
32.63x
Comfortably covers interest (32.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
8.5x
no trend
Attractive valuation — P/E 8.5

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
+1.9
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
4.86%
no trend
Healthy income — 4.86% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
-30.8%
no trend
Dividend cut (-30.8% YoY) — warning sign

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