NASDAQ:NTES stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Feb 8, 2024

Discover NETEASE INC-ADR (NASDAQ:NTES), an undervalued stock highlighted by our stock screener. NASDAQ:NTES showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Insights: NASDAQ:NTES

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:NTES boasts a 8 out of 10:

NTES's Price/Earnings ratio is rather cheap when compared to the industry. NTES is cheaper than 86.11% of the companies in the same industry.
NTES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.88.
Based on the Price/Forward Earnings ratio, NTES is valued cheaper than 86.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.46, NTES is valued a bit cheaper.
77.78% of the companies in the same industry are more expensive than NTES, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NTES is valued cheaply inside the industry as 81.94% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NTES has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NTES's earnings are expected to grow with 18.93% in the coming years.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NTES, the assigned 8 is a significant indicator of profitability:

With an excellent Return On Assets value of 15.61%, NTES belongs to the best of the industry, outperforming 98.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.33%, NTES belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
NTES has a Return On Invested Capital of 14.53%. This is amongst the best in the industry. NTES outperforms 95.83% of its industry peers.
The last Return On Invested Capital (14.53%) for NTES is above the 3 year average (10.68%), which is a sign of increasing profitability.
NTES has a better Profit Margin (26.35%) than 98.61% of its industry peers.
NTES's Operating Margin of 24.86% is amongst the best of the industry. NTES outperforms 97.22% of its industry peers.
NTES has a Gross Margin of 58.50%. This is in the better half of the industry: NTES outperforms 75.00% of its industry peers.

Assessing Health Metrics for NASDAQ:NTES

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NTES has achieved a 7 out of 10:

NTES has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
NTES has a better Debt to FCF ratio (0.41) than 94.44% of its industry peers.
NTES has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
NTES's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. NTES outperforms 75.00% of its industry peers.
A Current Ratio of 2.91 indicates that NTES has no problem at all paying its short term obligations.
NTES's Current ratio of 2.91 is amongst the best of the industry. NTES outperforms 84.72% of its industry peers.
NTES has a Quick Ratio of 2.89. This indicates that NTES is financially healthy and has no problem in meeting its short term obligations.
NTES's Quick ratio of 2.89 is amongst the best of the industry. NTES outperforms 84.72% of its industry peers.

Exploring NASDAQ:NTES's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NTES has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 24.56% over the past year.
Measured over the past years, NTES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.47% on average per year.
NTES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.78% yearly.
NTES is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.51% yearly.
NTES is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 65.00% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of NTES for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.