Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if NETEASE INC-ADR (NASDAQ:NTES) is suited for quality investing. Investors should of course do their own research, but we spotted NETEASE INC-ADR showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Key Considerations for Quality Investors.
NETEASE INC-ADR has achieved substantial revenue growth over the past 5 years, with a 15.12% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
NETEASE INC-ADR demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 93.18% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
NETEASE INC-ADR maintains a healthy Debt/Free Cash Flow Ratio of 0.63, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
With a robust Profit Quality (5-year) ratio of 121.0%, NETEASE INC-ADR highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
With a robust 5-year EBIT growth of 22.67%, NETEASE INC-ADR showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
The EBIT 5-year growth of NETEASE INC-ADR has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.
A complete fundamental analysis of NASDAQ:NTES
Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.
Taking everything into account, NTES scores 7 out of 10 in our fundamental rating. NTES was compared to 76 industry peers in the Entertainment industry. NTES scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NTES has a decent growth rate and is not valued too expensively. These ratings would make NTES suitable for quality investing!
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.