Why NETEASE INC-ADR (NASDAQ:NTES) Deserves Consideration as a Quality Investment.

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.

What matters 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.
• The ROIC excluding cash and goodwill of NETEASE INC-ADR stands at 91.83%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 0.31, NETEASE INC-ADR exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 121.0%, NETEASE INC-ADR showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• 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.
• NETEASE INC-ADR demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NASDAQ:NTES?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

NTES gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making NTES a very profitable company, without any liquidiy or solvency issues. NTES has a correct valuation and a medium growth rate. This makes NTES very considerable for quality investing!

Our latest full fundamental report of NTES contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

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.