NETEASE INC-ADR (NTES) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:NTES • US64110W1027

122.92 USD
+2.62 (+2.18%)
At close: Feb 6, 2026
123 USD
+0.08 (+0.07%)
After Hours: 2/6/2026, 5:57:04 PM
Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to NTES. NTES was compared to 80 industry peers in the Entertainment industry. NTES has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on NTES. This makes NTES very considerable for value and quality investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year NTES was profitable.
  • NTES had a positive operating cash flow in the past year.
  • Each year in the past 5 years NTES has been profitable.
  • In the past 5 years NTES always reported a positive cash flow from operatings.
NTES Yearly Net Income VS EBIT VS OCF VS FCFNTES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

1.2 Ratios

  • The Return On Assets of NTES (16.92%) is better than 92.50% of its industry peers.
  • NTES has a better Return On Equity (23.22%) than 90.00% of its industry peers.
  • NTES's Return On Invested Capital of 17.58% is amongst the best of the industry. NTES outperforms 93.75% of its industry peers.
  • NTES had an Average Return On Invested Capital over the past 3 years of 14.54%. This is significantly above the industry average of 8.74%.
  • The last Return On Invested Capital (17.58%) for NTES is above the 3 year average (14.54%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 16.92%
ROE 23.22%
ROIC 17.58%
ROA(3y)14.25%
ROA(5y)12.44%
ROE(3y)21.5%
ROE(5y)19.37%
ROIC(3y)14.54%
ROIC(5y)13.18%
NTES Yearly ROA, ROE, ROICNTES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 32.45%, NTES belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
  • NTES's Profit Margin has declined in the last couple of years.
  • The Operating Margin of NTES (31.60%) is better than 98.75% of its industry peers.
  • NTES's Operating Margin has improved in the last couple of years.
  • NTES has a Gross Margin of 63.47%. This is in the better half of the industry: NTES outperforms 70.00% of its industry peers.
  • NTES's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 31.6%
PM (TTM) 32.45%
GM 63.47%
OM growth 3Y14.45%
OM growth 5Y3.83%
PM growth 3Y13.59%
PM growth 5Y-4.68%
GM growth 3Y5.24%
GM growth 5Y3.25%
NTES Yearly Profit, Operating, Gross MarginsNTES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NTES is creating value.
  • NTES has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, NTES has less shares outstanding
  • Compared to 1 year ago, NTES has an improved debt to assets ratio.
NTES Yearly Shares OutstandingNTES Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
NTES Yearly Total Debt VS Total AssetsNTES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

  • The Debt to FCF ratio of NTES is 0.16, which is an excellent value as it means it would take NTES, only 0.16 years of fcf income to pay off all of its debts.
  • NTES's Debt to FCF ratio of 0.16 is amongst the best of the industry. NTES outperforms 91.25% of its industry peers.
  • A Debt/Equity ratio of 0.05 indicates that NTES is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.05, NTES is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.16
Altman-Z N/A
ROIC/WACC2.14
WACC8.21%
NTES Yearly LT Debt VS Equity VS FCFNTES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.3 Liquidity

  • NTES has a Current Ratio of 3.42. This indicates that NTES is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of NTES (3.42) is better than 87.50% of its industry peers.
  • NTES has a Quick Ratio of 3.41. This indicates that NTES is financially healthy and has no problem in meeting its short term obligations.
  • NTES has a better Quick ratio (3.41) than 87.50% of its industry peers.
Industry RankSector Rank
Current Ratio 3.42
Quick Ratio 3.41
NTES Yearly Current Assets VS Current LiabilitesNTES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • NTES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.11%, which is quite impressive.
  • The Earnings Per Share has been growing by 17.51% on average over the past years. This is quite good.
  • Looking at the last year, NTES shows a small growth in Revenue. The Revenue has grown by 5.81% in the last year.
  • The Revenue has been growing by 12.19% on average over the past years. This is quite good.
EPS 1Y (TTM)29.11%
EPS 3Y21.03%
EPS 5Y17.51%
EPS Q2Q%26.66%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y6.32%
Revenue growth 5Y12.19%
Sales Q2Q%8.2%

3.2 Future

  • NTES is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -26.15% yearly.
  • The Revenue is expected to grow by 9.57% on average over the next years. This is quite good.
EPS Next Y20.61%
EPS Next 2Y13.13%
EPS Next 3Y12.27%
EPS Next 5Y-26.15%
Revenue Next Year7.4%
Revenue Next 2Y7.74%
Revenue Next 3Y8.19%
Revenue Next 5Y9.57%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
NTES Yearly Revenue VS EstimatesNTES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 50B 100B 150B 200B
NTES Yearly EPS VS EstimatesNTES Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20 40 60

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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • NTES is valuated correctly with a Price/Earnings ratio of 13.73.
  • NTES's Price/Earnings ratio is rather cheap when compared to the industry. NTES is cheaper than 87.50% of the companies in the same industry.
  • NTES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.92.
  • NTES is valuated correctly with a Price/Forward Earnings ratio of 12.85.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NTES indicates a rather cheap valuation: NTES is cheaper than 88.75% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of NTES to the average of the S&P500 Index (27.78), we can say NTES is valued rather cheaply.
Industry RankSector Rank
PE 13.73
Fwd PE 12.85
NTES Price Earnings VS Forward Price EarningsNTES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NTES is valued cheaper than 81.25% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NTES is valued cheaper than 92.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.76
EV/EBITDA 7.22
NTES Per share dataNTES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of NTES may justify a higher PE ratio.
  • A more expensive valuation may be justified as NTES's earnings are expected to grow with 12.27% in the coming years.
PEG (NY)0.67
PEG (5Y)0.78
EPS Next 2Y13.13%
EPS Next 3Y12.27%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.29%, NTES has a reasonable but not impressive dividend return.
  • NTES's Dividend Yield is rather good when compared to the industry average which is at 7.60. NTES pays more dividend than 91.25% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, NTES pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.29%

5.2 History

  • The dividend of NTES has a limited annual growth rate of 4.94%.
  • NTES has been paying a dividend for at least 10 years, so it has a reliable track record.
  • NTES has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.94%
Div Incr Years3
Div Non Decr Years3
NTES Yearly Dividends per shareNTES Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • 36.47% of the earnings are spent on dividend by NTES. This is a low number and sustainable payout ratio.
DP36.47%
EPS Next 2Y13.13%
EPS Next 3Y12.27%
NTES Yearly Income VS Free CF VS DividendNTES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B
NTES Dividend Payout.NTES Dividend Payout, showing the Payout Ratio.NTES Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

NETEASE INC-ADR

NASDAQ:NTES (2/6/2026, 5:57:04 PM)

After market: 123 +0.08 (+0.07%)

122.92

+2.62 (+2.18%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-20
Earnings (Next)02-11
Inst Owners10.38%
Inst Owner Change-0.14%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap79.22B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts84.57
Price Target168.88 (37.39%)
Short Float %1.83%
Short Ratio3.57
Dividend
Industry RankSector Rank
Dividend Yield 2.29%
Yearly Dividend2.52
Dividend Growth(5Y)4.94%
DP36.47%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.48%
Min EPS beat(2)-2.68%
Max EPS beat(2)-2.28%
EPS beat(4)2
Avg EPS beat(4)8.52%
Min EPS beat(4)-2.68%
Max EPS beat(4)22.83%
EPS beat(8)3
Avg EPS beat(8)1.78%
EPS beat(12)6
Avg EPS beat(12)8.87%
EPS beat(16)10
Avg EPS beat(16)14.26%
Revenue beat(2)0
Avg Revenue beat(2)-4.28%
Min Revenue beat(2)-4.64%
Max Revenue beat(2)-3.91%
Revenue beat(4)0
Avg Revenue beat(4)-3.21%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-3.59%
Revenue beat(12)0
Avg Revenue beat(12)-3.49%
Revenue beat(16)1
Avg Revenue beat(16)-2.65%
PT rev (1m)0.56%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-1.05%
Valuation
Industry RankSector Rank
PE 13.73
Fwd PE 12.85
P/S 4.92
P/FCF 11.76
P/OCF 11.24
P/B 3.52
P/tB 3.52
EV/EBITDA 7.22
EPS(TTM)8.95
EY7.28%
EPS(NY)9.57
Fwd EY7.78%
FCF(TTM)10.46
FCFY8.51%
OCF(TTM)10.94
OCFY8.9%
SpS25
BVpS34.94
TBVpS34.94
PEG (NY)0.67
PEG (5Y)0.78
Graham Number83.88
Profitability
Industry RankSector Rank
ROA 16.92%
ROE 23.22%
ROCE 21.49%
ROIC 17.58%
ROICexc 133.28%
ROICexgc 133.28%
OM 31.6%
PM (TTM) 32.45%
GM 63.47%
FCFM 41.82%
ROA(3y)14.25%
ROA(5y)12.44%
ROE(3y)21.5%
ROE(5y)19.37%
ROIC(3y)14.54%
ROIC(5y)13.18%
ROICexc(3y)98.11%
ROICexc(5y)81.85%
ROICexgc(3y)117.55%
ROICexgc(5y)98.29%
ROCE(3y)19.38%
ROCE(5y)17.87%
ROICexgc growth 3Y31.39%
ROICexgc growth 5Y13.28%
ROICexc growth 3Y29.84%
ROICexc growth 5Y14.27%
OM growth 3Y14.45%
OM growth 5Y3.83%
PM growth 3Y13.59%
PM growth 5Y-4.68%
GM growth 3Y5.24%
GM growth 5Y3.25%
F-Score8
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.16
Debt/EBITDA 0.2
Cap/Depr 97.24%
Cap/Sales 1.93%
Interest Coverage 89.69
Cash Conversion 130.26%
Profit Quality 128.89%
Current Ratio 3.42
Quick Ratio 3.41
Altman-Z N/A
F-Score8
WACC8.21%
ROIC/WACC2.14
Cap/Depr(3y)107.89%
Cap/Depr(5y)102.75%
Cap/Sales(3y)2.99%
Cap/Sales(5y)3.4%
Profit Quality(3y)118.33%
Profit Quality(5y)132.69%
High Growth Momentum
Growth
EPS 1Y (TTM)29.11%
EPS 3Y21.03%
EPS 5Y17.51%
EPS Q2Q%26.66%
EPS Next Y20.61%
EPS Next 2Y13.13%
EPS Next 3Y12.27%
EPS Next 5Y-26.15%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y6.32%
Revenue growth 5Y12.19%
Sales Q2Q%8.2%
Revenue Next Year7.4%
Revenue Next 2Y7.74%
Revenue Next 3Y8.19%
Revenue Next 5Y9.57%
EBIT growth 1Y23.42%
EBIT growth 3Y21.69%
EBIT growth 5Y16.49%
EBIT Next Year36.1%
EBIT Next 3Y18.63%
EBIT Next 5Y16.25%
FCF growth 1Y64.95%
FCF growth 3Y19.76%
FCF growth 5Y21.96%
OCF growth 1Y50.4%
OCF growth 3Y16.76%
OCF growth 5Y18.17%

NETEASE INC-ADR / NTES FAQ

What is the ChartMill fundamental rating of NETEASE INC-ADR (NTES) stock?

ChartMill assigns a fundamental rating of 8 / 10 to NTES.


Can you provide the valuation status for NETEASE INC-ADR?

ChartMill assigns a valuation rating of 8 / 10 to NETEASE INC-ADR (NTES). This can be considered as Undervalued.


What is the profitability of NTES stock?

NETEASE INC-ADR (NTES) has a profitability rating of 9 / 10.


What are the PE and PB ratios of NETEASE INC-ADR (NTES) stock?

The Price/Earnings (PE) ratio for NETEASE INC-ADR (NTES) is 13.73 and the Price/Book (PB) ratio is 3.52.


Is the dividend of NETEASE INC-ADR sustainable?

The dividend rating of NETEASE INC-ADR (NTES) is 6 / 10 and the dividend payout ratio is 36.47%.