142.91 USD
-2.87 (-1.97%)
142.91 USD
0 (0%)
NTES gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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!
1. Profitability
1.1 Basic Checks
In the past year NTES was profitable.
NTES had a positive operating cash flow in the past year.
In the past 5 years NTES has always been profitable.
Each year in the past 5 years NTES had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.92%, NTES belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
NTES has a Return On Equity of 23.22%. This is amongst the best in the industry. NTES outperforms 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.58%, NTES belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTES is significantly above the industry average of 8.70%.
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 Rank | Sector 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%
1.3 Margins
The Profit Margin of NTES (32.45%) is better than 97.50% of its industry peers.
NTES's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 31.60%, NTES belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
In the last couple of years the Operating Margin of NTES has grown nicely.
NTES's Gross Margin of 63.47% is fine compared to the rest of the industry. NTES outperforms 70.00% of its industry peers.
NTES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for NTES has been reduced compared to 5 years ago.
NTES has a better debt/assets ratio than last year.
2.2 Solvency
NTES has a debt to FCF ratio of 0.16. This is a very positive value and a sign of high solvency as it would only need 0.16 years to pay back of all of its debts.
NTES has a Debt to FCF ratio of 0.16. This is amongst the best in the industry. NTES outperforms 91.25% of its industry peers.
NTES has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
NTES has a Debt to Equity ratio of 0.05. This is in the better half of the industry: NTES outperforms 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | N/A |
ROIC/WACC1.98
WACC8.9%
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.
Looking at the Current ratio, with a value of 3.42, NTES belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.42 | ||
| Quick Ratio | 3.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.11% over the past year.
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.
NTES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.57% yearly.
EPS Next Y20.61%
EPS Next 2Y13.01%
EPS Next 3Y12.26%
EPS Next 5Y-26.15%
Revenue Next Year7.59%
Revenue Next 2Y7.79%
Revenue Next 3Y8.24%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.04, which indicates a correct valuation of NTES.
Compared to the rest of the industry, the Price/Earnings ratio of NTES indicates a rather cheap valuation: NTES is cheaper than 85.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NTES to the average of the S&P500 Index (27.25), we can say NTES is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.04, the valuation of NTES can be described as correct.
87.50% of the companies in the same industry are more expensive than NTES, based on the Price/Forward Earnings ratio.
NTES is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTES indicates a somewhat cheap valuation: NTES is cheaper than 76.25% of the companies listed in the same industry.
92.50% of the companies in the same industry are more expensive than NTES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.73 | ||
| EV/EBITDA | 10.34 |
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 12.26% in the coming years.
PEG (NY)0.78
PEG (5Y)0.92
EPS Next 2Y13.01%
EPS Next 3Y12.26%
5. Dividend
5.1 Amount
NTES has a Yearly Dividend Yield of 2.13%.
NTES's Dividend Yield is rather good when compared to the industry average which is at 8.69. NTES pays more dividend than 91.25% of the companies in the same industry.
NTES's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of NTES has a limited annual growth rate of 4.94%.
NTES has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
NTES pays out 36.47% of its income as dividend. This is a sustainable payout ratio.
DP36.47%
EPS Next 2Y13.01%
EPS Next 3Y12.26%
142.91
-2.87 (-1.97%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners10.38%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap92.10B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts84.57
Price Target167.93 (17.51%)
Short Float %1.68%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend2.51
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%
PT rev (3m)5.73%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 15.04 | ||
| P/S | 5.74 | ||
| P/FCF | 13.73 | ||
| P/OCF | 13.13 | ||
| P/B | 4.11 | ||
| P/tB | 4.11 | ||
| EV/EBITDA | 10.34 |
EPS(TTM)8.91
EY6.23%
EPS(NY)9.5
Fwd EY6.65%
FCF(TTM)10.41
FCFY7.28%
OCF(TTM)10.89
OCFY7.62%
SpS24.88
BVpS34.77
TBVpS34.77
PEG (NY)0.78
PEG (5Y)0.92
Graham Number83.49
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.9%
ROIC/WACC1.98
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 2Y13.01%
EPS Next 3Y12.26%
EPS Next 5Y-26.15%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y6.32%
Revenue growth 5Y12.19%
Sales Q2Q%8.2%
Revenue Next Year7.59%
Revenue Next 2Y7.79%
Revenue Next 3Y8.24%
Revenue Next 5Y9.57%
EBIT growth 1Y23.42%
EBIT growth 3Y21.69%
EBIT growth 5Y16.49%
EBIT Next Year35.05%
EBIT Next 3Y18.68%
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 7 / 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 16.04 and the Price/Book (PB) ratio is 4.11.
Is the dividend of NETEASE INC-ADR sustainable?
The dividend rating of NETEASE INC-ADR (NTES) is 5 / 10 and the dividend payout ratio is 36.47%.