139 USD
-3.91 (-2.74%)
138.889 USD
-0.11 (-0.08%)
Overall NTES gets a fundamental rating of 7 out of 10. We evaluated NTES 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. NTES is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make NTES suitable 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.
- NTES had positive earnings in each of the past 5 years.
- NTES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 16.92%, NTES belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
- With an excellent Return On Equity value of 23.22%, NTES belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- NTES has a Return On Invested Capital of 17.58%. This is amongst the best in 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 8.70%.
- 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
- NTES has a Profit Margin of 32.45%. This is amongst the best in the industry. NTES outperforms 97.50% of its industry peers.
- In the last couple of years the Profit Margin of NTES has declined.
- NTES has a better Operating Margin (31.60%) than 98.75% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
- Compared to 1 year ago, NTES has an improved debt to assets ratio.
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 has a better Debt to FCF ratio (0.16) than 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.
- The Debt to Equity ratio of NTES (0.05) is better than 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
WACC8.89%
2.3 Liquidity
- A Current Ratio of 3.42 indicates that NTES has no problem at all paying its short term obligations.
- NTES's Current ratio of 3.42 is amongst the best of the industry. NTES outperforms 87.50% of its industry peers.
- A Quick Ratio of 3.41 indicates that NTES has no problem at all paying its short term obligations.
- The Quick ratio of NTES (3.41) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.42 | ||
| Quick Ratio | 3.41 |
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.
- Measured over the past years, NTES shows a quite strong growth in Revenue. The Revenue has been growing by 12.19% on average per year.
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.
- Based on estimates for the next years, NTES will show a quite strong growth in Revenue. The Revenue will grow by 9.57% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- With a Price/Earnings ratio of 15.60, NTES is valued correctly.
- NTES's Price/Earnings ratio is rather cheap when compared to the industry. NTES is cheaper than 85.00% of the companies in the same industry.
- NTES is valuated rather cheaply when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- NTES is valuated correctly with a Price/Forward Earnings ratio of 14.64.
- NTES's Price/Forward Earnings ratio is rather cheap when compared to the industry. NTES is cheaper than 88.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, NTES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NTES is valued a bit cheaper than 76.25% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTES indicates a rather cheap valuation: NTES is cheaper than 92.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
- NTES's 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)0.76
PEG (5Y)0.89
EPS Next 2Y13.01%
EPS Next 3Y12.26%
5. Dividend
5.1 Amount
- NTES has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 8.69, NTES pays a better dividend. On top of this NTES pays more dividend than 91.25% of the companies listed in the same industry.
- NTES's Dividend Yield is comparable with the S&P500 average which is at 1.91.
| 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 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
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 2Y13.01%
EPS Next 3Y12.26%
139
-3.91 (-2.74%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-20 2025-11-20/bmo
Earnings (Next)02-18 2026-02-18/amc
Inst Owners10.38%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap89.58B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts84.57
Price Target167.93 (20.81%)
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 | 15.6 | ||
| Fwd PE | 14.64 | ||
| P/S | 5.59 | ||
| P/FCF | 13.36 | ||
| P/OCF | 12.77 | ||
| P/B | 4 | ||
| P/tB | 4 | ||
| EV/EBITDA | 10 |
EPS(TTM)8.91
EY6.41%
EPS(NY)9.5
Fwd EY6.83%
FCF(TTM)10.4
FCFY7.48%
OCF(TTM)10.88
OCFY7.83%
SpS24.87
BVpS34.76
TBVpS34.76
PEG (NY)0.76
PEG (5Y)0.89
Graham Number83.47
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
WACC8.89%
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 15.6 and the Price/Book (PB) ratio is 4.
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%.