129.555 USD
+0.72 (+0.56%)
Last: Feb 2, 2026, 01:41 PM
Overall NTES gets a fundamental rating of 8 out of 10. We evaluated NTES against 80 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes NTES very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
- NTES had positive earnings in the past year.
- 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.
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.
- NTES's Return On Equity of 23.22% is amongst the best of the industry. NTES outperforms 90.00% of its industry peers.
- NTES has a better Return On Invested Capital (17.58%) than 93.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NTES 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 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.
- NTES's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 31.60%, NTES belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
- NTES's Operating Margin has improved in the last couple of years.
- 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.
- NTES has less shares outstanding than it did 5 years ago.
- NTES has a better debt/assets ratio than last year.
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.
- A Debt/Equity ratio of 0.05 indicates that NTES is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.05, NTES is doing good in the industry, outperforming 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | N/A |
ROIC/WACC2.13
WACC8.24%
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.
- NTES has a Current ratio of 3.42. This is amongst the best in 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
- 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.
- The Revenue has been growing slightly by 5.81% in the past 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 2Y13.13%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.49, which indicates a correct valuation of NTES.
- 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 valuation a bit cheaper than the S&P500 average which is at 28.32.
- A Price/Forward Earnings ratio of 13.56 indicates a correct valuation of NTES.
- 90.00% 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 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
- 77.50% of the companies in the same industry are more expensive than NTES, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, NTES is valued cheaper than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 8.26 |
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.
- NTES has an outstanding profitability rating, which 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)0.7
PEG (5Y)0.83
EPS Next 2Y13.13%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
- NTES has a Yearly Dividend Yield of 2.29%.
- NTES's Dividend Yield is rather good when compared to the industry average which is at 7.59. 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 Rank | Sector 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
5.3 Sustainability
- NTES pays out 36.47% of its income as dividend. This is a sustainable payout ratio.
DP36.47%
EPS Next 2Y13.13%
EPS Next 3Y12.27%
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 14.49 and the Price/Book (PB) ratio is 3.71.
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%.