141.87 USD
-4.23 (-2.9%)
Taking everything into account, NTES scores 7 out of 10 in our fundamental rating. NTES was compared to 80 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, NTES could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year NTES was profitable.
In the past year NTES had a positive cash flow from operations.
In the past 5 years NTES has always been profitable.
NTES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NTES has a better Return On Assets (16.92%) than 92.50% of its industry peers.
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.
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 8.70%.
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
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.
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.
NTES's Operating Margin has improved in the last couple of years.
The Gross Margin of NTES (63.47%) is better than 70.00% of its industry peers.
In the last couple of years the Gross Margin of NTES has grown nicely.
| 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.
The number of shares outstanding for NTES has been reduced compared to 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
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 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.
NTES's Debt to Equity ratio of 0.05 is fine compared to the rest 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/WACC1.94
WACC9.06%
2.3 Liquidity
A Current Ratio of 3.42 indicates that NTES has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.42, NTES belongs to the best 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 Quick ratio of 3.41. This is amongst the best in the industry. NTES outperforms 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.
Based on estimates for the next years, NTES will show a quite strong growth in Revenue. The Revenue will grow by 9.64% 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 5Y9.64%
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.
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
NTES is valuated correctly with a Price/Earnings ratio of 15.98.
Based on the Price/Earnings ratio, NTES is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.17, NTES is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.99 indicates a correct valuation of NTES.
88.75% of the companies in the same industry are more expensive than NTES, based on the Price/Forward Earnings ratio.
NTES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
NTES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NTES is 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 | 13.69 | ||
| EV/EBITDA | 10.45 |
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.
NTES has an outstanding profitability rating, which may justify a higher PE ratio.
NTES's earnings are expected to grow with 12.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)0.91
EPS Next 2Y13.01%
EPS Next 3Y12.26%
5. Dividend
5.1 Amount
NTES has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.64, NTES pays a better dividend. On top of this NTES pays more dividend than 91.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, NTES has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 2Y13.01%
EPS Next 3Y12.26%
NASDAQ:NTES (1/7/2026, 12:32:04 PM)
141.87
-4.23 (-2.9%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners10.38%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap91.43B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts83.89
Price Target167.93 (18.37%)
Short Float %1.68%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend2.5
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)2.05%
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 | 15.98 | ||
| Fwd PE | 14.99 | ||
| P/S | 5.72 | ||
| P/FCF | 13.69 | ||
| P/OCF | 13.08 | ||
| P/B | 4.1 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 10.45 |
EPS(TTM)8.88
EY6.26%
EPS(NY)9.46
Fwd EY6.67%
FCF(TTM)10.36
FCFY7.31%
OCF(TTM)10.84
OCFY7.64%
SpS24.78
BVpS34.63
TBVpS34.63
PEG (NY)0.78
PEG (5Y)0.91
Graham Number83.18
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
WACC9.06%
ROIC/WACC1.94
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 5Y9.64%
EBIT growth 1Y23.42%
EBIT growth 3Y21.69%
EBIT growth 5Y16.49%
EBIT Next Year35.05%
EBIT Next 3Y18.68%
EBIT Next 5Y16.3%
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 15.98 and the Price/Book (PB) ratio is 4.1.
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%.