139.3 USD
+0.1 (+0.07%)
We assign a fundamental rating of 7 out of 10 to NTES. NTES was compared to 80 industry peers in the Entertainment industry. NTES gets an excellent profitability rating and is at the same time showing great financial health properties. NTES may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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
NTES has a better Return On Assets (16.92%) than 92.50% of its industry peers.
With an excellent Return On Equity value of 23.22%, NTES belongs to the best of the industry, outperforming 88.75% of the companies in the same industry.
NTES has a better Return On Invested Capital (17.58%) than 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 9.30%.
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
Looking at the Profit Margin, with a value of 32.45%, NTES belongs to the top 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 Operating Margin of 31.60%. This is amongst the best in the industry. NTES outperforms 98.75% of its industry peers.
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 71.25% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NTES is creating value.
The number of shares outstanding for NTES has been reduced compared to 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
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's Debt to FCF ratio of 0.16 is amongst the best of the industry. NTES outperforms 90.00% 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 66.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | N/A |
ROIC/WACC2.59
WACC6.8%
2.3 Liquidity
A Current Ratio of 3.42 indicates that NTES has no problem at all paying its short term obligations.
NTES has a Current ratio of 3.42. This is amongst the best in the industry. NTES outperforms 90.00% of its industry peers.
A Quick Ratio of 3.41 indicates that NTES has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.41, NTES belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
| 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.
Measured over the past years, NTES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.51% on average per year.
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
Based on estimates for the next years, NTES will show a very negative growth in Earnings Per Share. The EPS will decrease by -26.15% on average per year.
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 Y21.69%
EPS Next 2Y13.82%
EPS Next 3Y12.78%
EPS Next 5Y-26.15%
Revenue Next Year8.55%
Revenue Next 2Y8.14%
Revenue Next 3Y8.42%
Revenue Next 5Y9.64%
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
A Price/Earnings ratio of 15.88 indicates a correct valuation of NTES.
Based on the Price/Earnings ratio, NTES is valued cheaper than 86.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.65. NTES is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.70, which 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.
When comparing the Price/Forward Earnings ratio of NTES to the average of the S&P500 Index (34.45), we can say NTES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 14.7 |
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.
88.75% 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 | 13.61 | ||
| EV/EBITDA | 9.83 |
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.
A more expensive valuation may be justified as NTES's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)0.73
PEG (5Y)0.91
EPS Next 2Y13.82%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
NTES has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 44.99, NTES pays a better dividend. On top of this NTES pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, NTES has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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
36.47% of the earnings are spent on dividend by NTES. This is a low number and sustainable payout ratio.
DP36.47%
EPS Next 2Y13.82%
EPS Next 3Y12.78%
NASDAQ:NTES (11/25/2025, 9:48:05 AM)
139.3
+0.1 (+0.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners9.59%
Inst Owner Change7.83%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap89.78B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts83.89
Price Target164.55 (18.13%)
Short Float %1.66%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend2.47
Dividend Growth(5Y)4.94%
DP36.47%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)3.61%
PT rev (3m)7.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 14.7 | ||
| P/S | 5.69 | ||
| P/FCF | 13.61 | ||
| P/OCF | 13.01 | ||
| P/B | 4.07 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 9.83 |
EPS(TTM)8.77
EY6.3%
EPS(NY)9.48
Fwd EY6.8%
FCF(TTM)10.24
FCFY7.35%
OCF(TTM)10.71
OCFY7.69%
SpS24.48
BVpS34.2
TBVpS34.2
PEG (NY)0.73
PEG (5Y)0.91
Graham Number82.15
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
WACC6.8%
ROIC/WACC2.59
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 Y21.69%
EPS Next 2Y13.82%
EPS Next 3Y12.78%
EPS Next 5Y-26.15%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y6.32%
Revenue growth 5Y12.19%
Sales Q2Q%8.2%
Revenue Next Year8.55%
Revenue Next 2Y8.14%
Revenue Next 3Y8.42%
Revenue Next 5Y9.64%
EBIT growth 1Y23.42%
EBIT growth 3Y21.69%
EBIT growth 5Y16.49%
EBIT Next Year38.3%
EBIT Next 3Y18.56%
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.
What is the valuation status for NTES stock?
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.
How financially healthy is NETEASE INC-ADR?
The financial health rating of NETEASE INC-ADR (NTES) is 8 / 10.
Can you provide the expected EPS growth for NTES stock?
The Earnings per Share (EPS) of NETEASE INC-ADR (NTES) is expected to grow by 21.69% in the next year.