137.97 USD
+1.87 (+1.37%)
137.97 USD
0 (0%)
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. 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.
- In the past year NTES had a positive cash flow from operations.
- 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
- The Return On Assets of NTES (16.92%) is better 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 90.00% of the companies in the same industry.
- The Return On Invested Capital of NTES (17.58%) is better than 93.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- 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.
- NTES's Profit Margin has declined in the last couple of years.
- NTES's Operating Margin of 31.60% is amongst the best of the industry. NTES outperforms 98.75% of its industry peers.
- In the last couple of years the Operating Margin of NTES has grown nicely.
- NTES has a Gross Margin of 63.47%. This is in the better half of the industry: NTES outperforms 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
- NTES has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for NTES has been reduced compared to a year ago.
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.
- Looking at the Debt to FCF ratio, with a value of 0.16, NTES belongs to the top of the industry, outperforming 91.25% of the companies in the same industry.
- 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/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.
- 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 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
- 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.
- NTES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.51% yearly.
- NTES shows a small growth in Revenue. In the last year, the Revenue has grown by 5.81%.
- 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
- The Earnings Per Share is expected to decrease by -26.15% on average over the next years. This is quite bad
- 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
- 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
- Based on the Price/Earnings ratio of 15.47, the valuation of NTES can be described as correct.
- Based on the Price/Earnings ratio, NTES is valued cheaper than 86.25% of the companies in the same industry.
- NTES is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- NTES is valuated correctly with a Price/Forward Earnings ratio of 14.51.
- 88.75% of the companies in the same industry are more expensive than NTES, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, NTES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NTES is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, NTES is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.25 | ||
| EV/EBITDA | 9.17 |
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)0.75
PEG (5Y)0.88
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 1.89.
| 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
- 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%
137.97
+1.87 (+1.37%)
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 Cap88.92B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts84.57
Price Target167.93 (21.71%)
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 | 15.47 | ||
| Fwd PE | 14.51 | ||
| P/S | 5.54 | ||
| P/FCF | 13.25 | ||
| P/OCF | 12.66 | ||
| P/B | 3.96 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 9.17 |
EPS(TTM)8.92
EY6.47%
EPS(NY)9.51
Fwd EY6.89%
FCF(TTM)10.41
FCFY7.55%
OCF(TTM)10.9
OCFY7.9%
SpS24.9
BVpS34.8
TBVpS34.8
PEG (NY)0.75
PEG (5Y)0.88
Graham Number83.57
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 15.47 and the Price/Book (PB) ratio is 3.96.
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%.