NETEASE INC-ADR (NTES) Fundamental Analysis & Valuation

NASDAQ:NTES • US64110W1027

Current stock price

112.93 USD
+0.21 (+0.19%)
Last:

This NTES fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. NTES Profitability Analysis

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.
NTES Yearly Net Income VS EBIT VS OCF VS FCFNTES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

1.2 Ratios

  • The Return On Assets of NTES (15.25%) is better than 94.94% of its industry peers.
  • NTES's Return On Equity of 21.06% is amongst the best of the industry. NTES outperforms 91.14% of its industry peers.
  • The Return On Invested Capital of NTES (17.36%) is better than 94.94% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NTES is significantly below the industry average of 159.10%.
  • The 3 year average ROIC (16.27%) for NTES is below the current ROIC(17.36%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 15.25%
ROE 21.06%
ROIC 17.36%
ROA(3y)15.41%
ROA(5y)13.79%
ROE(3y)22.05%
ROE(5y)20.65%
ROIC(3y)16.27%
ROIC(5y)14.43%
NTES Yearly ROA, ROE, ROICNTES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • NTES has a better Profit Margin (29.98%) than 96.20% of its industry peers.
  • NTES's Profit Margin has improved in the last couple of years.
  • NTES has a better Operating Margin (31.82%) than 98.73% of its industry peers.
  • In the last couple of years the Operating Margin of NTES has grown nicely.
  • With a decent Gross Margin value of 64.29%, NTES is doing good in the industry, outperforming 72.15% of the companies in the same industry.
  • In the last couple of years the Gross Margin of NTES has grown nicely.
Industry RankSector Rank
OM 31.82%
PM (TTM) 29.98%
GM 64.29%
OM growth 3Y16.08%
OM growth 5Y10.02%
PM growth 3Y12.46%
PM growth 5Y12.85%
GM growth 3Y5.54%
GM growth 5Y3.97%
NTES Yearly Profit, Operating, Gross MarginsNTES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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8

2. NTES Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NTES is creating value.
  • NTES has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for NTES has been reduced compared to 5 years ago.
  • The debt/assets ratio for NTES has been reduced compared to a year ago.
NTES Yearly Shares OutstandingNTES Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
NTES Yearly Total Debt VS Total AssetsNTES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

2.2 Solvency

  • NTES has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.13, NTES belongs to the best of the industry, outperforming 89.87% of the companies in the same industry.
  • NTES has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
  • NTES has a better Debt to Equity ratio (0.04) than 69.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.13
Altman-Z N/A
ROIC/WACC2.3
WACC7.54%
NTES Yearly LT Debt VS Equity VS FCFNTES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.3 Liquidity

  • A Current Ratio of 3.45 indicates that NTES has no problem at all paying its short term obligations.
  • The Current ratio of NTES (3.45) is better than 88.61% of its industry peers.
  • A Quick Ratio of 3.44 indicates that NTES has no problem at all paying its short term obligations.
  • NTES has a better Quick ratio (3.44) than 89.87% of its industry peers.
Industry RankSector Rank
Current Ratio 3.45
Quick Ratio 3.44
NTES Yearly Current Assets VS Current LiabilitesNTES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. NTES Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.82% over the past year.
  • The Earnings Per Share has been growing by 21.29% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 6.96% in the past year.
  • Measured over the past years, NTES shows a quite strong growth in Revenue. The Revenue has been growing by 8.86% on average per year.
EPS 1Y (TTM)11.82%
EPS 3Y18.79%
EPS 5Y21.29%
EPS Q2Q%-27.44%
Revenue 1Y (TTM)6.96%
Revenue growth 3Y5.29%
Revenue growth 5Y8.86%
Sales Q2Q%2.99%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.86% on average over the next years. This is quite good.
  • NTES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.25% yearly.
EPS Next Y10.46%
EPS Next 2Y10.59%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue Next Year6.18%
Revenue Next 2Y7.37%
Revenue Next 3Y7.3%
Revenue Next 5Y8.25%

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 stable.
NTES Yearly Revenue VS EstimatesNTES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 50B 100B 150B 200B
NTES Yearly EPS VS EstimatesNTES Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20 40 60

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8

4. NTES Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.30, the valuation of NTES can be described as correct.
  • NTES's Price/Earnings ratio is rather cheap when compared to the industry. NTES is cheaper than 91.14% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.86, NTES is valued rather cheaply.
  • NTES is valuated correctly with a Price/Forward Earnings ratio of 12.04.
  • NTES's Price/Forward Earnings ratio is rather cheap when compared to the industry. NTES is cheaper than 92.41% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of NTES to the average of the S&P500 Index (37.39), we can say NTES is valued rather cheaply.
Industry RankSector Rank
PE 13.3
Fwd PE 12.04
NTES Price Earnings VS Forward Price EarningsNTES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NTES is valued cheaper than 87.34% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NTES is valued cheaply inside the industry as 89.87% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.21
EV/EBITDA 5.72
NTES Per share dataNTES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of NTES may justify a higher PE ratio.
PEG (NY)1.27
PEG (5Y)0.62
EPS Next 2Y10.59%
EPS Next 3Y9.86%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. NTES Dividend Analysis

5.1 Amount

  • NTES has a Yearly Dividend Yield of 2.62%.
  • NTES's Dividend Yield is rather good when compared to the industry average which is at 9.59. NTES pays more dividend than 94.94% of the companies in the same industry.
  • NTES's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.62%

5.2 History

  • On average, the dividend of NTES grows each year by 27.38%, which is quite nice.
  • 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)27.38%
Div Incr Years4
Div Non Decr Years4
NTES Yearly Dividends per shareNTES Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • NTES pays out 40.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of NTES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.95%
EPS Next 2Y10.59%
EPS Next 3Y9.86%
NTES Yearly Income VS Free CF VS DividendNTES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B
NTES Dividend Payout.NTES Dividend Payout, showing the Payout Ratio.NTES Dividend Payout.PayoutRetained Earnings

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NTES Fundamentals: All Metrics, Ratios and Statistics

NETEASE INC-ADR

NASDAQ:NTES (4/13/2026, 3:22:48 PM)

112.93

+0.21 (+0.19%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-11
Earnings (Next)05-13
Inst Owners9.78%
Inst Owner Change0.03%
Ins OwnersN/A
Ins Owner Change0%
Market Cap72.78B
Revenue(TTM)112.63B
Net Income(TTM)33.76B
Analysts84
Price Target164.69 (45.83%)
Short Float %1.65%
Short Ratio2.35
Dividend
Industry RankSector Rank
Dividend Yield 2.62%
Yearly Dividend3.2
Dividend Growth(5Y)27.38%
DP40.95%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-16
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.34%
Min EPS beat(2)-24.4%
Max EPS beat(2)-2.28%
EPS beat(4)1
Avg EPS beat(4)-1.63%
Min EPS beat(4)-24.4%
Max EPS beat(4)22.83%
EPS beat(8)3
Avg EPS beat(8)-0.05%
EPS beat(12)6
Avg EPS beat(12)7.66%
EPS beat(16)9
Avg EPS beat(16)9.89%
Revenue beat(2)0
Avg Revenue beat(2)-5.29%
Min Revenue beat(2)-5.94%
Max Revenue beat(2)-4.64%
Revenue beat(4)0
Avg Revenue beat(4)-3.82%
Min Revenue beat(4)-5.94%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-3.58%
Revenue beat(12)0
Avg Revenue beat(12)-3.82%
Revenue beat(16)1
Avg Revenue beat(16)-2.96%
PT rev (1m)-0.13%
PT rev (3m)-1.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.3%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.84%
Valuation
Industry RankSector Rank
PE 13.3
Fwd PE 12.04
P/S 4.41
P/FCF 10.21
P/OCF 9.79
P/B 3.1
P/tB 3.1
EV/EBITDA 5.72
EPS(TTM)8.49
EY7.52%
EPS(NY)9.38
Fwd EY8.31%
FCF(TTM)11.06
FCFY9.8%
OCF(TTM)11.53
OCFY10.21%
SpS25.59
BVpS36.42
TBVpS36.42
PEG (NY)1.27
PEG (5Y)0.62
Graham Number83.41
Profitability
Industry RankSector Rank
ROA 15.25%
ROE 21.06%
ROCE 21.2%
ROIC 17.36%
ROICexc 237.51%
ROICexgc 237.51%
OM 31.82%
PM (TTM) 29.98%
GM 64.29%
FCFM 43.23%
ROA(3y)15.41%
ROA(5y)13.79%
ROE(3y)22.05%
ROE(5y)20.65%
ROIC(3y)16.27%
ROIC(5y)14.43%
ROICexc(3y)151.85%
ROICexc(5y)117.21%
ROICexgc(3y)165.28%
ROICexgc(5y)130.46%
ROCE(3y)20.8%
ROCE(5y)19.05%
ROICexgc growth 3Y37.02%
ROICexgc growth 5Y26.31%
ROICexc growth 3Y47.09%
ROICexc growth 5Y32.41%
OM growth 3Y16.08%
OM growth 5Y10.02%
PM growth 3Y12.46%
PM growth 5Y12.85%
GM growth 3Y5.54%
GM growth 5Y3.97%
F-Score8
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.13
Debt/EBITDA 0.17
Cap/Depr 91.33%
Cap/Sales 1.82%
Interest Coverage 92.36
Cash Conversion 133.24%
Profit Quality 144.22%
Current Ratio 3.45
Quick Ratio 3.44
Altman-Z N/A
F-Score8
WACC7.54%
ROIC/WACC2.3
Cap/Depr(3y)107.51%
Cap/Depr(5y)101.99%
Cap/Sales(3y)2.68%
Cap/Sales(5y)2.87%
Profit Quality(3y)125.32%
Profit Quality(5y)125.73%
High Growth Momentum
Growth
EPS 1Y (TTM)11.82%
EPS 3Y18.79%
EPS 5Y21.29%
EPS Q2Q%-27.44%
EPS Next Y10.46%
EPS Next 2Y10.59%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue 1Y (TTM)6.96%
Revenue growth 3Y5.29%
Revenue growth 5Y8.86%
Sales Q2Q%2.99%
Revenue Next Year6.18%
Revenue Next 2Y7.37%
Revenue Next 3Y7.3%
Revenue Next 5Y8.25%
EBIT growth 1Y21.13%
EBIT growth 3Y22.22%
EBIT growth 5Y19.77%
EBIT Next Year17.54%
EBIT Next 3Y12.79%
EBIT Next 5Y11.45%
FCF growth 1Y29.94%
FCF growth 3Y24.77%
FCF growth 5Y17.65%
OCF growth 1Y27.88%
OCF growth 3Y22.34%
OCF growth 5Y15.31%

NETEASE INC-ADR / NTES Fundamental Analysis 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.


How profitable is NETEASE INC-ADR (NTES) stock?

NETEASE INC-ADR (NTES) has a profitability rating of 9 / 10.


Can you provide the financial health for NTES stock?

The financial health rating of NETEASE INC-ADR (NTES) is 8 / 10.


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 40.95%.