NETEASE INC-ADR (NTES) Stock Fundamental Analysis

NASDAQ:NTES • US64110W1027

115.56 USD
+0.37 (+0.32%)
At close: Mar 3, 2026
115.6 USD
+0.04 (+0.03%)
After Hours: 3/3/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

8

NTES gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 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. NTES is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make NTES a good candidate for value and quality investing.


Dividend Valuation Growth Profitability Health

9

1. Profitability

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 93.75% of its industry peers.
  • The Return On Equity of NTES (21.06%) is better than 90.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 17.36%, NTES belongs to the top of the industry, outperforming 96.25% of the companies in the same industry.
  • NTES had an Average Return On Invested Capital over the past 3 years of 16.27%. This is significantly above the industry average of 7.13%.
  • 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

  • With an excellent Profit Margin value of 29.98%, NTES belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
  • NTES's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 31.82%, NTES belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
  • In the last couple of years the Operating Margin of NTES has grown nicely.
  • NTES has a Gross Margin of 64.29%. This is in the better half 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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 remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, NTES has less shares outstanding
  • NTES has a better debt/assets ratio than last year.
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

  • The Debt to FCF ratio of NTES is 0.13, which is an excellent value as it means it would take NTES, only 0.13 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.13, NTES belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
  • A Debt/Equity ratio of 0.04 indicates that NTES is not too dependend on debt financing.
  • NTES has a Debt to Equity ratio of 0.04. This is in the better half of the industry: NTES outperforms 67.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 0.13
Altman-Z N/A
ROIC/WACC2.17
WACC7.98%
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

  • NTES has a Current Ratio of 3.45. This indicates that NTES is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 3.45, NTES belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • A Quick Ratio of 3.44 indicates that NTES has no problem at all paying its short term obligations.
  • The Quick ratio of NTES (3.44) is better than 87.50% 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

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 11.82% over the past year.
  • NTES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.29% yearly.
  • The Revenue has been growing slightly by 6.96% in the past year.
  • NTES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.86% yearly.
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

  • NTES is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -35.69% yearly.
  • NTES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.17% yearly.
EPS Next Y14.21%
EPS Next 2Y12.45%
EPS Next 3Y-35.69%
EPS Next 5YN/A
Revenue Next Year6.57%
Revenue Next 2Y7.46%
Revenue Next 3Y7.46%
Revenue Next 5Y9.17%

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 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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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.71, the valuation of NTES can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of NTES indicates a rather cheap valuation: NTES is cheaper than 91.25% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of NTES to the average of the S&P500 Index (26.83), we can say NTES is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 12.01 indicates a correct valuation of NTES.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NTES indicates a rather cheap valuation: NTES is cheaper than 91.25% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, NTES is valued rather cheaply.
Industry RankSector Rank
PE 13.71
Fwd PE 12.01
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTES indicates a rather cheap valuation: NTES is cheaper than 87.50% of the companies listed 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 93.75% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.53
EV/EBITDA 6.12
NTES Per share dataNTES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • The excellent profitability rating of NTES may justify a higher PE ratio.
  • NTES's earnings are expected to decrease with -35.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.96
PEG (5Y)0.64
EPS Next 2Y12.45%
EPS Next 3Y-35.69%

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

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.57%, NTES has a reasonable but not impressive dividend return.
  • NTES's Dividend Yield is rather good when compared to the industry average which is at 7.44. NTES pays more dividend than 93.75% 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 2.57%

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 Years3
Div Non Decr Years3
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.
DP40.95%
EPS Next 2Y12.45%
EPS Next 3Y-35.69%
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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NETEASE INC-ADR

NASDAQ:NTES (3/3/2026, 8:00:02 PM)

After market: 115.6 +0.04 (+0.03%)

115.56

+0.37 (+0.32%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-11
Earnings (Next)05-13
Inst Owners10.38%
Inst Owner Change-4.69%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap74.48B
Revenue(TTM)112.63B
Net Income(TTM)33.76B
Analysts84.71
Price Target164.9 (42.7%)
Short Float %1.79%
Short Ratio3.16
Dividend
Industry RankSector Rank
Dividend Yield 2.57%
Yearly Dividend3.19
Dividend Growth(5Y)27.38%
DP40.95%
Div Incr Years3
Div Non Decr Years3
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)-2.35%
PT rev (3m)0.21%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)-4.02%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)-4.3%
Revenue NQ rev (3m)-3.7%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-2.13%
Valuation
Industry RankSector Rank
PE 13.71
Fwd PE 12.01
P/S 4.55
P/FCF 10.53
P/OCF 10.1
P/B 3.2
P/tB 3.2
EV/EBITDA 6.12
EPS(TTM)8.43
EY7.29%
EPS(NY)9.62
Fwd EY8.33%
FCF(TTM)10.98
FCFY9.5%
OCF(TTM)11.44
OCFY9.9%
SpS25.39
BVpS36.14
TBVpS36.14
PEG (NY)0.96
PEG (5Y)0.64
Graham Number82.79
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
WACC7.98%
ROIC/WACC2.17
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 Y14.21%
EPS Next 2Y12.45%
EPS Next 3Y-35.69%
EPS Next 5YN/A
Revenue 1Y (TTM)6.96%
Revenue growth 3Y5.29%
Revenue growth 5Y8.86%
Sales Q2Q%2.99%
Revenue Next Year6.57%
Revenue Next 2Y7.46%
Revenue Next 3Y7.46%
Revenue Next 5Y9.17%
EBIT growth 1Y21.13%
EBIT growth 3Y22.22%
EBIT growth 5Y19.77%
EBIT Next Year17.69%
EBIT Next 3Y12.86%
EBIT Next 5Y13.24%
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 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 13.71 and the Price/Book (PB) ratio is 3.2.


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%.