137.44 USD
+2.09 (+1.54%)
137.44 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to NTES. NTES was compared to 80 industry peers in the Entertainment industry. NTES scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
Each year in the past 5 years NTES has been profitable.
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 92.59% of its industry peers.
NTES has a Return On Equity of 23.22%. This is amongst the best in the industry. NTES outperforms 90.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.58%, NTES belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTES is significantly above the industry average of 8.73%.
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
The Profit Margin of NTES (32.45%) is better than 97.53% of its industry peers.
In the last couple of years the Profit Margin of NTES has declined.
NTES's Operating Margin of 31.60% is amongst the best of the industry. NTES outperforms 98.77% of its industry peers.
In the last couple of years the Operating Margin of NTES has grown nicely.
Looking at the Gross Margin, with a value of 63.47%, NTES is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
NTES's Gross Margin has improved in the last couple of years.
| 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.
Compared to 5 years ago, NTES has less shares outstanding
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.
The Debt to FCF ratio of NTES (0.16) is better than 91.36% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that NTES is not too dependend on debt financing.
NTES has a Debt to Equity ratio of 0.05. This is in the better half of the industry: NTES outperforms 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | N/A |
ROIC/WACC2.09
WACC8.41%
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 better Current ratio (3.42) than 88.89% 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 88.89% 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.
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
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.
NTES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.64% yearly.
EPS Next Y20.48%
EPS Next 2Y12.73%
EPS Next 3Y12.08%
EPS Next 5Y-26.15%
Revenue Next Year7.63%
Revenue Next 2Y7.72%
Revenue Next 3Y8.19%
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
Based on the Price/Earnings ratio of 15.57, the valuation of NTES can be described as correct.
Based on the Price/Earnings ratio, NTES is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.39, NTES is valued a bit cheaper.
NTES is valuated correctly with a Price/Forward Earnings ratio of 14.68.
Based on the Price/Forward Earnings ratio, NTES is valued cheaper than 90.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NTES to the average of the S&P500 Index (23.84), we can say NTES is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
NTES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NTES is cheaper than 77.78% of the companies in the same industry.
92.59% 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 | 13.34 | ||
| EV/EBITDA | 9.5 |
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 12.08% in the coming years.
PEG (NY)0.76
PEG (5Y)0.89
EPS Next 2Y12.73%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, 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 7.66. NTES pays more dividend than 91.36% of the companies in the same industry.
NTES's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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
NTES pays out 36.47% of its income as dividend. This is a sustainable payout ratio.
DP36.47%
EPS Next 2Y12.73%
EPS Next 3Y12.08%
137.44
+2.09 (+1.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners10.4%
Inst Owner Change7.83%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap88.58B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts83.89
Price Target167.93 (22.18%)
Short Float %1.48%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend2.49
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)2.05%
PT rev (3m)6.6%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-1%
EPS NY rev (3m)-0.62%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 14.68 | ||
| P/S | 5.58 | ||
| P/FCF | 13.34 | ||
| P/OCF | 12.75 | ||
| P/B | 3.99 | ||
| P/tB | 3.99 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)8.83
EY6.42%
EPS(NY)9.36
Fwd EY6.81%
FCF(TTM)10.31
FCFY7.5%
OCF(TTM)10.78
OCFY7.85%
SpS24.64
BVpS34.43
TBVpS34.43
PEG (NY)0.76
PEG (5Y)0.89
Graham Number82.71
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
WACC8.41%
ROIC/WACC2.09
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 Y20.48%
EPS Next 2Y12.73%
EPS Next 3Y12.08%
EPS Next 5Y-26.15%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y6.32%
Revenue growth 5Y12.19%
Sales Q2Q%8.2%
Revenue Next Year7.63%
Revenue Next 2Y7.72%
Revenue Next 3Y8.19%
Revenue Next 5Y9.64%
EBIT growth 1Y23.42%
EBIT growth 3Y21.69%
EBIT growth 5Y16.49%
EBIT Next Year35.36%
EBIT Next 3Y18.53%
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 20.48% in the next year.