By **Mill Chart**

Last update: Jul 18, 2024

NETEASE INC-ADR (NASDAQ:NTES) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:NTES showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

An integral part of ChartMill's stock analysis is the **Valuation Rating**, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:NTES has received a **7** out of 10:

- 86.30% of the companies in the same industry are more expensive than
**NTES**, based on the**Price/Earnings**ratio. **NTES**'s**Price/Earnings**ratio indicates a rather cheap valuation when compared to the S&P500 average which is at**29.15**.**NTES**is valuated reasonably with a**Price/Forward Earnings**ratio of**11.56**.- Based on the
**Price/Forward Earnings**ratio,**NTES**is valued cheaper than 89.04% of the companies in the same industry. - Compared to an average S&P500
**Price/Forward Earnings**ratio of**20.79**,**NTES**is valued a bit cheaper. - Based on the
**Enterprise Value to EBITDA**ratio,**NTES**is valued a bit cheaper than 79.45% of the companies in the same industry. - 87.67% of the companies in the same industry are more expensive than
**NTES**, based on the**Price/Free Cash Flow**ratio. **NTES**has an outstanding profitability rating, which may justify a higher PE ratio.

Discover ChartMill's exclusive **Profitability Rating**, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NTES has achieved a **9**:

- The
**Return On Assets**of**NTES**(**15.53%**) is better than**97.26%**of its industry peers. **NTES**has a better**Return On Equity**(**23.80%**) than**91.78%**of its industry peers.- Looking at the
**Return On Invested Capital**, with a value of**14.55%**,**NTES**belongs to the top of the industry, outperforming**93.15%**of the companies in the same industry. - The last
**Return On Invested Capital**(**14.55%**) for**NTES**is above the 3 year average (**12.62%**), which is a sign of increasing profitability. **NTES**has a**Profit Margin**of**28.78%**. This is amongst the best in the industry.**NTES**outperforms**97.26%**of its industry peers.- In the last couple of years the
**Profit Margin**of**NTES**has grown nicely. - Looking at the
**Operating Margin**, with a value of**26.70%**,**NTES**belongs to the top of the industry, outperforming**97.26%**of the companies in the same industry. **NTES**'s**Operating Margin**has improved in the last couple of years.**NTES**has a**Gross Margin**of**61.92%**. This is in the better half of the industry:**NTES**outperforms**78.08%**of its industry peers.- In the last couple of years the
**Gross Margin**of**NTES**has grown nicely.

ChartMill employs a unique **Health Rating** system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:NTES, the assigned **7** for health provides valuable insights:

**NTES**has a debt to FCF ratio of**0.71**. This is a very positive value and a sign of high solvency as it would only need**0.71**years to pay back of all of its debts.**NTES**has a better**Debt to FCF ratio**(**0.71**) than**93.15%**of its industry peers.- A Debt/Equity ratio of
**0.20**indicates that**NTES**is not too dependend on debt financing. **NTES**has a Current Ratio of**2.53**. This indicates that**NTES**is financially healthy and has no problem in meeting its short term obligations.**NTES**has a**Current ratio**of**2.53**. This is in the better half of the industry:**NTES**outperforms**76.71%**of its industry peers.- A Quick Ratio of
**2.52**indicates that**NTES**has no problem at all paying its short term obligations. **NTES**has a**Quick ratio**of**2.52**. This is in the better half of the industry:**NTES**outperforms**78.08%**of its industry peers.

ChartMill assigns a proprietary **Growth Rating** to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:NTES was assigned a score of **6** for growth:

**NTES**shows a strong growth in**Earnings Per Share**. In the last year, the EPS has been growing by**34.03%**, which is quite impressive.**NTES**shows a strong growth in**Earnings Per Share**. Measured over the last years, the EPS has been growing by**39.56%**yearly.- Measured over the past years,
**NTES**shows a quite strong growth in**Revenue**. The Revenue has been growing by**15.12%**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**9.53%**on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of NTES for a complete fundamental analysis.

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.