Is NETEASE INC-ADR (NASDAQ:NTES) the type of stock Peter Lynch would love?

Known for his philosophy of investing in what you know, Peter Lynch looked for companies with consistent earnings growth, low debt, and a competitive edge. Does NETEASE INC-ADR (NASDAQ:NTES) meet these key criteria? Let’s find out.

Would Peter Lynch consider NETEASE INC-ADR (NASDAQ:NTES) a winning stock?

• With a solid Return on Equity (ROE) of 21.41%, NTES exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• NTES has a Debt/Equity ratio of 0.09, indicating a balanced approach to financing growth.
• Over the past 5 years, NTES has demonstrated 17.51 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• A PEG ratio of 0.81 suggests that NTES offers an attractive balance between growth and valuation.
• NTES’s Current Ratio of 3.09 highlights its ability to sustain day-to-day operations without liquidity concerns.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to NTES. NTES was compared to 72 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! With these ratings, NTES could be worth investigating further for value investing!.

Our latest full fundamental report of NTES contains the most current fundamental analsysis.

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.