127.38 USD
-1.7 (-1.32%)
Last: Feb 3, 2026, 02:16 PM
Overall NTES gets a fundamental rating of 8 out of 10. We evaluated NTES against 80 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making NTES a very profitable company, without any liquidiy or solvency issues. NTES is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make NTES suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year NTES was profitable.
- NTES had a positive operating cash flow in the past year.
- Each year in the past 5 years NTES has been profitable.
- Each year in the past 5 years NTES had a positive operating cash flow.
1.2 Ratios
- NTES has a better Return On Assets (16.92%) than 92.50% of its industry peers.
- With an excellent Return On Equity value of 23.22%, NTES belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- NTES's Return On Invested Capital of 17.58% is amongst the best of the industry. NTES outperforms 93.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NTES is significantly above the industry average of 8.74%.
- The 3 year average ROIC (14.54%) for NTES is below the current ROIC(17.58%), indicating increased profibility in the last year.
| 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
- NTES's Profit Margin of 32.45% is amongst the best of the industry. NTES outperforms 97.50% of its industry peers.
- In the last couple of years the Profit Margin of NTES has declined.
- With an excellent Operating Margin value of 31.60%, NTES belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
- NTES's Operating Margin has improved in the last couple of years.
- NTES has a better Gross Margin (63.47%) than 70.00% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NTES is creating value.
- NTES has less shares outstanding than it did 1 year ago.
- NTES has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NTES has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of NTES is 0.16, which is an excellent value as it means it would take NTES, only 0.16 years of fcf income to pay off all of its debts.
- NTES has a better Debt to FCF ratio (0.16) than 91.25% of its industry peers.
- NTES has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.05, NTES is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | N/A |
ROIC/WACC2.13
WACC8.24%
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 87.50% of its industry peers.
- NTES has a Quick Ratio of 3.41. This indicates that NTES is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of NTES (3.41) is better than 87.50% of its industry peers.
| 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.
- Measured over the past years, NTES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.51% on average per year.
- The Revenue has been growing slightly by 5.81% in the past year.
- NTES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.19% yearly.
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
- The Earnings Per Share is expected to decrease by -26.15% on average over the next years. This is quite bad
- NTES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.57% yearly.
EPS Next Y20.61%
EPS Next 2Y13.13%
EPS Next 3Y12.27%
EPS Next 5Y-26.15%
Revenue Next Year7.4%
Revenue Next 2Y7.74%
Revenue Next 3Y8.19%
Revenue Next 5Y9.57%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.23, NTES is valued correctly.
- Based on the Price/Earnings ratio, NTES is valued cheaply inside the industry as 88.75% of the companies are valued more expensively.
- NTES is valuated rather cheaply when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 13.32, NTES is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NTES indicates a rather cheap valuation: NTES is cheaper than 90.00% of the companies listed in the same industry.
- NTES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 13.32 |
4.2 Price Multiples
- 78.75% of the companies in the same industry are more expensive than NTES, based on the Enterprise Value to EBITDA ratio.
- NTES's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTES is cheaper than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.19 | ||
| EV/EBITDA | 8.27 |
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.
- The excellent profitability rating of NTES may justify a higher PE ratio.
- NTES's earnings are expected to grow with 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)0.81
EPS Next 2Y13.13%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
- NTES has a Yearly Dividend Yield of 2.29%. Purely for dividend investing, there may be better candidates out there.
- NTES's Dividend Yield is rather good when compared to the industry average which is at 7.59. NTES pays more dividend than 91.25% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, NTES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
- The dividend of NTES has a limited annual growth rate of 4.94%.
- 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)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 2Y13.13%
EPS Next 3Y12.27%
NASDAQ:NTES (2/3/2026, 2:16:14 PM)
127.38
-1.7 (-1.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-20 2025-11-20/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners10.38%
Inst Owner Change-0.14%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap82.10B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts84.57
Price Target168.88 (32.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend2.52
Dividend Growth(5Y)4.94%
DP36.47%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)0.56%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 13.32 | ||
| P/S | 5.1 | ||
| P/FCF | 12.19 | ||
| P/OCF | 11.65 | ||
| P/B | 3.65 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)8.95
EY7.03%
EPS(NY)9.56
Fwd EY7.51%
FCF(TTM)10.45
FCFY8.2%
OCF(TTM)10.93
OCFY8.58%
SpS24.99
BVpS34.92
TBVpS34.92
PEG (NY)0.69
PEG (5Y)0.81
Graham Number83.85
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
WACC8.24%
ROIC/WACC2.13
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 Y20.61%
EPS Next 2Y13.13%
EPS Next 3Y12.27%
EPS Next 5Y-26.15%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y6.32%
Revenue growth 5Y12.19%
Sales Q2Q%8.2%
Revenue Next Year7.4%
Revenue Next 2Y7.74%
Revenue Next 3Y8.19%
Revenue Next 5Y9.57%
EBIT growth 1Y23.42%
EBIT growth 3Y21.69%
EBIT growth 5Y16.49%
EBIT Next Year36.1%
EBIT Next 3Y18.63%
EBIT Next 5Y16.25%
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 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 14.23 and the Price/Book (PB) ratio is 3.65.
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 36.47%.