NETEASE INC-ADR (NTES) Stock Fundamental Analysis

NASDAQ:NTES • US64110W1027

112.23 USD
-2.96 (-2.57%)
Last: Mar 3, 2026, 10:08 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to NTES. NTES was compared to 80 industry peers in the Entertainment industry. NTES gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on NTES. With these ratings, NTES could be worth investigating further for value and quality investing!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • NTES had positive earnings in the past year.
  • NTES had a positive operating cash flow in the past year.
  • In the past 5 years NTES has always been profitable.
  • 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

  • NTES's Return On Assets of 15.25% is amongst the best of the industry. NTES outperforms 93.75% of its industry peers.
  • With an excellent Return On Equity value of 21.06%, NTES belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 17.36%, NTES belongs to the best 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

  • NTES has a better Profit Margin (29.98%) than 97.50% of its industry peers.
  • 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.
  • NTES's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 64.29%, NTES is in the better half of the industry, outperforming 71.25% of the companies in the same industry.
  • NTES's Gross Margin has improved in the last couple of years.
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

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

  • NTES has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
  • NTES's Debt to FCF ratio of 0.13 is amongst the best of the industry. NTES outperforms 92.50% of its industry peers.
  • A Debt/Equity ratio of 0.04 indicates that NTES is not too dependend on debt financing.
  • NTES's Debt to Equity ratio of 0.04 is fine compared to the rest 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/WACC2.18
WACC7.97%
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.
  • The Current ratio of NTES (3.45) is better than 87.50% of its industry peers.
  • NTES has a Quick Ratio of 3.44. This indicates that NTES is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 3.44, NTES belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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

  • NTES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.82%, which is quite good.
  • Measured over the past years, NTES shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.29% on average per year.
  • The Revenue has been growing slightly by 6.96% in the past year.
  • The Revenue has been growing by 8.86% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to decrease by -35.69% 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 9.17% 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

  • 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 stable: in the next years the growth will be about the same than in the last years.
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

  • With a Price/Earnings ratio of 13.31, NTES is valued correctly.
  • 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.
  • Compared to an average S&P500 Price/Earnings ratio of 27.13, NTES is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 11.66, the valuation of NTES can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, NTES is valued cheaper than 91.25% of the companies in the same industry.
  • NTES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.11.
Industry RankSector Rank
PE 13.31
Fwd PE 11.66
NTES Price Earnings VS Forward Price EarningsNTES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • NTES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTES is cheaper than 87.50% of the companies 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 10.22
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

  • 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.
  • NTES's earnings are expected to decrease with -35.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.94
PEG (5Y)0.63
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.
  • Compared to an average industry Dividend Yield of 7.42, NTES pays a better dividend. On top of this NTES pays more dividend than 93.75% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, NTES pays a bit more dividend than the S&P500 average.
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 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)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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Find the best dividend stocksShow peers with best dividend

NETEASE INC-ADR

NASDAQ:NTES (3/3/2026, 10:08:00 AM)

112.23

-2.96 (-2.57%)

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 Cap72.33B
Revenue(TTM)112.63B
Net Income(TTM)33.76B
Analysts84.71
Price Target164.9 (46.93%)
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 13.31
Fwd PE 11.66
P/S 4.42
P/FCF 10.22
P/OCF 9.81
P/B 3.11
P/tB 3.11
EV/EBITDA 6.12
EPS(TTM)8.43
EY7.51%
EPS(NY)9.62
Fwd EY8.58%
FCF(TTM)10.98
FCFY9.78%
OCF(TTM)11.44
OCFY10.19%
SpS25.39
BVpS36.14
TBVpS36.14
PEG (NY)0.94
PEG (5Y)0.63
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
WACC7.97%
ROIC/WACC2.18
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 13.31 and the Price/Book (PB) ratio is 3.11.


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%.