136.065 USD
-0.69 (-0.51%)
136.065 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. 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 could make NTES a good candidate 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.
NTES had positive earnings in each of the past 5 years.
In the past 5 years NTES always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.92%, NTES belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
With an excellent Return On Equity value of 23.22%, NTES belongs to the best of the industry, outperforming 88.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.58%, NTES belongs to the top of the industry, outperforming 93.75% 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 9.08%.
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
With an excellent Profit Margin value of 32.45%, NTES belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
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 98.75% of its industry peers.
NTES's Operating Margin has improved in the last couple of years.
NTES has a better Gross Margin (63.47%) than 71.25% of its industry peers.
In the last couple of years the Gross Margin of NTES has grown nicely.
| 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
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.
Looking at the Debt to FCF ratio, with a value of 0.16, NTES belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
NTES has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.05, NTES is doing good in 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/WACC2.51
WACC7%
2.3 Liquidity
NTES has a Current Ratio of 3.42. This indicates that NTES is financially healthy and has no problem in meeting its short term obligations.
NTES's Current ratio of 3.42 is amongst the best of the industry. NTES outperforms 90.00% 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.
NTES has a Quick ratio of 3.41. This is amongst the best in the industry. NTES outperforms 90.00% 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.
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%.
Measured over the past years, NTES shows a quite strong growth in Revenue. The Revenue has been growing by 12.19% on average per year.
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
NTES is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -26.15% yearly.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
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.
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 15.46, NTES is valued correctly.
NTES's Price/Earnings ratio is rather cheap when compared to the industry. NTES is cheaper than 86.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, NTES is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.58, NTES is valued correctly.
Based on the Price/Forward Earnings ratio, NTES is valued cheaper than 88.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NTES to the average of the S&P500 Index (23.80), we can say NTES is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
76.25% of the companies in the same industry are more expensive than NTES, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTES indicates a rather cheap valuation: NTES is cheaper than 92.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 9.38 |
4.3 Compensation for Growth
The 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)0.88
EPS Next 2Y12.73%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
NTES has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 34.07, NTES pays a better dividend. On top of this NTES pays more dividend than 91.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, NTES has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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
36.47% of the earnings are spent on dividend by NTES. This is a low number and sustainable payout ratio.
DP36.47%
EPS Next 2Y12.73%
EPS Next 3Y12.08%
136.065
-0.69 (-0.51%)
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 Cap87.69B
Revenue(TTM)111.83B
Net Income(TTM)36.28B
Analysts83.89
Price Target167.93 (23.42%)
Short Float %1.53%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend2.48
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)2.28%
PT rev (3m)7.92%
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)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 14.58 | ||
| P/S | 5.54 | ||
| P/FCF | 13.24 | ||
| P/OCF | 12.66 | ||
| P/B | 3.96 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 9.38 |
EPS(TTM)8.8
EY6.47%
EPS(NY)9.33
Fwd EY6.86%
FCF(TTM)10.27
FCFY7.55%
OCF(TTM)10.75
OCFY7.9%
SpS24.57
BVpS34.33
TBVpS34.33
PEG (NY)0.76
PEG (5Y)0.88
Graham Number82.44
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
WACC7%
ROIC/WACC2.51
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.