Executive Summary
NetEase, Inc., an Internet technology company, provides online services focusing on content, community, communication, and commerce in the Peoples’ Republic of China and internationally.
Snowflake Analysis
Solid track record with excellent balance sheet.
Similar Companies
Share Price & News
How has NetEase's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NTES has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.1%
NTES
0%
AT Entertainment
0%
AT Market
1 Year Return
87.1%
NTES
0%
AT Entertainment
0%
AT Market
Return vs Industry: NTES exceeded the Austrian Entertainment industry which returned 6.4% over the past year.
Return vs Market: NTES exceeded the Austrian Market which returned -21.2% over the past year.
Shareholder returns
| NTES | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 0% | 0% |
| 30 Day | -5.2% | 0% | 0% |
| 90 Day | 19.8% | 0% | 0% |
| 1 Year | 93.6%87.1% | 0%0% | 0%0% |
| 3 Year | 81.1%72.0% | 0%0% | 0%0% |
| 5 Year | n/a | 0%0% | 0%0% |
Price Volatility Vs. Market
How volatile is NetEase's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is NetEase undervalued compared to its fair value and its price relative to the market?
29.77x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NTES (€400) is trading above our estimate of fair value (€200.68)
Significantly Below Fair Value: NTES is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NTES is good value based on its PE Ratio (29.8x) compared to the XE Entertainment industry average (33.2x).
PE vs Market: NTES is poor value based on its PE Ratio (29.8x) compared to the Austrian market (14.1x).
Price to Earnings Growth Ratio
PEG Ratio: NTES is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: NTES is overvalued based on its PB Ratio (6.7x) compared to the XE Entertainment industry average (3.9x).
Next Steps
Future Growth
How is NetEase forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?
12.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NTES's forecast earnings growth (12.3% per year) is above the savings rate (0.5%).
Earnings vs Market: NTES's earnings (12.3% per year) are forecast to grow slower than the Austrian market (24.5% per year).
High Growth Earnings: NTES's earnings are forecast to grow, but not significantly.
Revenue vs Market: NTES's revenue (10.3% per year) is forecast to grow faster than the Austrian market (3.9% per year).
High Growth Revenue: NTES's revenue (10.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NTES's Return on Equity is forecast to be low in 3 years time (18.6%).
Next Steps
Past Performance
How has NetEase performed over the past 5 years?
13.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NTES has high quality earnings.
Growing Profit Margin: NTES's current net profit margins (22.8%) are higher than last year (19.8%).
Past Earnings Growth Analysis
Earnings Trend: NTES's earnings have grown by 13.5% per year over the past 5 years.
Accelerating Growth: NTES's earnings growth over the past year (37.4%) exceeds its 5-year average (13.5% per year).
Earnings vs Industry: NTES earnings growth over the past year (37.4%) exceeded the Entertainment industry 24.4%.
Return on Equity
High ROE: NTES's Return on Equity (19.7%) is considered low.
Next Steps
Financial Health
How is NetEase's financial position?
Financial Position Analysis
Short Term Liabilities: NTES's short term assets (CN¥90.2B) exceed its short term liabilities (CN¥43.4B).
Long Term Liabilities: NTES's short term assets (CN¥90.2B) exceed its long term liabilities (CN¥1.1B).
Debt to Equity History and Analysis
Debt Level: NTES's debt to equity ratio (26.5%) is considered satisfactory.
Reducing Debt: NTES's debt to equity ratio has increased from 5% to 26.5% over the past 5 years.
Debt Coverage: NTES's debt is well covered by operating cash flow (103.6%).
Interest Coverage: NTES earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is NetEase current dividend yield, its reliability and sustainability?
1.47%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NTES's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.6%).
High Dividend: NTES's dividend (1.47%) is low compared to the top 25% of dividend payers in the Austrian market (4.95%).
Stability and Growth of Payments
Stable Dividend: NTES has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: NTES's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.2%), NTES's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NTES's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
13.0yrs
Average management tenure
CEO
William Ding (48 yo)
14.75yrs
Tenure
Mr. Lei Ding, also known as William, founded NetEase, Inc. and has been its Chief Executive Officer since November 2005. Mr. Ding founded NetEase Capital in April 2012. Mr. Ding is a Director of Youdao, In ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 14.75yrs | no data | 1.45% CN¥ 791.6m | |
| Chief Financial Officer | 3.17yrs | no data | no data | |
| IR Director | no data | no data | no data | |
| Senior Vice President of Search Operations | 13yrs | no data | no data |
13.0yrs
Average Tenure
42yo
Average Age
Experienced Management: NTES's management team is seasoned and experienced (13 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 14.75yrs | no data | 1.45% CN¥ 791.6m | |
| Independent Director | 20.67yrs | no data | no data | |
| Independent Director | 18.33yrs | CN¥12.00k | no data | |
| Independent Director | 15.08yrs | CN¥14.32k | no data | |
| Independent Director | 17.42yrs | CN¥54.00k | no data | |
| Independent Director | 18.08yrs | CN¥54.00k | no data | |
| Independent Non-Executive Director | 13.17yrs | CN¥66.86k | no data |
18.1yrs
Average Tenure
57yo
Average Age
Experienced Board: NTES's board of directors are seasoned and experienced ( 18.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8%.
Top Shareholders
Company Information
NetEase, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NetEase, Inc.
- Ticker: NTES
- Exchange: WBAG
- Founded: 1997
- Industry: Interactive Home Entertainment
- Sector: Media
- Market Cap: US$64.472b
- Listing Market Cap: US$54.698b
- Shares outstanding: 138.20m
- Website: https://ir.netease.com
Number of Employees
Location
- NetEase, Inc.
- NetEase Building
- No. 599 Wangshang Road
- Hangzhou
- Zhejiang Province
- 310052
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NTES | NasdaqGS (Nasdaq Global Select) | Yes | ADR EACH REPR 25 COM STK USD0.0001 | US | USD | Jun 2000 |
| NEH | DB (Deutsche Boerse AG) | Yes | ADR EACH REPR 25 COM STK USD0.0001 | DE | EUR | Jun 2000 |
| NTES N | BMV (Bolsa Mexicana de Valores) | Yes | ADR EACH REPR 25 COM STK USD0.0001 | MX | MXN | Jun 2000 |
| NTES | SWX (SIX Swiss Exchange) | Yes | ADR EACH REPR 25 COM STK USD0.0001 | CH | CHF | Jun 2000 |
| NTES | WBAG (Wiener Boerse AG) | Yes | ADR EACH REPR 25 COM STK USD0.0001 | AT | EUR | Jun 2000 |
| 0K6G | LSE (London Stock Exchange) | Yes | ADR EACH REPR 25 COM STK USD0.0001 | GB | USD | Jun 2000 |
| 9999 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Ordinary Shares | HK | HKD | Jun 2020 | |
| 4Y01 | DB (Deutsche Boerse AG) | Ordinary Shares | DE | EUR | Jun 2020 |
Biography
NetEase, Inc., an Internet technology company, provides online services focusing on content, community, communication, and commerce in the Peoples’ Republic of China and internationally. The company operat ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/09 21:10 |
| End of Day Share Price | 2020/08/07 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.