NetEase
NetEase, Inc. operates an interactive online community in the People’s Republic of China. The last earnings update was 65 days ago. More info.
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NTES Share Price and Events
7 Day Returns
1 Year Returns
NTES Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| NetEase (NTES) | -5.5% | -6.3% | -6.8% | -2.8% | - | - |
| Europe Entertainment | 0.7% | 2.3% | -3.3% | -0.7% | 33.4% | 48.9% |
| AT Market | -0.9% | -0% | -7.6% | -7.2% | 38.6% | 26.1% |
1 Year Return vs Industry and Market
- NTES underperformed the Entertainment industry which returned -0.7% over the past year.
- NTES outperformed the Market in Austria which returned -7.2% over the past year.
Value
Is NetEase undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
NetEase
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for NetEase.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 28 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 6.3% |
| Perpetual Growth Rate | 10-Year AT Government Bond Rate | 0.5% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year AT Govt Bond Rate | 0.5% |
| Equity Risk Premium | S&P Global | 6% |
| Entertainment Unlevered Beta | Simply Wall St/ S&P Global | 0.9 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.902 (1 + (1- 25%) (6.47%)) |
0.964 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.96 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (0.964 * 5.96%) |
6.25% |
Discounted Cash Flow Calculation for WBAG:NTES using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for NetEase is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (CNY, Millions) | Source |
Present Value Discounted (@ 6.25%) |
|
|---|---|---|---|
| 2020 | 13,066.57 | Analyst x7 | 12,297.65 |
| 2021 | 13,411.38 | Analyst x7 | 11,879.39 |
| 2022 | 21,315.89 | Analyst x1 | 17,769.87 |
| 2023 | 25,520.32 | Est @ 19.72% | 20,022.92 |
| 2024 | 29,082.98 | Est @ 13.96% | 21,475.36 |
| 2025 | 31,969.48 | Est @ 9.93% | 22,217.62 |
| 2026 | 34,239.49 | Est @ 7.1% | 22,394.92 |
| 2027 | 35,993.71 | Est @ 5.12% | 22,156.91 |
| 2028 | 37,339.64 | Est @ 3.74% | 21,632.82 |
| 2029 | 38,374.16 | Est @ 2.77% | 20,923.87 |
| Present value of next 10 years cash flows | CN¥192,771.32 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= CN¥38,374.16 × (1 + 0.51%) ÷ (6.25% – 0.51%) |
CN¥671,641.44 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= CN¥671,641.44 ÷ (1 + 6.25%)10 |
CN¥366,218.84 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= CN¥192,771.32 + CN¥366,218.84 |
CN¥558,990.17 |
| Equity Value per Share (CNY) |
= Total value / Shares Outstanding
= CN¥558,990.17 / 127.96 |
CN¥4368.45 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | CNY/USD
(Reporting currency to currency of NasdaqGS:NTES) |
0.145 |
| Value per Share (USD) |
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥4368.45 x 0.145 |
$634.93 |
| Non-primary Listing Adjustment Factor |
1 share in WBAG:NTES
represents 0.90328x
of
NasdaqGS:NTES
(This could be a different class, a depositary receipt, a different currency, or all of these things.) |
0.90328x |
| Value per Share (Listing Adjusted, EUR) |
= Value per Share (USD) x Listing Adjustment Factor
= $ 634.93 x 0.90328 |
€573.52 |
| Value per share (EUR) | From above. | €573.52 |
| Current discount | Discount to share price of
€220.20
= -1 x (€220.20 - €573.52) / €573.52 |
61.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- NetEase's share price is below the future cash flow value, and at a moderate discount (> 20%).
- NetEase's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for NetEase's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
NetEase's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in CNY | CN¥60.49 |
| NasdaqGS:NTES Share Price ** | NasdaqGS (2019-07-19) in USD | $243.78 |
| NasdaqGS:NTES Share Price converted to CNY reporting currency | Exchange rate (USD/ CNY) 6.88 | CN¥1677.26 |
| Europe Entertainment Industry PE Ratio | Median Figure of 64 Publicly-Listed Entertainment Companies | 24.83x |
| Austria Market PE Ratio | Median Figure of 54 Publicly-Listed Companies | 14.07x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of NetEase.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:NTES Share Price ÷ EPS (both in CNY) = 1677.26 ÷ 60.49 |
27.73x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- NetEase is overvalued based on earnings compared to the Europe Entertainment industry average.
- NetEase is overvalued based on earnings compared to the Austria market.
Price based on expected Growth
Does
NetEase's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 27.73x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts |
16.7%per year |
| Europe Entertainment Industry PEG Ratio | Median Figure of 31 Publicly-Listed Entertainment Companies | 1.57x |
| Austria Market PEG Ratio | Median Figure of 33 Publicly-Listed Companies | 1.32x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 27.73x ÷ 16.7% |
1.66x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- NetEase is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
NetEase's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in CNY | CN¥372.47 |
| NasdaqGS:NTES Share Price * | NasdaqGS (2019-07-19) in USD | $243.78 |
| NasdaqGS:NTES Share Price converted to CNY reporting currency | Exchange rate (USD/ CNY) 6.88 | CN¥1677.26 |
| Europe Entertainment Industry PB Ratio | Median Figure of 118 Publicly-Listed Entertainment Companies | 2.31x |
| Austria Market PB Ratio | Median Figure of 62 Publicly-Listed Companies | 1.18x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:NTES Share Price ÷ Book Value per Share (both in CNY) = 1677.26 ÷ 372.47 |
4.5x |
* Primary Listing of NetEase.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- NetEase is overvalued based on assets compared to the Europe Entertainment industry average.
Value checks
We assess NetEase's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check) NetEase has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is NetEase expected to perform in the next 1 to 3 years based on estimates from 28 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- NetEase's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
- NetEase's earnings growth is expected to exceed the Austria market average.
- NetEase's revenue growth is expected to exceed the Austria market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| WBAG:NTES Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts | 16.7% |
| WBAG:NTES Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 28 Analysts | 13.1% |
| Europe Entertainment Industry Earnings Growth Rate | Market Cap Weighted Average | 28.7% |
| Europe Entertainment Industry Revenue Growth Rate | Market Cap Weighted Average | 7.9% |
| Austria Market Earnings Growth Rate | Market Cap Weighted Average | 8.6% |
| Austria Market Revenue Growth Rate | Market Cap Weighted Average | 3.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 28 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CNY Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 131,985 | 1 | ||
| 2022-12-31 | 118,241 | 17,307 | 2 | |
| 2021-12-31 | 108,205 | 15,546 | 10,708 | 21 |
| 2020-12-31 | 95,397 | 14,276 | 8,760 | 27 |
| 2019-12-31 | 81,073 | 11,110 | 7,536 | 28 |
| Date (Data in CNY Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 71,340 | 14,897 | 7,783 |
| 2018-12-31 | 67,156 | 13,416 | 6,152 |
| 2018-09-30 | 61,920 | 11,362 | 5,740 |
| 2018-06-30 | 57,542 | 9,400 | 6,671 |
| 2018-03-31 | 54,634 | 9,763 | 7,537 |
| 2017-12-31 | 54,102 | 11,889 | 10,708 |
| 2017-09-30 | 51,593 | 13,387 | 13,105 |
| 2017-06-30 | 48,327 | 15,461 | 13,318 |
| 2017-03-31 | 43,904 | 16,427 | 13,066 |
| 2016-12-31 | 38,179 | 15,488 | 11,605 |
| 2016-09-30 | 33,983 | 13,223 | 10,086 |
| 2016-06-30 | 31,443 | 11,695 | 9,228 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 28 Analyst Estimates (S&P Global) | See Below |
All data from NetEase Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CNY Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | 132.61 | 132.61 | 132.61 | 1.00 |
| 2021-12-31 | 83.87 | 111.88 | 58.46 | 15.00 |
| 2020-12-31 | 70.35 | 86.36 | 49.16 | 18.00 |
| 2019-12-31 | 58.50 | 69.84 | 51.90 | 19.00 |
| Date (Data in CNY Millions) | EPS * |
|---|---|
| 2019-03-31 | 60.49 |
| 2018-12-31 | 47.54 |
| 2018-09-30 | 44.06 |
| 2018-06-30 | 50.89 |
| 2018-03-31 | 57.29 |
| 2017-12-31 | 81.36 |
| 2017-09-30 | 99.60 |
| 2017-06-30 | 101.34 |
| 2017-03-31 | 99.56 |
| 2016-12-31 | 88.40 |
| 2016-09-30 | 76.80 |
| 2016-06-30 | 70.21 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess NetEase's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
NetEase has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has NetEase performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- NetEase's year on year earnings growth rate has been positive over the past 5 years.
- NetEase's 1-year earnings growth is less than its 5-year average (3.3% vs 11.5%)
- NetEase's earnings growth has not exceeded the Europe Entertainment industry average in the past year (3.3% vs 9.6%).
Earnings and Revenue History
All data from NetEase Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CNY Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 71,339.62 | 7,782.63 | 11,945.83 | 8,499.73 |
| 2018-12-31 | 67,156.45 | 6,152.41 | 12,718.01 | 7,792.55 |
| 2018-09-30 | 61,919.81 | 5,740.32 | 12,536.67 | 6,879.35 |
| 2018-06-30 | 57,542.30 | 6,671.48 | 11,602.31 | 5,771.53 |
| 2018-03-31 | 54,634.46 | 7,537.07 | 10,888.26 | 4,905.58 |
| 2017-12-31 | 54,102.02 | 10,707.94 | 9,387.45 | 4,371.43 |
| 2017-09-30 | 51,593.40 | 13,105.43 | 8,031.35 | 4,006.33 |
| 2017-06-30 | 48,327.26 | 13,318.00 | 7,453.13 | 3,673.64 |
| 2017-03-31 | 43,904.03 | 13,066.49 | 6,679.29 | 3,348.42 |
| 2016-12-31 | 38,178.84 | 11,604.52 | 5,987.97 | 3,046.98 |
| 2016-09-30 | 33,982.78 | 10,085.88 | 5,483.40 | 2,756.62 |
| 2016-06-30 | 31,442.92 | 9,227.77 | 4,954.33 | 2,559.89 |
| 2016-03-31 | 27,058.00 | 7,931.48 | 4,346.54 | 2,330.42 |
| 2015-12-31 | 22,802.90 | 6,735.11 | 3,972.62 | 2,158.89 |
| 2015-09-30 | 18,362.93 | 5,841.91 | 3,605.77 | 1,963.72 |
| 2015-06-30 | 14,807.88 | 5,119.16 | 3,130.89 | 1,736.64 |
| 2015-03-31 | 13,007.57 | 4,897.19 | 2,764.02 | 1,531.97 |
| 2014-12-31 | 11,712.83 | 4,756.62 | 2,362.67 | 1,323.50 |
| 2014-09-30 | 10,672.26 | 4,722.38 | 1,924.93 | 1,169.87 |
| 2014-06-30 | 9,912.16 | 4,611.53 | 1,639.98 | 1,030.77 |
| 2014-03-31 | 9,409.10 | 4,504.28 | 1,510.83 | 962.25 |
| 2013-12-31 | 9,196.18 | 4,443.91 | 1,443.44 | 921.62 |
| 2013-09-30 | 9,044.63 | 4,215.42 | 1,424.16 | 873.00 |
| 2013-06-30 | 8,689.95 | 3,979.06 | 1,382.14 | 817.32 |
| 2013-03-31 | 8,387.92 | 3,759.26 | 1,245.05 | 766.08 |
| 2012-12-31 | 8,200.96 | 3,637.45 | 1,192.93 | 718.32 |
| 2012-09-30 | 8,029.27 | 3,527.54 | 1,138.05 | 671.48 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- NetEase has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- NetEase used its assets more efficiently than the Europe Entertainment industry average last year based on Return on Assets.
- NetEase's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess NetEase's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
NetEase has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is NetEase's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up NetEase's finances.
The net worth of a company is the difference between its assets and liabilities.
- NetEase is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- NetEase's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 5.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from NetEase Company Filings, last reported 3 months ago.
| Date (Data in CNY Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 54,106.31 | 14,134.55 | 51,803.12 |
| 2018-12-31 | 51,411.58 | 13,658.55 | 50,088.26 |
| 2018-09-30 | 46,238.94 | 13,645.93 | 42,436.61 |
| 2018-06-30 | 45,188.22 | 12,725.74 | 44,127.91 |
| 2018-03-31 | 45,474.73 | 9,516.16 | 43,337.67 |
| 2017-12-31 | 47,049.84 | 6,623.50 | 43,248.81 |
| 2017-09-30 | 46,284.01 | 5,732.59 | 40,679.80 |
| 2017-06-30 | 44,732.12 | 5,377.69 | 41,140.48 |
| 2017-03-31 | 42,480.23 | 4,483.44 | 40,143.10 |
| 2016-12-31 | 38,462.94 | 3,815.69 | 36,538.73 |
| 2016-09-30 | 35,246.54 | 3,005.01 | 30,859.95 |
| 2016-06-30 | 32,910.82 | 2,320.92 | 28,188.00 |
| 2016-03-31 | 31,148.35 | 2,261.42 | 27,019.77 |
| 2015-12-31 | 29,323.60 | 2,272.76 | 25,713.17 |
| 2015-09-30 | 27,243.13 | 2,226.46 | 24,309.03 |
| 2015-06-30 | 25,898.60 | 2,139.76 | 22,906.48 |
| 2015-03-31 | 24,749.47 | 1,228.34 | 23,730.27 |
| 2014-12-31 | 23,491.79 | 2,049.87 | 22,576.58 |
| 2014-09-30 | 22,290.51 | 2,061.09 | 21,420.20 |
| 2014-06-30 | 21,350.46 | 2,061.19 | 20,559.04 |
| 2014-03-31 | 20,329.49 | 1,784.11 | 19,822.30 |
| 2013-12-31 | 20,168.26 | 975.50 | 18,984.95 |
| 2013-09-30 | 18,888.58 | 983.68 | 17,727.43 |
| 2013-06-30 | 17,809.71 | 988.59 | 17,295.98 |
| 2013-03-31 | 16,683.45 | 1,003.02 | 16,299.47 |
| 2012-12-31 | 15,601.49 | 0.00 | 15,762.97 |
| 2012-09-30 | 15,811.09 | 0.00 | 14,935.88 |
- NetEase's level of debt (26.1%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (8.8% vs 26.1% today).
- Debt is well covered by operating cash flow (105.4%, greater than 20% of total debt).
- NetEase earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess NetEase's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) NetEase has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is NetEase's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
€2,000 of
NetEase
shares you are expected to receive
€14
in your first year as a dividend.
Dividend Amount
- NetEase's pays a lower dividend yield than the bottom 25% of dividend payers in Austria (1.48%).
- NetEase's dividend is below the markets top 25% of dividend payers in Austria (4.59%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 28 Analyst Estimates (S&P Global) | See Below |
| Europe Entertainment Industry Average Dividend Yield | Market Cap Weighted Average of 22 Stocks | 2% |
| Austria Market Average Dividend Yield | Market Cap Weighted Average of 51 Stocks | 3.6% |
| Austria Minimum Threshold Dividend Yield | 10th Percentile | 1% |
| Austria Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| Austria Top 25% Dividend Yield | 75th Percentile | 4.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CN¥) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | 33.39 | 1.00 |
| 2021-12-31 | 19.86 | 16.00 |
| 2020-12-31 | 16.57 | 19.00 |
| 2019-12-31 | 14.24 | 19.00 |
| Date (Data in CN¥) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-26 | 11.909 | 0.676 |
| 2019-02-20 | 11.828 | 0.720 |
| 2018-04-20 | 18.951 | 1.290 |
| 2018-02-07 | 18.859 | 1.022 |
| 2017-05-11 | 27.066 | 1.434 |
| 2017-04-21 | 27.812 | 1.498 |
| 2017-02-15 | 27.695 | 1.421 |
| 2016-11-09 | 21.144 | 1.333 |
| 2016-08-18 | 20.679 | 1.301 |
| 2016-05-12 | 19.025 | 1.601 |
| 2016-02-25 | 13.102 | 1.442 |
| 2015-11-11 | 14.263 | 1.388 |
| 2015-04-24 | 9.043 | 1.097 |
| 2015-02-09 | 8.953 | 1.364 |
| 2014-08-13 | 9.044 | 1.552 |
| 2014-05-14 | 8.368 | 1.766 |
| 2014-02-14 | 8.554 | 2.056 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- NetEase is not paying a notable dividend for Austria, therefore no need to check if the payments are stable.
- NetEase is not paying a notable dividend for Austria, therefore no need to check if the payments are increasing.
Income/ dividend checks
We assess NetEase's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can NetEase afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) NetEase has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | CN¥0 |
| AGE | 47 |
| TENURE AS CEO | 13.7 years |
CEO Bio
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 established NetEase and Guangzhou Netease in May 1997 and has been a major force in the development of the Internet in China. He served as the Chief Architect of NetEase.com, Inc. from March 2001 to November 2005. Mr. Ding served as Acting Chief Executive Officer and Chief Operating Officer of Netease Com Inc. from June 2001 to September 2001. He served as the Co-Chief Technology Officer from July 1999 to March 2001 and Interim Chief Executive Officer of NetEase.com, Inc. from July 1999 to April 2000. During NetEase's initial two years of operation, he focused on Internet application systems. In November 1997, he introduced China's first dual language free email service to users, which was a decisive factor in the prevalence and growth of China's Internet industry. He has accumulated rich and varied experience in his professional life in the Internet world. Mr. Ding spent one year at Guangzhou Feijie Co. as a systems analyst, from June 1996 to April 1997, one year at Sybase (China) as a project manager/technical support engineer from May 1995 to May 1996 and two years at China Telecom Ningbo Branch as a technical engineer from June 1993 to May 1995. He served as the Chairman of the Board of Directors at NetEase.com, Inc. until September 2001. Mr. Ding has been a Director of NetEase, Inc. since July 1999. Mr. Ding holds a Bachelor of Science degree in Communication Technology from the University of Electronic Science and Technology of China.
CEO Compensation
- Insufficient data for William to compare compensation growth.
- Insufficient data for William to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure
Average tenure and age of the NetEase management team in years:
- The average tenure for the NetEase management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
William Ding
Founder
47
13.7 yrs
Onward Choi
Consultant
48
Charles Yang
Chief Financial Officer
36
2.1 yrs
Margaret Shi
IR Director
Feng Zhou
Senior Vice President of Search Operations
11.9 yrs
Board of Directors Tenure
Average tenure and age of the NetEase board of directors in years:
- The average tenure for the NetEase board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Michael Leung
Director
CN¥54K
65
17 yrs
William Ding
Founder
47
20 yrs
Denny Lee
Director
CN¥12K
52
17.3 yrs
Michael Tong
Director
48
19.6 yrs
Joseph Tong
Director
CN¥54K
56
16.3 yrs
Lun Feng
Director
CN¥14K
60
14 yrs
Alice Cheng
Independent Non-Executive Director
CN¥67K
58
12.1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (€) | Value (€) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess NetEase's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) NetEase has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
Company Info
Description
NetEase, Inc. operates an interactive online community in the People’s Republic of China. The company operates in four segments: Online Games Services, E-Commerce, Advertising Services, and Innovative Businesses and Other Services. It offers various games in a range of genres through mobile devices and PCs, including role-playing games, MMORPGs, battle arena games, simulation games, collectible card games, first-person shooter games, sandbox games, and other types of games to the Chinese market. The company also operates Kaola that sells imported maternity and baby products, skincare and cosmetics, and other general merchandise; and Yanxuan, which sells its private label products, including apparel, homeware, kitchenware, and other general merchandise. In addition, it operates NetEase News App and NetEase Websites, which provide Internet users with Chinese language-based online services that are centered around content and interactive community. Further, the company provides online advertising services comprising banner advertising, channel sponsorships, direct email, interactive media-rich sites, sponsored special events, games, contests, and other activities. Additionally, it offers online services, such as NetEase CC, a live video streaming platform; NetEase Cloud Music, a music-streaming platform; NetEase Youdao Education, an online platform offering educational content and solutions; EaseRead, an online reading platform; and NetEase Pay, a payment platform, as well as email services to individuals and corporates. The company has a strategic partnership with Marvel Entertainment, LLC to create original entertainment content based on Marvel stories internationally. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Beijing, the People’s Republic of China.
Details
| Name: | NetEase, Inc. |
| NTES | |
| Exchange: | WBAG |
| Founded: | 1997 |
| $28,267,737,650 | |
| 127,960,720 | |
| Website: | http://ir.netease.com |
| Address: |
NetEase, Inc. Building No. 7, West Zone, Zhongguancun Software Park (Phase II), Beijing, 100193, China |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | NTES | ADR EACH REPR 1/100 HKD0.10 | Nasdaq Global Select | US | USD | 30. Jun 2000 | |
| DB | NEH | ADR EACH REPR 1/100 HKD0.10 | Deutsche Boerse AG | DE | EUR | 30. Jun 2000 | |
| LSE | 0K6G | ADR EACH REPR 1/100 HKD0.10 | London Stock Exchange | GB | USD | 30. Jun 2000 | |
| SWX | NTES | ADR EACH REPR 1/100 HKD0.10 | SIX Swiss Exchange | CH | CHF | 30. Jun 2000 | |
| WBAG | NTES | ADR EACH REPR 1/100 HKD0.10 | Wiener Boerse AG | AT | EUR | 30. Jun 2000 | |
| BMV | NTES N | ADR EACH REPR 1/100 HKD0.10 | Bolsa Mexicana de Valores | MX | MXN | 30. Jun 2000 |
Number of employees
Current staff
Industry
| Interactive Home Entertainment | |
| Media |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/19 22:07 |
| End of day share price update: | 2019/07/19 00:00 |
| Last estimates confirmation: | 2019/07/18 |
| Last earnings filing: | 2019/05/15 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
