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NetDragon Websoft Holdings

DB:3ND
Snowflake Description

Excellent balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3ND
DB
HK$13B
Market Cap
  1. Home
  2. DE
  3. Media
Company description

NetDragon Websoft Holdings Limited, an investment holding company, develops online games primarily in the People’s Republic of China, the United States, and the United Kingdom. The last earnings update was 23 days ago. More info.


Add to Portfolio Compare Print
  • NetDragon Websoft Holdings has significant price volatility in the past 3 months.
3ND Share Price and Events
7 Day Returns
6.6%
DB:3ND
1.8%
DE Entertainment
2.5%
DE Market
1 Year Returns
38.4%
DB:3ND
11.6%
DE Entertainment
-6.7%
DE Market
3ND Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NetDragon Websoft Holdings (3ND) 6.6% 33.6% 75.8% 38.4% -8.8% 100.4%
DE Entertainment 1.8% 8.2% 18.1% 11.6% 32.9% 74.4%
DE Market 2.5% 3.3% 9.2% -6.7% 9% 13.5%
1 Year Return vs Industry and Market
  • 3ND outperformed the Entertainment industry which returned 11.6% over the past year.
  • 3ND outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
3ND
Industry
5yr Volatility vs Market
Related Companies

3ND Value

 Is NetDragon Websoft Holdings 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 NetDragon Websoft Holdings 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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NetDragon Websoft Holdings.

DB:3ND Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:3ND
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.959 (1 + (1- 25%) (3.98%))
0.992
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.992 * 5.96%)
6.14%

Discounted Cash Flow Calculation for DB:3ND using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NetDragon Websoft Holdings 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.

DB:3ND DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 6.14%)
2019 649.00 Analyst x1 611.46
2020 800.00 Analyst x1 710.12
2021 917.02 Est @ 14.63% 766.90
2022 1,011.54 Est @ 10.31% 797.01
2023 1,085.22 Est @ 7.28% 805.60
2024 1,141.30 Est @ 5.17% 798.22
2025 1,183.36 Est @ 3.69% 779.76
2026 1,214.69 Est @ 2.65% 754.10
2027 1,238.04 Est @ 1.92% 724.13
2028 1,255.55 Est @ 1.41% 691.89
Present value of next 10 years cash flows CN¥7,439.19
DB:3ND DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥1,255.55 × (1 + 0.23%) ÷ (6.14% – 0.23%)
CN¥21,285.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥21,285.22 ÷ (1 + 6.14%)10
CN¥11,729.57
DB:3ND Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥7,439.19 + CN¥11,729.57
CN¥19,168.76
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥19,168.76 / 529.34
CN¥326
DB:3ND Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:777)
1.169
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥36.21 x 1.169
HK$42.35
Non-primary Listing Adjustment Factor 1 share in DB:3ND represents 0.11108x of SEHK:777
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11108x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 42.35 x 0.11108
€4.70
Value per share (EUR) From above. €4.70
Current discount Discount to share price of €2.67
= -1 x (€2.67 - €4.70) / €4.70
43.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NetDragon Websoft Holdings is available for.
Intrinsic value
43%
Share price is €2.67 vs Future cash flow value of €4.7
Current Discount Checks
For NetDragon Websoft Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NetDragon Websoft Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • NetDragon Websoft Holdings'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 NetDragon Websoft Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NetDragon Websoft Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:3ND PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥1.02
SEHK:777 Share Price ** SEHK (2019-04-18) in HKD HK$24.05
SEHK:777 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥20.56
Germany Entertainment Industry PE Ratio Median Figure of 10 Publicly-Listed Entertainment Companies 17.2x
Germany Market PE Ratio Median Figure of 421 Publicly-Listed Companies 19.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NetDragon Websoft Holdings.

DB:3ND PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:777 Share Price ÷ EPS (both in CNY)

= 20.56 ÷ 1.02

20.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NetDragon Websoft Holdings is overvalued based on earnings compared to the DE Entertainment industry average.
  • NetDragon Websoft Holdings is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does NetDragon Websoft Holdings's expected growth come at a high price?
Raw Data
DB:3ND PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
19.5%per year
Europe Entertainment Industry PEG Ratio Median Figure of 30 Publicly-Listed Entertainment Companies 1.71x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:3ND PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.08x ÷ 19.5%

1.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NetDragon Websoft Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NetDragon Websoft Holdings's assets?
Raw Data
DB:3ND PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥9.27
SEHK:777 Share Price * SEHK (2019-04-18) in HKD HK$24.05
SEHK:777 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.855 CN¥20.56
Germany Entertainment Industry PB Ratio Median Figure of 14 Publicly-Listed Entertainment Companies 1.59x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.87x
DB:3ND PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:777 Share Price ÷ Book Value per Share (both in CNY)

= 20.56 ÷ 9.27

2.22x

* Primary Listing of NetDragon Websoft Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NetDragon Websoft Holdings is overvalued based on assets compared to the DE Entertainment industry average.
X
Value checks
We assess NetDragon Websoft Holdings's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. NetDragon Websoft Holdings 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.

3ND Future Performance

 How is NetDragon Websoft Holdings expected to perform in the next 1 to 3 years based on estimates from 7 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!
Annual Growth Rate
19.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NetDragon Websoft Holdings expected to grow at an attractive rate?
  • NetDragon Websoft Holdings's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • NetDragon Websoft Holdings's earnings growth is expected to exceed the Germany market average.
  • NetDragon Websoft Holdings's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:3ND Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:3ND Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 19.5%
DB:3ND Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 16.4%
Germany Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 22.8%
Germany Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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
Raw Data
DB:3ND Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:3ND Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 8,343 1,706 1,042 4
2020-12-31 7,155 1,130 789 7
2019-12-31 6,078 824 733 6
DB:3ND Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 5,038 694 546
2018-09-30 4,786 258 321
2018-06-30 4,562 190 154
2018-03-31 4,389 303 125
2017-12-31 3,868 337 -21
2017-09-30 3,576 361 -64
2017-06-30 3,210 116 -134
2017-03-31 2,935 -28 -135
2016-12-31 2,793 -270 -203
2016-09-30 2,554 -403 -206
2016-06-30 2,119 -493 -167
2016-03-31 1,598 -414 -246

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NetDragon Websoft Holdings's earnings are expected to grow by 19.5% yearly, however this is not considered high growth (20% yearly).
  • NetDragon Websoft Holdings's revenue is expected to grow by 16.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:3ND 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 7 Analyst Estimates (S&P Global) See Below

All data from NetDragon Websoft Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3ND Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.87 1.94 1.72 4.00
2020-12-31 1.67 1.77 1.38 6.00
2019-12-31 1.38 1.50 1.30 5.00
DB:3ND Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 1.02
2018-09-30 0.60
2018-06-30 0.29
2018-03-31 0.24
2017-12-31 -0.04
2017-09-30 -0.13
2017-06-30 -0.27
2017-03-31 -0.27
2016-12-31 -0.41
2016-09-30 -0.42
2016-06-30 -0.34
2016-03-31 -0.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • NetDragon Websoft Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess NetDragon Websoft Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NetDragon Websoft Holdings 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.

3ND Past Performance

  How has NetDragon Websoft Holdings 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
Below we compare NetDragon Websoft Holdings's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NetDragon Websoft Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • NetDragon Websoft Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • NetDragon Websoft Holdings has become profitable in the last year making it difficult to compare the DE Entertainment industry average.
Earnings and Revenue History
NetDragon Websoft Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NetDragon Websoft Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3ND Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,037.54 545.57 1,551.05 922.87
2018-09-30 4,785.51 321.44 1,518.71 905.71
2018-06-30 4,562.31 154.12 1,463.98 890.06
2018-03-31 4,389.15 125.19 1,412.06 871.39
2017-12-31 3,867.62 -20.84 1,359.28 844.08
2017-09-30 3,575.87 -63.54 1,322.19 841.89
2017-06-30 3,209.81 -134.07 1,267.35 809.02
2017-03-31 2,934.91 -134.85 1,268.01 784.63
2016-12-31 2,793.10 -202.74 1,240.63 759.93
2016-09-30 2,553.65 -206.40 1,161.08 693.68
2016-06-30 2,118.52 -167.50 1,042.37 609.36
2016-03-31 1,597.62 -245.63 880.04 527.45
2015-12-31 1,272.20 -142.98 726.88 446.23
2015-09-30 1,054.52 -64.31 643.49 380.78
2015-06-30 1,027.81 14.82 583.42 340.65
2015-03-31 991.94 86.11 531.18 296.20
2014-12-31 962.82 176.68 479.43 249.26
2014-09-30 908.94 111.65 479.92 204.45
2014-06-30 895.60 95.98 479.36 182.46
2014-03-31 889.62 110.46 451.17 168.32
2013-12-31 884.52 84.74 472.34 162.86
2013-09-30 884.62 248.09 389.13 156.90
2013-06-30 869.32 299.76 347.94 145.35
2013-03-31 800.76 280.22 334.47 135.91
2012-12-31 825.74 282.06 319.69 146.21
2012-09-30 813.82 210.99 335.71 155.09
2012-06-30 812.49 172.17 352.04 157.57

*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.
  • NetDragon Websoft Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NetDragon Websoft Holdings used its assets more efficiently than the DE Entertainment industry average last year based on Return on Assets.
  • NetDragon Websoft Holdings has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess NetDragon Websoft Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NetDragon Websoft Holdings has a total score of 3/6, 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.

3ND Health

 How is NetDragon Websoft Holdings'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 NetDragon Websoft Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NetDragon Websoft Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NetDragon Websoft Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NetDragon Websoft Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 7.7x 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.
Raw Data

All data from NetDragon Websoft Holdings Company Filings, last reported 3 months ago.

DB:3ND Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,798.98 433.67 1,551.98
2018-09-30 4,798.98 433.67 1,551.98
2018-06-30 4,571.06 508.41 1,074.09
2018-03-31 4,571.06 508.41 1,074.09
2017-12-31 4,484.06 374.19 1,578.48
2017-09-30 4,599.28 307.64 1,743.47
2017-06-30 3,777.35 294.43 817.89
2017-03-31 3,745.78 98.32 883.40
2016-12-31 3,828.28 133.10 1,083.81
2016-09-30 4,005.67 191.09 1,098.34
2016-06-30 4,129.86 309.80 1,206.22
2016-03-31 4,078.67 343.70 1,427.52
2015-12-31 4,303.64 303.64 1,880.69
2015-09-30 4,395.96 503.13 2,144.27
2015-06-30 4,463.31 496.42 3,101.72
2015-03-31 4,537.78 498.18 3,275.21
2014-12-31 4,617.40 236.81 3,248.02
2014-09-30 4,673.35 0.00 3,398.74
2014-06-30 4,668.73 111.93 3,605.31
2014-03-31 4,700.19 109.81 4,345.95
2013-12-31 4,622.88 107.79 4,376.38
2013-09-30 2,340.47 110.04 1,215.74
2013-06-30 2,298.15 0.00 1,835.51
2013-03-31 2,177.17 182.85 1,721.02
2012-12-31 1,416.00 394.99 1,541.85
2012-09-30 1,572.06 360.15 1,449.65
2012-06-30 1,561.44 354.61 1,419.83
  • NetDragon Websoft Holdings's level of debt (9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2.3% vs 9% today).
  • Debt is well covered by operating cash flow (160.1%, greater than 20% of total debt).
  • NetDragon Websoft Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess NetDragon Websoft Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NetDragon Websoft Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

3ND Dividends

 What is NetDragon Websoft Holdings'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
Dividend payments
1.24%
Current annual income from NetDragon Websoft Holdings dividends. Estimated to be 1.26% next year.
If you bought €2,000 of NetDragon Websoft Holdings shares you are expected to receive €25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NetDragon Websoft Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • NetDragon Websoft Holdings's dividend is below the markets top 25% of dividend payers in Germany (3.74%).
Upcoming dividend payment

Purchase NetDragon Websoft Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
DB:3ND Annualized Past and Future Dividends
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 7 Analyst Estimates (S&P Global) See Below
Germany Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 324 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:3ND Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.32 3.00
2020-12-31 0.26 4.00
2019-12-31 0.21 4.00
DB:3ND Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-26 0.256 1.390
2018-08-29 0.170 1.358
2018-03-22 0.160 1.132
2017-12-06 0.160 0.961
2017-08-30 0.166 0.752
2017-04-12 0.169 0.930
2017-03-23 0.177 0.865
2016-12-01 0.176 0.895
2016-09-13 0.172 0.781
2016-08-31 0.172 0.755
2016-04-13 0.167 0.809
2016-03-30 0.166 0.867
2015-12-17 0.167 0.988
2015-09-09 0.163 0.893
2015-08-27 0.164 1.130
2015-04-10 0.320 1.582
2015-03-26 0.320 2.080
2014-12-02 0.317 2.980
2014-08-22 0.315 2.947
2014-04-10 0.317 2.826
2014-03-27 0.320 2.759
2013-11-28 0.312 2.530
2013-08-23 0.313 2.094
2013-04-02 0.315 2.609
2012-08-24 0.240 3.236
2012-03-26 0.178 3.849
2011-08-25 0.097 2.789
2011-03-25 0.033 0.897
2010-11-23 0.086 2.851
2010-08-30 0.086 2.786
2010-04-26 0.116 3.661
2010-04-15 0.116 3.030
2009-08-31 0.169 4.128
2009-04-20 0.194 3.981

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of NetDragon Websoft Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.8x coverage).
X
Income/ dividend checks
We assess NetDragon Websoft Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NetDragon Websoft Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NetDragon Websoft Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3ND Management

 What is the CEO of NetDragon Websoft Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Luyuan Liu
COMPENSATION CN¥815,000
AGE 45
CEO Bio

Mr. Luyuan Liu serves as the Chief Executive Officer and Compliance Officer of NetDragon WebSoft, Inc. Mr. Liu is mainly responsible for the overall management of the Group. Mr. Liu is responsible for the coordination with the governmental departments, media and the other external parties, under which he has built up good reputation over years. Prior to joining NetDragon in 1999, Mr. Liu served as technical engineer of the information technology system project in Fujian Tumour Hospital and the section officer of the mechanic management system project in Fujian Provincial Health Bureau from 1997 to 1999. Mr. Liu has over 10 years of experience in management and administration of technical institutions. He serves as Executive Director of NetDragon WebSoft, Inc. He was awarded as Online Game Pioneer in China for 2007 in Chinese Game Industry Annual Conference 2007 in January 2008. Mr. Liu graduated with a Bachelor 's degree in Electronic and Mechanical Engineering from the University of Electronic Science and Technology in Chengdu in 1997.

CEO Compensation
  • Luyuan's compensation has been consistent with company performance over the past year.
  • Luyuan's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the NetDragon Websoft Holdings management team in years:

5.3
Average Tenure
45
Average Age
  • The average tenure for the NetDragon Websoft Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Dejian Liu

TITLE
Founder and Executive Chairman
COMPENSATION
CN¥788K
AGE
47
TENURE
20.3 yrs

Luyuan Liu

TITLE
Chief Executive Officer
COMPENSATION
CN¥815K
AGE
45

Simon Leung

TITLE
Vice Chairman
COMPENSATION
CN¥6M
AGE
63

Hongzhan Chen

TITLE
Chief Technology Officer
COMPENSATION
CN¥986K
AGE
45

Hui Zheng

TITLE
Executive Director
COMPENSATION
CN¥414K
AGE
49

Benjamin Yam

TITLE
Chief Financial Officer
AGE
42
TENURE
5.5 yrs

Maggie Zhou

TITLE
Senior Director of Investor Relations

Lau Kin

TITLE
Head of Compliance & Corporate Affairs
AGE
40
TENURE
5.2 yrs

Peter Lin

TITLE
Chief Designer
AGE
47

Victor Xinsheng

TITLE
Joint Chief Technology Officer
AGE
45
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the NetDragon Websoft Holdings board of directors in years:

11.5
Average Tenure
48
Average Age
  • The average tenure for the NetDragon Websoft Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Dejian Liu

TITLE
Founder and Executive Chairman
COMPENSATION
CN¥788K
AGE
47

Luyuan Liu

TITLE
Chief Executive Officer
COMPENSATION
CN¥815K
AGE
45

Simon Leung

TITLE
Vice Chairman
COMPENSATION
CN¥6M
AGE
63
TENURE
3.8 yrs

Hongzhan Chen

TITLE
Chief Technology Officer
COMPENSATION
CN¥986K
AGE
45

Hui Zheng

TITLE
Executive Director
COMPENSATION
CN¥414K
AGE
49

Biao Yu

TITLE
Vice-President
AGE
48

Charles Chao

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥726K
AGE
52
TENURE
11.5 yrs

Eddie Lee

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥726K
AGE
53
TENURE
11.5 yrs

Thomas Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥726K
AGE
45
TENURE
11.5 yrs
Who owns this company?
Recent Insider Trading
  • NetDragon Websoft Holdings insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
17. Apr 19 Sell Saikeung Liu Individual 15. Apr 19 15. Apr 19 -190,000 €2.64 €-501,905
12. Apr 19 Sell Saikeung Liu Individual 09. Apr 19 09. Apr 19 -67,000 €2.65 €-177,397
09. Apr 19 Sell Guowei Chao Individual 08. Apr 19 08. Apr 19 -545,500 €2.55 €-1,393,751
09. Apr 19 Sell Guowei Chao Individual 04. Apr 19 04. Apr 19 -34,000 €2.44 €-83,100
17. Dec 18 Sell Kwan Hung Lee Individual 14. Dec 18 14. Dec 18 -88,000 €1.44 €-127,006
11. Dec 18 Sell Kwan Hung Lee Individual 07. Dec 18 07. Dec 18 -45,000 €1.49 €-67,219
25. Oct 18 Sell Kwan Hung Lee Individual 22. Oct 18 22. Oct 18 -19,500 €1.63 €-31,803
16. Oct 18 Sell Kwan Hung Lee Individual 12. Oct 18 12. Oct 18 -50,000 €1.46 €-73,180
16. Oct 18 Sell Kwan Hung Lee Individual 15. Oct 18 15. Oct 18 -5,500 €1.50 €-8,230
12. Oct 18 Sell Kwan Hung Lee Individual 10. Oct 18 10. Oct 18 -91,000 €1.58 €-133,527
11. Oct 18 Sell Kwan Hung Lee Individual 09. Oct 18 09. Oct 18 -14,000 €1.57 €-22,037
10. Oct 18 Sell Kwan Hung Lee Individual 08. Oct 18 08. Oct 18 -13,000 €1.62 €-21,064
08. Oct 18 Sell Kwan Hung Lee Individual 05. Oct 18 05. Oct 18 -9,500 €1.70 €-16,122
08. Oct 18 Sell Kwan Hung Lee Individual 04. Oct 18 04. Oct 18 -8,500 €1.76 €-14,920
04. Sep 18 Sell Kwan Hung Lee Individual 31. Aug 18 31. Aug 18 -4,500 €1.81 €-8,124
03. Sep 18 Sell Kwan Hung Lee Individual 30. Aug 18 30. Aug 18 -20,000 €1.96 €-39,292
29. May 18 Sell Kwan Hung Lee Individual 24. May 18 24. May 18 -88,000 €2.27 €-199,885
01. Jun 18 Buy Kwan Hung Lee Individual 29. May 18 29. May 18 39,000 €2.25 €87,682
29. May 18 Buy Kwan Hung Lee Individual 25. May 18 25. May 18 49,000 €2.27 €111,178
18. May 18 Sell Kwan Hung Lee Individual 16. May 18 16. May 18 -52,000 €2.10 €-109,322
X
Management checks
We assess NetDragon Websoft Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NetDragon Websoft Holdings 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.

3ND News

Simply Wall St News

3ND Company Info

Description

NetDragon Websoft Holdings Limited, an investment holding company, develops online games primarily in the People’s Republic of China, the United States, and the United Kingdom. It engages in games design, programming and graphics, and online games operation; mobile and Internet education business covering pre-school, basic, higher, vocational, and non-academic and life-long education, as well as enterprise training; and mobile solution, products, and marketing businesses. The company’s online and mobile games include Conquer Online, Eudemons Online, Heroes Evolved, Zero Online, Tou Ming Zhuang Online, Tian Yuan, Eudemons Online Pocket Version, Heroes Evolved Pocket Version, and other games. It also develops and provides products in augmented reality and computer vision with machine learning technology. The company was formerly known as NetDragon Websoft Inc. and changed its name to NetDragon Websoft Holdings Limited in June 2016. NetDragon Websoft Holdings Limited was founded in 1999 and is headquartered in Fuzhou, the People’s Republic of China.

Details
Name: NetDragon Websoft Holdings Limited
3ND
Exchange: DB
Founded: 1999
HK$1,443,610,873
529,344,949
Website: http://www.netdragon.com
Address: NetDragon Websoft Holdings Limited
Building 851,
50 Hot Spring Branch Road,
Fuzhou,
Fujian Province, 350001,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 777 Common Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Nov 2007
DB 3ND Common Shares Deutsche Boerse AG DE EUR 02. Nov 2007
SHSC 777 Common Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Nov 2007
SZSC 777 Common Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Nov 2007
Number of employees
Current staff
Staff numbers
6,100
NetDragon Websoft Holdings employees.
Industry
Interactive Home Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 21:22
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/11
Last earnings filing: 2019/03/26
Last earnings reported: 2018/12/31
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.