NTES

NetEaseNasdaqGS:NTES Stock Report

Market Cap

US$53.9b

7D

-6.3%

1Y

-11.1%

Updated

19 Sep, 2021

Data

Company Financials +
NTES fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends2/6

NTES Overview

NetEase, Inc. provides online services focusing on gaming, communication, and commerce in the Peoples’ Republic of China and internationally.

NetEase Competitors

Activision Blizzard

NasdaqGS:ATVI

US$61.9b

Electronic Arts

NasdaqGS:EA

US$38.1b

Bilibili

NasdaqGS:BILI

US$28.6b

Take-Two Interactive Software

NasdaqGS:TTWO

US$16.8b

Price History & Performance

Summary of all time highs, changes and price drops for NetEase
Historical stock prices
Current Share PriceUS$82.88
52 Week HighUS$77.98
52 Week LowUS$134.33
Beta0.41
1 Month Change2.79%
3 Month Change-23.22%
1 Year Change-11.09%
3 Year Change92.97%
5 Year Change67.49%
Change since IPO13,570.93%

Recent News & Updates

Aug 21
Does NetEase (NASDAQ:NTES) Have A Healthy Balance Sheet?

Does NetEase (NASDAQ:NTES) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 03
A Look At The Intrinsic Value Of NetEase, Inc. (NASDAQ:NTES)

A Look At The Intrinsic Value Of NetEase, Inc. (NASDAQ:NTES)

How far off is NetEase, Inc. ( NASDAQ:NTES ) from its intrinsic value? Using the most recent financial data, we'll take...

Jun 28
Some Investors May Be Worried About NetEase's (NASDAQ:NTES) Returns On Capital

Some Investors May Be Worried About NetEase's (NASDAQ:NTES) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Shareholder Returns

NTESUS EntertainmentUS Market
7D-6.3%-1.3%-0.6%
1Y-11.1%30.1%33.8%

Return vs Industry: NTES underperformed the US Entertainment industry which returned 30.1% over the past year.

Return vs Market: NTES underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is NTES's price volatile compared to industry and market?
NTES volatility
NTES Beta0.41
Industry Beta1.06
Market Beta1

Stable Share Price: NTES is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: NTES's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199728,239William Dinghttps://ir.netease.com

NetEase, Inc. provides online services focusing on gaming, communication, and commerce in the Peoples’ Republic of China and internationally. The company operates in three segments: Online Games Services, Youdao, and Innovative Businesses and Others. It develops and operates PC and mobile games, as well as offers games licensed from other game developers.

NetEase Fundamentals Summary

How do NetEase's earnings and revenue compare to its market cap?
NTES fundamental statistics
Market CapCN¥348.58b
Earnings (TTM)CN¥11.95b
Revenue (TTM)CN¥79.46b

29.2x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTES income statement (TTM)
RevenueCN¥79.46b
Cost of RevenueCN¥37.41b
Gross ProfitCN¥42.06b
ExpensesCN¥30.10b
EarningsCN¥11.95b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)17.78
Gross Margin52.93%
Net Profit Margin15.04%
Debt/Equity Ratio27.6%

How did NTES perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is NetEase undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTES ($82.88) is trading below our estimate of fair value ($180.66)

Significantly Below Fair Value: NTES is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NTES's PE Ratio (29.2x) is in line with the US Entertainment industry average.

PE vs Market: NTES is poor value based on its PE Ratio (29.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NTES is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: NTES is good value based on its PB Ratio (4x) compared to the US Entertainment industry average (4.3x).


Future Growth

How is NetEase forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTES's forecast earnings growth (15% per year) is above the savings rate (2%).

Earnings vs Market: NTES's earnings (15% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: NTES's earnings are forecast to grow, but not significantly.

Revenue vs Market: NTES's revenue (13% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: NTES's revenue (13% 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 (17.7%).


Past Performance

How has NetEase performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTES has high quality earnings.

Growing Profit Margin: NTES's current net profit margins (15%) are lower than last year (23.3%).


Past Earnings Growth Analysis

Earnings Trend: NTES's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: NTES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NTES had negative earnings growth (-21.7%) over the past year, making it difficult to compare to the Entertainment industry average (10.8%).


Return on Equity

High ROE: NTES's Return on Equity (11.9%) is considered low.


Financial Health

How is NetEase's financial position?


Financial Position Analysis

Short Term Liabilities: NTES's short term assets (CN¥116.0B) exceed its short term liabilities (CN¥54.3B).

Long Term Liabilities: NTES's short term assets (CN¥116.0B) exceed its long term liabilities (CN¥2.0B).


Debt to Equity History and Analysis

Debt Level: NTES's debt to equity ratio (27.6%) is considered satisfactory.

Reducing Debt: NTES's debt to equity ratio has increased from 7.1% to 27.6% over the past 5 years.

Debt Coverage: NTES's debt is well covered by operating cash flow (87.8%).

Interest Coverage: NTES earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is NetEase current dividend yield, its reliability and sustainability?

0.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NTES's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: NTES's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.4%), 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 (27.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.1yrs

Average management tenure


CEO

William Ding (49 yo)

15.83yrs

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

Experienced Management: NTES's management team is seasoned and experienced (14.1 years average tenure).


Board Members

Experienced Board: NTES's board of directors are seasoned and experienced ( 18.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NetEase, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: NetEase, Inc.
  • Ticker: NTES
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$53.911b
  • Shares outstanding: 650.47m
  • Website: https://ir.netease.com

Number of Employees


Location

  • NetEase, Inc.
  • NetEase Building
  • No. 599 Wangshang Road
  • Hangzhou
  • Zhejiang Province
  • 310052
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.