NetEase, Inc., an Internet technology company, provides online services focusing on content, community, communication, and commerce in the Peoples’ Republic of China and internationally. More Details
Excellent balance sheet with questionable track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: NTES's weekly volatility (7%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: NTES underperformed the US Entertainment industry which returned 86.7% over the past year.
Return vs Market: NTES exceeded the US Market which returned 55.3% over the past year.
Long-Term 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
2 days ago | Simply Wall StDeclining Stock and Solid Fundamentals: Is The Market Wrong About NetEase, Inc. (NASDAQ:NTES)?
2 weeks ago | Simply Wall StThe Returns On Capital At NetEase (NASDAQ:NTES) Don't Inspire Confidence
1 month ago | Simply Wall StYou Have To Love NetEase, Inc.'s (NASDAQ:NTES) Dividend
Is NetEase undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NTES ($104.93) is trading above our estimate of fair value ($70.96)
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 (37.7x) compared to the US Entertainment industry average (38.1x).
PE vs Market: NTES is poor value based on its PE Ratio (37.7x) compared to the US market (22.3x).
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 (5.6x) compared to the US Entertainment industry average (5x).
How is NetEase forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NTES's forecast earnings growth (15.5% per year) is above the savings rate (2%).
Earnings vs Market: NTES's earnings (15.5% per year) are forecast to grow slower than the US market (18.7% per year).
High Growth Earnings: NTES's earnings are forecast to grow, but not significantly.
Revenue vs Market: NTES's revenue (13.3% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: NTES's revenue (13.3% 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 (19.2%).
How has NetEase performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NTES has high quality earnings.
Growing Profit Margin: NTES's current net profit margins (16.4%) are lower than last year (22.4%).
Past Earnings Growth Analysis
Earnings Trend: NTES's earnings have grown by 8.3% 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 (-9.2%) over the past year, making it difficult to compare to the Entertainment industry average (52.6%).
Return on Equity
High ROE: NTES's Return on Equity (13.1%) is considered low.
How is NetEase's financial position?
Financial Position Analysis
Short Term Liabilities: NTES's short term assets (CN¥107.8B) exceed its short term liabilities (CN¥46.7B).
Long Term Liabilities: NTES's short term assets (CN¥107.8B) exceed its long term liabilities (CN¥1.3B).
Debt to Equity History and Analysis
Debt Level: NTES's debt to equity ratio (20.2%) is considered satisfactory.
Reducing Debt: NTES's debt to equity ratio has increased from 7.7% to 20.2% over the past 5 years.
Debt Coverage: NTES's debt is well covered by operating cash flow (131.1%).
Interest Coverage: NTES earns more interest than it pays, so coverage of interest payments is not a concern.
What is NetEase current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NTES's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: NTES's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (4.3%), NTES's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NTES's dividends in 3 years are forecast to be well covered by earnings (21.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
William Ding (48 yo)
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...
Experienced Management: NTES's management team is seasoned and experienced (13.7 years average tenure).
Experienced Board: NTES's board of directors are seasoned and experienced ( 18.4 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8%.
NetEase, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: NetEase, Inc.
- Ticker: NTES
- Exchange: NasdaqGS
- Founded: 1997
- Industry: Interactive Home Entertainment
- Sector: Media
- Market Cap: US$71.825b
- Shares outstanding: 691.02m
- Website: https://ir.netease.com
Number of Employees
- NetEase, Inc.
- NetEase Building
- No. 599 Wangshang Road
- Zhejiang Province
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||2021/04/10 22:09|
|End of Day Share Price||2021/04/09 00:00|
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.