NetEase, Inc. operates an interactive online community in the People’s Republic of China.
Excellent balance sheet with solid 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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NTES exceeded the US Entertainment industry which returned 8.1% over the past year.
Return vs Market: NTES exceeded the US Market which returned 4.1% over the past year.
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
4 days ago | Simply Wall StWhy NetEase, Inc. (NASDAQ:NTES) Could Be Worth Watching
3 weeks ago | Simply Wall StNetEase (NASDAQ:NTES) Could Easily Take On More Debt
1 month ago | Simply Wall StAre Investors Undervaluing NetEase, Inc. (NASDAQ:NTES) By 21%?
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 ($317.6) is trading above our estimate of fair value ($312.11)
Significantly Below Fair Value: NTES is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NTES is poor value based on its PE Ratio (21.5x) compared to the Entertainment industry average (21.2x).
PE vs Market: NTES is poor value based on its PE Ratio (21.5x) compared to the US market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: NTES is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: NTES is overvalued based on its PB Ratio (4.7x) compared to the US Entertainment industry average (2.1x).
How is NetEase forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NTES's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).
Earnings vs Market: NTES's earnings (7.2% per year) are forecast to grow slower than the US market (12.9% per year).
High Growth Earnings: NTES's earnings are forecast to grow, but not significantly.
Revenue vs Market: NTES's revenue (9.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: NTES's revenue (9.9% 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 (19.4%).
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 (22.4%) are higher than last year (9.2%).
Past Earnings Growth Analysis
Earnings Trend: NTES's earnings have grown by 12.9% per year over the past 5 years.
Accelerating Growth: NTES's earnings growth over the past year (115.8%) exceeds its 5-year average (12.9% per year).
Earnings vs Industry: NTES earnings growth over the past year (115.8%) exceeded the Entertainment industry -8.9%.
Return on Equity
High ROE: NTES's Return on Equity (18.4%) is considered low.
Return on Assets
Return on Capital Employed
How is NetEase's financial position?
Financial Position Analysis
Short Term Liabilities: NTES's short term assets (CN¥85.1B) exceed its short term liabilities (CN¥38.2B).
Long Term Liabilities: NTES's short term assets (CN¥85.1B) exceed its long term liabilities (CN¥839.9M).
Debt to Equity History and Analysis
Debt Level: NTES's debt to equity ratio (23%) is considered satisfactory.
Reducing Debt: NTES's debt to equity ratio has increased from 8.7% to 23% over the past 5 years.
Debt Coverage: NTES's debt is well covered by operating cash flow (102.3%).
Interest Coverage: NTES earns more interest than it pays, so coverage of interest payments is not a concern.
Inventory Level: NTES has a low level of unsold assets or inventory.
Debt Coverage by Assets: NTES's debt is covered by short term assets (assets are 5.1x debt).
What is NetEase's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NTES's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: NTES's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (4.13%).
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 (46.6%), 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 (22.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
William Ding (47yo)
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 ...
|Founder||14.3yrs||no data||45.51% CN¥18.7b|
|Consultant||0yrs||no data||no data|
|Chief Financial Officer||2.7yrs||no data||no data|
|IR Director||0yrs||no data||no data|
|Senior Vice President of Search Operations||12.5yrs||no data||no data|
Experienced Management: NTES's management team is seasoned and experienced (12.5 years average tenure).
|Founder||14.3yrs||no data||45.51% CN¥18.7b|
|Director||20.2yrs||no data||no data|
|Independent Non-Executive Director||12.7yrs||CN¥66.86k||no data|
Experienced Board: NTES's board of directors are seasoned and experienced ( 17.6 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 not been meaningfully diluted in the past year.
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$41.194b
- Shares outstanding: 127.96m
- Website: https://ir.netease.com
Number of Employees
- NetEase, Inc.
- Building No. 7, West Zone
- Zhongguancun Software Park (Phase II)
|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|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/29 00:46|
|End of Day Share Price||2020/02/28 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.