NetEase (NTES) Stock Analysis

Company Profile

NetEase (NTES) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

NetEase (NTES) posts ROE of 20.37%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

NetEase (NTES) keeps 27.88% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

NetEase (NTES) turns 40.16% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

Profitability Metrics

Growth

NetEase (NTES) grew revenue 6.96%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

NetEase (NTES) grew earnings per share 14.04%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Growth Metrics

Financial Strength

NetEase (NTES) has current ratio of 3.45, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

NetEase (NTES) has debt-to-equity ratio of 0.07, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

Financial Strength Metrics

Dividends

NetEase (NTES) has dividend yield of 3.38%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

NetEase (NTES) has payout ratio of 41.85%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

Dividend Metrics

Valuation

NetEase (NTES) trades at P/E ratio of 16.47, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

NetEase (NTES) trades at 0.65 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

NetEase (NTES) trades at 15.18 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

Valuation Metrics