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NetEase (NTES) Stock Analysis

This is a peer-relative look at NetEase (NTES): its performance, risk, profitability, financial strength, dividend, and valuation are each measured against its Media & Entertainment peers, so every number reads in context rather than in isolation.

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.

Company profile fields for NetEase (NTES)
Profile ItemNTES
NameNetEase, Inc. American Depositary Receipt
Country/RegionChina
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryEntertainment
GICS Sub-IndustryInteractive Home Entertainment
Market Capitalization84.15 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateJune 30, 2000
Security TypeADR

Price Performance

Cumulative Growth

NTES
GSPC
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NetEase (NTES) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for NetEase (NTES) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for NetEase (NTES) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

NetEase (NTES) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NTESIndustry group median
Total Return (1Y)4.96%0.17%
Total Return (3Y, Annualized)10.59%3.38%
Total Return (5Y, Annualized)5.47%-8.04%

Risk Profile

Drawdown History

NTES
GSPC
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NetEase (NTES) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for NetEase (NTES) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

NetEase (NTES) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NTESIndustry group median
Volatility (1Y, Annualized)31.27%46.66%
Beta (5Y)0.730.96
Max Drawdown (5Y)-51.38%-75.43%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NTES is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

NetEase (NTES) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NTESIndustry group median
Sharpe Ratio (1Y)0.03-0.09
Sortino Ratio (1Y)0.04-0.15

Profitability

ROE (TTM)

NetEase (NTES) posts ROE of 22.13%, 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.

NTES

Media & Entertainment industry group

22.13%

Group distribution
Max
38.89%
NTES
22.13%
Q3
15.97%
Median
6.52%
Q1
-3.40%
Min
-29.59%
Largest peers
NFLX
48.50%
GOOGL
38.89%
GOOG
38.89%
SPOT
37.99%
META
32.93%
NTES
22.13%
DIS
11.01%
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Where NetEase (NTES) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

NetEase (NTES) keeps 29.84% 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.

NTES

Media & Entertainment industry group

29.84%

Group distribution
Max
30.77%
NTES
29.84%
Q3
10.81%
Median
3.55%
Q1
-3.12%
Min
-20.69%
Largest peers
GOOGL
37.92%
GOOG
37.92%
META
32.84%
NTES
29.84%
NFLX
28.52%
SPOT
15.45%
DIS
11.54%
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Where NetEase (NTES) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

NetEase (NTES) turns 41.37% 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.

NTES

Media & Entertainment industry group

41.37%

Group distribution
NTES
41.37%
Max
41.37%
Q3
16.20%
Median
7.18%
Q1
-3.39%
Min
-26.23%
Largest peers
NTES
41.37%
META
40.62%
GOOGL
36.12%
GOOG
36.12%
NFLX
32.30%
SPOT
15.77%
DIS
15.51%
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Where NetEase (NTES) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

NetEase (NTES) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NTESIndustry group median
ROE (TTM)22.13%6.52%
ROA (TTM)11.00%2.77%
Net Margin (TTM)29.84%3.55%
Operating Margin (TTM)41.37%7.18%
Gross Margin (TTM)65.69%53.93%

Financial Strength

Current Ratio (MRQ)

NetEase (NTES) has current ratio of 3.29, 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.

NTES

Media & Entertainment industry group

3.29

Group distribution
Max
4.37
NTES
3.29
Q3
2.33
Median
1.41
Q1
0.91
Min
0.31
Largest peers
NTES
3.29
META
2.35
SPOT
2.06
GOOGL
1.92
GOOG
1.92
NFLX
1.41
DIS
0.68
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Where NetEase (NTES) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

NetEase (NTES) has debt-to-equity ratio of 0.06, 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.

NTES

Media & Entertainment industry group

0.06

Group distribution
Max
2.46
Q3
1.17
Median
0.47
Q1
0.16
NTES
0.06
Min
0.00
Largest peers
NFLX
0.54
DIS
0.41
META
0.36
GOOGL
0.20
GOOG
0.20
NTES
0.06
SPOT
0.06
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Where NetEase (NTES) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

NetEase (NTES) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NTESIndustry group median
Current Ratio (MRQ)3.291.41
Debt / Equity (MRQ)0.060.47
Net Debt / EBITDA-3.971.23

Dividends

Dividend Yield (TTM)

NetEase (NTES) has dividend yield of 3.26%, 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.

NTES

Media & Entertainment industry group

3.26%

Group distribution
NTES
3.26%
Max
2.59%
Q3
1.04%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
NTES
3.26%
DIS
1.57%
META
0.31%
GOOG
0.24%
GOOGL
0.24%
NFLX
0.00%
SPOT
0.00%
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Where NetEase (NTES) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

NetEase (NTES) has payout ratio of 39.66%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

NTES

Media & Entertainment industry group

39.66%

Group distribution
Max
45.76%
NTES
39.66%
Q3
22.57%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
NTES
39.66%
DIS
20.00%
META
7.64%
GOOGL
6.41%
GOOG
6.41%
NFLX
0.00%
SPOT
0.00%
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Where NetEase (NTES) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

NetEase (NTES) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NTESIndustry group median
Dividend Yield (TTM)3.26%0.00%
Dividend Payout Ratio (TTM)39.66%0.00%

Valuation

P/E Ratio (TTM)

NetEase (NTES) trades at P/E ratio of 16.89, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

NTES

Media & Entertainment industry group

16.89

Group distribution
Max
77.85
Q3
41.76
Median
23.66
NTES
16.89
Q1
12.52
Min
1.65
Largest peers
SPOT
32.69
GOOG
27.10
GOOGL
26.89
META
23.88
NFLX
23.66
NTES
16.89
DIS
15.29
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Where NetEase (NTES) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

NetEase (NTES) trades at 0.74 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

NTES

Media & Entertainment industry group

0.74

Group distribution
Max
8.62
Q3
3.88
Median
1.51
NTES
0.74
Q1
0.66
Min
0.00
Largest peers
GOOGL
10.18
GOOG
10.13
META
7.76
NFLX
6.63
SPOT
5.63
DIS
1.71
NTES
0.74
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Where NetEase (NTES) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

NetEase (NTES) trades at 17.34 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.

NTES

Media & Entertainment industry group

17.34

Group distribution
NTES
17.34
Max
12.16
Q3
5.46
Median
1.97
Q1
0.75
Min
-3.85
Largest peers
NTES
17.34
SPOT
10.82
NFLX
9.99
GOOGL
8.92
GOOG
8.87
META
6.84
DIS
1.54
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Where NetEase (NTES) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

NetEase (NTES) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NTESIndustry group median
P/E Ratio (TTM)16.8923.66
P/S Ratio (TTM)0.741.51
P/B Ratio (MRQ)17.341.97
Free Cash Flow Yield (TTM)40.58%7.20%