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NetEase, Inc. (NTES)

POSITIVE
Communication ServicesElectronic Gaming & MultimediaChina

Price

$125.82

Market Cap

$80.61B

Fundamental

79

Technical

60

Composite

73

AI Analysis

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Overview

NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally. The company operates through Games and Related Value-Added Services; Youdao; NetEase Cloud Music; and Innovative Businesses and Others segments. It develops and operates mobile and PC games; and offers games licensed from other developers. The company also provides live streaming service, and other related or ancillary value-added services related to games, such as the sale of game-themed merchandise. In addition, it offers digital content services with interactive learning features, including Youdao Lingshi and Youdao Literature; STEAM courses consisting computer coding courses and other STEAM courses; and adult courses, such as China University massive open online course. Further, the company provides Youdao Dictionary, an online language tool; Confucius, a large language model for the education sector; Hi Echo, an AI-driven virtual English-speaking tutor; Mr. P AI Tutor, a conversation-based tool; Youdao Desktop Translation, a desktop dictionary tool; U-Dictionary, an online dictionary and translation app; iRecord, an audio transcription tool; LectMate, an interpretation software for study-abroad lecture scenarios; iArch, an AI home design software; Baby Genius, an AI baby generator; and One Translate Translator, a translation tool for travelers. It also offers online marketing services consisting of performance-based advertising services, and global marketing and promotion services through banners, text links, videos, logos, buttons, and rich media. Additionally, the company develops and offers smart devices, including Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. NetEase, Inc. was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. The company was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.

Balance Sheet & Liquidity

Revenue

$112.63B

Net Income

$33.76B

Free Cash Flow

$34.15B

Total Equity

$4.87B

Total Liabilities

$10.96B

Current Ratio

3.29

Interest Coverage

-

Debt/EBITDA

0.27

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Undervalued

Fair Value

$853.79

Current Price

$125.82

Margin of Safety

+85.3%

Fair Value Range

$554.96 - $1152.61

Estimation Methods

Analyst Target:$162.64
DCF:$2937.26
PE-based:$96.00
Graham Growth:$386.11
EPV:$108.96
Analyst Consensus:Strong Buy (30B / 4H / 0S)
Last Earnings Surprise:+12.99%

Valuation Metrics

P/E Ratio

16.11

ROE

22.1%

P/B Ratio

16.55

P/FCF

2.36

Gross Margin

65.7%

ROIC

236.3%

Value Creation (Economic Moat)

ROIC

236.3%

WACC

7.5%

ROIC − WACC

+228.8 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (15)

  • Price CAGR 11.32%
  • ROIC 236.3%
  • Gross Margin 65.7%
  • P/FCF 2.36
  • Debt/Equity ratio
  • Positive Free Cash Flow
  • Current Ratio
  • Debt/EBITDA
  • DCF valuation (Undervalued)
  • ROE 21.6%
  • Revenue Growth 5Y 8.9%
  • Analyst Consensus 88% Buy
  • PEG Ratio 0.65
  • Earnings Quality (OCF/NI) 1.55
  • Net Margin Trend 30.0% vs 28.2%

Failed (4)

  • P/B Ratio 16.55
  • CapEx intensity
  • Earnings Surprise avg -4.1%
  • Piotroski F-Score 2/9

Unavailable (8)

  • EPS data insufficient
  • Dividend Payout NaN%
  • Operating Margin NaN%
  • Interest Coverage
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Price below Graham Number
  • Share Dilution (missing shares data)

Price Chart

Technical Indicators

RSI (14)

62.48

SMA 50

$117.21

SMA 200

$130.72

MACD

0.29

Volatility

2.3%

Momentum (12m)

-5.2%

RSI 62.5, SMA trend bearish, momentum -5.2%.

Piotroski F-Score

2/9

Serious financial concerns

score
criteria

Earnings Quality

1.55

High quality: earnings backed by cash

Share Dilution

-

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Lei DingFounder, CEO & Director53
Ms. Aileen Bin MoVice President of Finance45
Ms. Margaret ShiIR Director-
Mr. Paul W. Boltz Jr.General Counsel55
Mr. Bill PangVice President of Corporate Development-
Mr. Yingfeng DingConsultant53
Ryutaro IchimuraPresident & Representative Director of PinCool Inc.-

Latest News

Recent headlines for NTES, sourced from Markets Gazette.

  • 2d agoPOSITIVE
    If You Invested $100 In NetEase Stock 15 Years Ago, You Would Have This Much Today

    An investment of $100 in NetEase Inc. (NTES) 15 years ago would have yielded a substantial return, highlighting the company's long-term growth trajectory. While specific figures are not provided in the title, the implication of significant appreciation suggests strong performance in gaming and online services. Investors considering NetEase should analyze its recent product launches, user acquisition strategies, and competitive positioning within the global gaming market to assess future potential. The historical performance indicates a robust business model capable of generating considerable shareholder value over extended periods.

  • 27d agoNEUTRAL
    Full Transcript: NetEase Q1 2026 Earnings Call

    NetEase, Inc. (NTES) released its Q1 2026 earnings call transcript on May 21, 2026. While the transcript provides detailed insights into the company's performance, strategic initiatives, and future outlook, it does not contain specific financial results or forward-looking guidance that would allow for an immediate assessment of its market impact. Investors will need to analyze the full earnings report, which typically accompanies such calls, to determine the company's financial health and growth prospects. The transcript serves as a resource for understanding management's perspective on operational achievements and challenges.

  • 3/23/2026POSITIVE
    Here's How Much $100 Invested In NetEase 20 Years Ago Would Be Worth Today

    An investment of $100 in NetEase Inc. (NTES) twenty years ago would have grown to an estimated $12,500 today, representing a staggering 12,400% return. This performance highlights the company's significant growth trajectory and its ability to generate substantial shareholder value over the long term. For investors, this historical data underscores the potential of well-performing technology stocks in emerging markets and the power of compounding returns. NetEase, a leading online game developer and publisher, has consistently expanded its product offerings and market reach, contributing to its impressive financial performance.

  • 3/4/2026POSITIVE
    $100 Invested In NetEase 15 Years Ago Would Be Worth This Much Today

    An investment of $100 in NetEase Inc. (NTES) 15 years ago today would be worth a substantial amount, highlighting the stock's extraordinary long-term performance. While the article doesn't specify the exact figure, its nature implies exponential growth, likely tied to the expansion of the gaming and tech sectors in China. For investors, this historical data underscores the high return potential of well-selected growth stocks and NetEase's ability to innovate and dominate rapidly evolving markets, justifying potential further future gains.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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