NetEase Stock Analysis (NASDAQ:NTES)

Add to My Stocks
$265.39 $0.3 (0.11%) NTES stock closing price Apr 28, 2017 (Closing)
Watch Robo Advisor Video of NTES Stock Analysis
NetEase
Updated on : Apr 28, 2017
previous close
NTES 265.4 (0%)
NASDAQ 6047.6 (0%)
Closing Price On: Apr 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software-Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
37.6%
Operating Profit
Operating Margin:
31.9%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
549.6M
Debt/Equity Ratio:
 0.1
Compared to the industry
Cash Flow
Operating cash flow:
$1.67B
Net Income:
$530.5M
Dividend Yield
NTES dividend yield:
1.1%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NTES PS :
6.1
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
235.7%
Return on Equity:
34.5%
Free Cash Flow Margin:
88%
Double Tap To Exit Full Screen
0:00
/

NetEase Analysis Video

1113 5 2

View NetEase stock analysis video. This is our NTES analyst opinion covering the buy and sell arguments for NTES stock.

NetEase Inc (ADR) Stock Rating (4.4/5)

Our NetEase stock opinion is based on fundamentals of the company. This NetEase stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy NTES stock?

  • NetEase's revenue growth came in at 42.8% in 2016 Q4.
  • Revenue growth has been tremendous with a compounded annual growth of 37.6% over the last 5 years.
  • NetEase's average operating margin of 31.9% was exceptional.
  • Net margins came in at average 30.4% for NetEase over the last twelve months.
  • NetEase has a lower debt burden than its peers in the Computer and Technology sector, with a debt/equity ratio of  0.1.
  • The company has an operating cash flow which is 3.2 times the net income.
  • NTES stock is trading at an earnings multiple of 19.8 which is better than the industry average of 25.8.
  • NetEase generates a high return on invested capital of 235.7%.
  • The LTM ROE of 34.5% for NetEase is attractive.
  • The company has a healthy free cash flow margin of 88%.

Should you sell NTES stock?

  • NTES stock is trading at a PS multiple of 6.1, which is a negative when compared to the Internet Software-Services industry average multiple of 2.7.

Comments on this video and NetEase stock