NetEase Stock Analysis (NASDAQ:NTES)
NetEase Analysis Video
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 Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy NTES stock?
- NetEase's revenue growth came in at 61.4% in 2017 Q1.
- The company saw a significant growth in revenue with a 5 year CAGR of 39.2%.
- NetEase had a healthy average operating margin of 32% over the last 4 quarters.
- Net margins stood at a healthy 29.8% (average) for NetEase in the Trailing Twelve Months.
- With a debt/equity ratio of 0.11, NetEase is comparatively less leveraged than its peers in the Computer and Technology sector.
- The NetEase stock currently trades at a price to earnings ratio of 21.1. We rate this as a positive, compared to the industry average of 26.8.
- NetEase has an attractive ROIC (Return on Invested Capital) of 277.9%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for NetEase at 36%.
- NetEase has a healthy FCF (Free Cash Flow) margin of 27.2%.
Should you sell NTES stock?
- The company is trading at a price to sales multiple of 6.4, which is overvalued in comparison to the Internet Software-Services industry average multiple of 2.8.