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 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.