(NTES) NetEase - NASDAQ
Sector: Communication Services | Industry: Electronic Gaming & Multimedia | Exchange: NASDAQ (USA) | Market Cap: 77.463m USD | Total Return: -6.3% in 12m
Avg Turnover: 118M
EPS Trend: -15.5%
Qual. Beats: 1
Rev. Trend: 96.4%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
Confidence
NetEase, Inc. (NASDAQ: NTES) is a Chinese internet and technology company that operates through four reportable segments: Games and Related Value-Added Services, Youdao, NetEase Cloud Music, and Innovative Businesses and Others. Its core activities span online game development and publishing, music streaming, online intelligent learning services, and broader internet content services across China and select international markets.
Online gaming is NetEases flagship business and historically its largest revenue contributor. The company develops and operates mobile and PC titles in-house and also licenses third-party games, and it monetizes its user base through in-game purchases and ancillary services such as live streaming, merchandise, and game-related value-added offerings. China is the worlds largest mobile gaming market by revenue, and NetEase is one of the countrys two dominant publishers alongside Tencent, with a portfolio that includes both internally developed franchises and licensed titles from foreign studios.
Youdao is NetEases intelligent learning subsidiary, offering digital content, interactive courses, language tools, and AI-powered education products such as the Youdao Dictionary, AI tutoring tools, and a large language model for the education sector called Confucius. NetEase Cloud Music is a dedicated music streaming platform, while the Innovative Businesses and Others segment covers additional internet services and smart learning hardware, including online marketing and Youdao-branded devices such as dictionary pens and learning pads.
Founded in 1997 and headquartered in Hangzhou, China, NetEase has been listed on the NASDAQ since June 2000 and adopted its current name in March 2012. The company is classified within the Communication Services sector and the Interactive Home Entertainment sub-industry.
- China gaming approvals restart, accelerating new title launches
- Marvel Rivals global launch boosts games segment revenue
- Youdao AI tools and Cloud Music growth expand operating margins
| Net Income: 34.1b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA 1.83 > 1.0 |
| NWC/Revenue: 114.7% < 20% (prev 101.2%; Δ 13.54% < -1%) |
| CFO/TA 0.22 > 3% & CFO 52.0b > Net Income 34.1b |
| Net Debt (-160b) to EBITDA (43.9b): -3.63 < 3 |
| Current Ratio: 3.28 > 1.5 & < 3 |
| Outstanding Shares: last quarter (645.5m) vs 12m ago 0.65% < -2% |
| Gross Margin: 65.69% > 18% (prev 62.71%; Δ 2.98% > 0.5%) |
| Asset Turnover: 52.93% > 50% (prev 53.41%; Δ -0.48% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.57 (Total Current Assets 189b - Total Current Liabilities 57.4b) / Total Assets 231b |
| B: 0.65 (Retained Earnings 150b / Total Assets 231b) |
| C: 0.19 (EBIT TTM 41.7b / Avg Total Assets 216b) |
| D: 2.65 (Book Value of Equity 165b / Total Liabilities 62.0b) |
| Altman-Z'' = 9.92 = AAA |
| DSRI: 0.90 (Receivables 6.49b/6.74b, Revenue 114b/107b) |
| GMI: 0.95 (GM 62.71% / 65.69%) |
| AQI: 0.86 (AQ_t 0.15 / AQ_t-1 0.17) |
| SGI: 1.07 (Revenue 114b / 107b) |
| TATA: -0.08 (NI 34.1b - CFO 52.0b) / TA 231b) |
| Beneish M = -3.19 (Cap -4..+1) = AA |
As of June 25, 2026, the stock is trading at USD 119.25 with a total of 499,746 shares traded. Over the past week, the price has changed by -5.30%, over one month by -2.75%, over three months by +5.80% and over the past year by -6.27%.
Current recommended Stop Loss: 112.60 (which is 5.6% or 2.2 ATR below the current price).
NetEase has received a consensus analysts rating of 4.65. Therefore, it is recommended to buy NTES.
- StrongBuy: 22
- Buy: 7
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 161.5 | 35.4% |
Market Cap CNY = 526b (77.5b USD * 6.7905 USD.CNY)
P/E Trailing = 15.4802
P/E Forward = 12.5313
P/S = 0.6772
P/B = 3.1809
P/EG = 1.2795
Revenue TTM = 114b CNY
EBIT TTM = 41.7b CNY
EBITDA TTM = 43.9b CNY
Long Term Debt = unknown (0.0)
Short Term Debt = 11.0b CNY (from shortTermDebt, last quarter)
Debt = 11.3b CNY (from shortLongTermDebtTotal, last quarter) + Leases 345.3m
Net Debt = -160b CNY (calculated: Debt 11.3b - CCE 171b)
Enterprise Value = 366b CNY (526b + Debt 11.3b - CCE 171b)
Interest Coverage Ratio = unknown (Ebit TTM 41.7b / Interest Expense TTM 0.0)
EV/FCF = 7.28x (Enterprise Value 366b / FCF TTM 50.3b)
FCF Yield = 13.73% (FCF TTM 50.3b / Enterprise Value 366b)
FCF Margin = 43.97% (FCF TTM 50.3b / Revenue TTM 114b)
Net Margin = 29.84% (Net Income TTM 34.1b / Revenue TTM 114b)
Gross Margin = 65.69% ((Revenue TTM 114b - Cost of Revenue TTM 39.2b) / Revenue TTM)
Gross Margin QoQ = 69.36% (prev 64.23%)
Tobins Q-Ratio = 1.58 (Enterprise Value 366b / Total Assets 231b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 11.3b)
Taxrate = 15.93% (6.65b / 41.7b)
NOPAT = 35.1b (EBIT 41.7b * (1 - 15.93%))
Current Ratio = 3.28 (Total Current Assets 189b / Total Current Liabilities 57.4b)
Debt / Equity = 0.07 (Debt 11.3b / totalStockholderEquity, last quarter 165b)
Debt / EBITDA = -3.63 (Net Debt -160b / EBITDA 43.9b)
Debt / FCF = -3.17 (Net Debt -160b / FCF TTM 50.3b)
Total Stockholder Equity = 158b (last 4 quarters mean from totalStockholderEquity)
RoA = 15.79% (Net Income 34.1b / Total Assets 231b)
RoE = 21.64% (Net Income TTM 34.1b / Total Stockholder Equity 158b)
RoCE = 26.47% (EBIT 41.7b / Capital Employed (Equity 158b + L.T.Debt 0.0))
RoIC = 19.59% (NOPAT 35.1b / Invested Capital 179b)
WACC = 7.30% (E(526b)/V(537b) * Re(7.46%) + D(11.3b)/V(537b) * Rd(0.0%) * (1-Tc(0.16)))
Discount Rate = 7.46% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -18.40 | Cagr: -0.30%
[DCF] Terminal Value 77.97% ; FCFF base≈46.2b ; Y1≈52.9b ; Y5≈77.9b
[DCF] Fair Price = 2.08k (EV 1172b - Net Debt -160b = Equity 1332b / Shares 640.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -15.48 | EPS CAGR: -1.62% | SUE: 1.31 | # QB: 1
Revenue Correlation: 96.43 | Revenue CAGR: 4.70% | SUE: 0.09 | # QB: 0
EPS current Quarter (2026-06-30): EPS=15.86 | Chg30d=+5.91% | Revisions=+50% | Analysts=11
EPS next Quarter (2026-09-30): EPS=15.63 | Chg30d=+2.18% | Revisions=+9% | Analysts=9
EPS current Year (2026-12-31): EPS=65.19 | Chg30d=+3.86% | Revisions=+69% | GrowthEPS=+12.4% | GrowthRev=+7.4%
EPS next Year (2027-12-31): EPS=71.95 | Chg30d=+3.59% | Revisions=+54% | GrowthEPS=+10.4% | GrowthRev=+7.9%
[Analyst] Revisions Ratio: +69%