NTES Stock Analysis: NetEase | NASDAQ
Electronic Gaming & Multimedia | NASDAQ, USA | Market Cap: 78.552m USD | 12M Return: -10.2% | US64110W1027 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 95.2M
EPS Trend: -23.3%
Qual. Beats: 0
Rev. Trend: 96.6%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
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: 32.5b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.21 > 0.02 and ΔFCF/TA 0.20 > 1.0 |
| NWC/Revenue: 117.1% < 20% (prev 102.6%; Δ 14.57% < -1%) |
| CFO/TA 0.22 > 3% & CFO 51.1b > Net Income 32.5b |
| Net Debt (-167b) to EBITDA (45.4b): -3.68 < 3 |
| Current Ratio: 3.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (644.3m) vs 12m ago 0.22% < -2% |
| Gross Margin: 67.15% > 18% (prev 63.17%; Δ 3.98% > 0.5%) |
| Asset Turnover: 52.87% > 50% (prev 52.60%; Δ 0.26% > 0%) |
| Interest Coverage Ratio: 17.56 > 6 (EBIT TTM 43.2b / Interest Expense TTM 2.46b) |
| A: 0.59 (Total Current Assets 192b - Total Current Liabilities 55.6b) / Total Assets 232b |
| B: 0.69 (Retained Earnings 159b / Total Assets 232b) |
| C: 0.20 (EBIT TTM 43.2b / Avg Total Assets 220b) |
| D: 2.76 (Book Value of Equity 167b / Total Liabilities 60.7b) |
| Altman-Z'' = 10.30 = AAA |
| DSRI: 0.94 (Receivables 5.75b/5.78b, Revenue 117b/110b) |
| GMI: 0.94 (GM 63.17% / 67.15%) |
| AQI: 0.77 (AQ_t 0.14 / AQ_t-1 0.18) |
| SGI: 1.06 (Revenue 117b / 110b) |
| TATA: -0.08 (NI 32.5b - CFO 51.1b) / TA 232b) |
| Beneish M = -3.23 (Cap -4..+1) = AA |
As of September 03, 2026, the stock is trading at USD 119.47 with a total of 435,251 shares traded. Over the past week, the price has changed by -3.21%, over one month by -9.21%, over three months by -3.67% and over the past year by -10.20%.
Current recommended Stop Loss: 111.40 (which is 6.8% 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 | 161.8 | 35.4% |
Market Cap CNY = 528b (78.6b USD * 6.7208 USD.CNY)
P/E Trailing = 16.4685
P/E Forward = 13.587
P/S = 0.6737
P/B = 3.1807
P/EG = 1.4145
Revenue TTM = 117b CNY
EBIT TTM = 43.2b CNY
EBITDA TTM = 45.4b CNY
Long Term Debt = unknown (0.0)
Short Term Debt = 12.6b CNY (from shortTermDebt, last quarter)
Debt = 13.0b CNY (from shortLongTermDebtTotal, last quarter) + Leases 345.3m
Net Debt = -167b CNY (calculated: Debt 13.0b - CCE 180b)
Enterprise Value = 361b CNY (528b + Debt 13.0b - CCE 180b)
Interest Coverage Ratio = 17.56 (Ebit TTM 43.2b / Interest Expense TTM 2.46b)
EV/FCF = 7.23x (Enterprise Value 361b / FCF TTM 49.9b)
FCF Yield = 13.83% (FCF TTM 49.9b / Enterprise Value 361b)
FCF Margin = 42.84% (FCF TTM 49.9b / Revenue TTM 117b)
Net Margin = 27.89% (Net Income TTM 32.5b / Revenue TTM 117b)
Gross Margin = 67.15% ((Revenue TTM 117b - Cost of Revenue TTM 38.3b) / Revenue TTM)
Gross Margin QoQ = 70.47% (prev 69.36%)
Tobins Q-Ratio = 1.55 (Enterprise Value 361b / Total Assets 232b)
Interest Expense / Debt = 18.97% (Interest Expense 2.46b / Debt 13.0b)
Taxrate = 18.53% (7.54b / 40.7b)
NOPAT = 35.2b (EBIT 43.2b * (1 - 18.53%))
Current Ratio = 3.45 (Total Current Assets 192b / Total Current Liabilities 55.6b)
Debt / Equity = 0.08 (Debt 13.0b / totalStockholderEquity, last quarter 167b)
Debt / EBITDA = -3.68 (Net Debt -167b / EBITDA 45.4b)
Debt / FCF = -3.34 (Net Debt -167b / FCF TTM 49.9b)
Total Stockholder Equity = 162b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.74% (Net Income 32.5b / Total Assets 232b)
RoE = 20.04% (Net Income TTM 32.5b / Total Stockholder Equity 162b)
RoCE = 26.62% (EBIT 43.2b / Capital Employed (Equity 162b + L.T.Debt 0.0))
RoIC = 19.17% (NOPAT 35.2b / Invested Capital 183b)
WACC = 7.44% (E(528b)/V(541b) * Re(7.24%) + D(13.0b)/V(541b) * Rd(18.97%) * (1-Tc(0.19)))
Discount Rate = 7.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -55.14 | Cagr: -0.48%
[DCF] Terminal Value 76.93% ; FCFF base≈47.7b ; Y1≈52.8b ; Y5≈68.0b
[DCF] Fair Price = 1.88k (EV 1038b - Net Debt -167b = Equity 1205b / Shares 640.3m; r=8.35% [WACC [floored]]; 5y FCF grow 12.45% → 2.50% )
EPS Correlation: -23.31 | EPS CAGR: -2.47% | SUE: -0.34 | # QB: 0
Revenue Correlation: 96.62 | Revenue CAGR: 4.63% | SUE: 0.07 | # QB: 0
EPS current Quarter (2026-09-30): EPS=16.15 | Chg30d=+3.29% | Revisions=-25% | Analysts=11
EPS current Year (2026-12-31): EPS=61.98 | Chg30d=-4.22% | Revisions=-40% | GrowthEPS=+6.9% | GrowthRev=+7.1%
EPS next Year (2027-12-31): EPS=72.06 | Chg30d=+0.63% | Revisions=-40% | GrowthEPS=+16.2% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: -62% (up=0, down=5)