Is NetEase Stock a Good Investment?
NetEase Investment Advice | NTES |
- Examine NetEase's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research NetEase's leadership team and their track record. Good management can help NetEase navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Interactive Home Entertainment space and any emerging trends that could impact NetEase's business and its evolving consumer preferences.
- Compare NetEase's performance and market position to its competitors. Analyze how NetEase is positioned in terms of product offerings, innovation, and market share.
- Check if NetEase pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about NetEase's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in NetEase stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if NetEase is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine NetEase Stock
Researching NetEase's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The book value of the company was now reported as 38.71. The company has Price/Earnings To Growth (PEG) ratio of 1.38. NetEase recorded earning per share (EPS) of 5.86. The entity last dividend was issued on the 6th of September 2024. The firm had 5:1 split on the 2nd of October 2020.
To determine if NetEase is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding NetEase's research are outlined below:
| NetEase has a frail financial position based on the latest SEC disclosures | |
| Latest headline from seekingalpha.com: NetEase, Inc. goes ex dividend tomorrow |
NetEase uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in NetEase. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to NetEase's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 23rd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact NetEase's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises NetEase's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-11-18 | 2009-09-30 | 0.1 | 0.09 | -0.01 | 10 | ||
2008-11-12 | 2008-09-30 | 0.08 | 0.07 | -0.01 | 12 | ||
2007-11-07 | 2007-09-30 | 0.06 | 0.05 | -0.01 | 16 | ||
2007-05-21 | 2007-03-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2007-02-16 | 2006-12-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2006-08-14 | 2006-06-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2006-02-23 | 2005-12-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2005-11-07 | 2005-09-30 | 0.05 | 0.04 | -0.01 | 20 |
Know NetEase's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as NetEase is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NetEase backward and forwards among themselves. NetEase's institutional investor refers to the entity that pools money to purchase NetEase's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of America Corp | 2024-06-30 | 1.6 M | Lazard Asset Management Llc | 2024-06-30 | 1.6 M | Blackrock Inc | 2024-06-30 | 1.4 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 1.3 M | Fisher Asset Management, Llc | 2024-09-30 | 1.1 M | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 1.1 M | Voloridge Investment Management, Llc | 2024-09-30 | 1.1 M | Amvescap Plc. | 2024-06-30 | 1 M | Wellington Management Company Llp | 2024-06-30 | 1 M | Ninety One Uk Limited | 2024-09-30 | 6.4 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 6.3 M |
NetEase's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 55.56 B.Market Cap |
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NetEase's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.17 | 0.10 | |
| Return On Capital Employed | 0.21 | 0.13 | |
| Return On Assets | 0.16 | 0.10 | |
| Return On Equity | 0.24 | 0.14 |
Determining NetEase's profitability involves analyzing its financial statements and using various financial metrics to determine if NetEase is a good buy. For example, gross profit margin measures NetEase's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of NetEase's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in NetEase's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of NetEase. Check NetEase's Beneish M Score to see the likelihood of NetEase's management manipulating its earnings.
Evaluate NetEase's management efficiency
NetEase has return on total asset (ROA) of 0.1034 % which means that it generated a profit of $0.1034 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2305 %, meaning that it created $0.2305 on every $100 dollars invested by stockholders. NetEase's management efficiency ratios could be used to measure how well NetEase manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to 0.1 in 2024. Return On Capital Employed is likely to drop to 0.13 in 2024. At this time, NetEase's Debt To Assets are comparatively stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 197.03 | 206.88 | |
| Tangible Book Value Per Share | 185.00 | 194.25 | |
| Enterprise Value Over EBITDA | 2.77 | 2.63 | |
| Price Book Value Ratio | 0.69 | 0.66 | |
| Enterprise Value Multiple | 2.77 | 2.63 | |
| Price Fair Value | 0.69 | 0.66 | |
| Enterprise Value | 85.1 B | 80.9 B |
NetEase benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0297 | Forward Dividend Yield 0.0297 | Forward Dividend Rate 2.5 | Beta 0.802 |
Basic technical analysis of NetEase Stock
As of the 28th of November, NetEase secures the Downside Deviation of 2.41, risk adjusted performance of 0.0379, and Mean Deviation of 2.08. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of NetEase, as well as the relationship between them. Please verify NetEase information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if NetEase is priced some-what accurately, providing market reflects its recent price of 86.56 per share. Given that NetEase has jensen alpha of 0.087, we recommend you to check NetEase's last-minute market performance to make sure the company can sustain itself at a future point.NetEase's Outstanding Corporate Bonds
NetEase issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. NetEase uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most NetEase bonds can be classified according to their maturity, which is the date when NetEase has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand NetEase's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing NetEase's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0379 | |||
| Market Risk Adjusted Performance | 0.6646 | |||
| Mean Deviation | 2.08 | |||
| Semi Deviation | 2.35 | |||
| Downside Deviation | 2.41 | |||
| Coefficient Of Variation | 2504.27 | |||
| Standard Deviation | 2.92 | |||
| Variance | 8.52 | |||
| Information Ratio | (0) | |||
| Jensen Alpha | 0.087 | |||
| Total Risk Alpha | (0.35) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.6546 | |||
| Maximum Drawdown | 13.73 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 4.88 | |||
| Downside Variance | 5.83 | |||
| Semi Variance | 5.54 | |||
| Expected Short fall | (2.49) | |||
| Skewness | 0.957 | |||
| Kurtosis | 2.42 |
| Risk Adjusted Performance | 0.0379 | |||
| Market Risk Adjusted Performance | 0.6646 | |||
| Mean Deviation | 2.08 | |||
| Semi Deviation | 2.35 | |||
| Downside Deviation | 2.41 | |||
| Coefficient Of Variation | 2504.27 | |||
| Standard Deviation | 2.92 | |||
| Variance | 8.52 | |||
| Information Ratio | (0) | |||
| Jensen Alpha | 0.087 | |||
| Total Risk Alpha | (0.35) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.6546 | |||
| Maximum Drawdown | 13.73 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 4.88 | |||
| Downside Variance | 5.83 | |||
| Semi Variance | 5.54 | |||
| Expected Short fall | (2.49) | |||
| Skewness | 0.957 | |||
| Kurtosis | 2.42 |
Consider NetEase's intraday indicators
NetEase intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of NetEase stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
NetEase Corporate Filings
6K | 14th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 7th of November 2024 Other Reports | ViewVerify | |
| 30th of September 2024 Other Reports | ViewVerify | |
| 29th of August 2024 Other Reports | ViewVerify |
NetEase Stock media impact
Far too much social signal, news, headlines, and media speculation about NetEase that are available to investors today. That information is available publicly through NetEase media outlets and privately through word of mouth or via NetEase internal channels. However, regardless of the origin, that massive amount of NetEase data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of NetEase news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of NetEase relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to NetEase's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive NetEase alpha.
NetEase Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards NetEase can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
NetEase Historical Investor Sentiment
Investor biases related to NetEase's public news can be used to forecast risks associated with an investment in NetEase. The trend in average sentiment can be used to explain how an investor holding NetEase can time the market purely based on public headlines and social activities around NetEase. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
NetEase's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for NetEase and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average NetEase news discussions. The higher the estimate score, the more favorable the investor's outlook on NetEase.
NetEase Corporate Management
| Ying Li | Head Reporting | Profile | |
| Paul Boltz | General Counsel | Profile | |
| Bill Pang | Vice Development | Profile | |
| Feng Zhou | VP Operations | Profile |
Additional Tools for NetEase Stock Analysis
When running NetEase's price analysis, check to measure NetEase's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NetEase is operating at the current time. Most of NetEase's value examination focuses on studying past and present price action to predict the probability of NetEase's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NetEase's price. Additionally, you may evaluate how the addition of NetEase to your portfolios can decrease your overall portfolio volatility.