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NTES

HOLDFLAG

NetEase, Inc. · Communication Services · China · $79.5B · Avg Vol: $132M/d

62
StockRank
Q
67
V
33
M
50
P/E (TTM)
16.1x
ROE
22.1%
D/E
0.1x
Dividend %
3.3%
AI CONVICTION THESIS

NetEase is an outstanding gaming business with a massive IP moat, high ROIC (81), and strong cash generation. However, it does not align with our 18-month macro themes, and regulatory uncertainties in the Chinese gaming sector warrant a cautious, flagged stance.

COMPANY DESCRIPTION

NetEase, Inc. is a prominent Chinese internet technology company, primarily known for its extensive portfolio of online games across PC and mobile platforms, alongside ventures in online music, e-commerce, and education. The company's competitive moat is built on strong in-house game development capabilities, valuable intellectual property, and a vast, deeply engaged user base in China. NetEase is a key innovator and major player in the global online gaming industry.

FINANCIAL SUMMARY

Year20212022202320242025CAGR
Revenue87.6B96.5B103.5B105.3B6.3%
EPS31.1545.7546.4052.9519.3%
Shares3.4B3.3B3.3B3.2B-6.8%
Debt21.7B28.5B20.5B12.8B-16.1%
Equity95.3B104.7B124.3B138.7B13.3%
Op CF24.9B27.7B35.3B39.7B16.8%
Inv CF-7.1B-7.4B-17.0B17.9B
Fin CF-12.6B-10.2B-21.5B-27.3B
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PRICE (1M)+6.6%
109113118122126May 1May 22Jun 12
SMA 50SMA 200
Close
$125.82
RSI (14)
71.5
52W High
$156.41
From 52W High
0.8%

SCORE BREAKDOWN

Quality
67
ROIC
21.2%87.8
ROE
22.1%84.8
GP/Assets
5.0%8.1
Op. Margin
41.4%97.1
FCF/Assets
2.3%35.6
Piotroski
81.5
Int. Cover
N/A
D/E Ratio
0.06x73.5
Current Ratio
3.29x78.8
Value
33
P/E (TTM)
16.1x54.1
EV/EBITDA
41.5x9.9
P/FCF
15.7x46.9
P/B
112.0x0.6
P/S
4.8x19.8
Div Yield
3.3%57.5
Momentum
50
52W High %
80%64.0
RS 6M
-15%58.1
SMA 50/200
0.91x30.7
EPS Rev 4W
N/A
EPS Rev 12W
N/A
EPS Improve
+36%43.5
Q Growth
4%47.9

FUNDAMENTALS

Market Cap
$79.5B
P/E (Forward)
11.9x
Gross Margin
65.7%

SECTOR PEERS

Closest peers in Communication Services, ranked by industry match, size, and score similarity. Cross-listings of NTES are excluded.

TickerCompanyMkt CapStockRankSignal
NTESNetEase, Inc.(you)$79.5B62HOLD
EAElectronic Arts Inc.$50.4B75BUY
3659.TNEXON Co., Ltd.$11.1B63HOLD
002602.SZZhejiang Century Huatong Group Co.,Ltd$15.9B71BUY
9766.TKonami Group Corporation$16.1B52HOLD
7974.TNintendo Co., Ltd.$51.7B21SELL
002558.SZGiant Network Group Co., Ltd.$7.3B58HOLD
259960.KSKRAFTON, Inc.$7.7B68BUY
TTWO.MXTake-Two Interactive Software, Inc.$41.7B20SELL
002517.SZKingnet Network Co., Ltd.$5.1B66BUY

Peer medians: ROE 7.1% · P/E 17.3x · Gross margin 45.6%

NetEase, Inc. (NTES) — Stock Score Summary

NetEase, Inc. (NTES) has a MoatMap StockRank of 62/100 based on Quality (67/100), Value (33/100), and Momentum (50/100) factor scores. The current signal is HOLD. NetEase is an outstanding gaming business with a massive IP moat, high ROIC (81), and strong cash generation. However, it does not align with our 18-month macro themes, and regulatory uncertainties in the Chinese gaming sector warrant a cautious, flagged stance.

NetEase, Inc. is a prominent Chinese internet technology company, primarily known for its extensive portfolio of online games across PC and mobile platforms, alongside ventures in online music, e-commerce, and education. The company's competitive moat is built on strong in-house game development capabilities, valuable intellectual property, and a vast, deeply engaged user base in China. NetEase is a key innovator and major player in the global online gaming industry.

Key Financial Metrics

Price$125.82
Market Cap$79.5B
P/E (TTM)16.11
P/E (Forward)11.85
Price/Book112.01
Return on Equity22.1%
Return on Invested Capital21.2%
Debt/Equity6.47
Gross Margin65.7%
Operating Margin41.4%
Revenue Growth6.1%
Dividend Yield3.3%
Free Cash Flow$5.0B

NetEase, Inc. operates in the Electronic Gaming & Multimedia industry, part of the Communication Services sector (China).

Frequently Asked Questions

What is NetEase, Inc.’s (NTES) StockRank?
MoatMap’s StockRank for NetEase, Inc. (NTES) is 62/100, with a Hold signal. It is a composite of Quality (67), Value (33), and Momentum (50) factor ranks across MoatMap’s 19,000+ stock universe.
Does NetEase, Inc. have an economic moat?
NetEase, Inc. (NTES) has a Quality factor score of 67/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is NetEase, Inc. a buy, hold, or sell?
MoatMap’s current signal for NetEase, Inc. (NTES) is Hold, based on a StockRank of 62/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is NetEase, Inc. in?
NetEase, Inc. (NTES) operates in the Communication Services sector, specifically the Electronic Gaming & Multimedia industry (China).