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NetEase, Inc. (NETTF) stock analysis

NETTFOTCServices-Prepackaged SoftwareAlso trades as NTES
Financials through fiscal 2025, year ended Dec 31, 2025Last filing: 20-F on Apr 15, 2026Score 8/30
$21.54+0.00 (0.00%)

Close on Oct 19, 2026Market cap $72.55BP/E 14.5Yield –

StockData Score

Prices as of Oct 30, 2026How the score works

Value0Growth2Performance1Health5Dividend0

Weak8 of 30 checks passed

NetEase passes 8 of the 30 checks behind our score; 19 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
2/6
Past performance
1/6
Financial health
5/6
Dividend
0/6

What stands out

  • Return on capital over 10%

    Return on invested capital was 36.5%, above the 10% that usually covers the cost of capital.

  • No debt

    NetEase has no borrowings on its latest balance sheet.

  • EPS growing 10%+ a year

    Diluted EPS grew 19.3% a year over the last three fiscal years.

  • Interest well covered

    No meaningful interest expense to cover.

What to watch

  • Revenue growing under 10% a year

    Revenue grew 5.3% a year over the last three fiscal years, short of the 10% we look for.

  • Growing slower than the industry

    Revenue grew 7.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 10.8%.

  • No dividend

    NetEase has not paid a dividend in the last twelve months.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B against the industry

    Needs positive book value.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth2/6

  • Revenue growing under 10% a year

    Revenue grew 5.3% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing 10%+ a year

    Diluted EPS grew 19.3% a year over the last three fiscal years.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 7.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 10.8%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin improving

    Gross margin was 64.3% over the last twelve months, against 62.5% a year earlier.

Past performance1/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on capital over 10%

    Return on invested capital was 36.5%, above the 10% that usually covers the cost of capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin against the industry

    Needs revenue and net income.

Financial health5/6

  • No debt

    NetEase has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 3.45 times current liabilities.

  • Bankruptcy risk (Altman Z)

    Needs market value, working capital and retained earnings.

Dividend0/6

  • No dividend

    NetEase has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for NetEase. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$77.70M
Value traded per 1% price move
$54.15M

Downside

Low risk

Typical loss in a bad month
14.4%
Volatility (annualized)
33%
Sharpe ratio, 1 year
-0.78
Beta to the S&P 500 (5Y)
0.64

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

64.3%+11.4 pts over 5 years

Operating margin

31.8%+12.1 pts over 5 years

Net margin

–