NetEase, Inc. (NTES) Stock

About NetEase, Inc.

NetEase, Inc., a prominent technology firm founded in 1997 and headquartered in Hangzhou, People's Republic of China, delivers a broad spectrum of online services both within China and across international markets. Its core operations encompass online gaming, music streaming, intelligent online learning solutions, and diverse internet content services. The company organizes its activities into several key divisions: Games and Related Value-Added Services; Youdao, focusing on educational technology; Cloud Music for its audio streaming offerings; and a segment for Innovative Businesses and Others. Within its gaming division, NetEase is responsible for creating and managing both PC and mobile games, and it also publishes titles licensed from external game developers. The Youdao segment provides a comprehensive suite of online learning and translation tools, including Youdao Dictionary, Youdao Translation, U-Dictionary, and Youdao Kids' Dictionary. It also manufactures smart devices like the Youdao Dictionary Pen, Smart Learning Pad, and Listening Pod. Furthermore, Youdao offers online courses, interactive educational applications, and advanced digitalization solutions for education, such as the Youdao Smart Learning Terminal for automated homework processing, Youdao Smart Cloud (a platform offering OCR capabilities to third parties), and Youdao Sports, a sports-focused educational system. Beyond these, NetEase manages an array of other popular internet services. These include NetEase Cloud Music, a significant music streaming platform; Yanxuan, an e-commerce platform specializing in private label products; the www.163.com portal and its companion mobile app, Wangyi Xinwen, which deliver news, sports, technology, fashion, and entertainment content; NetEase Mail, an email service; NetEase CC Live, a live streaming platform primarily dedicated to game broadcasting; and NetEase Pay, a secure payment system. The company, originally known as NetEase.com, Inc., officially adopted its current name, NetEase, Inc., in March 2012.

NetEase, Inc. is headquartered in CN.

NetEase, Inc. (NTES) stock trades at $119.07 with a market capitalization of $76.02B. The stock is valued at a price-to-earnings (P/E) ratio of 15.71, price-to-book of 3.05, price-to-sales of 4.38. Over the past 52 weeks the stock has ranged between $106.06 and $156.44, and currently trades 23.9% below its 52-week high. It pays a dividend yielding 1.61%.

On profitability, NetEase, Inc. generates a return on equity (ROE) of 20.04% — well above the market average, a sign of a high-quality business, return on capital employed of 23.24%, an operating margin of 35.22%, a net profit margin of 27.89%.

In its most recent fiscal year, NetEase, Inc. reported annual revenue of $112.6B, net profit of $33.8B, revenue has compounded at 8.9% a year over the last five years, profit at 22.9% a year. Profit growing faster than revenue points to expanding margins.

The balance sheet shows a debt-to-equity ratio of 0.08 — a conservative balance sheet with little leverage risk, a current ratio of 3.45, total assets of $221.6B, $51.5B in cash and equivalents.

NTES has an average daily trading volume of 846,513 shares, a beta of 0.77 (less volatile than the overall market).

Official website: ir.netease.com