NTES
NetEase, Inc.
Next earnings Aug 12, 2026 (before open) · consensus $15.77 EPS, $30.0B rev
$127.24
▼ -1.49%$127.24▼ -1.74%
over 1Y
L $108.62H $156.20
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today-1.5%
1W+10.8%
1M+2.6%
3M+13.5%
YTD-12.4%
1Y-1.7%
Hold
Conviction
Horizon
Long (>12mo)
Street · 34 analysts
Buy
Elite debt-free gaming compounder—20% EPS growth, 30%+ margins—but the headline valuation looks rich and unit-inconsistent.
Revenue $16.1B · FY2025
The read
Middling fundamentals and a rich price (~56% above fair value) leave little margin of safety — a wait-and-see.
On business quality NetEase is close to best-in-class. FY2025 revenue grew 11.6% to $16.1B while net income jumped 20.0% to $4.98B and operating income rose 26.4% to $5.12B—earnings growing roughly twice as fast as the top line is the signature of operating leverage, not financial engineering. The margin stack is exceptional and stable: 64.3% gross, 31.8% operating, 30.9% net, with 21.7% ROE. The five-year history ($13.7B→$16.1B revenue, $2.66B→$4.98B net income) shows durable, accelerating profitability. The balance sheet is fortress-grade: $22.9B equity against just $8.05B total liabilities (0.35x), only $58.6M of long-term debt, $6.74B cash, and operating cash flow of $7.26B (+33.5%) on trivial capex ($152M), so nearly all reported profit converts to cash. Capital return is real and rising—dividends paid up 29.2% to $1.98B—and the company self-funds growth ($2.53B R&D) without diluting (shares +0.8%).
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 11:22 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $13.7B | $14.0B | $14.6B | $14.4B | $16.1B |
| Gross profit | $7.37B | $7.65B | $8.88B | $9.02B | $10.4B |
| Operating income | $2.58B | $2.85B | $3.90B | $4.05B | $5.12B |
| Net income | $2.66B | $2.88B | $4.13B | $4.15B | $4.98B |
| Diluted EPS | $0.79 | $0.89 | $1.27 | $1.26 | $1.50 |
| Net margin | 19.4% | 20.6% | 28.4% | 28.7% | 30.9% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$74.8B
EV / EBITDA13.7
EV / Sales4.6
EV / FCF10.5
P / FCF11.5
PEG (trailing)4.23
Earnings yield6.1%
FCF yield8.7%
Quality & risk
ROIC (est.)17.6%
Free cash flow$7.10B
Total debt$58.6M
Net cash$6.69B
Altman Z-Score8.76 safe
Piotroski F-Score7/9
Capital returns
Buyback yield1.3%
Dividend yield (est.)2.4%
Shareholder yield3.8%
Shares Δ YoY+0.8%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Recent filings
all on EDGAR ↗4Period ending 2026-06-292026-06-30open ↗144Filing2026-06-29open ↗6-KPeriod ending 2026-06-252026-06-25open ↗6-KPeriod ending 2026-06-232026-06-23open ↗6-KPeriod ending 2026-05-212026-05-21open ↗6-KPeriod ending 2026-05-182026-05-18open ↗13F-HRPeriod ending 2026-03-312026-05-14open ↗6-KPeriod ending 2026-05-082026-05-08open ↗6-KPeriod ending 2026-05-072026-05-07open ↗6-KPeriod ending 2026-04-152026-04-15open ↗20-FPeriod ending 2025-12-312026-04-15open ↗6-KPeriod ending 2026-04-132026-04-13open ↗
Frequently asked
- Is NetEase, Inc. (NTES) a buy?
- NTES currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Elite debt-free gaming compounder—20% EPS growth, 30%+ margins—but the headline valuation looks rich and unit-inconsistent.
- What is NTES's fair value?
- A Modified-Graham model based on NTES's SEC fundamentals estimates a fair value of about $55.90. It is an estimate from reported earnings, not a price target.
- Is NTES overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, NTES currently appears overvalued relative to its SEC-grounded earnings power.
- What is NetEase, Inc.'s quality score?
- NTES scores 69.60272846019507/100 (grade B-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001110646, latest 4 filed 2026-06-30) · EODHD · Proprietary analysis · as of 6/21/2026, 3:22:00 PM.
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