A Business at a Glance
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Item 4. Information on the Company A. History and Development of the Company Our business was founded in June 1997 and our company was incorporated on July 6, 1999 under the Cayman Companies Act (As Revised). Our principal executive offices are located at NetEase Building, No. 599 Wangshang Road, Binjiang District, Hangzhou, People’s Republic of China 310052. Our telephone number is (86-571) 8985-3378. Our key business milestones are summarized below: Founding of our business Launch of free web-based e-mail services, and business model shifted from software development to internet technology with the launch of our NetEase website (“www.163.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 14.6B | 14.6B | 14.6B | 14.3B | 13.6B | 10.7B |
| Net Income | 4.1B | 4.1B | 4.2B | 3.0B | 2.6B | 1.7B |
| EPS | $6.52 | $6.52 | $6.53 | $4.67 | $3.97 | $2.66 |
| Free Cash Flow | 5.3B | 5.3B | 4.7B | 3.8B | 3.6B | 3.5B |
| ROIC | 25.1% | 24.2% | 20.2% | 15.6% | 14.8% | 14.7% |
| Gross Margin | 62.5% | 62.5% | 60.9% | 54.7% | 53.6% | 52.9% |
| Debt/Equity | 0.09 | 0.09 | 0.16 | 0.26 | 0.22 | 0.24 |
| Dividends/Share | $2.45 | $2.45 | $1.78 | $1.54 | $0.83 | $0.95 |
| Operating Income | 4.1B | 4.1B | 3.9B | 2.9B | 2.5B | 2.1B |
| Operating Margin | 28.1% | 28.1% | 26.8% | 20.3% | 18.7% | 19.7% |
| ROE | 21.4% | 22.6% | 23.7% | 19.4% | 17.7% | 14.7% |
| Shares Outstanding | 633M | 633M | 637M | 646M | 659M | 657M |
NetEase, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
NetEase, Inc. trades at 17.4x trailing earnings, compared to its 15-year median P/E of 18.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 13.5x vs a median of 15.7x. The company's 5-year average ROIC is 17.9% with a gross margin of 56.9%. Total shareholder yield (dividends) is 2.2%. At current prices, the estimated annualized return to fair value is +30.6%.
NetEase, Inc. (NTES) has a current P/E ratio of 17.4, compared to its historical median P/E of 18.4. The stock is currently considered Fair based on its historical valuation range.
NetEase, Inc. (NTES) has a 5-year average return on invested capital (ROIC) of 17.9%. This indicates strong capital allocation and a potential competitive advantage.
NetEase, Inc. (NTES) has a market capitalization of $71.8B. It is classified as a large-cap stock.
Yes, NetEase, Inc. (NTES) pays a dividend with a trailing twelve-month yield of 2.16%.
Based on historical P/E analysis, NetEase, Inc. (NTES) appears fair. The current P/E of 17.4 is 5% below its historical median of 18.4. The estimated fair value CAGR (P/E method) is 29.3%.
NetEase, Inc. (NTES) operates in the Services-Prepackaged Software industry, within the Technology sector.
NetEase, Inc. (NTES) reported annual revenue of $14.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
NetEase, Inc. (NTES) has a net profit margin of 28.2%. This is a strong margin indicating high profitability.
NetEase, Inc. (NTES) generated $5.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NetEase, Inc. (NTES) has a debt-to-equity ratio of 0.09. This indicates a conservatively financed balance sheet.
NetEase, Inc. (NTES) reported earnings per share (EPS) of $6.52 in its most recent fiscal year.
NetEase, Inc. (NTES) has a return on equity (ROE) of 22.6%. This indicates the company generates strong returns for shareholders.
NetEase, Inc. (NTES) has a 5-year average gross margin of 56.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 15 years of financial data for NetEase, Inc. (NTES), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NetEase, Inc. (NTES) has a book value per share of $30.47, based on its most recent annual SEC filing.