What Are the Fundamentals of NetEase (NTES)?

NetEase moved -1.0% this afternoon session, trading between a high of $101.6077 and a low of $99.03 per share. Yesterday the stock finished at $101.84 per share, compared to an average analyst target price of $123.92.

NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The large-cap computer software: prepackaged software company is based in China, and over the last twelve months it has returned a dividend yield of 12.1%. NetEase has trailing twelve months earnings per share (EPS) of 5.39, which at today's prices amounts to a price to earnings (P/E) ratio of 18.7.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 46.08. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Overview of the Company's Gross Margins:

Date Reported Revenue ($ k) Cost of Revenue ($ k) Gross Margins (%) YoY Growth (%)
2022-04-28 87,606,026 -40,635,225 54 1.89
2021-04-28 73,667,133 -34,683,731 53 0.0
2020-04-29 59,241,145 -27,685,845 53 -20.9
2019-04-26 40,921,655 -13,575,506 67 19.64
2018-04-20 44,437,355 -19,394,314 56 0.0
2017-04-21 38,178,844 -16,515,032 56

NetEase's 56.5% average gross margins are thinner than the 70.92% average of the Software industry, implying that the firm might be lacking in competitivity.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.