| 2013 | 2014 | 2015 | 2018 | 2019 (projected) | NetEase Cost of Revenue | 2,478,516,000 | 3,261,544,000 | 9,399,260,000 | 8,459,334,000 | 5,254,899,168 | NetEase Consolidated Income | 4,445,218,000 | 4,795,705,000 | 6,836,900,000 | 6,153,210,000 | 4,299,451,609 |
Should I still rely on NetEase management in March 2019?
 | By Vlad Skutelnik | Macroaxis Story |
This post will sum up NetEase. I will look into some reasons why it is still possible for the company to generate above average margins and lots of cash flow. This firm Piotroski F Score is 4 - Ordinary. Given the investment horizon of 30 days, NetEase is expected to under-perform the market. In addition to that, the company is 1.44 times more volatile than its market benchmark. It trades about -0.01 of its total potential returns per unit of risk. The market is currently generating roughly 0.16 per unit of volatility. We found thirty-seven available fundamentals for NetEase which can be compared to its peers in the industry. To make sure the equity is not overpriced, please verify all NetEase fundamentals including its EBITDA, Earnings Per Share, Z Score, as well as the relationship between Debt to Equity and Total Asset . Given that NetEase has Price to Book of 4.43X, we recommend you check NetEase last-minute market performance to make sure the company can sustain itself down the road. Use NetEase to enhance returns of your portfolios. The stock experiences very speculative upward sentiment. . Check odds of NetEase to be traded at $301.42 in 30 days.
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Reviewed by Raphi Shpitalnik
NETEASE.COM ADS currently holds roughly 6.45B in cash with 659.3M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 50.22. NetEase dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $1.42 per share. About 50.0% of the company shares are owned by institutional investors. The book value of NetEase was now reported as 51.33. The company recorded earning per share (EPS) of 6.67. NetEase last dividend was issued on 2018-11-29. The entity had 4:1 split on 2006-03-28.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as NetEase. Your research has to be compared to or analyzed against NetEase's peers to derive any actionable benefits. When done correctly, NetEase's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in NetEase.
Investing in NetEase, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding NetEase along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of NetEase's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is NetEase's Liquidity
NetEase financial leverage refers to using borrowed capital as a funding source to finance NetEase ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NetEase financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to NetEase's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of NetEase's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between NetEase's total debt and its cash.
NetEase Gross Profit
NetEase Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NetEase previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show NetEase Gross Profit growth over the last 10 years. Please check NetEase's gross profit and other fundamental indicators for more details.
NetEase Correlation with Peers
Investors in NetEase can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in NetEase. Diversification will allow for the same portfolio return with reduced risk. The correlation table of NetEase and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities NetEase is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of NetEase for more details
What is driving NetEase Investor Appetite?
The small decline in market price for the last few months may encourage investors to take a closer look at the firm as it closed today at a share price of 237.26 on 322743.000 in trading volume. The company directors and management did not add much value to NetEase investors in January. However, diversifying your holdings with NetEase or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.6405. The current volatility is consistent with the ongoing market swings in January 2019 as well as with NetEase unsystematic, company specific events. NetEase is trading at 241.14 which is 5.94% increase. Today highest was 241.6. NetEase Operating Expenses is increasing over the last 5 years. The latest value of NetEase Operating Expenses is 3,554,239,986. Also, NetEase Debt to Equity Ratio is increasing over the last 5 years. The previous year value of NetEase Debt to Equity Ratio was 29.50.
To sum up, our analysis show that NetEase Almost neglects market trends. The enterprise is fairly valued and projects probability of financial unrest very low for the next 2 years. Our up-to-date buy-sell advice on the enterprise is Strong Sell.
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