NetEase is down -4.45

My talk will sum up NetEase. I will evaluate if NetEase shares are sensibly priced going into December and whether management should be worried. In defiance of relatively conflicting forward-looking signals, NetEase reported solid returns over the last few months and may actually be approaching a breakup point. 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 4.73 , we recommend you check NetEase last-minute market performance to make sure the company can sustain itself down the road. Use NetEase to protect your portfolios against small markets fluctuations. The stock experiences very speculative upward sentiment. Check odds of NetEase to be traded at $279.34 in 30 days.
Published over a year ago
View all stories for NetEase | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Raphi Shpitalnik

This firm currently holds 2.07 B in liabilities with Debt to Equity (D/E) ratio of 24.8 indicating NetEase may have difficulties to generate enough cash to satisfy its financial obligations. The company has Current Ratio of 2.11 suggesting that it is liquid enough and is able to pay its financial obligations when they are due. NetEase dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.96 per share. The company has Profit Margin (PM) of (3.59) % which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include NetEase income statement, its balance sheet, and the statement of cash flows. Potential NetEase investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although NetEase investors may use each financial statement separately, they are all related. The changes in NetEase's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on NetEase's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of NetEase fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of NetEase performance into the future periods or doing a reasonable stock valuation. The intrinsic value of NetEase shares is the value that is considered the true value of the share. If the intrinsic value of NetEase is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares NetEase. Please read more on our fundamental analysis page.

How effective is NetEase in utilizing its assets?

NetEase reports assets on its Balance Sheet. It represents the amount of NetEase resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, NetEase aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Interactive Home Entertainment space. To get a better handle on how balance sheet or income statements item affect NetEase volatility, please check the breakdown of all its fundamentals.

Are NetEase Earnings Expected to grow?

The future earnings power of NetEase involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of NetEase factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. NetEase stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of NetEase expected earnings.

And What about dividends?

A dividend is the distribution of a portion of NetEase earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. NetEase dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. NetEase one year expected dividend income is about USD1.32 per share.
At this time, NetEase's Dividends Paid is comparatively stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to gain to 9.92 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024.
Last ReportedProjected for Next Year
Dividends PaidB8.4 B
Dividend Yield 0.02  0.01 
Dividend Payout Ratio 0.27  0.25 
Dividend Paid And Capex Coverage Ratio 9.45  9.92 
Investing in dividend-paying stocks, such as NetEase is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in NetEase must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for NetEase. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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.

What is driving NetEase Investor Appetite?

NetEase has beta of 0.55. As returns on market increase, NetEase returns are expected to increase less than the market. However during bear market, the loss on holding NetEase will be expected to be smaller as well. The latest price spikes of NetEase may encourage investors to take a closer look at the firm as it closed today at a share price of 293.14 on 782528.000 in trading volume. The company directors and management were quite successful positioning the firm components to exploit market volatility in December 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.8812. The current volatility is consistent with the ongoing market swings in October 2019 as well as with NetEase unsystematic, company specific events. NetEase preserves 4.16 of last dividend paid. NetEase is trading at 294.04 which is 4.45 percent decrease. Started trading at 294.04. NetEase Depreciation Amortization and Accretion is decreasing over the last 4 years. The latest value of NetEase Depreciation Amortization and Accretion is 158,214,365. Further, NetEase Return on Average Equity is increasing over the last 4 years.
 2008 2009 2018 2019 (projected)
NetEase Book Value per Share 349.51  4.61  5.30  68.34 
NetEase Asset Turnover 0.85  0.34  0.39  0.52 
To sum up, we believe that at this point NetEase is undervalued with very low odds of distress within the next 2 years. Our concluding buy or sell advice on the enterprise is Strong Buy.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of NetEase. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com