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NetEase, Inc. (NTES) 10-Year Financial Performance & Capital Metrics

NTES • • Industrial / General
TechnologyGaming & MultimediaGame Development & PublishingAAA Game Publishers
AboutNetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally. The company operates through Games and Related Value-Added Services; Youdao; Cloud Music; and Innovative Businesses and Others segments. It develops and operates PC and mobile games, as well as offers games licensed from other game developers. The company's products and services include Youdao Dictionary, an online knowledge tool; Youdao Translation, a tool specifically designed to support translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Kids' Dictionary, a smart and fun tool; smart devices, such as Youdao Dictionary Pen, Youdao Smart Learning Pad, and Youdao Listening Pod; online courses; interactive learning apps; and education digitalization solutions, such as Youdao Smart Learning Terminal, a device that automates paper-based homework processing; Youdao Smart Cloud, a cloud-based platform that allows third-party app developers, smart device brands, and manufacturers to the company's OCR capabilities; and Youdao Sports, a sports-centric educational system. Its products and services include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which deliver information such as news, sports events, technology, fashion trends, and online entertainment; NetEase Mail, an email service; NetEase CC Live streaming, a live streaming platform with a focus on game broadcasting; and NetEase Pay, a payment platform. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.Show more
  • Revenue $105.3B +1.8%
  • EBITDA $32B +4.0%
  • Net Income $29.7B +1.0%
  • EPS (Diluted) 45.95 +1.5%
  • Gross Margin 62.5% +2.5%
  • EBITDA Margin 30.39% +2.2%
  • Operating Margin 28.1% +4.9%
  • Net Margin 28.2% -0.8%
  • ROE 21.95% -11.6%
  • ROIC 19.2% +10.7%
  • Debt/Equity 0.09 -43.8%
  • Interest Coverage -
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Company is almost debt free
  • ✓Excellent 3Y average ROE of 22.1%
  • ✓Strong Piotroski F-Score: 7/9
  • ✓FCF machine: 35.6% free cash flow margin
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Strong 5Y sales CAGR of 12.2%

✗Weaknesses

No significant weaknesses identified

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y24.56%
5Y12.19%
3Y6.32%
TTM5.81%

Profit (Net Income) CAGR

10Y20.1%
5Y6.94%
3Y20.78%
TTM31.88%

EPS CAGR

10Y20.28%
5Y17.63%
3Y22.41%
TTM33.02%

ROCE

10Y Avg23.19%
5Y Avg19.06%
3Y Avg20.51%
Latest21.25%

Peer Comparison

AAA Game Publishers
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
EAElectronic Arts Inc.51.06B204.1548.26-1.31%12.14%14.75%3.64%0.35
NTESNetEase, Inc.86.18B136.102.961.77%32.45%22.55%43.48%0.09
MSGMMotorsport Games Inc.17.27M3.40-3.6225.73%23.71%32.88%0.04
TTWOTake-Two Interactive Software, Inc.45.15B244.34-9.555.31%-64.26%-116.47%1.92

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+22.8B38.18B44.44B51.18B59.24B73.67B87.61B96.5B103.47B105.3B
Revenue Growth %0.95%0.67%0.16%0.15%0.16%0.24%0.19%0.1%0.07%0.02%
Cost of Goods Sold+9.4B16.52B28.19B38.75B27.69B34.68B40.64B43.73B40.4B39.49B
COGS % of Revenue0.41%0.43%0.63%0.76%0.47%0.47%0.46%0.45%0.39%0.38%
Gross Profit+13.4B21.66B25.91B28.4B31.56B38.98B46.97B52.77B63.06B65.81B
Gross Margin %0.59%0.57%0.58%0.55%0.53%0.53%0.54%0.55%0.61%0.62%
Gross Profit Growth %0.59%0.62%0.2%0.1%0.11%0.24%0.2%0.12%0.2%0.04%
Operating Expenses+6.13B9.03B13.76B20.51B17.76B24.44B30.55B33.14B35.35B36.22B
OpEx % of Revenue0.27%0.24%0.31%0.4%0.3%0.33%0.35%0.34%0.34%0.34%
Selling, General & Admin3.97B5.99B9.39B12.72B9.35B14.08B16.48B18.1B18.87B18.7B
SG&A % of Revenue0.17%0.16%0.21%0.25%0.16%0.19%0.19%0.19%0.18%0.18%
Research & Development2.16B3.05B4.37B7.79B8.41B10.37B14.08B15.04B16.48B17.52B
R&D % of Revenue0.09%0.08%0.1%0.15%0.14%0.14%0.16%0.16%0.16%0.17%
Other Operating Expenses0000000000
Operating Income+7.27B12.63B12.99B9.98B13.79B14.54B16.42B19.63B27.71B29.58B
Operating Margin %0.32%0.33%0.29%0.19%0.23%0.2%0.19%0.2%0.27%0.28%
Operating Income Growth %0.53%0.74%0.03%-0.23%0.38%0.05%0.13%0.2%0.41%0.07%
EBITDA+7.45B12.96B13.8B12.06B16.4B18B19.69B22.49B30.76B32B
EBITDA Margin %0.33%0.34%0.31%0.24%0.28%0.24%0.22%0.23%0.3%0.3%
EBITDA Growth %0.51%0.74%0.06%-0.13%0.36%0.1%0.09%0.14%0.37%0.04%
D&A (Non-Cash Add-back)182.45M327.51M801.8M2.08B2.61B3.46B3.28B2.86B3.06B2.42B
EBIT7.27B12.63B12.99B9.98B13.79B14.54B16.42B19.63B27.71B29.58B
Net Interest Income+596.93M541.97M666.62M586.67M821.77M1.6B1.52B2.15B4.12B4.92B
Interest Income596.93M541.97M667.32M586.67M821.77M1.6B1.52B2.15B4.12B4.92B
Interest Expense0000000000
Other Income/Expense838.18M1.27B844.67M1.1B2.59B833.68M4.69B4.62B6.35B6.13B
Pretax Income+8.11B13.9B13.84B11.08B16.38B15.37B21.1B24.25B34.06B35.72B
Pretax Margin %0.36%0.36%0.31%0.22%0.28%0.21%0.24%0.25%0.33%0.34%
Income Tax+1.27B2.1B2.16B2.47B2.91B3.04B4.13B5.03B4.7B5.46B
Effective Tax Rate %0.83%0.84%0.77%0.56%1.3%0.78%0.8%0.84%0.86%0.83%
Net Income+6.74B11.6B10.71B6.15B21.24B12.06B16.86B20.34B29.42B29.7B
Net Margin %0.3%0.3%0.24%0.12%0.36%0.16%0.19%0.21%0.28%0.28%
Net Income Growth %0.42%0.72%-0.08%-0.43%2.45%-0.43%0.4%0.21%0.45%0.01%
Net Income (Continuing)6.84B11.79B11.68B8.62B13.47B12.33B16.98B19.22B29.36B30.26B
Discontinued Operations00-834.45M-2.14B7.96B00624.86M00
Minority Interest83.52M271.86M703.13M794.21M1.14B11.67B3.95B4.14B3.8B3.81B
EPS (Diluted)+10.2017.5516.1512.7520.4018.0025.0530.2045.2545.95
EPS Growth %0.41%0.72%-0.08%-0.21%0.6%-0.12%0.39%0.21%0.5%0.02%
EPS (Basic)10.2517.7016.2512.8020.6018.2525.3531.1545.7546.40
Diluted Shares Outstanding661.04M661.42M663.1M650.94M649.99M669.95M673.5M673.5M650.41M646.12M
Basic Shares Outstanding656.88M656.35M658.06M647.06M644.09M661.09M665.17M652.69M650.09M646.3M
Dividend Payout Ratio0.22%0.22%0.3%0.23%0.42%0.35%0.21%0.33%0.27%0.38%

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+34.41B49.38B61.95B68.72B85.11B107.83B113.12B131.6B142.69B153.32B
Cash & Short-Term Investments25.68B36.38B43.11B49.55B72.05B93.47B97.53B117.46B126.72B137.58B
Cash Only6.07B5.44B2.76B4.98B3.25B9.12B14.5B24.89B21.43B51.38B
Short-Term Investments19.61B30.94B40.35B44.58B68.8B84.35B83.04B92.57B105.29B86.2B
Accounts Receivable2.61B4.25B3.62B4B4.17B5.94B6.35B5.04B9.23B8.15B
Days Sales Outstanding41.8440.6429.7328.5525.6929.4126.4419.0732.5728.24
Inventory817.76M1.58B5.47B1.07B650.56M591.51M964.73M993.64M695.37M571.55M
Days Inventory Outstanding31.7634.8870.8910.048.586.228.678.296.285.28
Other Current Assets3.02B3.88B6.61B10.79B8.24B3.91B3.72B4.23B2.91B753.31M
Total Non-Current Assets+6.75B8.11B9.08B18.25B27.02B34.04B40.52B41.16B43.23B42.67B
Property, Plant & Equipment2.09B2.42B3.77B5.38B4.62B5.32B6.48B7.23B8.82B8.52B
Fixed Asset Turnover10.90x15.78x11.79x9.52x12.82x13.84x13.52x13.35x11.73x12.36x
Goodwill00000318.94M595.28M2.17B1.86B1.86B
Intangible Assets238.88M588.89M593.28M3.5B3.71B8.3B6.73B6.24B5.96B5.59B
Long-Term Investments1.11B2.52B100M5.35B2.36B18.34B24.63B21.52B22.83B23.23B
Other Non-Current Assets3.28B2.56B3.8B2.96B15.43B669.77M798.43M2.52B3.76B3.47B
Total Assets+41.16B58.03B71.03B86.97B112.12B141.87B153.64B172.76B185.92B195.99B
Asset Turnover0.55x0.66x0.63x0.59x0.53x0.52x0.57x0.56x0.56x0.54x
Asset Growth %0.36%0.41%0.22%0.22%0.29%0.27%0.08%0.12%0.08%0.05%
Total Current Liabilities+11.67B19.18B23.75B35.11B38.24B46.74B50.5B56.83B53.84B49.67B
Accounts Payable856.22M1.57B2.44B1.2B1.21B1.13B985.06M1.51B881.02M720.55M
Days Payables Outstanding33.2534.6831.6311.3115.9811.948.8512.587.966.66
Short-Term Debt2.27B3.82B6.62B13.66B16.83B19.5B19.35B23.88B19.24B11.81B
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities-26.91M00-66.93M2.16M546.27M0000
Current Ratio2.95x2.58x2.61x1.96x2.23x2.31x2.24x2.32x2.65x3.09x
Quick Ratio2.88x2.49x2.38x1.93x2.21x2.29x2.22x2.30x2.64x3.08x
Cash Conversion Cycle40.3540.856927.2718.2823.726.2514.7830.926.86
Total Non-Current Liabilities+166.41M33.92M846.16M5.83B839.9M1.34B3.86B7.06B4B3.83B
Long-Term Debt0000001.28B3.65B428M428M
Capital Lease Obligations0000279.95M474.88M732.13M672.64M555.83M412.6M
Deferred Tax Liabilities81.43M33.72M213.22M393.68M382.03M713.44M1.35B2.13B2.3B2.17B
Other Non-Current Liabilities84.97M200K632.95M5.44B177.92M148.85M365.58M604.93M715.28M816.04M
Total Liabilities11.83B19.57B24.6B40.94B39.08B48.08B54.37B63.89B57.84B53.5B
Total Debt+2.27B3.82B6.62B13.66B17.3B20.31B21.69B28.46B20.48B12.82B
Net Debt-3.8B-1.62B3.86B8.27B14.05B11.19B7.2B3.57B-945.42M-38.57B
Debt / Equity0.08x0.10x0.14x0.30x0.28x0.22x0.22x0.26x0.16x0.09x
Debt / EBITDA0.30x0.29x0.48x1.13x1.05x1.13x1.10x1.27x0.67x0.40x
Net Debt / EBITDA-0.51x-0.13x0.28x0.69x0.86x0.62x0.37x0.16x-0.03x-1.21x
Interest Coverage----------
Total Equity+29.32B38.46B46.44B46.03B62.59B93.79B99.28B108.87B128.08B142.49B
Equity Growth %0.25%0.31%0.21%-0.01%0.36%0.5%0.06%0.1%0.18%0.11%
Book Value per Share44.3658.1570.0370.7196.30140.00147.41161.65196.93220.54
Total Shareholders' Equity29.24B38.19B45.73B45.23B61.45B82.13B95.33B104.73B124.29B138.69B
Common Stock2.69M2.68M2.68M2.62M2.64M2.79M2.79M2.71M2.71M2.63M
Retained Earnings26.42B35.33B42.73B44B56.39B64.16B77.49B91.07B112.21B132.29B
Treasury Stock00000-10.45B-20.5B-10.91B-12.69B-4.47B
Accumulated OCI1.04B1.22B1.24B1.23B1.14B577.99M417.06M1.71B2.16B1.01B
Minority Interest83.52M271.86M703.13M794.21M1.14B11.67B3.95B4.14B3.8B3.81B

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+8.08B15.49B11.89B13.42B17.22B24.89B24.93B27.71B35.33B39.68B
Operating CF Margin %0.35%0.41%0.27%0.26%0.29%0.34%0.28%0.29%0.34%0.38%
Operating CF Growth %0.38%0.92%-0.23%0.13%0.28%0.45%0%0.11%0.28%0.12%
Net Income6.84B11.79B10.71B6.15B13.47B12.33B16.98B19.22B29.36B30.26B
Depreciation & Amortization182.45M327.51M791.78M2.06B2.61B3.46B3.28B2.86B3.06B2.42B
Stock-Based Compensation684.47M990.13M1.98B2.47B2.4B2.66B3.04B3.17B3.24B3.88B
Deferred Taxes-147.28M66.68M00150.63M88.18M407.95M489.67M131.44M320.73M
Other Non-Cash Items-158.76M-329.35M-3.69B3.62B-1.06B1.58B-1.96B-1.53B-831.34M-852.71M
Working Capital Changes679.15M2.64B2.09B-883.75M-358.15M4.77B3.19B3.5B375.88M3.65B
Change in Receivables-1.74B-1.65B596.05M-612.66M-11.31M-530.41M-1.19B554.34M-1.47B716.38M
Change in Inventory-789.51M-760.37M-754.89M-81.44M415.06M29.7M-343.59M-27.61M296.76M123.78M
Change in Payables243.14M604.09M0013.23M-86.35M-155.26M447.67M-559.42M91.14M
Cash from Investing+-2.54B-14B-13.25B-13.57B-22.14B-29.19B-7.08B-7.37B-17.04B17.92B
Capital Expenditures-1.03B-1.14B-1.85B-6.89B-3.33B-3.29B-3.11B-2.64B-4.28B-1.28B
CapEx % of Revenue0.05%0.03%0.04%0.13%0.06%0.04%0.04%0.03%0.04%0.01%
Acquisitions----------
Investments----------
Other Investing-2.07B-2.49B-2.19B-537.26M-814M-143.13M-197.13M-282.31M-413.63M19.19B
Cash from Financing+-1.63B-2.25B-1.3B1.59B1.08B9.91B-12.59B-10.24B-21.47B-27.34B
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-1.47B-2.55B-3.26B-1.44B-8.84B-4.28B-3.51B-6.72B-8.01B-11.17B
Share Repurchases----------
Other Financing-119.72M4K911.5M4.33B6.95B-11.76B2.14B-30.92M86.16M136.01M
Net Change in Cash----------
Free Cash Flow+7.05B14.35B10.04B6.53B13.89B21.6B21.82B25.07B31.06B37.47B
FCF Margin %0.31%0.38%0.23%0.13%0.23%0.29%0.25%0.26%0.3%0.36%
FCF Growth %0.34%1.04%-0.3%-0.35%1.13%0.56%0.01%0.15%0.24%0.21%
FCF per Share10.6621.6915.1410.0321.3732.2432.3937.2247.7557.99
FCF Conversion (FCF/Net Income)1.20x1.33x1.11x2.18x0.81x2.06x1.48x1.36x1.20x1.34x
Interest Paid031.17M84.71M301.76M431.39M246.05M187.63M588.38M779.87M489.62M
Taxes Paid1.12B1.1B2.71B2.01B3.19B2.05B3.55B5.09B4.9B5.19B

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)25.52%34.24%25.23%13.31%39.1%15.43%17.46%19.54%24.83%21.95%
Return on Invested Capital (ROIC)22.26%30.38%22.37%14.25%15.75%12.01%11.65%13.45%17.35%19.2%
Gross Margin58.78%56.74%58.31%55.5%53.27%52.92%53.62%54.68%60.95%62.5%
Net Margin29.54%30.4%24.1%12.02%35.85%16.37%19.24%21.08%28.43%28.2%
Debt / Equity0.08x0.10x0.14x0.30x0.28x0.22x0.22x0.26x0.16x0.09x
FCF Conversion1.20x1.33x1.11x2.18x0.81x2.06x1.48x1.36x1.20x1.34x
Revenue Growth94.68%67.43%16.39%15.17%15.75%24.35%18.92%10.15%7.23%1.77%

Revenue by Segment

2014201520162017201820192020202120222024
Innovative businesses and others-------12.45B7.92B8.1B
Innovative businesses and others Growth---------36.34%2.18%
Youdao-------5.35B5.01B5.63B
Youdao Growth---------6.37%12.22%
Cloud Music-------7B8.99B-
Cloud Music Growth--------28.50%-
Online game services-------62.81B--
Online game services Growth----------
Online Games Services-----46.42B54.61B---
Online Games Services Growth------17.63%---
Products Sales And Other Services-----9.39B14.25B---
Products Sales And Other Services Growth------51.84%---
Advertising----2.5B2.58B2.65B---
Advertising Growth-----3.23%2.80%---
Youdao Learning Services------2.15B---
Youdao Learning Services Growth----------
Youdao Learning Services And Products-----851.87M----
Youdao Learning Services And Products Growth----------
Product----18.64B-----
Product Growth----------
Service Other----5.83B-----
Service Other Growth----------
Online Game Services9.82B-27.98B36.28B------
Online Game Services Growth---29.67%------
E Commerce---11.67B------
E Commerce Growth----------
Email And Others---3.74B------
Email And Others Growth----------
Advertising Services1.55B1.79B2.15B2.41B------
Advertising Services Growth-15.32%20.29%11.91%------
Email Wireless Value Added Services And Others1.11B3.7B8.05B-------
Email Wireless Value Added Services And Others Growth-232.15%117.50%-------

Frequently Asked Questions

Valuation & Price

NetEase, Inc. (NTES) has a price-to-earnings (P/E) ratio of 3.0x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

NetEase, Inc. (NTES) reported $111.83B in revenue for fiscal year 2024. This represents a 1434% increase from $7.29B in 2011.

NetEase, Inc. (NTES) grew revenue by 1.8% over the past year. Growth has been modest.

Yes, NetEase, Inc. (NTES) is profitable, generating $36.28B in net income for fiscal year 2024 (28.2% net margin).

Dividend & Returns

Yes, NetEase, Inc. (NTES) pays a dividend with a yield of 12.70%. This makes it attractive for income-focused investors.

NetEase, Inc. (NTES) has a return on equity (ROE) of 22.0%. This is excellent, indicating efficient use of shareholder capital.

NetEase, Inc. (NTES) generated $46.89B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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