NetEase Inc. American Depositary Shares (NTES)

FairStock Score: 69/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach NetEase as a business first. It develops and operates online games and related services, plus music, learning, and other internet content, with 25,382 employees. In the latest filed quarter, 2026-Q2, revenue was $30.1B and net income was $7.0B, a 23.19% net margin. That is a real money-maker. The balance sheet looks conservative: D/E is 0.07, while FairStock calculates ROE at 20.37% and ROCE at 11.65%. A Piotroski F-Score of 6/9 and Altman Z-Score of 2.66 suggest reasonable but not pristine financial strength. I like low debt and high returns, but the competitive moat in games is hit-driven; licensed titles and new releases can fade, and the provided profit-growth figure of -18.84% is a caution, though the data does not name its period. At the close on 2026-10-13, the price was $124.76 and market cap $69.8B. FairStock calculates P/E 16.63, P/B 16.04, dividend yield 2.52%, Graham Number $93.85, and margin of safety -32.94%, so the price sits above that conservative value. EV/EBITDA is 1.38 and FCF yield 71.6%, but those figures look out of line with the other metrics, so I would verify currency and period before treating them as a bargain. The 52-week range is $106.06–$153.54. Growth is modest, and the Lynch category is none because only 0 years of filed results are available, needing 3. This is a good business at a fair-to-full price, with execution risk.

In plain English: NetEase is a Chinese company that makes online games and also runs music, learning, and other internet services. In the latest filed quarter, 2026-Q2, it earned $7.0B of net income on $30.1B of revenue, a strong profit margin, and it uses very little debt. The stock price looks roughly fair to a bit full: it is higher than one conservative value estimate, but not wildly expensive compared with its earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer