Stock Updates

NetEase, Inc. (NASDAQ: NTES) – Is this large market cap stock undervalued?

NetEase, Inc. (NASDAQ: NTES), is firmly in the large market cap category with market cap of 34781.93. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for NetEase, Inc. is 261.2 (with a change from open of 1.14%), this in conjunction with a target price of 244.05. Volume today has so far reached 943600, with an average volume of about 1105.11. The GAP for this stock, is -1.21%.

The P/E ratio is 24.99, bringing the forward P/E to a value of 17.76. The current EPS for NetEase, Inc., is 10.46, with a EPS growth for this year coming to a value of 40.40%. Performance has been interesting with performance year to date coming to 46.07%.

Looking further into the growth statistics for NetEase, Inc., EPS is looking like it will grow 17.18% in the next year. Looking even further it is projected to be 3.52%. Quarter over quarter is 91.40% for EPS growth and for sales growth quarter over quarter it is 96.00%. Looking at past EPS growth statistics we see that for the past five years it has been 24.30%. Sales growth for the past five years has in fact been 32.90%.

Looking at the ownership, we see that the insider ownership is at 45.00% and institutional ownership is 62.80%. Shares outstanding is 133.05, while shares float is at a value of 128.71. Float short for NetEase, Inc. is 2.85% and the short ratio is 3.32.

In terms of debt, long term debt/equity is 0, while the total debt/equity comes to 0.07. The ability to meet these debts, means that the current ratio is 2.9, and the quick ratio is *TBA. The most recent gross margin is 57.00% and their operating margin is 33.10%. The profit margin is 29.30%.

NetEase, Inc. has seen returns on assets of 22.10%, and on investment, 19.00%. Return on equity is 30.80%. Price/Earnings to growth ratio is 7.1. Price/Sales ratio is at a value of 7.38, with Price/book ratio coming to 6.98 and Price/cash is 8.23, and finally Price/Free cash Flow is 26.96.

The simple moving averages are 15.52% and 48.87% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -3.59% and the 52 week low is 106.06%.

NetEase, Inc. has a dividend yield of 1.19%, with a current price of 261.2. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Internet Software & Services, with equally high dividends from other companies in this sector, which it is Technology. NetEase, Inc. is based in China.

Performance in the Internet Software & Services industry means that NetEase, Inc. has seen performance for the past week of 5.36%, with performance for the month coming to 13.04%. Looking at the data for the quarter it is at a value of 34.20%, and for the half year the performance is 100.75%. Volatility for this week is 4.11% and for the month this is 2.97%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

Leave a Comment