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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 32014.07. 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 243.49 (with a change from open of -0.62%), this in conjunction with a target price of 236.26. Volume today has so far reached 594800, with an average volume of about 1230.83. The GAP for this stock, is 0.35%.

The P/E ratio is 23.28, bringing the forward P/E to a value of 16.86. 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 36.05%.

Looking further into the growth statistics for NetEase, Inc., EPS is looking like it will grow 16.43% 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 131.48, while shares float is at a value of 128.71. Float short for NetEase, Inc. is 3.00% and the short ratio is 3.13.

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 6.61. Price/Sales ratio is at a value of 6.79, with Price/book ratio coming to 6.51 and Price/cash is 7.57, and finally Price/Free cash Flow is 24.82.

The simple moving averages are 13.14% and 41.97% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -4.32% and the 52 week low is 120.76%.

NetEase, Inc. has a dividend yield of 1.28%, with a current price of 243.49. 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 -2.42%, with performance for the month coming to 14.01%. Looking at the data for the quarter it is at a value of 34.65%, and for the half year the performance is 108.64%. Volatility for this week is 2.16% and for the month this is 3.50%.

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.

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Stephen Butters

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