NetEase Inc - ADR

NetEase Inc - ADR

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Market Cap$80.33B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
NetEase Inc - ADRNetEase Inc - ADR16.12.37%21%0.70.2

Earnings Call Q1 2026

May 21, 2026 - AI Summary

Strong start: revenue growth driven by games - NetEase reported RMB 30.6B total revenue in Q1’26, reflecting continued momentum in games. - Games & related value-added services: RMB 25.7B (+7% YoY); online games: RMB 25.1B (+7% YoY, +18% QoQ)—company attributes QoQ/YoY rise to higher net revenue from developed-game franchises (examples cited: *Niwena* / *Jade* / other portfolio titles mentioned in the call). - Certain monetization and live-service improvements show up in commentary on franchise longevity (consistent content delivery, innovation, and global/domal engagement).
Margin and financial strength (good): profitability improved - Gross margin increased meaningfully to 69.4% YoY (company transcript shows an apparent prior-year figure of 54.1%; for game VAS, gross margin was 74.8% vs 68.8% in the prior-year period). - Operating expenses described at about 28% of net revenue; R&D ~14.7% of net revenue (stable). - Net cash position: RMB 167.2B at March 31, 2026 (vs RMB 153.5B end of 2025) → balance-sheet strength supports capital return and investment.
Capital return: dividend + ongoing buybacks - Board approved a Q1 dividend of $0.44 per share (USD 720 per ADS). - Under the existing USD 5B share repurchase program, the company had repurchased about USD 3.1B total cost (transcript indicates ~USD 23.2M shares/units repurchased as of Mar 31, 2026, with wording imperfect but buyback activity is clearly positive).

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$156.00

Target Price by Analysts

24% upsideNetEase Target Price DetailsTarget Price
$307.16

Current Fair Value

144.1% upside

Undervalued by 144.1% based on the discounted cash flow analysis.

Share Statistics

Market cap$80.33 Billion
Enterprise Value$68.04 Billion
Dividend Yield$3.02 (2.37%)
Earnings per Share$52.9
Beta0.8
Outstanding Shares639,624,600

Return

Return on Equity20.67%ROE
Return on Assets14.71%
Return on Invested Capital21.81%

Valuation & Multiples

P/E Ratio16.14P/E Ratio
PEG445.76PEG
Price to Sales0.71Price to Sales
Price to Book Ratio0.48Price to Book Ratio
Enterprise Value to Revenue0.6
Enterprise Value to EBIT1.79
Enterprise Value to Net Income1
Total Debt to Enterprise0.57
Debt to Equity0.23Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 21, 2026
EPS Estimate
$2.19
Average shareholder expectation
Revenue Estimate
$4.25 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 13, 2026
EPS Estimate
$2.35
Average shareholder expectation
Revenue Estimate
$4.35 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.2539 45.31%
Total Calls534,700 5.44%
Total Puts670,475 65.09%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %8.99% 0.23%
Total Invested$6.44B 16.28%
Investors Holding446 36.00%

ESG Score

No data

About NetEase Inc

CEO: Lei Ding

Relevant Senate Committees

Joint Committee on Taxation

Provides critical analysis and scoring for all tax legislation, directly influencing corporate tax structures, capital investment credits, and the overall tax burden on companies like NetEase.

Finance

Controls taxation, trade policy (tariffs), and entitlement spending, all of which directly impact NetEase's profitability, corporate structure, and the overall economic environment for its US and international business.

Judiciary

Oversees antitrust laws and intellectual property, both of which are highly significant for large software and internet companies like NetEase, impacting M&A activity and competitive practices.

Banking, Housing, and Urban Affairs

Regulates the financial system, including the SEC (which oversees NetEase's US-listed ADRs), and is a primary mover for cryptocurrency regulation, which is increasingly relevant to large tech and internet companies.

Commerce, Science, and Transportation

Has vast jurisdiction over interstate commerce, consumer protection (FTC), and 'Big Tech' issues like privacy and platform regulation, which directly impact NetEase as a large internet and software company.

Foreign Relations

As a major Chinese tech company with significant US market exposure, NetEase's operations and valuation are highly sensitive to U.S. foreign policy, trade relations, and potential sanctions impacting Chinese entities.