Back to Dashboard
56

NTES

💻 Technology

NetEase, Inc.

Conservative #405Aggressive #866Low RiskHigh 100
$115.62-1.33%
Day High$115.92
Day Low$113.81
Volume1.0M
Mkt Cap$73.8B
52W Low $8952W High $160
Market Cap
$75.6B
P/E Ratio
15.0
Sector avg: 87.8
Rev Growth
4.0%
Sector avg: 14.8%
Earnings Growth
10.6%
Profit Margin
30.0%
Sector avg: -110.0%
Debt/Equity
0.04

Why This Score

NTES scores 56.0 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Strong profitability: ROE of 22.1% exceeds the 15% quality threshold.
  • High net margin of 30.0%, indicating pricing power and operational efficiency.
  • Minimal leverage (D/E 0.04) provides financial flexibility and downside protection.
  • Positive but moderate momentum (24%) — steady appreciation without overheating.
  • High conviction (100/100) — fundamental and ML signals agree on this stock.

No material penalties applied. NTES ranks #405 based on its factor profile and ML signal alignment.

Score Breakdown

Overall Score56.0
Fundamental Score69.2
ML Score48.0

Score by Horizon

3 Month
74.0
6 Month
82.8
Primary
1 Year
87.1

Quality Assessment

B
Earnings Grade
Solid fundamentals with minor quality concerns
Country Risk:
Score penalty of points applied for domicile risk

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
68
Positive
Analyst (6.4%)
70
Favorable
Tradability (post-hoc)
97
Grade A
Base
52.9
SHAP
+1.7
Factors
+0.6
Conviction
+1.7
Divergence
-0.9
Final
56.0
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)73.0
Technical (Momentum, Weinstein, Volatility)56.0
External (Sentiment, Analyst, Macro)84.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
-5.3% to +1.3%
Medium-term
-7.9% to +1.9%
Long-term
-10.5% to +2.5%

ML Model Core Features100 trained inputs → ML Score: 48

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score69.5/100
Target Upside+32.1%
Coverage32 analysts
Market Sentiment
Sentiment Score67.6/100
News Volume1 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum+0.2%
6M Momentum-0.1%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+34.8%
Momentum ConsistencyDivergent (-0.44)
Relative Strength vs Sector+20.5%
Trend Strength (ADX Proxy)Strong (3.4)
Momentum Quality+0.192
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
39%
High risk — cheap + stagnating
Sector RevGr Rank
P29
Revenue growth vs Technology peers
Sector PE Rank
P66
Valuation vs Technology peers
Sector FCF Rank
P83
Free cash flow vs Technology peers
Growth Deviation
-0.1σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged
Value trap warning: This stock scores in the top quartile for value trap risk. The combination of below-sector-median revenue growth, low PE, and high free cash flow yield suggests the market is pricing in stagnation. The ML model's sector-relative features (trained on 30 years of data) reduce this stock's score accordingly.

Analysis Signals

Scoring Factors
Fundamental score of 88 relative to sector peers88/100
Machine learning model ranks this stock at the 88th percentileP88
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +3.7pt (features align with model priorities)
Blend: 91% fund (87.8) + 9% ML (88.5) + SHAP(+3.7) = 91.6
Factor quality: +1.4pt (multi-factor composite)
Risk assessment: low. Annualized volatility 7.2%. Max drawdown 20% (-4.9 pts)Low
Market cap adjustment: +3.5 points ($75.6B market cap)+3.5 pts
Conviction bonus: +3.6pt (conviction=100)
Risk Factors
Country risk: China -14.0pt [structural: -8pt, macro: -6.0pt] (VIE structure risk, HFCAA delisting risk, regulatory seizure precedent)Country
Earnings quality grade B: adequate earnings quality with minor concerns. Score adjusted by -5 pointsGrade B
Quality concern: High accrual ratio (-46.5%) — earnings quality concernFlag

Sector Peer Comparison(Technology — Rank #92 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
NTES56.015.04.0%30.0%$75.6B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%

Market Sentimentvia FMP

Analyst Consensus
Buy32 analysts
Buy: 26Hold: 5Sell: 1
Price Target
$154consensus
Low $132Median $157High $170
+33.5% to consensus target

Company Overviewvia FMP

NetEase, 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.

CEO
Lei Ding
Employees
26,028
Beta
0.92
Industry
Electronic Gaming & Multimedia
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
34.9
Neutral
Trend
Bearish
10-day vs 50-day MA
From 52W High
-27.5%
High: $159.55
From 52W Low
+30.6%
Low: $88.54
Moving Averages
10-Day
$118.30
Below
20-Day
$122.40
Below
50-Day
$131.90
Below
200-Day
$135.30
Below
60-Day Support
$113.81
60-Day Resistance
$149.11
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 24/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-14.5%
200 SMA Slope (60d)
+7.39%
Rising
Volume Ratio
1.32x
10d avg vs 50d avg
Days in Stage
19
Confidence: 40%

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$27.2B$28.4B$27.9B$28.8B
Gross Profit$17.4B$18.2B$18.1B$18.5B
Operating Income$8.2B$8.0B$9.1B$10.4B
Net Income$6.2B$8.6B$8.6B$10.3B
EPS (Diluted)$9.50$13.35$13.35$16.05
Gross Margin64.2%64.1%64.7%64.1%
Operating Margin30.2%28.3%32.5%36.2%
Net Margin22.7%30.4%30.8%35.7%

Why This Stock

TechnologyP/E ratio of 15.0Profit margin 30.0%

Tradability FilterGrade A — 97/100Score impact: +0.9pt

Volume
90
739K avg/day
Dollar Vol
100
$86M/day
Float
100
625M shares
Mkt Cap
100
$75.6B
Range
100
80% spread
Composite Liquidity Score97/100
FDCBA

Multi-Year Range Analysis

Sideways: 0/100
YearLowHighRangeStatus
2021$77.97$120.8443.1%Wide
2022$53.09$108.7768.8%Wide
2023$75.38$118.9044.8%Wide
2024$75.85$114.5040.6%Wide
2025$87.67$159.5558.2%Wide
3-Year Range
71.7%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.15x dampening
weinstein declining

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
97.9%
Outstanding Shares
638M
Bid-Ask Spread
80.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.