NetEase Inc (NTES, Financial), a leading player in the Interactive Media industry, has been making waves in the stock market. As of July 24, 2023, the company's stock price stands at $105.59, with a market cap of $68.1 billion. The stock has seen a gain of 3.31% today and a significant increase of 13.47% over the past four weeks. This article aims to provide a comprehensive analysis of NetEase's GF Score and other key financial metrics.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. The GF Score ranges from 0 to 100, with 100 as the highest rank. The higher the GF Score, the higher the potential for outperformance. NetEase Inc boasts a GF Score of 97/100, indicating a high potential for outperformance.
Financial Strength Analysis
The Financial Strength Rank measures how strong a company's financial situation is. It considers factors such as interest coverage, debt to revenue ratio, and Altman Z score. NetEase Inc has a Financial Strength Rank of 7/10, indicating a robust financial situation.
Profitability Rank Analysis
The Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It considers factors such as Operating Margin, Piotroski F-Score, and the trend of the Operating Margin. NetEase Inc has a Profitability Rank of 10/10, suggesting high profitability.
Growth Rank Analysis
The Growth Rank measures the growth of a company in terms of its revenue and profitability. NetEase Inc has a Growth Rank of 10/10, revealing strong growth prospects for the company.
GF Value Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance. NetEase Inc has a GF Value Rank of 6/10, suggesting a fair valuation of the company.
Momentum Rank Analysis
The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. NetEase Inc has a Momentum Rank of 8/10, indicating strong momentum in the company's stock price.
Competitive Analysis
When compared to its main competitors in the Interactive Media industry, NetEase Inc holds a strong position. Activision Blizzard Inc (ATVI, Financial) has a GF Score of 78, Electronic Arts Inc (EA, Financial) has a GF Score of 92, and Take-Two Interactive Software Inc (TTWO, Financial) has a GF Score of 86. With a GF Score of 97, NetEase Inc outperforms these competitors, indicating a promising investment opportunity.
In conclusion, NetEase Inc presents a compelling investment case with its high GF Score, strong financial strength, high profitability, strong growth prospects, fair valuation, and strong momentum. Investors should consider these factors when making investment decisions.
