NetEase (BSP:NETE34) Profitability Rank: 9 (As of Mar. 2026) — 10% Below Median

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BSP:NETE34 NetEase Inc BSP:NETE34
93 GF Score
Price R$65.09
GF Value R$61.35
Valuation Fairly Valued
! 1 Warning Sign
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What is NetEase Profitability Rank?

NetEase BSP:NETE34 -5.31% 93 Profitability Rank is 9 as of Mar. 2026, which is 10% below its 10-year median of 10.00. GuruFocus rates BSP:NETE34 with a GF Score™ of 93/100 and a GF Value™ of R$61.35 (Fairly Valued). The stock has 1 warning sign investors should review.

NetEase has the Profitability Rank of 9. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

NetEase's Operating Margin % for the quarter that ended in Mar. 2026 was 41.37%. As of today, NetEase's Piotroski F-Score is 8.


NetEase Profitability Rank Related Terms


BSP:NETE34 vs EA, TTWO, RBLX: Profitability Rank Comparison

For the Electronic Gaming & Multimedia subindustry, NetEase's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


NetEase Profitability Rank vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, NetEase's Profitability Rank distribution charts can be found below:

* The bar in red indicates where NetEase's Profitability Rank falls into.


BSP:NETE34
93GF Score
NetEase Inc BSP:NETE34
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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NetEase Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

NetEase has the Profitability Rank of 9. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

NetEase's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=9603.774 / 23212.107
=41.37 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

NetEase has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

NetEase Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 9 mean?
NetEase (BSP:NETE34) has a Profitability Rank of 9 as of Mar. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on NetEase and its competitors. This is 10% below median its historical median of 10.00. Over the past decade, NetEase's Profitability Rank has ranged from 9.00 to 10.00.
Is NetEase's Profitability Rank too high?
NetEase's current Profitability Rank of 9 is 10% below median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 9.00 to a high of 10.00. Overall, NetEase has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase's Profitability Rank compare to EA and TTWO?
NetEase's Profitability Rank of 9 can be compared against companies in the Interactive Media industry. Historically, NetEase's own Profitability Rank has ranged from 9.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for an Interactive Media company?
A good Profitability Rank depends on the Interactive Media industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on NetEase and its competitors. NetEase's current Profitability Rank is 9, which is 10% below median its own 10-year median of 10.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetEase stock overvalued right now?
Based on GuruFocus' analysis, NetEase (BSP:NETE34) is currently considered Fairly Valued. The stock's GF Value™ is R$61.35, compared to a current price of R$65.09 — trading 6.1% above its estimated fair value. The current Profitability Rank is 9, which is 10% below median its 10-year median of 10.00. NetEase's overall GF Score™ is 93/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For NetEase (BSP:NETE34), the current Profitability Rank is 9 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is NetEase (BSP:NETE34) Overvalued in 2026?

Based on GuruFocus' analysis, NetEase stock appears to be overvalued. The current stock price of R$65.09 is trading 6.1% above its estimated GF Value™ of R$61.35. GuruFocus considers NetEase to be Fairly Valued.

Key valuation signals for BSP:NETE34:

  • Profitability Rank: 9 (10% below median its 10-year median of 10.00)
  • GF Value™: R$61.35 vs. price of R$65.09 (6.1% above fair value)
  • GF Score™: 93/100 with 1 warning sign

No single metric tells the full story. See the BSP:NETE34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


NetEase Business Description

Address No. 599 Wangshang Road, NetEase Building, Binjiang District, Hangzhou, CHN, 310052
Founded in the late 1990s as an internet portal, NetEase has evolved into China's second-largest online gaming company. Its early success was anchored by the massively multiplayer online role-playing game Fantasy Westward Journey, which laid the foundation for a durable franchise strategy. Over the past decade, the company has expanded its portfolio with successful titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which continue to maintain sizable and engaged player bases.In addition to its in-house development capabilities, NetEase partners with global IP holders such as Microsoft and Marvel to develop and publish titles based on established franchises, including World of Warcraft, Diablo Immortal, and Marvel Rivals, further strengthening its global presence.
93GF Score

Get the complete analysis for BSP:NETE34

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$65.09
Price
R$61.35
GF Value