On Feb. 26, Motley Fool Rule Breakers pick NetEase
- For the full nuts and bolts on NetEase, take a look at this nugget of analysis.
- Increasing sales were driven by a 13% increase in online game revenue on a year-over-year basis.
- NetEase is a four-star stock in Motley Fool CAPS, our interactive stock database. Its competitors, Shanda
(NASDAQ:SNDA) and Sina(NASDAQ:SINA) , are rated four and three stars, respectively. To see what all the fuss is about, join the CAPS community for free and make your opinion known.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005* |
Change |
|
|---|---|---|---|
|
Sales |
$69,233.6 |
$60,378.0 |
14.7% |
|
Net Profit |
$41,033.6 |
$34,283.0 |
19.7% |
|
EPS per ADS |
$0.30 |
$0.25 |
20.0% |
|
Diluted ADS Shares |
137,003.6 |
35,806.1** |
N/A |
**In March 2006, NetEase changed its ADR ratio from 1 ADR for every 100 ordinary shares to one ADR for every 25 ordinary shares. This number does not reflect the change.
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
82.4% |
82.6% |
(0.2) |
|
Operating Margin |
60.1% |
62.3% |
(2.2) |
|
Net Margin |
57.8% |
59.2% |
(1.4) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + Time Deposit |
$504,590.3 |
$418,542.3 |
20.6% |
|
Accounts Rec. |
$16,878.9 |
$8,628.2 |
95.6% |
|
Inventory |
N/A |
N/A |
N/A |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$13,525.6 |
$3,574.7 |
278.4% |
|
Long-Term Debt |
$99,980.0 |
$101,411.8 |
(1.4%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
2006 |
2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$68,108.3 |
$27,299.1 |
149.5% |
|
Capital Expenditures |
$4,292.1 |
$1,846.4 |
132.5% |
|
Free Cash Flow |
$63,816.1 |
$25,452.7 |
150.7% |
Find out why Fools always follow the money.
Related Foolishness:
NetEase and Shanda are both currently selections of the Motley Fool Rule Breakers newsletter service. To find out why the team thinks that these stocks have such potential, take a free 30-day trial to the service today.
Sina is a Motley Fool Stock Advisor pick.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
