Is NetEase, Inc. (NTES) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 16.9% / 30% | 181.5% / 30% | 10.7% / 30% | N/A | ✗ NOT HALAL |
| DJIM | 16.9% / 33% | 181.5% / 33% | 10.7% / 33% | N/A | ✗ NOT HALAL |
| MSCI | 6.5% / 33% | 70.2% / 33% | 4.2% / 33% | N/A | ✗ NOT HALAL |
| S&P | 16.9% / 33% | 181.5% / 33% | 10.7% / 33% | N/A | ✗ NOT HALAL |
| FTSE | 6.5% / 33% | 70.2% / 33% | 4.2% / 50% | N/A | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 64.3% | |
| Operating Margin | 30.2% | |
| Net Margin | 30.0% | |
| Return on Equity (ROE) | 22.6% | |
| Return on Assets (ROA) | 10.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $39.7B |
| Free Cash Flow | $37.5B |
| Total Debt | $12.8B |
| Debt-to-Equity | 3.9 |
| Current Ratio | 3.4 |
| Total Assets | $196.0B |
Price & Trading
| Last Close | $109.94 |
| 50-Day MA | $121.15 |
| 200-Day MA | $134.75 |
| Avg Volume | 831K |
| Beta | 0.9 |
|
52-Week Range
$88.54
| |
About NetEase, Inc. (NTES)
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; NetEase Cloud Music; and Innovative Businesses and Others segments. It develops and operates mobile and PC games; and offers games licensed from other developers. The company also provides live streaming service, and other related or ancillary value-added services related to games, such as the sale of game-themed merchandise. In addition, it offers digital content services with interactive learning features, including Youdao Lingshi and Youdao Literature; STEAM courses consisting computer coding courses and other STEAM courses; and adult courses, such as China University massive open online course. Further, the company provides Youdao Dictionary, an online language tool; Confucius, a large language model for the education sector; Hi Echo, an AI-driven virtual English-speaking tutor; Mr. P AI Tutor, a conversation-based tool; Youdao Desktop Translation, a desktop dictionary tool; U-Dictionary, an online dictionary and translation app; iRecord, an audio transcription tool; LectMate, an interpretation software for study-abroad lecture scenarios; iArch, an AI home design software; Baby Genius, an AI baby generator; and One Translate Translator, a translation tool for travelers. It also offers online marketing services consisting of performance-based advertising services, and global marketing and promotion services through banners, text links, videos, logos, buttons, and rich media. Additionally, the company develops and offers smart devices, including Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. 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.
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Frequently Asked Questions
Is NetEase, Inc. (NTES) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), NetEase, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is NetEase, Inc.'s debt ratio?
NetEase, Inc.'s debt ratio is 16.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 6.5%.
What are NetEase, Inc.'s key financial metrics?
NetEase, Inc. has a market capitalization of $70.3B, trailing P/E ratio of 14.4. The company maintains a gross margin of 64.3% and a net margin of 30.0%. Return on equity stands at 22.6%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.