Financials NEXON Co., Ltd. OTC Markets

Equities

NEXOY

US65340H1041

Internet Services

Market Closed - OTC Markets Other stock markets 20:50:03 17/07/2024 BST			5-day change	1st Jan Change
21.74 ^USD	+3.23%		+6.26%	+19.85%

07-01	Tranche Update on NEXON Co., Ltd.'s Equity Buyback Plan announced on May 14, 2024.	CI
06-27	Jefferies Adjusts NEXON's Price Target to 4,340 Yen From 4,230 Yen, Keeps at Buy	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	1,287,257	2,819,386	1,994,121	2,558,406	2,187,677	2,836,458	-	-
Enterprise Value (EV) ¹	1,046,480	2,282,934	1,445,380	1,986,794	1,716,105	2,140,995	2,034,316	1,917,680
P/E ratio	11.2 x	50 x	17.3 x	25.8 x	31 x	23.6 x	21.9 x	20.2 x
Yield	0.17%	0.16%	0.34%	0.34%	0.39%	0.4%	0.4%	0.42%
Capitalization / Revenue	5.18 x	9.62 x	7.27 x	7.23 x	5.17 x	6.01 x	5.55 x	5.46 x
EV / Revenue	4.21 x	7.79 x	5.27 x	5.62 x	4.05 x	4.54 x	3.98 x	3.69 x
EV / EBITDA	10.2 x	19 x	14.5 x	18 x	12 x	14.1 x	11.9 x	10.8 x
EV / FCF	10.2 x	18 x	13.9 x	17.4 x	13.7 x	18.9 x	15.1 x	13.1 x
FCF Yield	9.83%	5.57%	7.22%	5.74%	7.3%	5.3%	6.61%	7.66%
Price to Book	2.06 x	3.97 x	2.37 x	2.97 x	2.41 x	2.86 x	2.56 x	2.31 x
Nbr of stocks (in thousands)	887,763	886,599	896,637	863,743	851,402	832,050	-	-
Reference price ²	1,450	3,180	2,224	2,962	2,570	3,409	3,409	3,409
Announcement Date	13/02/20	09/02/21	08/02/22	09/02/23	08/02/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	248,542	293,024	274,462	353,714	423,356	471,586	510,681	519,026
EBITDA ¹	102,219	120,024	100,009	110,463	143,343	152,360	171,672	178,314
EBIT ¹	94,525	111,450	91,541	103,696	134,745	140,903	157,760	162,524
Operating Margin	38.03%	38.03%	33.35%	29.32%	31.83%	29.88%	30.89%	31.31%
Earnings before Tax (EBT) ¹	121,968	108,171	135,472	140,525	125,929	172,314	190,070	192,982
Net income ¹	115,664	56,220	114,888	100,339	70,609	118,214	128,908	131,257
Net margin	46.54%	19.19%	41.86%	28.37%	16.68%	25.07%	25.24%	25.29%
EPS ²	129.3	63.57	128.9	114.7	82.89	144.8	155.4	169.0
Free Cash Flow ¹	102,913	127,083	104,329	114,016	125,305	113,403	134,485	146,908
FCF margin	41.41%	43.37%	38.01%	32.23%	29.6%	24.05%	26.33%	28.3%
FCF Conversion (EBITDA)	100.68%	105.88%	104.32%	103.22%	87.42%	74.43%	78.34%	82.39%
FCF Conversion (Net income)	88.98%	226.05%	90.81%	113.63%	177.46%	95.93%	104.33%	111.92%
Dividend per Share ²	2.500	5.000	7.500	10.00	10.00	13.52	13.53	14.17
Announcement Date	13/02/20	09/02/21	08/02/22	09/02/23	08/02/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2020 S1	2021 S1	2021 Q4	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	147,228	144,322	54,250	91,034	84,122	175,156	97,463	81,095	124,087	94,436	218,523	120,256	84,577	108,418	109,755	215,300	140,453	108,474	141,440	118,761
EBITDA ¹	-	-	-	40,299	24,335	-	33,246	12,583	-	30,158	-	48,272	6,125	-	28,200	-	60,700	21,500	-	-
EBIT ¹	68,254	58,730	2,976	38,520	22,684	61,204	31,524	10,968	56,275	27,614	83,889	46,310	3,797	29,146	32,447	56,100	53,238	22,611	55,940	32,361
Operating Margin	46.36%	40.69%	5.49%	42.31%	26.97%	34.94%	32.34%	13.52%	45.35%	29.24%	38.39%	38.51%	4.49%	26.88%	29.56%	26.06%	37.9%	20.84%	39.55%	27.25%
Earnings before Tax (EBT) ¹	86,667	77,470	9,644	57,201	41,698	98,899	57,966	-16,340	71,903	42,827	114,730	52,859	-41,660	54,239	35,459	88,800	58,114	24,883	-	-
Net income ¹	69,674	54,991	21,995	40,261	24,707	64,968	43,303	-7,932	52,791	24,538	77,329	35,167	-41,870	35,918	28,604	60,200	45,681	17,308	-	-
Net margin	47.32%	38.1%	40.54%	44.23%	29.37%	37.09%	44.43%	-9.78%	42.54%	25.98%	35.39%	29.24%	-49.51%	33.13%	26.06%	27.96%	32.52%	15.96%	-	-
EPS ²	78.91	61.90	24.55	45.35	28.19	73.54	49.79	-8.590	61.63	28.86	90.49	41.28	-48.88	42.77	39.48	-	63.83	22.53	-	-
Dividend per Share ²	2.500	2.500	5.000	-	5.000	5.000	-	5.000	-	5.000	5.000	-	5.000	-	5.000	-	-	5.000	-	5.000
Announcement Date	06/08/20	11/08/21	08/02/22	12/05/22	09/08/22	09/08/22	09/11/22	09/02/23	11/05/23	09/08/23	09/08/23	09/11/23	08/02/24	14/05/24	-	-	-	-	-	-

¹JPY in Million²JPY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	-	-	-	-
Net Cash position ¹	240,777	536,452	548,741	571,612	471,572	695,463	802,142	918,778
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	102,913	127,083	104,329	114,016	125,305	113,403	134,485	146,908
ROE (net income / shareholders' equity)	19.7%	8.5%	14.9%	11.8%	8%	12.8%	12.5%	12%
ROA (Net income/ Total Assets)	17.8%	13.7%	14.7%	13.8%	11.8%	10.9%	10.7%	10.2%
Assets ¹	649,162	410,913	783,941	724,555	600,221	1,085,321	1,209,329	1,283,928
Book Value Per Share ²	703.0	800.0	939.0	997.0	1,065	1,193	1,329	1,477
Cash Flow per Share ²	138.0	73.30	138.0	122.0	93.00	132.0	149.0	159.0
Capex ¹	2,160	10,520	5,185	16,128	5,713	3,240	3,273	3,848
Capex / Sales	0.87%	3.59%	1.89%	4.56%	1.35%	0.69%	0.64%	0.74%
Announcement Date	13/02/20	09/02/21	08/02/22	09/02/23	08/02/24	-	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for NEXON Co., Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

3,409 JPY

Average target price

3,582 JPY

Spread / Average Target

+5.09%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Internet Gaming

	1st Jan change	Capi.
NETEASE, INC.	-0.24%	59.92B
KRAFTON, INC.	+42.82%	8.92B
KUNLUN TECH CO., LTD.	-16.74%	5.09B
37 INTERACTIVE ENTERTAINMENT NETWORK TECHNOLOGY GROUP CO., LTD.	-32.11%	3.82B
SQUARE ENIX HOLDINGS CO., LTD.	+0.08%	3.7B
NETMARBLE CORPORATION	+4.30%	3.61B
ZHEJIANG CENTURY HUATONG GROUP CO.,LTD	-37.21%	3.35B
PLAYTIKA HOLDING CORP.	-8.60%	2.95B
NCSOFT CORPORATION	-21.41%	2.7B

Internet Gaming