Be Wary Of Ncsoft (KRX:036570) And Its Returns On Capital
Aug 14
South Korean (KOSPI) Entertainment Industry Analysis
UpdatedAug 24, 2024
DataAggregated Company Financials
Companies81
- 7D4.3%
- 3M-0.7%
- 1Y-1.9%
- YTD-4.9%
In the last week, the Entertainment industry is up 2.1%, with KRAFTON up 7.2%. In the same time, Pearl Abyss was down 5.5%. Overall in the last year, the industry is flat. Looking forward, earnings are forecast to grow by 33% annually.
Industry Valuation and Performance
Has the South Korean Entertainment Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 24 Aug 2024 | ₩57.9t | ₩28.5t | ₩482.6b | 18.6x | 120x | 2x |
| Mon, 22 Jul 2024 | ₩55.8t | ₩28.1t | -₩39,487,500,642.00 | 20.4x | -1414.2x | 2x |
| Wed, 19 Jun 2024 | ₩52.5t | ₩28.1t | -₩66,218,830,602.00 | 20.3x | -792.8x | 1.9x |
| Fri, 17 May 2024 | ₩54.0t | ₩27.7t | -₩154,225,859,235.00 | 20.4x | -350x | 2x |
| Sun, 14 Apr 2024 | ₩51.3t | ₩27.7t | -₩64,977,179,835.00 | 19.6x | -790.2x | 1.9x |
| Tue, 12 Mar 2024 | ₩52.0t | ₩27.9t | -₩572,445,623,248.00 | 25.1x | -90.9x | 1.9x |
| Thu, 08 Feb 2024 | ₩52.3t | ₩28.0t | -₩514,460,279,788.00 | 28.2x | -101.7x | 1.9x |
| Sat, 06 Jan 2024 | ₩56.3t | ₩28.2t | -₩718,683,866,906.00 | 30.1x | -78.3x | 2x |
| Mon, 04 Dec 2023 | ₩56.7t | ₩28.3t | -₩715,419,878,468.00 | 37.2x | -79.2x | 2x |
| Wed, 01 Nov 2023 | ₩50.7t | ₩28.1t | -₩1,003,611,767,243.00 | 27.6x | -50.5x | 1.8x |
| Fri, 29 Sep 2023 | ₩52.5t | ₩28.1t | -₩1,002,861,767,618.00 | 31.6x | -52.4x | 1.9x |
| Sun, 27 Aug 2023 | ₩54.4t | ₩28.0t | -₩1,071,906,878,808.00 | 28.5x | -50.8x | 1.9x |
| Tue, 25 Jul 2023 | ₩59.3t | ₩27.9t | -₩922,851,139,251.00 | 33.4x | -64.3x | 2.1x |
| Thu, 22 Jun 2023 | ₩65.8t | ₩27.9t | -₩922,476,139,438.00 | 34x | -71.3x | 2.4x |
| Sat, 20 May 2023 | ₩67.7t | ₩27.5t | -₩965,723,489,467.00 | 38.6x | -70.1x | 2.5x |
| Mon, 17 Apr 2023 | ₩67.3t | ₩27.5t | -₩1,062,627,389,780.00 | 38.3x | -63.3x | 2.4x |
| Wed, 15 Mar 2023 | ₩59.2t | ₩26.6t | ₩1.5t | 19.6x | 39.3x | 2.2x |
| Fri, 10 Feb 2023 | ₩66.1t | ₩26.8t | ₩1.9t | 19.2x | 34.9x | 2.5x |
| Sun, 08 Jan 2023 | ₩58.4t | ₩26.7t | ₩1.9t | 15.8x | 31x | 2.2x |
| Tue, 06 Dec 2022 | ₩59.4t | ₩26.8t | ₩1.9t | 17x | 31.7x | 2.2x |
| Thu, 03 Nov 2022 | ₩54.5t | ₩24.7t | ₩2.5t | 16x | 21.5x | 2.2x |
| Sat, 01 Oct 2022 | ₩55.0t | ₩24.6t | ₩2.5t | 16.3x | 21.7x | 2.2x |
| Mon, 29 Aug 2022 | ₩65.1t | ₩24.5t | ₩2.8t | 21.8x | 23x | 2.7x |
| Wed, 27 Jul 2022 | ₩66.5t | ₩24.1t | ₩2.6t | 18x | 25.6x | 2.8x |
| Fri, 24 Jun 2022 | ₩62.0t | ₩24.1t | ₩2.6t | 15.5x | 24.2x | 2.6x |
| Sun, 22 May 2022 | ₩74.4t | ₩23.5t | ₩2.8t | 14.9x | 26.4x | 3.2x |
| Tue, 19 Apr 2022 | ₩86.4t | ₩23.1t | ₩2.9t | 17.9x | 29.8x | 3.7x |
| Thu, 17 Mar 2022 | ₩86.7t | ₩18.0t | ₩1.3t | 33.6x | 67.4x | 4.8x |
| Sat, 12 Feb 2022 | ₩82.3t | ₩17.8t | ₩1.3t | 30.7x | 65.3x | 4.6x |
| Mon, 10 Jan 2022 | ₩103.1t | ₩18.2t | ₩1.3t | 38.6x | 77x | 5.7x |
| Wed, 08 Dec 2021 | ₩110.5t | ₩18.2t | ₩1.3t | 39.5x | 83.3x | 6.1x |
| Fri, 05 Nov 2021 | ₩107.6t | ₩17.3t | ₩1.2t | 40.2x | 88.7x | 6.2x |
| Sun, 03 Oct 2021 | ₩95.7t | ₩17.4t | ₩1.2t | 44.5x | 79.3x | 5.5x |
| Tue, 31 Aug 2021 | ₩97.4t | ₩17.6t | ₩1.1t | 40.8x | 84.8x | 5.5x |
Price to Earnings Ratio
84.8x
Current Industry PE
- Investors are pessimistic on the South Korean Entertainment industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 135x which is lower than its 3-year average PE of 297x.
- The 3-year average PS ratio of 3.0x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Entertainment industry have declined 28% per year over the last three years.
- Meanwhile revenues for these companies have grown 17% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the South Korean Telecom industry?
| KR Market | -0.21% | |
| Telecom | 3.73% | |
| Entertainment | 4.28% | |
| Movies and Entertainment | 4.46% | |
| Interactive Home Entertainment | 4.20% | |
Industry PE
- Investors are most optimistic about the Interactive Home Entertainment industry which is trading above its 3-year average PE ratio of 4.3x.
- Analysts are expecting annual earnings growth of 29.3%, which is higher than its past year's earnings growth of 0.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Movies and Entertainment industry, expecting annual earnings growth of 40% over the next 5 years.
- This is better than its past earnings growth rate of 20% per year.
- In contrast, the Interactive Home Entertainment industry is expected to see its earnings grow by 29% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| A259960 KRAFTON | ₩348.00k | 7.2% +₩1.1t | 124.4% | PE17.7x | |
| A352820 HYBE | ₩176.60k | 6.1% +₩424.9b | -25.5% | PE95x | |
| A251270 Netmarble | ₩60.40k | 4.1% +₩196.6b | 42.0% | PS1.9x | |
| A036570 Ncsoft | ₩192.20k | 5.1% +₩188.9b | -22.2% | PE19.8x | |
| A462870 SHIFT UP | ₩66.20k | 4.9% +₩179.9b | n/a | n/a |