Executive Summary
NEXON Co., Ltd. develops and services PC online and mobile games.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with acceptable track record.
Similar Companies
Share Price & News
How has NEXON's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 7NX's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-11.3%
7NX
5.3%
DE Entertainment
0.7%
DE Market
1 Year Return
76.0%
7NX
-27.7%
DE Entertainment
8.8%
DE Market
Return vs Industry: 7NX exceeded the German Entertainment industry which returned -27.7% over the past year.
Return vs Market: 7NX exceeded the German Market which returned 8.8% over the past year.
Shareholder returns
| 7NX | Industry | Market | |
|---|---|---|---|
| 7 Day | -11.3% | 5.3% | 0.7% |
| 30 Day | -7.9% | -2.4% | 0.1% |
| 90 Day | 27.9% | -7.1% | 12.6% |
| 1 Year | 76.5%76.0% | -27.6%-27.7% | 11.2%8.8% |
| 3 Year | 103.1%102.5% | -18.5%-20.9% | 5.4%-3.0% |
| 5 Year | 189.1%186.6% | 8.8%1.5% | 15.9%0.3% |
Price Volatility Vs. Market
How volatile is NEXON's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is NEXON undervalued compared to its fair value and its price relative to the market?
19.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 7NX (€19.7) is trading above our estimate of fair value (€19.28)
Significantly Below Fair Value: 7NX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 7NX is good value based on its PE Ratio (19x) compared to the XE Entertainment industry average (33.9x).
PE vs Market: 7NX is good value based on its PE Ratio (19x) compared to the German market (21.6x).
Price to Earnings Growth Ratio
PEG Ratio: 7NX is poor value based on its PEG Ratio (8.6x)
Price to Book Ratio
PB vs Industry: 7NX is overvalued based on its PB Ratio (3.2x) compared to the DE Entertainment industry average (1.2x).
Next Steps
Future Growth
How is NEXON forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
2.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 7NX's forecast earnings growth (2.2% per year) is above the savings rate (0.2%).
Earnings vs Market: 7NX's earnings (2.2% per year) are forecast to grow slower than the German market (24.6% per year).
High Growth Earnings: 7NX's earnings are forecast to grow, but not significantly.
Revenue vs Market: 7NX's revenue (4.5% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: 7NX's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 7NX's Return on Equity is forecast to be low in 3 years time (12.3%).
Next Steps
Past Performance
How has NEXON performed over the past 5 years?
28.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 7NX has high quality earnings.
Growing Profit Margin: 7NX's current net profit margins (45.3%) are higher than last year (38.7%).
Past Earnings Growth Analysis
Earnings Trend: 7NX's earnings have grown significantly by 28.5% per year over the past 5 years.
Accelerating Growth: 7NX's earnings growth over the past year (11.1%) is below its 5-year average (28.5% per year).
Earnings vs Industry: 7NX earnings growth over the past year (11.1%) underperformed the Entertainment industry 24.4%.
Return on Equity
High ROE: 7NX's Return on Equity (16.5%) is considered low.
Next Steps
Financial Health
How is NEXON's financial position?
Financial Position Analysis
Short Term Liabilities: 7NX's short term assets (¥538.1B) exceed its short term liabilities (¥47.3B).
Long Term Liabilities: 7NX's short term assets (¥538.1B) exceed its long term liabilities (¥44.6B).
Debt to Equity History and Analysis
Debt Level: 7NX's debt to equity ratio (0.3%) is considered satisfactory.
Reducing Debt: 7NX's debt to equity ratio has reduced from 9.3% to 0.3% over the past 5 years.
Debt Coverage: 7NX's debt is well covered by operating cash flow (5562.9%).
Interest Coverage: 7NX earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is NEXON current dividend yield, its reliability and sustainability?
0.21%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 7NX's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.24%).
High Dividend: 7NX's dividend (0.21%) is low compared to the top 25% of dividend payers in the German market (3.77%).
Stability and Growth of Payments
Stable Dividend: 7NX is not paying a notable dividend for the German market, therefore no need to check if payments are stable.
Growing Dividend: 7NX is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: 7NX is not paying a notable dividend for the German market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 7NX's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.4yrs
Average management tenure
CEO
Owen Mahoney (54 yo)
6.42yrs
Tenure
JP¥757,000,000
Compensation
Mr. Owen Mahoney has been the President at Nexon Co. Ltd. since March 2014. Mr. Mahoney served as Chief Executive Officer of NEXON Co., Ltd. since March 2014. He served as an Outside Director at transcosmo ...
CEO Compensation Analysis
Compensation vs Market: Owen's total compensation ($USD7.16M) is above average for companies of similar size in the German market ($USD5.23M).
Compensation vs Earnings: Owen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President and Representative Director | 6.42yrs | JP¥757.00m | 0.010% ¥ 1.7m | |
| CFO, Administration GM & Representative Director | 5.42yrs | JP¥114.00m | 0.011% ¥ 1.9m | |
| Head of Investor Relations | 6.58yrs | no data | no data | |
| General Counsel | no data | no data | no data | |
| Investor Relations Officer | no data | no data | no data |
6.4yrs
Average Tenure
Experienced Management: 7NX's management team is seasoned and experienced (6.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President and Representative Director | 6.42yrs | JP¥757.00m | 0.010% ¥ 1.7m | |
| CFO, Administration GM & Representative Director | 5.42yrs | JP¥114.00m | 0.011% ¥ 1.9m | |
| External Director | 8.42yrs | no data | 0.00045% ¥ 77.4k | |
| Director | 1.42yrs | no data | 0.13% ¥ 22.2m | |
| External Director | 8.42yrs | no data | 0.0032% ¥ 545.0k | |
| Honorary Chairman | 6.42yrs | no data | no data | |
| External Corporate Auditor | 14.42yrs | no data | no data | |
| External Corporate Auditor | 14.42yrs | no data | no data | |
| External Standing Corporate Auditor | no data | no data | no data | |
| Director | 0.92yr | no data | no data |
8.4yrs
Average Tenure
55yo
Average Age
Experienced Board: 7NX's board of directors are considered experienced (8.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NEXON Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NEXON Co., Ltd.
- Ticker: 7NX
- Exchange: BST
- Founded: 1994
- Industry: Interactive Home Entertainment
- Sector: Media
- Market Cap: JP¥2.139t
- Listing Market Cap: JP¥17.191b
- Shares outstanding: 884.43m
- Website: https://www.nexon.co.jp
Number of Employees
Location
- NEXON Co., Ltd.
- Ark Hills South Tower
- 6th Floor
- Tokyo
- 106-0032
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 3659 | TSE (The Tokyo Stock Exchange) | Yes | Common Shares | JP | JPY | Dec 2011 |
| 7NX | BST (Boerse-Stuttgart) | Yes | Common Shares | DE | EUR | Dec 2011 |
| NEXO.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Dec 2011 |
| NEXO.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Jun 2012 |
Biography
NEXON Co., Ltd. develops and services PC online and mobile games. It also provides portal site planning services. The company offers approximately 100 online games in 190 countries. NEXON Co., Ltd. has a c ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/11 22:30 |
| End of Day Share Price | 2020/08/11 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.