Kakao (KOSE:A035720) - Share price, News & Analysis

A035720 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

A035720 Stock Overview

Kakao Corp. operates mobile and other online platforms in South Korea.

Rewards

Trading at 20.7% below our estimate of its fair value

Revenue is forecast to grow 18.25% per year

Earnings grew by 716.2% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 23% per year for the next 3 years

High level of non-cash earnings

Kakao Competitors

NAVER

KOSE:A035420

₩41.5t

Apple

NasdaqGS:AAPL

US$2.2t

Microsoft

NasdaqGS:MSFT

US$1.9t

Samsung Electronics

KOSE:A005930

₩454.8t

Price History & Performance

Summary of all time highs, changes and price drops for Kakao
Historical stock prices
Current Share Price	₩82,900.00
52 Week High	₩173,000.00
52 Week Low	₩80,000.00
Beta	1.04
1 Month Change	-9.89%
3 Month Change	-10.48%
1 Year Change	-29.75%
3 Year Change	236.99%
5 Year Change	322.53%
Change since IPO	159.88%

Shareholder Returns

	A035720	KR Interactive Media and Services	KR Market
7D	-0.4%	0.8%	1.6%
1Y	-29.7%	-25.8%	-14.2%

Return vs Industry: A035720 underperformed the KR Interactive Media and Services industry which returned -25.8% over the past year.

Return vs Market: A035720 underperformed the KR Market which returned -14.2% over the past year.

Price Volatility

Is A035720's price volatile compared to industry and market?
A035720 volatility
A035720 Average Weekly Movement	5.0%
Interactive Media and Services Industry Average Movement	5.2%
Market Average Movement	5.5%
10% most volatile stocks in KR Market	10.4%
10% least volatile stocks in KR Market	3.2%

Stable Share Price: A035720 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: A035720's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	3,107	Whon Namkoong	https://www.kakaocorp.com

Kakao Corp. operates mobile and other online platforms in South Korea. Its platform operations comprise its talk business, portal business, and other business, which provide users with the ability to communicate, search content, shop, and make payments online, as well as use services, such as mobile transportation applications. The company offers its services under the brands of Kakao, Daum, and Melon.

Kakao Fundamentals Summary

How do Kakao's earnings and revenue compare to its market cap?
A035720 fundamental statistics
Market Cap	₩35.81t
Earnings (TTM)	₩2.47t
Revenue (TTM)	₩6.53t

14.5x

P/E Ratio

5.5x

P/S Ratio

Is A035720 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A035720 income statement (TTM)
Revenue	₩6.53t
Cost of Revenue	₩298.96b
Gross Profit	₩6.23t
Other Expenses	₩3.76t
Earnings	₩2.47t

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.72k
Gross Margin	95.42%
Net Profit Margin	37.83%
Debt/Equity Ratio	16.1%

How did A035720 perform over the long term?

See historical performance and comparison

Dividends

0.06%

Current Dividend Yield

0.928%

Payout Ratio

Valuation

Is Kakao undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

20.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: A035720 (₩82900) is trading below our estimate of fair value (₩104482.09)

Significantly Below Fair Value: A035720 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: A035720 is good value based on its PE Ratio (14.5x) compared to the KR Interactive Media and Services industry average (15.9x).

PE vs Market: A035720 is poor value based on its PE Ratio (14.5x) compared to the KR market (14x).

Price to Earnings Growth Ratio

PEG Ratio: A035720's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: A035720's PB Ratio (3.2x) is in line with the KR Interactive Media and Services industry average.

Future Growth

How is Kakao forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-23.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A035720's earnings are forecast to decline over the next 3 years (-23% per year).

Earnings vs Market: A035720's earnings are forecast to decline over the next 3 years (-23% per year).

High Growth Earnings: A035720's earnings are forecast to decline over the next 3 years.

Revenue vs Market: A035720's revenue (18.3% per year) is forecast to grow faster than the KR market (9.7% per year).

High Growth Revenue: A035720's revenue (18.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A035720's Return on Equity is forecast to be low in 3 years time (9.2%).

Past Performance

How has Kakao performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

65.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A035720 has a high level of non-cash earnings.

Growing Profit Margin: A035720's current net profit margins (37.8%) are higher than last year (6.7%).

Past Earnings Growth Analysis

Earnings Trend: A035720's earnings have grown significantly by 65% per year over the past 5 years.

Accelerating Growth: A035720's earnings growth over the past year (716.2%) exceeds its 5-year average (65% per year).

Earnings vs Industry: A035720 earnings growth over the past year (716.2%) exceeded the Interactive Media and Services industry 89.9%.

Return on Equity

High ROE: A035720's Return on Equity (18.3%) is considered low.

Financial Health

How is Kakao's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: A035720's short term assets (₩8,204.2B) exceed its short term liabilities (₩5,226.2B).

Long Term Liabilities: A035720's short term assets (₩8,204.2B) exceed its long term liabilities (₩4,302.8B).

Debt to Equity History and Analysis

Debt Level: A035720 has more cash than its total debt.

Reducing Debt: A035720's debt to equity ratio has reduced from 25.3% to 16.1% over the past 5 years.

Debt Coverage: A035720's debt is well covered by operating cash flow (46.5%).

Interest Coverage: A035720 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Kakao current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.063%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A035720's dividend (0.063%) isn’t notable compared to the bottom 25% of dividend payers in the KR market (0.85%).

High Dividend: A035720's dividend (0.063%) is low compared to the top 25% of dividend payers in the KR market (2.75%).

Stability and Growth of Payments

Stable Dividend: A035720 is not paying a notable dividend for the KR market, therefore no need to check if payments are stable.

Growing Dividend: A035720 is not paying a notable dividend for the KR market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: A035720 is not paying a notable dividend for the KR market.

Cash Payout to Shareholders

Cash Flow Coverage: A035720 is not paying a notable dividend for the KR market.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average board tenure

CEO

Whon Namkoong

no data

Tenure

Whon Namkoong serves as Inside Director of Kakao Corp. since March 29, 2022. Whon Namkoong serves as Chief Executive Officer of Kakao Corp. since January 2022. Whon Namkoong experience includes: CEO of CJ...

Board Members

Experienced Board: A035720's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31