KRAFTON (KOSE:A259960) - Share price, News & Analysis

A259960 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	1/6
Financial Health	6/6
Dividends	0/6

A259960 Stock Overview

KRAFTON, Inc. develops, produces, and sells household video games in South Korea and internationally.

Rewards

Trading at 6% below our estimate of its fair value

Earnings are forecast to grow 16.61% per year

Risk Analysis

No risks detected for A259960 from our risk checks.

KRAFTON Competitors

Ncsoft

KOSE:A036570

₩8.5t

NEXON

TSE:3659

JP¥2.6t

Perfect World

SZSE:002624

CN¥29.6b

Gravity

NasdaqGM:GRVY

US$375.1m

Price History & Performance

Summary of all time highs, changes and price drops for KRAFTON
Historical stock prices
Current Share Price	₩240,000.00
52 Week High	₩580,000.00
52 Week Low	₩233,000.00
Beta	0
1 Month Change	-9.26%
3 Month Change	-13.51%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-47.14%

Shareholder Returns

	A259960	KR Entertainment	KR Market
7D	-2.0%	-4.4%	0.006%
1Y	n/a	-19.8%	-15.8%

Return vs Industry: Insufficient data to determine how A259960 performed against the KR Entertainment industry.

Return vs Market: Insufficient data to determine how A259960 performed against the KR Market.

Price Volatility

Is A259960's price volatile compared to industry and market?
A259960 volatility
A259960 Average Weekly Movement	6.0%
Entertainment Industry Average Movement	7.0%
Market Average Movement	5.5%
10% most volatile stocks in KR Market	10.3%
10% least volatile stocks in KR Market	3.2%

Stable Share Price: A259960 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: A259960's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	1,487	CH Kim	https://www.krafton.com

KRAFTON, Inc. develops, produces, and sells household video games in South Korea and internationally. It offers PC, mobile, and console games. The company was formerly known as Bluehole Studio Inc. and changed its name to KRAFTON, Inc. in November 2018.

KRAFTON Fundamentals Summary

How do KRAFTON's earnings and revenue compare to its market cap?
A259960 fundamental statistics
Market Cap	₩11.30t
Earnings (TTM)	₩519.88b
Revenue (TTM)	₩1.89t

21.7x

P/E Ratio

6.0x

P/S Ratio

Is A259960 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A259960 income statement (TTM)
Revenue	₩1.89t
Cost of Revenue	₩0
Gross Profit	₩1.89t
Other Expenses	₩1.37t
Earnings	₩519.88b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 17, 2022

Earnings per share (EPS)	11.08k
Gross Margin	100.00%
Net Profit Margin	27.56%
Debt/Equity Ratio	0%

How did A259960 perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

6.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: A259960 (₩240000) is trading below our estimate of fair value (₩255372.1)

Significantly Below Fair Value: A259960 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: A259960 is poor value based on its PE Ratio (21.7x) compared to the KR Entertainment industry average (15.7x).

PE vs Market: A259960 is poor value based on its PE Ratio (21.7x) compared to the KR market (14.3x).

Price to Earnings Growth Ratio

PEG Ratio: A259960 is poor value based on its PEG Ratio (1.3x)

Price to Book Ratio

PB vs Industry: A259960 is overvalued based on its PB Ratio (2.4x) compared to the KR Entertainment industry average (2.3x).

Future Growth

How is KRAFTON forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

16.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A259960's forecast earnings growth (16.6% per year) is above the savings rate (3.5%).

Earnings vs Market: A259960's earnings (16.6% per year) are forecast to grow faster than the KR market (15.2% per year).

High Growth Earnings: A259960's earnings are forecast to grow, but not significantly.

Revenue vs Market: A259960's revenue (11.7% per year) is forecast to grow faster than the KR market (9.6% per year).

High Growth Revenue: A259960's revenue (11.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A259960's Return on Equity is forecast to be low in 3 years time (12.3%).

Past Performance

How has KRAFTON performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

13.3%

Historical Media annual earnings growth

Earnings and Revenue History

Quality Earnings: A259960 has high quality earnings.

Growing Profit Margin: Insufficient data to determine if A259960's profit margins have improved over the past year.

Past Earnings Growth Analysis

Earnings Trend: Unable to establish if A259960's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare A259960's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: Insufficient data to determine if A259960's earnings growth over the past year exceeded the Entertainment industry average.

Return on Equity

High ROE: A259960's Return on Equity (11.3%) is considered low.

Financial Health

How is KRAFTON'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: A259960's short term assets (₩3,653.7B) exceed its short term liabilities (₩638.2B).

Long Term Liabilities: A259960's short term assets (₩3,653.7B) exceed its long term liabilities (₩388.7B).

Debt to Equity History and Analysis

Debt Level: A259960 is debt free.

Reducing Debt: A259960 has not had any debt for past 5 years.

Debt Coverage: A259960 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: A259960 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is KRAFTON 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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate A259960's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate A259960's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if A259960's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if A259960's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as A259960 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

1.1yrs

Average board tenure

CEO

CH Kim

no data

Tenure

Mr. Changhan Kim, also known as CH, serves as Chief Executive Officer and Executive Director at Krafton Inc. He was CTO & CTD of NextPlay; Development PD at Ginno Games; Head of Development Division at Bl...

Board Members

Experienced Board: A259960's board of directors are not considered experienced ( 1.1 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: A259960 only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31