Gravity
Market Cap
US$196.7m
Last Updated
2020/04/04 02:42 UTC
Data Sources
Company Financials
Executive Summary
Gravity Co., Ltd. develops, publishes, and distributes online games in South Korea, Japan, the United States, Canada, Taiwan, the Philippines, Thailand, Indonesia, Hong Kong, Macau, China, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record.
Similar Companies
Share Price & News
How has Gravity's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GRVY's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.8%
GRVY
1.3%
US Entertainment
-2.0%
US Market
1 Year Return
-53.4%
GRVY
-3.7%
US Entertainment
-15.1%
US Market
Return vs Industry: GRVY underperformed the US Entertainment industry which returned -3% over the past year.
Return vs Market: GRVY underperformed the US Market which returned -14.9% over the past year.
Shareholder returns
| GRVY | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.8% | 1.3% | -2.0% |
| 30 Day | 6.9% | -10.4% | -19.7% |
| 90 Day | -24.6% | -14.0% | -23.2% |
| 1 Year | -53.4%-53.4% | -3.1%-3.7% | -13.4%-15.1% |
| 3 Year | 190.7%190.7% | 27.8%23.8% | 10.9%3.7% |
| 5 Year | 1314.1%1314.1% | 60.7%50.9% | 28.4%14.4% |
Price Volatility Vs. Market
How volatile is Gravity's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Can Gravity Co., Ltd.'s (NASDAQ:GRVY) ROE Continue To Surpass The Industry Average?2 months ago | Simply Wall St
Gravity Co., Ltd. (NASDAQ:GRVY) Is Employing Capital Very Effectively3 months ago | Simply Wall St
Is Gravity Co., Ltd.'s (NASDAQ:GRVY) 47% ROE Better Than Average?Valuation
Is Gravity undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GRVY ($30.15) is trading below our estimate of fair value ($82.89)
Significantly Below Fair Value: GRVY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GRVY is good value based on its PE Ratio (4.7x) compared to the Entertainment industry average (16.8x).
PE vs Market: GRVY is good value based on its PE Ratio (4.7x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate GRVY's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: GRVY is overvalued based on its PB Ratio (2.2x) compared to the US Entertainment industry average (1.9x).
Next Steps
Future Growth
How is Gravity forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
12.2%
Forecasted Media industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gravity has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine whether Gravity is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Explore growth companies in the Media industry.
Past Performance
How has Gravity performed over the past 5 years?
73.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GRVY has high quality earnings.
Growing Profit Margin: GRVY's current net profit margins (11%) are higher than last year (11%).
Past Earnings Growth Analysis
Earnings Trend: GRVY has become profitable over the past 5 years, growing earnings by 73% per year.
Accelerating Growth: GRVY's earnings growth over the past year (26.4%) is below its 5-year average (73% per year).
Earnings vs Industry: GRVY earnings growth over the past year (26.4%) exceeded the Entertainment industry 10.3%.
Return on Equity
High ROE: GRVY's Return on Equity (34.2%) is considered high.
Next Steps
Financial Health
How is Gravity's financial position?
Financial Position Analysis
Short Term Liabilities: GRVY's short term assets (₩165.5B) exceed its short term liabilities (₩65.3B).
Long Term Liabilities: GRVY's short term assets (₩165.5B) exceed its long term liabilities (₩4.9B).
Debt to Equity History and Analysis
Debt Level: GRVY is debt free.
Reducing Debt: GRVY has not had any debt for past 5 years.
Debt Coverage: GRVY has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: GRVY has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: GRVY has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if GRVY's debt is covered by short term assets.
Next Steps
Dividend
What is Gravity's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GRVY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate GRVY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GRVY's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GRVY's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GRVY's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.7yrs
Average management tenure
CEO
Hyun Park (46yo)
9.08s
Tenure
Mr. Hyun Chul Park has been the Chief Executive Officer of Gravity Co., Ltd. since March 25, 2011. Mr. Park General Manager of International Division of GungHo Online Entertainment, Inc., since 2007. He se ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Financial Officer | 11.58yrs | no data | no data | |
| Chairman of the Board & COO | 9yrs | no data | no data | |
| CEO & Executive Director | 9.08yrs | no data | no data | |
| Chief Marketing Officer and Senior Executive Vice President | no data | no data | no data | |
| Senior Executive Vice President of Human Resources | 15yrs | no data | no data | |
| Executive Director | 12.08yrs | no data | no data | |
| Executive Director | 11.08yrs | no data | no data |
11.7yrs
Average Tenure
51yo
Average Age
Experienced Management: GRVY's management team is seasoned and experienced (11.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & COO | 9yrs | no data | no data | |
| CEO & Executive Director | 9.08yrs | no data | no data | |
| Executive Director | 12.08yrs | no data | no data | |
| Executive Director | 11.08yrs | no data | no data | |
| Independent Director | 9.08yrs | no data | no data | |
| Independent Director | 9.08yrs | no data | no data | |
| Independent Director | 1.08yrs | no data | no data |
9.1yrs
Average Tenure
54yo
Average Age
Experienced Board: GRVY's board of directors are considered experienced (9.1 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
Gravity Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Gravity Co., Ltd.
- Ticker: GRVY
- Exchange: NasdaqGM
- Founded: 2000
- Industry: Interactive Home Entertainment
- Sector: Media
- Market Cap: US$196.723m
- Shares outstanding: 6.95m
- Website: https://www.gravity.co.kr
Number of Employees
Location
- Gravity Co., Ltd.
- 396 World Cup buk-ro
- 15th Floor
- Seoul
- 121-795
- South Korea
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GRVY | NasdaqGM (Nasdaq Global Market) | Yes | ADR EACH REP 2 ORD SPON(POST REV SPLT) | US | USD | Feb 2005 |
| GD8A | DB (Deutsche Boerse AG) | Yes | ADR EACH REP 2 ORD SPON(POST REV SPLT) | DE | EUR | Feb 2005 |
Biography
Gravity Co., Ltd. develops, publishes, and distributes online games in South Korea, Japan, the United States, Canada, Taiwan, the Philippines, Thailand, Indonesia, Hong Kong, Macau, China, and internationally. It offers online games; mobile games and applications; and other games and game-related products and services, including character-based merchandise and animation. The company also provides massively multiplayer online role playing games; and game character merchandising. In addition, it offers console games; markets dolls, stationery, food, and other character-based merchandise, as well as game manuals, monthly magazines, and other publications. Further, it provides Website development and operation services; and sells goods related to mobile phones. The company was founded in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 02:42 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| 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.