| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
GRVY Stock Overview
Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and Japan.
Rewards
Risk Analysis
No risks detected for GRVY from our risk checks.
Gravity Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$49.51 |
| 52 Week High | US$116.00 |
| 52 Week Low | US$41.20 |
| Beta | -0.072 |
| 1 Month Change | -13.88% |
| 3 Month Change | -0.92% |
| 1 Year Change | -52.94% |
| 3 Year Change | 7.28% |
| 5 Year Change | 445.26% |
| Change since IPO | -1.69% |
Recent News & Updates
Gravity Suffers With Mobile Pullback
Gravity is rather cheap video gaming exposure focused almost entirely on Asian markets. Asian markets are where mobile games have the most presence, Gravity is similarly skewed towards mobile exposures. Mobile gaming generally fell, especially in large markets like Japan, but also more broadly. Casual gaming is experiencing a strong reversal as the pandemic subsides while online gaming has more traction. The issue is even the online segment will struggle as bad-will mounts with closures of private servers and bot accusations. Best avoided.
Shareholders Would Enjoy A Repeat Of Gravity's (NASDAQ:GRVY) Recent Growth In Returns
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Shareholder Returns
| GRVY | US Entertainment | US Market | |
|---|---|---|---|
| 7D | -5.2% | 6.0% | 6.6% |
| 1Y | -52.9% | -50.8% | -18.5% |
Return vs Industry: GRVY matched the US Entertainment industry which returned -52.1% over the past year.
Return vs Market: GRVY underperformed the US Market which returned -20.5% over the past year.
Price Volatility
| GRVY volatility | |
|---|---|
| GRVY Average Weekly Movement | 7.3% |
| Entertainment Industry Average Movement | 11.5% |
| Market Average Movement | 8.0% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: GRVY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: GRVY's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2000 | n/a | Hyun Chul Park | https://www.gravity.co.kr |
Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and Japan. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics.
Gravity Fundamentals Summary
| GRVY fundamental statistics | |
|---|---|
| Market Cap | ₩444.05b |
| Earnings (TTM) | ₩58.81b |
| Revenue (TTM) | ₩397.49b |
7.6x
P/E Ratio1.1x
P/S RatioIs GRVY overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| GRVY income statement (TTM) | |
|---|---|
| Revenue | ₩397.49b |
| Cost of Revenue | ₩211.87b |
| Gross Profit | ₩185.61b |
| Other Expenses | ₩126.80b |
| Earnings | ₩58.81b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 8.46k |
| Gross Margin | 46.70% |
| Net Profit Margin | 14.80% |
| Debt/Equity Ratio | 0% |
How did GRVY perform over the long term?
See historical performance and comparisonValuation
Is GRVY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for GRVY?
Other financial metrics that can be useful for relative valuation.
| What is GRVY's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | ₩444.05b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.4x |
| Enterprise Value/EBITDA | 1.8x |
| PEG Ratio | n/a |
Price to Earnings Ratio vs Peers
How does GRVY's PE Ratio compare to its peers?
| GRVY PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 32.1x |
Price-To-Earnings vs Peers: GRVY is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (32.1x).
Price to Earnings Ratio vs Industry
How does GRVY's PE Ratio compare vs other companies in the U.S. Entertainment Industry?
Price-To-Earnings vs Industry: GRVY is good value based on its Price-To-Earnings Ratio (7.6x) compared to the US Entertainment industry average (24x)
Price to Earnings Ratio vs Fair Ratio
What is GRVY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 7.6x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GRVY's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of GRVY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GRVY ($49.51) is trading below our estimate of fair value ($211.16)
Significantly Below Fair Value: GRVY is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate GRVY's PEG Ratio to determine if it is good value.
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Future Growth
How is Gravity forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
30.5%
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.
Discover growth companies
- 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.
Past Performance
How has Gravity performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
35.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GRVY has high quality earnings.
Growing Profit Margin: GRVY's current net profit margins (14.8%) are lower than last year (17.6%).
Past Earnings Growth Analysis
Earnings Trend: GRVY's earnings have grown significantly by 35.3% per year over the past 5 years.
Accelerating Growth: GRVY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GRVY had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the Entertainment industry average (3.7%).
Return on Equity
High ROE: GRVY's Return on Equity (22.3%) is considered high.
Discover strong past performing companies
Financial Health
How is Gravity's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: GRVY's short term assets (₩322.7B) exceed its short term liabilities (₩72.8B).
Long Term Liabilities: GRVY's short term assets (₩322.7B) exceed its long term liabilities (₩5.9B).
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
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Dividend
What is Gravity current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend 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 GRVY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GRVY'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 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.
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 GRVY has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
13.9yrs
Average management tenure
CEO
Hyun Chul Park (48 yo)
11.25yrs
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
Experienced Management: GRVY's management team is seasoned and experienced (13.9 years average tenure).
Board Members
Experienced Board: GRVY's board of directors are seasoned and experienced ( 11.3 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 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
- Implied Market Cap: US$344.040m
- 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
- 3925
- South Korea
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/24 00:00 |
| End of Day Share Price | 2022/06/24 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.