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GRVY

Gravity NasdaqGM:GRVY Stock Report

Last Price

US$49.51

Market Cap

US$344.0m

7D

-5.2%

1Y

-52.9%

Updated

24 Jun, 2022

Data

Company Financials
GRVY fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

GRVY Stock Overview

Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and Japan.

Rewards

Trading at 76.6% below our estimate of its fair value

Risk Analysis

No risks detected for GRVY from our risk checks.

Gravity Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Gravity
Historical stock prices
Current Share PriceUS$49.51
52 Week HighUS$116.00
52 Week LowUS$41.20
Beta-0.072
1 Month Change-13.88%
3 Month Change-0.92%
1 Year Change-52.94%
3 Year Change7.28%
5 Year Change445.26%
Change since IPO-1.69%

Recent News & Updates

Jun 16

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.

May 11
Shareholders Would Enjoy A Repeat Of Gravity's (NASDAQ:GRVY) Recent Growth In Returns

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

GRVYUS EntertainmentUS 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

Is GRVY's price volatile compared to industry and market?
GRVY volatility
GRVY Average Weekly Movement7.3%
Entertainment Industry Average Movement11.5%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

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

FoundedEmployeesCEOWebsite
2000n/aHyun Chul Parkhttps://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

How do Gravity's earnings and revenue compare to its market cap?
GRVY fundamental statistics
Market Cap₩444.05b
Earnings (TTM)₩58.81b
Revenue (TTM)₩397.49b

7.6x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
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 Margin46.70%
Net Profit Margin14.80%
Debt/Equity Ratio0%

How did GRVY perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is GRVY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

GRVY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA1.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does GRVY's PE Ratio compare to its peers?

GRVY PE Ratio vs Peers
The above table shows the PE ratio for GRVY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average32.1x

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.

GRVY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.6x
Fair PE Ration/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

0/6

Future 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

3/6

Past 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

6/6

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: 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

0/6

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.