NasdaqGM:GRVY

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


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


Market Performance


7 Day Return

-6.8%

GRVY

-0.02%

US Entertainment

0.4%

US Market


1 Year Return

45.2%

GRVY

1.3%

US Entertainment

6.9%

US Market

Return vs Industry: GRVY exceeded the US Entertainment industry which returned 1.3% over the past year.

Return vs Market: GRVY exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

GRVYIndustryMarket
7 Day-6.8%-0.02%0.4%
30 Day0.7%-2.6%-1.1%
90 Day-22.0%-4.4%-0.5%
1 Year45.2%45.2%2.1%1.3%9.3%6.9%
3 Year1162.9%1162.9%52.6%47.7%45.8%36.4%
5 Year984.0%984.0%90.3%78.3%62.9%45.1%

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

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

Undervalued: GRVY ($32.52) is trading below our estimate of fair value ($92.29)

Significantly Undervalued: 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 (5.1x) compared to the Entertainment industry average (40.9x).

PE vs Market: GRVY is good value based on its PE Ratio (5.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 good value based on its PB Ratio (2.5x) compared to the US Entertainment industry average (2.9x).


Next Steps

Future Growth

How is Gravity forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRVY's earnings are forecast to decline over the next 3 years (-5.8% per year).

Earnings vs Market: GRVY's earnings are forecast to decline over the next 3 years (-5.8% per year).

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

Revenue vs Market: Insufficient data to determine if GRVY's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if GRVY's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if GRVY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gravity performed over the past 5 years?

73.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GRVY has become profitable over the past 5 years, growing earnings by 73.9% per year.

Accelerating Growth: GRVY's earnings growth over the past year (192.3%) exceeds its 5-year average (73.9% per year).

Earnings vs Industry: GRVY earnings growth over the past year (192.3%) exceeded the Entertainment industry 21.5%.


Return on Equity

High ROE: GRVY's Return on Equity (48.7%) is considered outstanding.


Return on Assets

ROA vs Industry: GRVY has a higher Return on Assets than the Entertainment industry average last year.


Return on Capital Employed

ROCE Improving: GRVY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gravity's financial position?


Financial Position Analysis

Short Term Liabilities: GRVY's short term assets (₩150.7B) exceeds its short term liabilities (₩57.4B)

Long Term Liabilities: GRVY's short term assets (150.7B) exceeds its long term liabilities (4.4B)


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

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Gravity's salary, the management and board of directors tenure and is there insider trading?

11.2yrs

Average management tenure


CEO

Hyun Park (46yo)

8.6yrs

Tenure

0

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 ...


Management Age and Tenure

11.2yrs

Average Tenure

51yo

Average Age

Experienced Management: GRVY's management team is seasoned and experienced (11.2 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

54yo

Average Age

Experienced Board: GRVY's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Kyu Lee

    Senior Executive Vice President of Human Resources

    • Tenure: 14.5yrs
  • Taik Baik Seung

    Chief Marketing Officer and Senior Executive Vice President

    • Tenure: 0yrs
  • Kazuki Morishita (46yo)

    Executive Director

    • Tenure: 11.6yrs
  • Yoshinori Kitamura (51yo)

    Chairman of the Board & COO

    • Tenure: 8.5yrs
  • Kazuya Sakai (54yo)

    Executive Director

    • Tenure: 10.6yrs
  • Heung Gon Kim (53yo)

    Chief Financial Officer

    • Tenure: 11.1yrs
  • Hyun Park (46yo)

    CEO & Executive Director

    • Tenure: 8.6yrs

Board Members

  • Kazuki Morishita (46yo)

    Executive Director

    • Tenure: 11.6yrs
  • Yoshinori Kitamura (51yo)

    Chairman of the Board & COO

    • Tenure: 8.5yrs
  • Kazuya Sakai (54yo)

    Executive Director

    • Tenure: 10.6yrs
  • Jung Yoo (58yo)

    Independent Director

    • Tenure: 8.6yrs
  • Doo Ryu (58yo)

    Independent Director

    • Tenure: 8.6yrs
  • Hyun Park (46yo)

    CEO & Executive Director

    • Tenure: 8.6yrs
  • Yong Kwon (61yo)

    Independent Director

    • Tenure: 0.6yrs

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$225.980m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRVYNasdaqGM (Nasdaq Global Market)YesSPONSORED ADS NEUSUSDFeb 2005
GD8ADB (Deutsche Boerse AG)YesSPONSORED ADS NEDEEURFeb 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 internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:56
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.