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 Analysis

Flawless balance sheet with outstanding 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

10.4%

GRVY

-0.4%

US Entertainment

-1.1%

US Market


1 Year Return

-31.8%

GRVY

18.5%

US Entertainment

17.8%

US Market

Return vs Industry: GRVY underperformed the US Entertainment industry which returned 18% over the past year.

Return vs Market: GRVY underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

GRVYIndustryMarket
7 Day10.4%-0.4%-1.1%
30 Day-11.6%2.6%1.5%
90 Day-20.3%4.1%6.6%
1 Year-31.8%-31.8%19.3%18.5%20.2%17.8%
3 Year76.1%76.1%54.3%49.3%47.5%38.1%
5 Year1551.4%1551.4%91.3%79.7%71.2%52.4%

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

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 ($31.72) is trading below our estimate of fair value ($82.36)

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 (4.9x) compared to the Entertainment industry average (23.8x).

PE vs Market: GRVY is good value based on its PE Ratio (4.9x) compared to the US market (18.2x).


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 (2.3x) compared to the US Entertainment industry average (2.3x).


Next Steps

Future Growth

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

12.5%

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.


Next Steps

Past Performance

How has Gravity performed over the past 5 years?

75.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRVY has high quality earnings.

Growing Profit Margin: GRVY's current net profit margins (13.5%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: GRVY has become profitable over the past 5 years, growing earnings by 75% per year.

Accelerating Growth: GRVY's earnings growth over the past year (155.2%) exceeds its 5-year average (75% per year).

Earnings vs Industry: GRVY earnings growth over the past year (155.2%) exceeded the Entertainment industry -9.8%.


Return on Equity

High ROE: GRVY's Return on Equity (46.9%) is considered outstanding.


Return on Assets


Return on Capital Employed


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?

11.5yrs

Average management tenure


CEO

Hyun Park (46yo)

8.9yrs

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

NamePositionTenureCompensationOwnership
Heung Gon Kim
Chief Financial Officer11.4yrsno datano data
Yoshinori Kitamura
Chairman of the Board & COO8.8yrsno datano data
Hyun Park
CEO & Executive Director8.9yrsno datano data
Taik Baik Seung
Chief Marketing Officer and Senior Executive Vice President0yrsno datano data
Kyu Lee
Senior Executive Vice President of Human Resources14.8yrsno datano data
Kazuki Morishita
Executive Director11.9yrsno datano data
Kazuya Sakai
Executive Director10.9yrsno datano data

11.5yrs

Average Tenure

51yo

Average Age

Experienced Management: GRVY's management team is seasoned and experienced (11.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yoshinori Kitamura
Chairman of the Board & COO8.8yrsno datano data
Hyun Park
CEO & Executive Director8.9yrsno datano data
Kazuki Morishita
Executive Director11.9yrsno datano data
Kazuya Sakai
Executive Director10.9yrsno datano data
Jung Yoo
Independent Director8.9yrsno datano data
Doo Ryu
Independent Director8.9yrsno datano data
Yong Kwon
Independent Director0.9yrsno datano data

8.9yrs

Average Tenure

54yo

Average Age

Experienced Board: GRVY's board of directors are considered experienced (8.9 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$220.419m
  • 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)YesADR EACH REP 2 ORD SPON(POST REV SPLT)USUSDFeb 2005
GD8ADB (Deutsche Boerse AG)YesADR EACH REP 2 ORD SPON(POST REV SPLT)DEEURFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:07
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.