OTCPK:NEXO.Y

Stock Analysis Report

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Executive Summary

NEXON Co., Ltd. develops and services PC online and mobile games.

Rewards

PE ratio (19x) is below the US market (19.2x)

Earnings have grown 28.5% per year over the past 5 years

Risk Analysis

No risks detected for NEXO.Y from our risk checks.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has NEXON's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NEXO.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-13.2%

NEXO.Y

-4.5%

US Entertainment

-0.04%

US Market


1 Year Return

n/a

NEXO.Y

32.6%

US Entertainment

17.1%

US Market

Return vs Industry: Insufficient data to determine how NEXO.Y performed against the US Entertainment industry.

Return vs Market: Insufficient data to determine how NEXO.Y performed against the US Market.


Shareholder returns

NEXO.YIndustryMarket
7 Day-13.2%-4.5%-0.04%
30 Day-5.0%-0.3%5.1%
90 Dayn/a22.0%19.5%
1 Yearn/a33.5%32.6%19.6%17.1%
3 Yearn/a57.7%53.7%42.5%33.3%
5 Yearn/a93.0%84.9%75.1%56.2%

Price Volatility Vs. Market

How volatile is NEXON's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NEXON undervalued compared to its fair value and its price relative to the market?

19.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEXO.Y ($23.18) is trading above our estimate of fair value ($21.52)

Significantly Below Fair Value: NEXO.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEXO.Y is good value based on its PE Ratio (19x) compared to the US Entertainment industry average (26.4x).

PE vs Market: NEXO.Y is good value based on its PE Ratio (19x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: NEXO.Y is poor value based on its PEG Ratio (8.6x)


Price to Book Ratio

PB vs Industry: NEXO.Y is overvalued based on its PB Ratio (3.2x) compared to the US Entertainment industry average (2.8x).


Next Steps

Future Growth

How is NEXON forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEXO.Y's forecast earnings growth (2.2% per year) is below the savings rate (2.2%).

Earnings vs Market: NEXO.Y's earnings (2.2% per year) are forecast to grow slower than the US market (24% per year).

High Growth Earnings: NEXO.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: NEXO.Y's revenue (4.5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: NEXO.Y's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEXO.Y's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has NEXON performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEXO.Y has high quality earnings.

Growing Profit Margin: NEXO.Y's current net profit margins (45.3%) are higher than last year (38.7%).


Past Earnings Growth Analysis

Earnings Trend: NEXO.Y's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: NEXO.Y's earnings growth over the past year (11.1%) is below its 5-year average (28.5% per year).

Earnings vs Industry: NEXO.Y earnings growth over the past year (11.1%) underperformed the Entertainment industry 41%.


Return on Equity

High ROE: NEXO.Y's Return on Equity (16.5%) is considered low.


Next Steps

Financial Health

How is NEXON's financial position?


Financial Position Analysis

Short Term Liabilities: NEXO.Y's short term assets (¥538.1B) exceed its short term liabilities (¥47.3B).

Long Term Liabilities: NEXO.Y's short term assets (¥538.1B) exceed its long term liabilities (¥44.6B).


Debt to Equity History and Analysis

Debt Level: NEXO.Y's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: NEXO.Y's debt to equity ratio has reduced from 9.3% to 0.3% over the past 5 years.

Debt Coverage: NEXO.Y's debt is well covered by operating cash flow (5562.9%).

Interest Coverage: NEXO.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is NEXON current dividend yield, its reliability and sustainability?

0.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEXO.Y's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: NEXO.Y's dividend (0.21%) is low compared to the top 25% of dividend payers in the US market (4.29%).


Stability and Growth of Payments

Stable Dividend: NEXO.Y is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: NEXO.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NEXO.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NEXO.Y'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?

6.4yrs

Average management tenure


CEO

Owen Mahoney (54 yo)

6.42yrs

Tenure

JP¥757,000,000

Compensation

Mr. Owen Mahoney has been the President at Nexon Co. Ltd. since March 2014. Mr. Mahoney served as Chief Executive Officer of NEXON Co., Ltd. since March 2014. He served as an Outside Director at transcosmo ...


CEO Compensation Analysis

Compensation vs Market: Owen's total compensation ($USD7.11M) is below average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Owen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Owen Mahoney
President and Representative Director6.42yrsJP¥757.00m0.010%
¥ 2.0m
Shiro Uemura
CFO, Administration GM & Representative Director5.42yrsJP¥114.00m0.011%
¥ 2.2m
Maiko Ara
Head of Investor Relations6.58yrsno datano data
Koji Abe
General Counselno datano datano data
Junko Tomita
Investor Relations Officerno datano datano data

6.4yrs

Average Tenure

Experienced Management: NEXO.Y's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Owen Mahoney
President and Representative Director6.42yrsJP¥757.00m0.010%
¥ 2.0m
Shiro Uemura
CFO, Administration GM & Representative Director5.42yrsJP¥114.00m0.011%
¥ 2.2m
Satoshi Honda
External Director8.42yrsno data0.00045%
¥ 90.4k
Patrick Soderlund
Director1.42yrsno data0.13%
¥ 26.0m
Shiro Kuniya
External Director8.42yrsno data0.0032%
¥ 636.9k
Seung Choi
Honorary Chairman6.42yrsno datano data
Ryoji Mori
External Corporate Auditor14.42yrsno datano data
Iwao Ohtomo
External Corporate Auditor14.42yrsno datano data
Hideo Koyama
External Standing Corporate Auditorno datano datano data
Hongwoo Lee
Director0.92yrno datano data

8.4yrs

Average Tenure

55yo

Average Age

Experienced Board: NEXO.Y's board of directors are considered experienced (8.4 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

NEXON Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NEXON Co., Ltd.
  • Ticker: NEXO.Y
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: JP¥2.139t
  • Listing Market Cap: JP¥20.090b
  • Shares outstanding: 884.43m
  • Website: https://www.nexon.co.jp

Number of Employees


Location

  • NEXON Co., Ltd.
  • Ark Hills South Tower
  • 6th Floor
  • Tokyo
  • 106-0032
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3659TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYDec 2011
7NXBST (Boerse-Stuttgart)YesCommon SharesDEEURDec 2011
NEXO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2011
NEXO.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJun 2012

Biography

NEXON Co., Ltd. develops and services PC online and mobile games. It also provides portal site planning services. The company offers approximately 100 online games in 190 countries. NEXON Co., Ltd. has a c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:53
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.