OTCPK:WZEN.Y

Stock Analysis Report

Executive Summary

Webzen Inc., a game company, engages in the PC, online, and mobile gaming business worldwide.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

WZEN.Y

-0.02%

US Entertainment

0.4%

US Market


1 Year Return

-13.7%

WZEN.Y

1.3%

US Entertainment

6.9%

US Market

Return vs Industry: WZEN.Y underperformed the US Entertainment industry which returned 1.3% over the past year.

Return vs Market: WZEN.Y underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

WZEN.YIndustryMarket
7 Day3.8%-0.02%0.4%
30 Day19.9%-2.6%-1.1%
90 Day10.0%-4.4%-0.5%
1 Year-13.7%-13.7%2.1%1.3%9.3%6.9%
3 Year0%0%52.6%47.7%45.8%36.4%
5 Year86.4%86.4%90.3%78.3%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Webzen 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: WZEN.Y ($4.4) is trading below our estimate of fair value ($9.6)

Significantly Undervalued: WZEN.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WZEN.Y is good value based on its PE Ratio (14x) compared to the Entertainment industry average (40.9x).

PE vs Market: WZEN.Y is good value based on its PE Ratio (14x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: WZEN.Y is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: WZEN.Y is good value based on its PB Ratio (1.6x) compared to the US Entertainment industry average (2.9x).


Next Steps

Future Growth

How is Webzen forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WZEN.Y's forecast earnings growth (16.5% per year) is above the savings rate (2.7%).

Earnings vs Market: WZEN.Y's earnings (16.5% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: WZEN.Y's revenue (11% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: WZEN.Y's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WZEN.Y's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Webzen performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WZEN.Y has become profitable over the past 5 years, growing earnings by 13.9% per year.

Accelerating Growth: WZEN.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WZEN.Y had negative earnings growth (-7.8%) over the past year, making it difficult to compare to the Entertainment industry average (21.5%).


Return on Equity

High ROE: WZEN.Y's Return on Equity (11.6%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Webzen's financial position?


Financial Position Analysis

Short Term Liabilities: WZEN.Y's short term assets (₩241.9B) exceeds its short term liabilities (₩48.0B)

Long Term Liabilities: WZEN.Y's short term assets (241.9B) exceeds its long term liabilities (13.0B)


Debt to Equity History and Analysis

Debt Level: WZEN.Y is debt free.

Reducing Debt: WZEN.Y had no debt 5 years ago.

Debt Coverage: WZEN.Y has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WZEN.Y has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: WZEN.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if WZEN.Y's debt is covered by short term assets.


Next Steps

Dividend

What is Webzen'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 WZEN.Y's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WZEN.Y'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 WZEN.Y's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WZEN.Y'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 WZEN.Y'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 Webzen's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average board tenure


CEO

Tae Kim (46yo)

0yrs

Tenure

0

Mr. Tae Young Kim serves as Chief Executive Officer of OnNet Co., Ltd. Mr. Kim serves as the Chief Executive Officer of Webzen Inc. and served as its Chief Operating Officer. Mr. Kim served as the Head of  ...


Board Age and Tenure

6.0yrs

Average Tenure

47yo

Average Age

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

  • Tae Kim (46yo)

    CEO & Representative Director

    • Tenure: 0yrs
  • Nan-Hui Kim (44yo)

    Head of Management Strategy Division

    • Tenure: 5.5yrs
  • Bo Yeoun (47yo)

    Head of Technology Division & Inside Director

    • Tenure: 2.5yrs

Board Members

  • Tae Kim (46yo)

    CEO & Representative Director

    • Tenure: 0yrs
  • Dong Seol (49yo)

    Outside Director

    • Tenure: 6.5yrs
  • Seung Han (49yo)

    Outside Director

    • Tenure: 6.5yrs
  • Nan-Hui Kim (44yo)

    Head of Management Strategy Division

    • Tenure: 5.5yrs
  • Bo Yeoun (47yo)

    Head of Technology Division & Inside Director

    • Tenure: 2.5yrs
  • Mi Sang

    Outside Director

    • Tenure: 0.5yrs

Company Information

Webzen Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Webzen Inc.
  • Ticker: WZEN.Y
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: ₩543.006b
  • Listing Market Cap: ₩458.546m
  • Shares outstanding: 31.12m
  • Website: https://www.webzen.com

Location

  • Webzen Inc.
  • 242, Pangyo-ro
  • Bundang-gu
  • Seongnam
  • Gyeonggi-do
  • 463-400
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WZEN.YOTCPK (Pink Sheets LLC)10 ADR EACH REPR 3 ORD SH(SPONS)USUSDJul 2010
A069080KOSDAQ (KOSDAQ)YesCommon StockKRKRWJul 2010

Biography

Webzen Inc., a game company, engages in the PC, online, and mobile gaming business worldwide. It operates Webzen.com, a game portal; and WEBZEN.CO.KR. The company provides various game genres, including th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 00:14
End of Day Share Price2019/09/11 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.