Gravity Co (GRVY) AI Stock Analysis

• Market Cap: $443.97M
• Dividend Yield: N/A
• Average Volume (3M): 13.42K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.65
• Revenue Growth: -4.71%
• EPS Growth: -14.88%
• Country: US
• Employees: 414
• Sector: Communication Services
• Sector Strength: 96
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.36
• Shares Outstanding: 6,948,900
• 10 Day Avg. Volume: 11,528
• 30 Day Avg. Volume: 13,417
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $75.00
• Price Target Upside: 17.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $75.00 ▲(17.39% Upside)

Gravity Co's strong financial performance and attractive valuation are the primary drivers of its high score. The positive technical indicators further support the stock's potential, despite the lack of recent earnings call data or notable corporate events.

Gravity Co Business Overview & Revenue Model

Company Description

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. The company also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. Further, the company provides system development and maintenance services, as well as system integration services to third parties. As of December 31, 2021, it owned 156 registered domain names. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.

How the Company Makes Money

Gravity Co generates revenue primarily through the sale of satellite communication systems, which includes hardware, software, and ongoing maintenance services. The company also derives income from licensing its proprietary technologies to other businesses in the telecommunications sector. Additionally, Gravity Co engages in strategic partnerships with governmental and private organizations, which often lead to substantial contracts for the deployment of communication networks. These partnerships are crucial, as they not only provide significant revenue streams but also enhance the company's market presence and credibility. Furthermore, Gravity Co invests in research and development to create value-added services that can be monetized, such as data analytics and network optimization solutions, further diversifying its revenue sources.

Gravity Co Financial Statement Overview

Summary

Gravity Co demonstrates strong profitability and a solid balance sheet with low leverage. Despite a recent revenue decline, the company maintains efficient operations and a stable cash flow position.

Income Statement

Gravity Co has shown strong profitability with a consistent net profit margin around 17% to 18% over the years. However, the recent revenue decline of 3.06% in 2024 indicates potential challenges in maintaining growth. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The company exhibits a robust balance sheet with a low debt-to-equity ratio, indicating minimal leverage risk. Return on equity remains strong, though it has decreased from previous years, suggesting a slight decline in efficiency. The equity ratio is healthy, showcasing a solid financial foundation.

Cash Flow

Gravity Co's cash flow position is stable, with a high free cash flow to net income ratio. However, the free cash flow growth rate is not calculable for 2024, indicating potential volatility. The operating cash flow to net income ratio is below 1, suggesting room for improvement in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	518.53B	500.85B	725.52B	463.62B	413.94B	405.95B
Gross Profit	197.80B	193.94B	240.56B	196.25B	189.77B	166.91B
EBITDA	97.21B	115.72B	176.52B	117.07B	101.99B	93.12B
Net Income	80.09B	84.92B	132.02B	83.16B	65.95B	62.70B
Balance Sheet
Total Assets	702.91B	686.46B	578.18B	444.09B	327.53B	265.37B
Cash, Cash Equivalents and Short-Term Investments	583.20B	559.80B	465.74B	340.25B	247.70B	182.45B
Total Debt	3.39B	7.12B	2.34B	3.06B	5.12B	3.25B
Total Liabilities	111.78B	118.10B	114.45B	113.91B	80.69B	88.02B
Stockholders Equity	590.42B	567.67B	463.09B	329.53B	246.07B	176.91B
Cash Flow
Free Cash Flow	0.00	73.79B	126.63B	95.48B	69.97B	66.16B
Operating Cash Flow	0.00	78.56B	132.43B	98.28B	74.18B	69.86B
Investing Cash Flow	0.00	-47.03B	-116.58B	-22.34B	-82.47B	-36.05B
Financing Cash Flow	0.00	-4.64B	-4.08B	-3.92B	-3.31B	-2.55B

Gravity Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 63.89
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRVY, the sentiment is Neutral. The current price of 63.89 is below the 20-day moving average (MA) of 64.99, below the 50-day MA of 64.02, and above the 200-day MA of 62.36, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 46.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GRVY.

Gravity Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRVY	73 Outperform	$443.97M	7.70	14.21%	―	-4.71%	-14.88%
Sector *	60 Neutral	$46.60B	4.09	-11.41%	4.12%	1.85%	-42.71%
NCTY	―	$120.34M	3.07	-22.85%	―	―	―
DDI	75 Outperform	$473.24M	4.45	12.05%	―	0.51%	-8.46%
GDEV	72 Outperform	$263.43M	6.78		22.05%	-5.57%	―
PLTK	59 Neutral	$1.40B	16.14	-220.61%	10.61%	4.98%	-60.29%
MYPS	52 Neutral	$121.56M	―	-12.32%	―	-13.95%	-75.02%