NEXON Co (3659) AI Stock Analysis

• Market Cap: $2.61T
• Dividend Yield: 0.92%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.96
• Revenue Growth: 2.84%
• EPS Growth: 51.14%
• Country: JP
• Employees: 9,329
• Sector: Communication Services
• Sector Strength: 92
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 20.92
• Shares Outstanding: 823,403,500
• 10 Day Avg. Volume: 1,766,410
• 30 Day Avg. Volume: 1,940,346
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 3.96
• Enterprise Value/Gross Profit: 6.21
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: $3,017.67
• Price Target Upside: -7.03% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 80 Outperform
• Price Target: ¥3,282.00 ▲(1.11% Upside)

NEXON Co scores highly due to its robust financial performance, with strong revenue growth and excellent cash flow management. The technical indicators suggest bullish momentum, although caution is warranted due to overbought signals. Valuation is fair, and the earnings call highlighted growth opportunities, despite some challenges. Overall, the company is well-positioned for future growth, with a need to monitor potential cost pressures and market conditions.

Positive Factors

Financial Performance

Nexon's Q2 revenue and operating profit beat expectations, driven by strong performance from PC flagship games.

Shareholder Returns

A new ¥25bn buyback, representing 1.4% of shares, has been announced.

Negative Factors

Operational Costs

Guidance on Q3 has sounded softer, with the company highlighting the staff bonus payments, and increased marketing costs for Arc Raiders.

Revenue Guidance

Q3 revenue is guided to decline year-over-year due to weakness in mobile.

NEXON Co Business Overview & Revenue Model

Company Description

NEXON Co., Ltd. is a global leader in the development and publishing of online games, headquartered in Tokyo, Japan. The company specializes in creating immersive and engaging gaming experiences, primarily focusing on massively multiplayer online games (MMOGs) and mobile games. NEXON is renowned for its popular game franchises such as MapleStory, Dungeon & Fighter, and KartRider, which have captivated millions of players worldwide.

How the Company Makes Money

NEXON Co. generates revenue primarily through the sale of in-game virtual items and microtransactions, which players purchase to enhance their gaming experience. This free-to-play model allows users to access games at no initial cost, while monetizing through optional purchases that provide aesthetic or functional advantages within the game. Additionally, NEXON earns income from subscription fees for certain games and collaboration with third-party developers to publish and operate games on its platforms. The company also engages in strategic partnerships and licensing agreements to expand its game portfolio and increase its market presence globally.

NEXON Co Financial Statement Overview

Summary

NEXON Co displays a strong financial position across income, balance sheet, and cash flow statements. The company shows solid revenue growth and profitability, supported by efficient cost management. The balance sheet is robust, with low leverage and a strong equity base, ensuring financial stability. Cash flow generation is excellent, with significant free cash flow growth and efficient capital usage. The company is well-positioned for future growth and investment opportunities, although monitoring cost pressures and ROE trends will be important.

Income Statement

NEXON Co has demonstrated strong profitability with a consistent gross profit margin averaging around 63% over the recent periods. The net profit margin in the TTM is robust at approximately 27.7%, reflecting efficient cost management and profitability. Revenue growth has been steady, with a notable increase of 6.7% from 2023 to 2024 and a further increase in the TTM. While the EBIT margin is strong at 30.4%, there is a slight decrease from previous years, indicating potential cost pressures. Overall, the income statement reflects a healthy financial performance with solid growth and profitability metrics.

Balance Sheet

The balance sheet of NEXON Co shows a healthy equity position with an equity ratio of approximately 81.2% in the TTM, indicating a solid financial structure. The debt-to-equity ratio is low at 0.038, showcasing conservative leverage levels. Return on equity has been strong, though there has been a slight decline in ROE in the TTM as compared to 2024. The company maintains a substantial cash position, which provides financial flexibility. Overall, the balance sheet is strong, with minimal leverage risk and a robust equity base, though the slight dip in ROE warrants monitoring.

Cash Flow

NEXON Co exhibits impressive cash flow management, with a substantial free cash flow growth rate of 37.4% in the TTM, driven by strong operating cash flow performance. The operating cash flow to net income ratio is approximately 1.10, indicating effective cash conversion from earnings. The free cash flow to net income ratio is also high, at 1.07, reflecting efficient use of capital expenditures to generate free cash flow. Overall, the cash flow statement highlights robust cash generation capacity and efficient capital management, positioning the company well for future investments or shareholder returns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	446.21B	423.36B	353.71B	274.46B	293.02B
Gross Profit	281.37B	281.11B	247.94B	202.34B	224.01B
EBITDA	134.32B	140.79B	115.83B	102.75B	130.07B
Net Income	134.85B	70.61B	100.34B	114.89B	56.22B
Balance Sheet
Total Assets	1.26T	1.10T	1.04T	986.63B	862.16B
Cash, Cash Equivalents and Short-Term Investments	600.87B	596.76B	432.45B	394.38B	279.91B
Total Debt	40.00B	29.72B	23.32B	15.33B	16.59B
Total Liabilities	226.25B	191.53B	175.30B	140.74B	141.72B
Stockholders Equity	1.02T	896.27B	858.19B	836.67B	709.88B
Cash Flow
Free Cash Flow	97.33B	123.00B	124.24B	91.79B	134.37B
Operating Cash Flow	100.97B	128.71B	130.14B	105.91B	137.60B
Investing Cash Flow	7.45B	-188.37B	-10.92B	18.08B	-140.23B
Financing Cash Flow	-64.78B	-78.55B	-105.86B	-21.05B	-2.63B

NEXON Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3246.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3659, the sentiment is Positive. The current price of 3246 is above the 20-day moving average (MA) of 2864.55, above the 50-day MA of 2811.80, and above the 200-day MA of 2360.66, indicating a bullish trend. The MACD of 111.35 indicates Negative momentum. The RSI at 82.60 is Negative, neither overbought nor oversold. The STOCH value of 90.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3659.

NEXON Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3659	80 Outperform	$2.61T	26.11	10.04%	0.92%	2.84%	51.14%
9697	76 Outperform	¥1.70T	30.51	26.13%	0.98%	34.28%	58.34%
6460	73 Outperform	$647.40B	41.81	4.51%	1.47%	-12.78%	-56.73%
3635	72 Outperform	¥699.11B	21.96		2.30%	-4.23%	-18.49%
9766	72 Outperform	¥3.37T	44.77	16.24%	0.66%	13.45%	16.03%
9684	70 Outperform	¥1.35T	72.96	5.77%	1.14%	-7.85%	-3.39%
Sector *	66 Neutral	¥486.96B	16.68	1.07%	2.20%	6.20%	-17.02%

NEXON Co Corporate Events

NEXON Co. Announces Share Buyback Program to Enhance Capital Efficiency

NEXON Co., Ltd. has announced a share buyback program approved by its Board of Directors, aiming to enhance capital efficiency and implement a flexible capital management policy. The program will involve the purchase of up to 11 million ordinary shares, representing 1.4% of the total shares, with a maximum acquisition cost of JPY 25 billion, conducted on the Tokyo Stock Exchange from August 14 to October 31, 2025.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen4870.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

NEXON Co. Announces Increased Interim Dividend for 2025

NEXON Co., Ltd. has announced an interim dividend of 15.00 yen per share for the fiscal year ending December 31, 2025, reflecting a significant increase from the previous year’s interim dividend of 7.50 yen per share. This decision aligns with the company’s policy to return profits to shareholders, considering its business results and financial standing, and indicates a positive outlook for its financial performance.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen4870.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

NEXON Co. Reports Mixed Financial Results for First Half of 2025

NEXON Co. reported its consolidated financial results for the first half of 2025, showing a slight increase in revenue by 0.8% compared to the previous year, reaching 232,784 million yen. However, the company experienced a significant decline in profit before tax and profit attributable to owners of the parent, both dropping by over 40%. Despite this, the company announced an increase in interim dividends, reflecting a positive outlook for stakeholders.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen4870.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

NEXON Co. Concludes Share Buyback Program

NEXON Co., Ltd. announced the completion of its share buyback program, which was conducted under the guidelines of the Companies Act of Japan. The program, which ran from June 1 to June 25, 2025, resulted in the acquisition of 3,453,500 ordinary shares, amounting to JPY 9,260,045,760. This move is part of a broader strategy to enhance shareholder value, as initially resolved by the Board of Directors on February 13, 2025. The total shares acquired during the entire program period amounted to 22,467,100 shares, with a total expenditure of JPY 49,820,009,708, reflecting a strategic financial maneuver to optimize the company’s capital structure.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen4340.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.