NEXON Co Ltd (JP:3659)
:3659
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NEXON Co
(3659)
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Rating:64Neutral
Price Target:
¥2,779.00
▼(-0.89% Downside)
Action:ReiteratedDate:02/18/26
The score is primarily supported by strong financial fundamentals (low leverage, solid cash generation, and multi-year revenue growth). This is meaningfully offset by very weak technicals (sharp downtrend with negative momentum), while valuation is mixed with a relatively high P/E and only a modest dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and steadily rising equity create durable financial flexibility. With debt-to-equity under 0.08, Nexon can fund content investment, M&A or weather revenue cycles without needing dilutive capital, reducing solvency risk over the next 2–6 months.
Negative Factors
Margin compression
A material decline in margins reduces cash available for reinvestment and increases sensitivity to revenue swings. If driven by higher content, marketing or platform costs, this trend may persist and impair long-term profitability and free-cash-flow growth unless addressed.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily rising equity create durable financial flexibility. With debt-to-equity under 0.08, Nexon can fund content investment, M&A or weather revenue cycles without needing dilutive capital, reducing solvency risk over the next 2–6 months.
Read all positive factors
NEXON Co (3659) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.06T
Dividend Yield0.78%
Average Volume (3M)1.42M
Price to Earnings (P/E)68.7
Beta (1Y)0.90
Revenue Growth6.47%
EPS Growth-29.11%
CountryJP
Employees9,329
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)114.82
Shares Outstanding792,711,850
10 Day Avg. Volume1,500,540
30 Day Avg. Volume1,417,043
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)2.91
Price to Sales (P/S)6.48
P/FCF Ratio18.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,555.00Price Target Upside26.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)161.3
Revenue Forecast (FY)¥549.04B
NEXON Co Business Overview & Revenue Model
Company Description
NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company's PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORT...
How the Company Makes Money
NEXON primarily makes money by monetizing online games it operates as live services. Its key revenue streams include (1) in-game item sales and other microtransactions (e.g., purchases of virtual currency, cosmetic items, and gameplay-related item...
NEXON Co Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
NEXON demonstrated strong performance in key franchises and successful new title launches, with significant growth in Dungeon&Fighter PC and MapleStory. However, the earnings were negatively impacted by FX losses and challenges in sustaining player engagement, particularly in Dungeon&Fighter Mobile.Positive Updates
Strong Performance in Key Franchises
Dungeon&Fighter PC saw a 67% YoY revenue growth, while MapleStory achieved 60% YoY revenue growth. In Korea, quarterly revenue for these titles set new records with MAUs and PUs nearly doubling, resulting in 132% YoY revenue growth.
Negative Updates
Negative Impact of Foreign Exchange
Net income was below expectations at JPY16.8 billion due to a JPY17.5 billion FX loss on US dollar-denominated cash deposits, resulting in a 58% YoY decline.
Read all updates
Q2-2025 Updates
Positive
Negative
Strong Performance in Key Franchises
Dungeon&Fighter PC saw a 67% YoY revenue growth, while MapleStory achieved 60% YoY revenue growth. In Korea, quarterly revenue for these titles set new records with MAUs and PUs nearly doubling, resulting in 132% YoY revenue growth.
Read all positive updates
Company Guidance
During NEXON's 2025 Q2 earnings call, the company reported a robust performance, exceeding expectations in revenue and operating income, despite facing FX headwinds. Key highlights included a 60% year-over-year (YoY) revenue growth in the MapleStory franchise, driven by strong performance in Korea and expansion into new regions, alongside a 67% YoY revenue growth in Dungeon&Fighter PC. NEXON achieved Q2 revenues of JPY 118.9 billion and operating income of JPY 37.7 billion, surpassing guidance by 8% and 21%, respectively. While net income fell short at JPY 16.8 billion due to a JPY 17.5 billion FX loss, the company saw a 132% YoY revenue increase in Korea and double-digit growth in China due to successful content updates. Looking ahead, NEXON anticipates strong performances in Q3 from its flagship titles, despite an expected YoY revenue decline of 6% to 14% on an as-reported basis. The upcoming release of ARC Raiders on October 30 and the expansion of the MABINOGI MOBILE franchise are expected to support future growth.NEXON Co Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 475.10B | 446.21B | 423.36B | 353.71B | 274.46B |
| Gross Profit | 282.01B | 281.37B | 285.42B | 247.94B | 202.34B |
| EBITDA | 131.50B | 148.46B | 140.79B | 115.83B | 102.75B |
| Net Income | 92.05B | 134.85B | 70.61B | 100.34B | 114.89B |
Balance Sheet | |||||
| Total Assets | 1.41T | 1.26T | 1.10T | 1.04T | 986.63B |
| Cash, Cash Equivalents and Short-Term Investments | 498.87B | 600.87B | 596.76B | 571.86B | 534.93B |
| Total Debt | 52.15B | 40.00B | 29.72B | 23.32B | 15.33B |
| Total Liabilities | 344.27B | 226.25B | 191.53B | 175.30B | 140.74B |
| Stockholders Equity | 1.06T | 1.02T | 896.27B | 858.19B | 836.67B |
Cash Flow | |||||
| Free Cash Flow | 163.94B | 97.33B | 123.00B | 124.24B | 104.33B |
| Operating Cash Flow | 171.87B | 100.97B | 128.71B | 130.14B | 105.91B |
| Investing Cash Flow | 102.25B | 7.45B | -188.37B | -10.92B | 18.08B |
| Financing Cash Flow | -118.69B | -64.78B | -78.55B | -105.86B | -21.05B |
NEXON Co Technical Analysis
Neutral
2804.00
Price Trends
3057.29
Negative
3475.51
Negative
3292.15
Negative
Market Momentum
-108.40
Negative
46.37
Neutral
65.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3659, the sentiment is Neutral. The current price of 2804 is above the 20-day moving average (MA) of 2782.93, below the 50-day MA of 3057.29, and below the 200-day MA of 3292.15, indicating a neutral trend. The MACD of -108.40 indicates Negative momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 65.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3659.
NEXON Co Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥517.52B | 6.94 | ― | 2.49% | 6.31% | 10.31% | |
72 Outperform | ¥2.57T | 25.95 | 17.57% | 0.84% | 10.94% | 10.47% | |
69 Neutral | ¥1.40T | 33.58 | 26.91% | 1.17% | 45.14% | 102.07% | |
68 Neutral | ¥457.20B | -6.55 | -3.66% | 2.12% | 0.36% | -135.24% | |
64 Neutral | ¥2.06T | 68.72 | 8.89% | 0.78% | 6.47% | -29.11% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | ¥895.31B | 16.57 | 6.70% | 1.80% | -16.07% | 96.56% |
* Communication Services Sector Average
JP:3659
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NEXON Co Corporate Events
Nexon Discloses Ownership and Governance Details of Key Korean Affiliate NXC
Apr 24, 2026
NEXON Co., Ltd. has disclosed the 2025 financial and corporate profile of its unlisted affiliate NXC Corporation, a Korean holding company that manages subsidiaries and conducts real estate leasing and management. NXC, capitalized at 1,454 million...
Nexon Brings Alignment Growth Fund II Under Full Consolidation as Specified Subsidiary
Apr 20, 2026
Nexon has reclassified Alignment Growth Fund II, LP, an investment fund in which its U.S. subsidiary Nexon US Holding Inc. is the main limited partner, as a consolidated and specified subsidiary after determining it now effectively controls the fu...
Nexon Details Ties With NXC and Trademark Licensing for Core Brand
Mar 26, 2026
Nexon has clarified its relationship with NXC Corporation, disclosing that NXC holds 46.9% of Nexon’s voting rights through direct and consolidated ownership, positioning NXC as a key affiliated entity in the group structure. NXC and its non...
Nexon Grants 30th Round of Stock Options to Directors
Mar 25, 2026
NEXON Co., Ltd. has approved the 30th round of stock options for its directors, issuing 2,749,912 stock acquisition rights that each convert into one share of common stock. The options, granted as part of directors’ remuneration with no cash...
NEXON Grants 29th Round of Stock Options to Director
Mar 25, 2026
NEXON Co., Ltd. has approved the 29th round of stock options for its board, granting 4,180 stock acquisition rights to one external director as part of director compensation. The options, issued with no cash payment required, can be exercised over...
Nexon Doubles Year-End Dividend as Profit Returns to Shareholders Rise
Feb 20, 2026
Nexon has approved a year-end dividend of 30 yen per share for the fiscal year ended December 31, 2025, with a total payout of 23,787 million yen, to be paid from retained earnings on March 26, 2026. This move doubles the prior year’s year-e...
Nexon Revamps Board Slate With New Outside Directors and Governance Focus
Feb 20, 2026
NEXON Co., Ltd. has proposed a refreshed slate of directors, including Audit and Supervisory Committee members, to be elected at its 24th Annual General Meeting of Shareholders on March 25, 2026. The line-up keeps key executives such as CEO Junghu...
Nexon to Cancel All Treasury Shares, Cutting Share Count by 4.4%
Feb 12, 2026
Nexon’s board has approved the cancellation of 36,487,500 ordinary treasury shares, representing 4.4% of its total shares outstanding as of January 31, 2026, with the effective date set for February 27, 2026. All treasury shares held at the ...
NEXON Boosts Dividends as Cash Flow Jumps Despite Profit Decline in 2025
Feb 12, 2026
NEXON reported 2025 revenue of ¥475.1 billion, up 6.5% year on year, while operating profit was flat at ¥124.0 billion and profit attributable to owners fell 31.7% to ¥92.1 billion, reflecting a sharp decline in profit before tax an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.