NEXON Co (3659) AI Stock Analysis

• Market Cap: $2.73T
• Dividend Yield: 0.88%
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.98
• Revenue Growth: 2.84%
• EPS Growth: 51.14%
• Country: JP
• Employees: 9,329
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 20.92
• Shares Outstanding: 823,541,900
• 10 Day Avg. Volume: 1,307,300
• 30 Day Avg. Volume: 1,620,603
• 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: 0.66
• Enterprise Value/Revenue: 4.00
• Enterprise Value/Gross Profit: 6.36
• Enterprise Value/Ebitda: 9.01
• 1Y Price Target: $3,221.09
• Price Target Upside: -5.15% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: ¥3,811.00 ▲(12.22% Upside)

NEXON Co's stock is rated favorably due to strong financial performance and bullish technical indicators. The positive earnings call further supports the stock's potential, although high valuation metrics and recent revenue challenges slightly temper the outlook.

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 SPORTS FIFA ONLINE 4. It offers approximately 60 online games in 190 countries. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. The company was founded in 1994 and is headquartered in Tokyo, Japan.

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 demonstrates strong profitability with a solid financial position, characterized by healthy margins and low leverage. However, recent revenue growth challenges slightly dampen the overall financial performance.

Income Statement

NEXON Co's income statement shows a strong gross profit margin of 63.8% for TTM, indicating efficient cost management. However, the company experienced a revenue decline of 0.8% in the TTM period, which is a concern. The net profit margin remains healthy at 27.7%, though it has decreased from the previous year. The EBIT and EBITDA margins are robust, reflecting good operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.038, indicating low financial leverage. Return on equity is solid at 12.4%, showcasing effective use of equity. The equity ratio is high, suggesting a stable financial structure with significant equity backing the assets.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 12.6% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 1.28, showing good cash conversion. However, the free cash flow to net income ratio is slightly below 1, suggesting room for improvement in cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	448.10B	446.21B	423.36B	353.71B	274.46B	293.02B
Gross Profit	281.54B	281.37B	285.42B	247.94B	202.34B	224.01B
EBITDA	198.82B	134.32B	139.45B	158.30B	145.29B	117.01B
Net Income	102.08B	134.85B	70.61B	100.34B	114.89B	56.22B
Balance Sheet
Total Assets	1.28T	1.26T	1.10T	1.04T	986.63B	862.16B
Cash, Cash Equivalents and Short-Term Investments	596.47B	600.87B	596.76B	571.86B	534.93B	525.70B
Total Debt	38.45B	40.00B	29.72B	23.32B	15.33B	16.59B
Total Liabilities	223.08B	226.25B	191.53B	175.30B	140.74B	141.72B
Stockholders Equity	1.04T	1.02T	896.27B	858.19B	836.67B	709.88B
Cash Flow
Free Cash Flow	150.57B	97.33B	123.00B	124.24B	104.33B	134.37B
Operating Cash Flow	154.72B	100.97B	128.71B	130.14B	105.91B	137.60B
Investing Cash Flow	125.03B	7.45B	-188.37B	-10.92B	18.08B	-140.23B
Financing Cash Flow	-103.20B	-64.78B	-78.55B	-105.86B	-21.05B	-2.63B

NEXON Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3396.00
• 50DMA: Positive
• 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 JP:3659, the sentiment is Positive. The current price of 3396 is above the 20-day moving average (MA) of 3364.25, above the 50-day MA of 3043.47, and above the 200-day MA of 2444.65, indicating a bullish trend. The MACD of 100.75 indicates Positive momentum. The RSI at 69.90 is Neutral, neither overbought nor oversold. The STOCH value of 38.56 is Neutral, 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	77 Outperform	$2.73T	27.32	10.04%	0.88%	2.84%	51.14%
Sector *	60 Neutral	$47.40B	4.51	-11.27%	4.14%	2.83%	-41.62%
KNM	―	¥3.01T	39.27	16.24%	0.71%	―	―
CCOEF	―	$11.44B	31.10	26.13%	1.00%	―	―
SGAMF	―	$4.12B	41.18	4.51%	1.64%	―	―
SQNXF	―	$8.13B	65.86	5.77%	1.29%	―	―
3635	64 Neutral	¥635.73B	19.97		2.52%	-4.23%	-18.49%

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.

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.

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.

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.