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NEXON Co
(3659)
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Rating:75Outperform
Price Target:
¥2,814.00
▲(23.53% Upside)
Action:Upgraded
Date:05/16/26
The score is driven primarily by strong financial performance (high margins, strong free cash flow, and very low leverage) and attractive valuation (low P/E with a dividend). These positives are partially offset by weak technicals, with the stock in a pronounced downtrend below key moving averages and negative MACD.
Positive Factors
High Profitability
Sustained high margins indicate durable monetization and efficient cost structure in live-service operations. Such profitability supports reinvestment in content, funds dividends/capital returns, and provides margin buffer through content cycles, enhancing long-term cash generation potential.
Negative Factors
Profitability Volatility
Margins have shown compression versus peak years, reflecting sensitivity to the game/content cycle and periodic cost variations. This structural volatility can complicate forecasting, capital allocation, and may cause earnings to swing materially as hit cadence and content ROI fluctuate.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high margins indicate durable monetization and efficient cost structure in live-service operations. Such profitability supports reinvestment in content, funds dividends/capital returns, and provides margin buffer through content cycles, enhancing long-term cash generation potential.
Read all positive factors
NEXON Co (3659) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.94T
Dividend Yield2.4%
Average Volume (3M)1.42M
Price to Earnings (P/E)16.1
Beta (1Y)0.89
Revenue Growth13.65%
EPS Growth2.51%
CountryJP
Employees9,834
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)155.03
Shares Outstanding793,516,900
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
¥2,773.23Price Target Upside21.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)138.97
Revenue Forecast (FY)¥507.21B
NEXON Co Business Overview & Revenue Model
Company Description
NEXON Co., Ltd. is a prominent entity involved in the creation, development, and ongoing management of online games for both personal computers and mobile devices. Its global operations are structured across five distinct geographical segments: Ja...
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:Aug 13, 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
82
Very Positive
Balance Sheet
91
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 513.40B | 475.10B | 446.21B | 423.36B | 353.71B | 274.46B |
| Gross Profit | 309.43B | 282.01B | 281.37B | 285.42B | 247.94B | 202.34B |
| EBITDA | 207.82B | 162.37B | 148.46B | 140.79B | 115.83B | 102.75B |
| Net Income | 123.00B | 92.05B | 134.85B | 70.61B | 100.34B | 114.89B |
Balance Sheet | ||||||
| Total Assets | 1.39T | 1.41T | 1.26T | 1.10T | 1.04T | 986.63B |
| Cash, Cash Equivalents and Short-Term Investments | 874.61B | 498.87B | 600.87B | 596.76B | 571.86B | 534.93B |
| Total Debt | 51.03B | 52.15B | 40.00B | 29.72B | 23.32B | 15.33B |
| Total Liabilities | 316.68B | 344.27B | 226.25B | 191.53B | 175.30B | 140.74B |
| Stockholders Equity | 1.06T | 1.06T | 1.02T | 896.27B | 858.19B | 836.67B |
Cash Flow | ||||||
| Free Cash Flow | 167.41B | 163.94B | 97.33B | 123.00B | 124.24B | 104.33B |
| Operating Cash Flow | 175.61B | 171.87B | 100.97B | 128.71B | 130.14B | 105.91B |
| Investing Cash Flow | 25.92B | 102.25B | 7.45B | -188.37B | -10.92B | 18.08B |
| Financing Cash Flow | -108.87B | -118.69B | -64.78B | -78.55B | -105.86B | -21.05B |
NEXON Co Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥2.80T | 24.81 | 19.02% | 1.14% | 22.80% | 49.61% | |
82 Outperform | ¥1.66T | 24.93 | 21.91% | 1.34% | 18.74% | 19.36% | |
82 Outperform | ¥538.25B | 11.01 | ― | 2.49% | 13.22% | 52.60% | |
75 Outperform | ¥1.94T | 16.13 | 11.68% | 2.45% | 13.65% | 2.51% | |
72 Outperform | ¥1.01T | 33.65 | 8.75% | 1.62% | -8.27% | 21.14% | |
64 Neutral | ¥556.77B | -99.98 | -1.58% | 2.06% | 13.66% | -112.01% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
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NEXON Co Corporate Events
Nexon Advances Share Buyback, Repurchases Nearly 8 Million Shares
Jul 1, 2026
Nexon reported progress on its ongoing share buyback program, disclosing that it repurchased 5,061,400 ordinary shares on the Tokyo Stock Exchange between June 1 and June 30, 2026, for a total consideration of approximately JPY 11.23 billion. The ...
Nexon to Receive ¥373.5 Billion Dividend from Korean Subsidiary with No Consolidated Impact
Jun 29, 2026
NEXON Co., Ltd. said it will receive a surplus dividend of JPY 373,464 million from its consolidated subsidiary NEXON Korea Corporation, following a decision made on June 29, 2026. The company plans to record this as non-operating income in its st...
NXC Boosts Control of Nexon to 46% Through Intra-Group Share Transfer
Jun 19, 2026
NEXON Co. has announced a change in its major shareholder structure after NXC Corporation acquired 118,527,140 Nexon shares from its subsidiary NXMH B.V., causing NXMH to cease being a major shareholder. As a result of the intra-group transfer, NX...
Nexon Reports Progress on Share Buyback Program
Jun 1, 2026
Nexon has reported progress on its ongoing share buyback program, conducted under the Companies Act of Japan, confirming the repurchase of 2,896,000 ordinary shares between May 15 and May 31, 2026. The shares were acquired on the Tokyo Stock Excha...
Nexon Launches Up to JPY 30 Billion Share Buyback to Boost Capital Efficiency
May 14, 2026
Nexon has authorized a new share buyback program aimed at improving capital efficiency and enabling more flexible capital management, signaling confidence in its balance sheet and long-term cash generation. The company plans to repurchase up to 14...
Nexon Beats Q1 Profit Outlook on Large FX Gains Despite Modest Revenue
May 14, 2026
NEXON Co., Ltd. reported that its first-quarter 2026 results diverged from the outlook announced in February, with revenue landing near the lower end of guidance but profits significantly above prior expectations. The company said profit before ta...
NEXON Posts Surging Q1 Profits and Lifts FY2026 Dividend Outlook
May 14, 2026
NEXON reported strong consolidated results for the quarter ended March 31, 2026, with revenue rising 33.6% year on year to ¥152.2 billion and operating profit climbing 39.8% to ¥58.2 billion. Profit attributable to owners of the parent m...
Nexon Corrects Governance Disclosure for Unlisted Affiliate, Boosting Board Diversity
May 8, 2026
NEXON Co., Ltd. has issued a correction to its previously disclosed notice on the financial results of an unlisted affiliated company after discovering that recent changes in that affiliate’s board membership were not properly reflected. The...
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.