NEXON Co Ltd (JP:3659)
:3659
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NEXON Co
(3659)
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Rating:64Neutral
Price Target:
¥3,046.00
▲(6.11% Upside)
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
Low leverage / strong balance sheet
Debt-to-equity under 0.08 and steadily rising equity indicate a conservatively financed company with ample capital cushions. This durable balance-sheet strength lowers refinancing and solvency risk, supports continued investment in live ops and R&D, and preserves financial optionality over the next several quarters.
Negative Factors
Margin compression & earnings volatility
A sharp fall in net margin (~30% to ~19%) and declining gross/EBITDA margins reduce earnings resiliency. If structural cost pressures or softer monetization persist, profitability could remain depressed, limiting reinvestment or shareholder returns and increasing sensitivity to revenue swings over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Debt-to-equity under 0.08 and steadily rising equity indicate a conservatively financed company with ample capital cushions. This durable balance-sheet strength lowers refinancing and solvency risk, supports continued investment in live ops and R&D, and preserves financial optionality over the next several quarters.
Read all positive factors
NEXON Co (3659) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.28T
Dividend Yield0.78%
Average Volume (3M)1.42M
Price to Earnings (P/E)33.4
Beta (1Y)0.92
Revenue Growth-4.40%
EPS Growth89.91%
CountryJP
Employees9,329
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)13.92
Shares Outstanding792,606,400
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
¥3,940.70Price Target Upside37.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)165.21
Revenue Forecast (FY)¥545.95B
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 operating free-to-play, live-service games that monetize through in-game purchases (microtransactions). Players can download and play the core game for free, while NEXON sells virtual items and services such as chara...
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
Negative
2870.50
Price Trends
3477.10
Negative
3594.78
Negative
3311.91
Negative
Market Momentum
-153.28
Negative
33.16
Neutral
15.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3659, the sentiment is Negative. The current price of 2870.5 is below the 20-day moving average (MA) of 3034.20, below the 50-day MA of 3477.10, and below the 200-day MA of 3311.91, indicating a bearish trend. The MACD of -153.28 indicates Negative momentum. The RSI at 33.16 is Neutral, neither overbought nor oversold. The STOCH value of 15.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥575.87B | 15.43 | ― | 2.49% | -1.05% | 6.49% | |
72 Outperform | ¥2.64T | 25.95 | 17.57% | 0.84% | 18.39% | 23.33% | |
69 Neutral | ¥1.41T | 33.58 | 26.91% | 1.17% | 45.17% | 81.91% | |
68 Neutral | ¥517.54B | -6.55 | -3.66% | 2.12% | -8.73% | -55.81% | |
64 Neutral | ¥2.28T | 33.43 | 8.89% | 0.78% | -4.40% | 89.91% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | ¥903.70B | 16.57 | 6.70% | 1.80% | -12.02% | 126.06% |
* Communication Services Sector Average
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NEXON Co Corporate Events
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...
Nexon Completes ¥25 Billion Share Buyback Program
Jan 27, 2026
Nexon has completed a share buyback program authorized under Japan’s Companies Act, repurchasing a total of 6,440,100 ordinary shares on the Tokyo Stock Exchange for approximately JPY 24.99 billion during the period from November 12, 2025 to...
Nexon Announces Shift in Major Shareholder as Saudi Stake Moves to Ayar First Investment
Jan 13, 2026
NEXON Co., Ltd. has disclosed a change in its major shareholders as of December 26, 2025, following the filing of an amended large-shareholding report with the Kanto Local Finance Bureau. Ayar First Investment Company, an investment firm based in ...
Nexon Advances Share Buyback, Repurchasing Over 4.2 Million Shares by Year-End 2025
Jan 5, 2026
Nexon has reported progress on its ongoing share buyback program, disclosing that it repurchased 2,551,500 ordinary shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total consideration of approximately JPY 9.64 bi...
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.