NEXON Co (3659) AI Stock Analysis

• Market Cap: ¥3.46T
• Dividend Yield: 0.78%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.96
• Revenue Growth: -4.40%
• EPS Growth: 89.91%
• Country: US
• Employees: 9,329
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 47.52
• Shares Outstanding: 827,160,950
• 10 Day Avg. Volume: 1,500,540
• 30 Day Avg. Volume: 1,417,043
• PEG Ratio: 0.15
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 4.44
• P/FCF Ratio: 20.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,009.88
• Price Target Upside: -6.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥4,817.00 ▲(12.52% Upside)

NEXON Co's stock is supported by strong financial performance and bullish technical indicators. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.

Positive Factors

Conservative Leverage

Extremely low leverage gives Nexon durable financial flexibility to fund game development, live-ops, and M&A without stressing cash flows. Conservative capital structure reduces bankruptcy risk and supports stable investment and shareholder actions over the next several quarters.

Robust Cash Generation

Strong cash conversion and near-par free cash flow to net income indicate the business reliably turns earnings into spendable cash. That funds content pipelines and user acquisition without heavy external financing, underpinning sustainable operations and strategic optionality.

High Profitability Margins

Elevated gross and net margins reflect the scalable, digital-heavy free-to-play model with low incremental costs. Persistent margin headroom supports continued reinvestment in live services, R&D and marketing, creating a durable advantage versus higher-cost competitors.

Negative Factors

Declining Revenue Growth

Negative top-line growth signals product maturity or competitive pressure that can erode long-term upside. Sustained revenue decline reduces capital available for content and user acquisition, making it harder to maintain engagement and monetize large player bases over months.

Margin Compression Trend

A falling net margin, even from a high base, suggests rising content, marketing or platform costs. Continued compression would weaken reinvestment capacity and limit earnings resilience, reducing the company's ability to sustain growth investments and shareholder returns.

Regional Revenue Concentration

Heavy exposure to Japan and China concentrates regulatory, competitive and monetization risk regionally. Adverse policy shifts or stronger local competitors in these markets could materially affect revenue and user monetization over the medium term without faster geographic diversification.

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 generates revenue primarily through in-game purchases and microtransactions, where players can buy virtual goods and enhancements within their games. The company employs a free-to-play model, allowing users to access games without an upfront cost, while monetizing through optional purchases. Additionally, NEXON earns revenue from subscription models and advertising revenue associated with its games. Strategic partnerships with other gaming companies and collaborations for co-development of new titles further enhance its revenue streams. The company also benefits from a strong presence in the Asian market, particularly in Japan and China, where its games have a substantial player base, contributing significantly to its earnings.

NEXON Co Financial Statement Overview

Summary

NEXON Co demonstrates solid financial health with strong profitability margins and a stable balance sheet. Despite a decline in revenue growth, the company maintains efficient operations and robust cash flow generation, positioning it well for future opportunities.

Income Statement

NEXON Co's income statement shows a strong gross profit margin of 62.83% for TTM, indicating efficient cost management. However, the revenue growth rate has declined by 3.77% in the TTM, which is a concern. The net profit margin remains healthy at 22.78%, though it has decreased from the previous year. The EBIT and EBITDA margins are robust, reflecting solid operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.037, suggesting conservative leverage. The return on equity is decent at 10.09%, indicating effective use of equity. The equity ratio is healthy, showing a stable financial structure with significant equity backing the assets.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 3.37% in the TTM, indicating good cash generation. The operating cash flow to net income ratio is 1.46, showing strong cash conversion. The free cash flow to net income ratio is high at 0.97, reflecting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	431.23B	446.21B	423.36B	353.71B	274.46B	293.02B
Gross Profit	264.97B	281.37B	285.42B	247.94B	202.34B	224.01B
EBITDA	210.78B	134.32B	139.45B	158.30B	145.29B	117.01B
Net Income	113.22B	134.85B	70.61B	100.34B	114.89B	56.22B
Balance Sheet
Total Assets	1.30T	1.26T	1.10T	1.04T	986.63B	862.16B
Cash, Cash Equivalents and Short-Term Investments	711.38B	600.87B	596.76B	571.86B	534.93B	525.70B
Total Debt	38.88B	40.00B	29.72B	23.32B	15.33B	16.59B
Total Liabilities	238.35B	226.25B	191.53B	175.30B	140.74B	141.72B
Stockholders Equity	1.05T	1.02T	896.27B	858.19B	836.67B	709.88B
Cash Flow
Free Cash Flow	155.65B	97.33B	123.00B	124.24B	104.33B	134.37B
Operating Cash Flow	161.18B	100.97B	128.71B	130.14B	105.91B	137.60B
Investing Cash Flow	174.52B	7.45B	-188.37B	-10.92B	18.08B	-140.23B
Financing Cash Flow	-110.48B	-64.78B	-78.55B	-105.86B	-21.05B	-2.63B

NEXON Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4281.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4281 is above the 20-day moving average (MA) of 4115.85, above the 50-day MA of 3886.50, and above the 200-day MA of 3120.24, indicating a bullish trend. The MACD of 137.98 indicates Negative momentum. The RSI at 68.15 is Neutral, neither overbought nor oversold. The STOCH value of 60.64 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	76 Outperform	¥3.46T	30.66	10.76%	0.78%	-4.40%	89.91%
3635	76 Outperform	¥580.89B	15.38	―	2.49%	-1.05%	6.49%
9766	70 Neutral	¥2.83T	33.43	17.57%	0.84%	18.39%	23.33%
9697	69 Neutral	¥1.49T	23.14	26.66%	1.17%	45.17%	81.91%
6460	68 Neutral	¥500.30B	28.98	4.45%	2.12%	-8.73%	-55.81%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	¥993.58B	43.22	6.70%	1.80%	-12.02%	126.06%

NEXON Co Corporate Events

Nexon Completes ¥25 Billion Share Buyback Program

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 January 26, 2026. Within the most recent phase, from January 1 to January 28, 2026, the company acquired 2,234,300 shares for about JPY 9.31 billion and has now formally ended the program, a move that effectively returns capital to shareholders and may support earnings per share and shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

Nexon Announces Shift in Major Shareholder as Saudi Stake Moves to Ayar First Investment

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 Riyadh, Saudi Arabia, has newly become a major shareholder with 11.17% of Nexon’s voting rights, corresponding to 88,548,900 shares. At the same time, Saudi Arabia’s Public Investment Fund, which previously held the same 11.17% stake, has ceased to be a major shareholder, indicating an internal reallocation of ownership within Saudi-linked investment entities rather than an exit of capital from Nexon. The company notes that the figures are based on the shareholder report and states there are no specific disclosures regarding any impact on its future outlook, suggesting limited immediate operational implications but a noteworthy shift in its shareholder structure for investors to monitor.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen4350.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

Nexon Advances Share Buyback, Repurchasing Over 4.2 Million Shares by Year-End 2025

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 billion. Under a board authorization dated November 11, 2025, the company is permitted to buy back up to 10 million shares for as much as JPY 25 billion through January 26, 2026, and as of December 31, 2025 it has cumulatively acquired 4,205,800 shares for about JPY 15.69 billion, signaling an ongoing capital return to shareholders and potentially supporting its share price and capital efficiency metrics.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen4350.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

NEXON Co. Updates on Share Buyback Progress

NEXON Co., Ltd. announced the status of its share buyback program, acquiring 1,654,300 ordinary shares for JPY 6,045,852,900 between November 12 and November 30, 2025. This buyback is part of a broader initiative authorized by the board to acquire up to 10 million shares, reflecting the company’s strategic efforts to enhance shareholder value.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen3734.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

NEXON Co., Ltd. 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 involves acquiring up to 10 million ordinary shares, representing 1.3% of the total shares outstanding, with a maximum acquisition cost of JPY 25 billion, to be executed on the Tokyo Stock Exchange from November 12, 2025, to January 26, 2026.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen3734.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

NEXON Co., Ltd. Announces Mixed Financial Outlook for 2025

NEXON Co., Ltd. announced its full-year consolidated and standalone financial outlook for 2025, indicating a mixed financial performance. While the company expects a slight increase in revenue and operating profit, it anticipates a decrease in profit before tax and profit attributable to owners due to expected foreign exchange losses. For standalone results, a decline in revenue is expected due to the termination of a service, but ordinary and net income are projected to rise significantly, driven by dividends from subsidiaries.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen3734.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.

NEXON Co. Announces Financial Results and Dividend Increase

NEXON Co. reported its consolidated financial results for the nine months ended September 30, 2025, showing a decline in revenue and profit compared to the previous year. Despite the decrease, the company revised its dividend forecast for FY 2025, indicating an increase in year-end dividends, which may positively impact investor sentiment.

The most recent analyst rating on (JP:3659) stock is a Buy with a Yen3734.00 price target. To see the full list of analyst forecasts on NEXON Co stock, see the JP:3659 Stock Forecast page.