NEXON Co (3659) AI Stock Analysis

• Market Cap: $2.72T
• Dividend Yield: 0.79%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.93
• Revenue Growth: -4.40%
• EPS Growth: 89.91%
• Country: JP
• Employees: 9,329
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 47.52
• Shares Outstanding: 825,431,150
• 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: 0.66
• Enterprise Value/Revenue: 4.15
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 8.49
• 1Y Price Target: $3,188.16
• Price Target Upside: -16.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥4,350.00 ▲(13.84% 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

Cash Generation Ability

NEXON's ability to generate positive free cash flow indicates strong operational efficiency and financial health, enabling reinvestment and debt management.

Balance Sheet Health

A low debt-to-equity ratio suggests conservative leverage, providing financial stability and flexibility to pursue growth opportunities.

Profitability Margins

High gross profit margins reflect efficient cost management, supporting sustained profitability and competitive pricing strategies.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can signal challenges in market expansion or product adoption, potentially impacting future earnings.

Decreasing Net Profit Margin

A decreasing net profit margin may indicate rising costs or pricing pressures, which could affect long-term profitability.

Revenue Growth

Sustained revenue decline could hinder the company's ability to capitalize on market opportunities and expand its customer base.

NEXON Co Business Overview & Revenue Model

Company Description

NEXON Co (3659) is a leading global online gaming company based in South Korea, primarily known for its development and publishing of interactive entertainment content. The company operates in the gaming sector, focusing on free-to-play online games, mobile games, and various gaming platforms. NEXON's core products include popular titles such as 'Dungeon Fighter Online,' 'MapleStory,' and 'EA Sports FIFA Online,' which cater to a diverse audience across multiple demographics and geographies.

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 strong profitability with a healthy net profit margin of 27.7% and robust EBIT and EBITDA margins. The balance sheet is solid with low financial leverage and a high equity ratio. However, revenue declined by 0.8% in the TTM period, which is a concern.

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	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: 3821.00
• 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 3821 is above the 20-day moving average (MA) of 3746.95, above the 50-day MA of 3443.84, and above the 200-day MA of 2837.35, indicating a bullish trend. The MACD of 108.29 indicates Positive momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 75.07 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	$2.72T	27.18	10.76%	0.79%	-4.40%	89.91%
3635	76 Outperform	¥704.12B	18.94	―	2.47%	-1.05%	6.49%
9766	70 Neutral	¥3.43T	40.41	17.57%	0.80%	18.39%	23.33%
9697	69 Neutral	$1.66T	27.40	26.66%	1.16%	45.17%	81.91%
6460	68 Neutral	¥503.91B	31.75	4.45%	2.01%	-8.73%	-55.81%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9684	57 Neutral	$1.05T	45.47	6.70%	1.85%	-12.02%	126.06%

NEXON Co Corporate Events

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.

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.

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.

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.

Nexon Completes Share Buyback Program

Nexon Co., Ltd. announced the completion of its share buyback program, which was conducted under the stipulations of the Companies Act of Japan. The program, which ran from October 1 to October 24, 2025, resulted in the acquisition of 3,502,600 ordinary shares at a total cost of JPY 11,304,484,200, marking the end of the buyback initiative that was resolved by the Board of Directors on August 13, 2025.

NEXON Subsidiary Nitro Studio Files for Bankruptcy

NEXON Co., Ltd. announced that its consolidated subsidiary, Nitro Studio Co., Ltd., has filed for bankruptcy in South Korea. Nitro, which was fully acquired by NEXON Korea in 2024, failed to meet performance expectations with its in-house game, leading to the termination of its services. As a result, Nitro’s bankruptcy is seen as a necessary step to liquidate the entity, which holds significant liabilities, including loans from NEXON Korea. Despite this development, NEXON’s consolidated financial results will remain unaffected due to prior allowances for doubtful accounts.

NEXON Co. Reports Progress on Share Buyback Program

NEXON Co., Ltd. announced the status of its ongoing share buyback program, acquiring 2,680,400 shares for approximately JPY 9 billion between September 1 and September 30, 2025. This initiative is part of a broader plan approved by the Board of Directors to repurchase up to 11 million shares, reflecting the company’s strategic efforts to enhance shareholder value and optimize its capital structure.

NEXON Co. to Receive Significant Dividend from Subsidiary

NEXON Co., Ltd. announced it will receive a dividend of JPY 124,254 million from its subsidiary, NEXON Korea Corporation. This dividend will be recorded as non-operating income for the fiscal year ending December 31, 2025, but will not affect the company’s consolidated business results as it is from a consolidated subsidiary.