NEXON Co., Ltd.
NEXON Co., Ltd. Fundamental Analysis
NEXON Co., Ltd. (NEXOF) shows weak financial fundamentals with a PE ratio of 33.58, profit margin of 19.42%, and ROE of 8.90%. The company generates $482.6B in annual revenue with moderate year-over-year growth of 5.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NEXOF's fundamental strength across five key dimensions:
Efficiency Score
WeakNEXOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateNEXOF shows balanced valuation metrics.
Growth Score
ExcellentNEXOF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNEXOF maintains a strong and stable balance sheet.
Profitability Score
ModerateNEXOF maintains healthy but balanced margins.
Key Financial Metrics
Is NEXOF Expensive or Cheap?
P/E Ratio
NEXOF trades at 33.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NEXOF's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values NEXON Co., Ltd. at 2.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.98 times EBITDA. This signals the market has high growth expectations.
How Well Does NEXOF Make Money?
Net Profit Margin
For every $100 in sales, NEXON Co., Ltd. keeps $19.42 as profit after all expenses.
Operating Margin
Core operations generate 25.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.90 in profit for every $100 of shareholder equity.
ROA
NEXON Co., Ltd. generates $6.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NEXON Co., Ltd. generates strong operating cash flow of $174.47B, reflecting robust business health.
Free Cash Flow
NEXON Co., Ltd. generates strong free cash flow of $166.41B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $210.88 in free cash annually.
FCF Yield
NEXOF converts 5.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NEXOF Stacks Against Its Sector Peers
| Metric | NEXOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.58 | 35.62 | Neutral |
| ROE | 8.90% | 1160.00% | Weak |
| Net Margin | 19.42% | -136515.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 4.44 | 4.79 | Strong Liquidity |
| ROA | 6.56% | -311498.00% (disorted) | Weak |
NEXOF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NEXON Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.63%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
25.09%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
3.10%
Industry Style: Growth, Innovation, High Beta
Growing