NEXON Co., Ltd. (3659) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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NEXON Co., Ltd.

Why is NEXON Co., Ltd. ?

Flat results in Dec 25

DEBT-EQUITY RATIO (HY) Highest at -42.24 %
DEBTORS TURNOVER RATIO(HY) Lowest at 5.43 times
RAW MATERIAL COST(Y) Grown by 11.67% (YoY)

With ROE of 12.76%, it has a attractive valuation with a 2.20 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 39.96%, its profits have risen by 34.5% ; the PEG ratio of the company is 0.5

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NEXON Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

NEXON Co., Ltd.

39.96%

565.92

43.93%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.65%

EBIT Growth (5y)

8.79%

EBIT to Interest (avg)

9.55

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

0.43

Tax Ratio

28.65%

Dividend Payout Ratio

13.91%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

36.75%

ROE (avg)

11.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.20

EV to EBIT

10.98

EV to EBITDA

10.25

EV to Capital Employed

3.87

EV to Sales

3.54

PEG Ratio

0.50

Dividend Yield

ROCE (Latest)

35.26%

ROE (Latest)

12.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 171,872 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 215.48%

DIVIDEND PER SHARE(HY)

Highest at JPY 5.43

NET SALES(Q)

Highest at JPY 123,599 MM

-15What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -42.24 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.43 times

RAW MATERIAL COST(Y)

Grown by 11.67% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 8.28 %

PRE-TAX PROFIT(Q)

Lowest at JPY 19,855 MM

NET PROFIT(Q)

Lowest at JPY 12,795.93 MM

EPS(Q)

Lowest at JPY 13.84

Here's what is working for NEXON Co., Ltd.

Net Sales

At JPY 123,599 MM has Grown at 55.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Cash Flow

Highest at JPY 171,872 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 123,599 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 5.43

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 215.48%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 3,002 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for NEXON Co., Ltd.

Pre-Tax Profit

At JPY 19,855 MM has Fallen at -53.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 12,795.93 MM has Fallen at -60.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -42.24 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 5.43 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit Margin

Lowest at 8.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 19,855 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 12,795.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 13.84

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 11.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales