ScoreWhy is NEXON Co., Ltd. ?
1
High Management Efficiency with a high ROE of 11.23%
2
Company has a low Debt to Equity ratio (avg) at times
3
Flat results in Jun 25
- INTEREST(Q) At JPY 16,303 MM has Grown at 145.45%
- INTEREST COVERAGE RATIO(Q) Lowest at 240.91
- RAW MATERIAL COST(Y) Grown by 5.8% (YoY)
4
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 79.48%, its profits have risen by 34.5% ; the PEG ratio of the company is 0.5
5
Market Beating Performance
- The stock has generated a return of 79.48% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to NEXON Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is NEXON Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
NEXON Co., Ltd.
73.07%
849.96
39.25%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.65%
EBIT Growth (5y)
8.79%
EBIT to Interest (avg)
9.55
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.58
Sales to Capital Employed (avg)
0.44
Tax Ratio
28.65%
Dividend Payout Ratio
13.91%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
36.75%
ROE (avg)
11.23%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
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
NA
ROCE (Latest)
35.26%
ROE (Latest)
12.76%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 154,718 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 71.71%
DIVIDEND PER SHARE(HY)
Highest at JPY 6.05
-24What is not working for the Company
INTEREST(Q)
At JPY 16,303 MM has Grown at 145.45%
INTEREST COVERAGE RATIO(Q)
Lowest at 240.91
RAW MATERIAL COST(Y)
Grown by 5.8% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -53.56 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.05%
PRE-TAX PROFIT(Q)
Lowest at JPY 28,551 MM
NET PROFIT(Q)
Lowest at JPY 16,758 MM
EPS(Q)
Lowest at JPY 20.86
Here's what is working for NEXON Co., Ltd.
Operating Cash Flow
Highest at JPY 154,718 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Dividend per share
Highest at JPY 6.05
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Dividend Payout Ratio
Highest at 71.71%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at JPY 2,824 MM
in the last five periodsMOJO 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.
Interest
At JPY 16,303 MM has Grown at 145.45%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 240.91
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At JPY 28,551 MM has Fallen at -55.35%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 16,758 MM has Fallen at -57.98%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Pre-Tax Profit
Lowest at JPY 28,551 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 16,758 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 20.86
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at -53.56 %
in the last five Semi-Annual periodsMOJO 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 6.05%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 5.8% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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