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NEXON Co
(3659)
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Rating:79Outperform
Price Target:
¥3,460.00
▲(51.89% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial performance—especially the very low leverage and solid profitability with accelerating TTM revenue—offset by weaker/volatile recent cash-flow generation. Technicals are supportive but show overbought conditions, and valuation is reasonable with a modest dividend yield.
Positive Factors
Very Low Financial Leverage
Nexon's exceptionally conservative balance sheet reduces refinancing and solvency risk while preserving flexibility to fund game development, content updates, acquisitions, or shareholder returns through changing industry cycles.
Negative Factors
Recent Free-Cash-Flow Decline
The recent free-cash-flow contraction and below-one cash conversion ratio show that accounting earnings have not translated into cash as efficiently as before. Persistent weakness could constrain reinvestment and reduce financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Financial Leverage
Nexon's exceptionally conservative balance sheet reduces refinancing and solvency risk while preserving flexibility to fund game development, content updates, acquisitions, or shareholder returns through changing industry cycles.
Read all positive factors
NEXON Co (3659) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.42T
Dividend Yield1.94%
Average Volume (3M)1.42M
Price to Earnings (P/E)18.0
Beta (1Y)0.88
Revenue Growth15.07%
EPS Growth38.01%
CountryJP
Employees9,834
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)171.73
Shares Outstanding793,552,900
10 Day Avg. Volume1,500,540
30 Day Avg. Volume1,417,043
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)2.91
Price to Sales (P/S)6.48
P/FCF Ratio18.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,897.00Price Target Upside27.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)139.51
Revenue Forecast (FY)¥511.02B
NEXON Co Business Overview & Revenue Model
Company Description
NEXON Co., Ltd. is a prominent entity involved in the creation, development, and ongoing management of online games for both personal computers and mobile devices. Its global operations are structured across five distinct geographical segments: Ja...
How the Company Makes Money
Nexon primarily makes money by operating games as ongoing online services and monetizing them digitally. The core revenue stream is in-game spending (microtransactions) where players purchase virtual items, cosmetic content, convenience features, ...
NEXON Co Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
NEXON demonstrated strong performance in key franchises and successful new title launches, with significant growth in Dungeon&Fighter PC and MapleStory. However, the earnings were negatively impacted by FX losses and challenges in sustaining player engagement, particularly in Dungeon&Fighter Mobile.Positive Updates
Strong Performance in Key Franchises
Dungeon&Fighter PC saw a 67% YoY revenue growth, while MapleStory achieved 60% YoY revenue growth. In Korea, quarterly revenue for these titles set new records with MAUs and PUs nearly doubling, resulting in 132% YoY revenue growth.
Negative Updates
Negative Impact of Foreign Exchange
Net income was below expectations at JPY16.8 billion due to a JPY17.5 billion FX loss on US dollar-denominated cash deposits, resulting in a 58% YoY decline.
Read all updates
Q2-2025 Updates
Positive
Negative
Strong Performance in Key Franchises
Dungeon&Fighter PC saw a 67% YoY revenue growth, while MapleStory achieved 60% YoY revenue growth. In Korea, quarterly revenue for these titles set new records with MAUs and PUs nearly doubling, resulting in 132% YoY revenue growth.
Read all positive updates
Company Guidance
During NEXON's 2025 Q2 earnings call, the company reported a robust performance, exceeding expectations in revenue and operating income, despite facing FX headwinds. Key highlights included a 60% year-over-year (YoY) revenue growth in the MapleStory franchise, driven by strong performance in Korea and expansion into new regions, alongside a 67% YoY revenue growth in Dungeon&Fighter PC. NEXON achieved Q2 revenues of JPY 118.9 billion and operating income of JPY 37.7 billion, surpassing guidance by 8% and 21%, respectively. While net income fell short at JPY 16.8 billion due to a JPY 17.5 billion FX loss, the company saw a 132% YoY revenue increase in Korea and double-digit growth in China due to successful content updates. Looking ahead, NEXON anticipates strong performances in Q3 from its flagship titles, despite an expected YoY revenue decline of 6% to 14% on an as-reported basis. The upcoming release of ARC Raiders on October 30 and the expansion of the MABINOGI MOBILE franchise are expected to support future growth.NEXON Co Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 515.63B | 475.10B | 446.21B | 423.36B | 353.71B | 274.46B |
| Gross Profit | 309.89B | 282.01B | 281.37B | 285.42B | 247.94B | 202.34B |
| EBITDA | 203.02B | 162.37B | 148.46B | 140.79B | 115.83B | 102.75B |
| Net Income | 135.89B | 92.05B | 134.85B | 70.61B | 100.34B | 114.89B |
Balance Sheet | ||||||
| Total Assets | 1.36T | 1.41T | 1.26T | 1.10T | 1.04T | 986.63B |
| Cash, Cash Equivalents and Short-Term Investments | 841.97B | 498.87B | 600.87B | 596.76B | 571.86B | 534.93B |
| Total Debt | 49.35B | 52.15B | 40.00B | 29.72B | 23.32B | 15.33B |
| Total Liabilities | 270.93B | 344.27B | 226.25B | 191.53B | 175.30B | 140.74B |
| Stockholders Equity | 1.08T | 1.06T | 1.02T | 896.27B | 858.19B | 836.67B |
Cash Flow | ||||||
| Free Cash Flow | 113.23B | 163.94B | 97.33B | 123.00B | 124.24B | 104.33B |
| Operating Cash Flow | 121.32B | 171.87B | 100.97B | 128.71B | 130.14B | 105.91B |
| Investing Cash Flow | 111.86B | 102.25B | 7.45B | -188.37B | -10.92B | 18.08B |
| Financing Cash Flow | -93.84B | -118.69B | -64.78B | -78.55B | -105.86B | -21.05B |
NEXON Co Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥3.01T | 26.24 | 19.02% | 1.14% | 22.80% | 49.61% | |
82 Outperform | ¥1.79T | 26.62 | 21.91% | 1.34% | 18.74% | 19.36% | |
82 Outperform | ¥572.86B | 11.55 | ― | 2.49% | 13.22% | 52.60% | |
79 Outperform | ¥2.42T | 18.01 | 11.68% | 2.45% | 15.07% | 38.01% | |
72 Outperform | ¥1.08T | 27.50 | 8.75% | 1.62% | 0.94% | 104.41% | |
64 Neutral | ¥615.61B | -3,351.11 | -1.58% | 2.06% | 23.77% | -98.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
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NEXON Co Corporate Events
Nexon to Cancel All Treasury Shares, Trimming Shares Outstanding
Aug 13, 2026
Nexon has approved the cancellation of all 13,238,900 of its treasury shares, representing 1.7% of its total issued shares as of July 31, 2026. Following the cancellation, scheduled for August 31, 2026, the company expects its total shares outstan...
Nexon Announces Massive One-Off Special Dividend to Boost Capital Efficiency
Aug 13, 2026
Nexon has sharply revised its FY2026 dividend forecast, introducing a large one-time special dividend of ¥415 per share at the end of the second quarter and maintaining a year-end dividend of ¥30, bringing the total planned annual divide...
Nexon Doubles Interim Dividend, Signaling Confidence in Financial Strength
Aug 13, 2026
Nexon’s board has approved an interim dividend of 30 yen per share as of June 30, 2026, doubling the prior year’s interim payout and resulting in a total dividend payment of approximately 23.6 billion yen funded from retained earnings....
NEXON Doubles Profit, Hikes Special Dividend on Strong First-Half 2026 Results
Aug 13, 2026
NEXON reported strong consolidated results for the six months ended June 30, 2026, with revenue rising 17.4% year on year to ¥273.3 billion and operating profit up 12.8%, while profit attributable to owners of the parent more than doubled, li...
Nexon Concludes ¥30 Billion Share Buyback Program on TSE
Aug 3, 2026
Nexon has completed a share buyback program authorized under Japan’s Companies Act, repurchasing 5,281,500 ordinary shares on the Tokyo Stock Exchange between July 1 and July 31, 2026. This latest tranche forms part of a broader program appr...
Nexon Advances Share Buyback, Repurchases Nearly 8 Million Shares
Jul 1, 2026
Nexon reported progress on its ongoing share buyback program, disclosing that it repurchased 5,061,400 ordinary shares on the Tokyo Stock Exchange between June 1 and June 30, 2026, for a total consideration of approximately JPY 11.23 billion. The ...
Nexon to Receive ¥373.5 Billion Dividend from Korean Subsidiary with No Consolidated Impact
Jun 29, 2026
NEXON Co., Ltd. said it will receive a surplus dividend of JPY 373,464 million from its consolidated subsidiary NEXON Korea Corporation, following a decision made on June 29, 2026. The company plans to record this as non-operating income in its st...
NXC Boosts Control of Nexon to 46% Through Intra-Group Share Transfer
Jun 19, 2026
NEXON Co. has announced a change in its major shareholder structure after NXC Corporation acquired 118,527,140 Nexon shares from its subsidiary NXMH B.V., causing NXMH to cease being a major shareholder. As a result of the intra-group transfer, NX...
Nexon Reports Progress on Share Buyback Program
Jun 1, 2026
Nexon has reported progress on its ongoing share buyback program, conducted under the Companies Act of Japan, confirming the repurchase of 2,896,000 ordinary shares between May 15 and May 31, 2026. The shares were acquired on the Tokyo Stock Excha...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.