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NAVER
(035420)
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Rating:68Neutral
Price Target:
₩189,987
▼(-16.12% Downside)
Action:N/A
Date:10/28/26
The score is driven primarily by solid underlying financial quality (strong margins and low leverage), supported by a reasonable valuation (P/E ~13 and ~1.5% yield). These positives are meaningfully offset by weak technicals, with the stock trading below all key moving averages and bearish momentum despite oversold readings.
Positive Factors
Conservative balance sheet
NAVER’s low leverage and steadily expanding equity base provide financial flexibility through changing conditions. This conservative balance-sheet structure can support continued investment in its platform and international businesses while reducing dependence on external financing.
Negative Factors
Moderating revenue momentum
Although NAVER continues to grow, the slower TTM pace signals moderation in business momentum after earlier expansion. If this deceleration persists, it could reduce operating leverage, constrain reinvestment capacity, and make future growth increasingly dependent on newer initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
NAVER’s low leverage and steadily expanding equity base provide financial flexibility through changing conditions. This conservative balance-sheet structure can support continued investment in its platform and international businesses while reducing dependence on external financing.
Read all positive factors
NAVER (035420) vs. SPDR S&P 500 ETF (SPY)
Market Cap
₩25.32T
Dividend Yield1.5%
Average Volume (3M)565.32K
Price to Earnings (P/E)13.0
Beta (1Y)0.40
Revenue Growth14.69%
EPS Growth1.86%
CountryKR
Employees5,047
SectorGeneral
Sector StrengthN/A
IndustryInternet Content & Information
Share Statistics
EPS (TTM)13420.89
Shares Outstanding152,108,890
10 Day Avg. Volume609,420
30 Day Avg. Volume565,323
Financial Highlights & Ratios
PEG Ratio7.71
Price to Book (P/B)1.28
Price to Sales (P/S)2.94
P/FCF Ratio19.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)12,214.69
Revenue Forecast (FY)₩13.76T
NAVER Business Overview & Revenue Model
Company Description
NAVER Corporation, along with its subsidiaries, is a prominent provider of internet search and mobile messaging platform services, operating across South Korea, Japan, and internationally. Its consumer-facing offerings include the widely-used Nave...
NAVER Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and strategic picture: broad-based revenue growth, strong commerce momentum, meaningful AI-driven gains in advertising, improved AI product adoption (AI Briefing) and infrastructure cost efficiencies (inference cost down >30%). These positives are tempered by near-term pressure from higher infrastructure and marketing investments, a significant Q4 net income decline driven by goodwill impairments, reduced free cash flow due to CapEx, and some content and enterprise segment softness. Management framed several negatives as one-off or invest-to-grow items and laid out clear targets (e.g., doubling AI Briefing coverage, delivery coverage expansion, double-digit Smart Store GMV growth), supporting a constructive outlook.Positive Updates
Revenue Growth — Q4 and Full Year
Q4 revenue increased 10.7% YoY to KRW 3.2 trillion; full-year 2025 revenue rose 12.1% YoY to KRW 12.0 trillion.
Negative Updates
Sharp Q4 Net Income Decline
Q4 consolidated net income was KRW 164.6 billion, down 68% YoY, primarily due to increased goodwill impairment losses recognized at period end. Full-year net income fell 5.8% YoY to KRW 1.8 trillion.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth — Q4 and Full Year
Q4 revenue increased 10.7% YoY to KRW 3.2 trillion; full-year 2025 revenue rose 12.1% YoY to KRW 12.0 trillion.
Read all positive updates
Company Guidance
NAVER guided aggressive AI-led expansion and commercial targets for 2026, highlighting that AI Briefing already covers ~20% of integrated search queries and will be expanded to ~2x that level by end-2026 (with long-tail 15+ character queries >2x since launch, follow‑up-question clicks >6x and personalization lifting follow‑up CTRs by 20%+), while infrastructure efficiencies have cut inference costs by >30%; AI accounted for 55% of 2025 platform advertising growth (platform ads +8.8% in 2025; Q4 platform ads +6.7% with a -2–3ppt Chuseok holiday drag), and NAVER expects AI’s ad contribution to grow further even as it tests ad monetization in H2; commerce targets include sustaining double‑digit YoY Smart Store GMV growth in 2026 after GMV +10% in 2025, Q4 commerce revenue +36% to KRW 1.05T (FY commerce KRW 3.67T, +26.2%), NAVER Plus Store downloads >12.9M, new membership sign‑ups +71% MoM in Dec and a goal to grow active members >20% YoY, plus delivery coverage aimed at 25% this year, >35% next year and ≥50% medium‑term (≥3x current levels in 3 years); financials underpinning the guidance include Q4 revenue KRW 3.2T (+10.7%), FY revenue KRW 12.0T (+12.1%), Q4 operating profit KRW 610.6B (+12.7%, 19.1% margin; +16.8% ex‑oneoffs) and FY operating profit KRW 2.2T (+11.6%), and a 2025–2027 shareholder return policy of 25–35% of 2‑year average consolidated free cash flow (2025 dividend expected KRW 393.6B = 30% of 2‑yr avg FCF).NAVER Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.96T | 12.04T | 10.74T | 9.67T | 8.22T | 6.82T |
| Gross Profit | 4.66T | 2.90T | 2.59T | 9.67T | 8.22T | 6.82T |
| EBITDA | 3.15T | 2.95T | 2.96T | 2.19T | 1.62T | 2.06T |
| Net Income | 2.02T | 1.95T | 1.92T | 1.01T | 760.26B | 16.49T |
Balance Sheet | ||||||
| Total Assets | 44.66T | 41.08T | 38.17T | 35.74T | 33.90T | 33.69T |
| Cash, Cash Equivalents and Short-Term Investments | 8.99T | 8.95T | 7.47T | 5.08T | 4.68T | 3.94T |
| Total Debt | 5.63T | 4.17T | 3.80T | 4.18T | 4.20T | 3.96T |
| Total Liabilities | 13.63T | 12.13T | 11.17T | 11.50T | 10.45T | 9.66T |
| Stockholders Equity | 29.54T | 27.58T | 25.46T | 23.21T | 22.74T | 23.54T |
Cash Flow | ||||||
| Free Cash Flow | 1.45T | 1.86T | 2.01T | 1.31T | 697.16B | 574.09B |
| Operating Cash Flow | 3.16T | 3.10T | 2.59T | 2.00T | 1.45T | 1.38T |
| Investing Cash Flow | -1.83T | -741.61B | -1.34T | -949.82B | -1.22T | -14.00T |
| Financing Cash Flow | 28.02B | -526.53B | -770.29B | -110.03B | -339.47B | 11.64T |
NAVER Technical Analysis
Negative
226500.00
Price Trends
198662.00
Negative
205487.00
Negative
217090.01
Negative
Market Momentum
-6578.95
Negative
36.78
Neutral
31.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:035420, the sentiment is Negative. The current price of 226500 is above the 20-day moving average (MA) of 181215.00, above the 50-day MA of 198662.00, and above the 200-day MA of 217090.01, indicating a bearish trend. The MACD of -6578.95 indicates Negative momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 31.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:035420.
NAVER Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₩25.32T | 13.03 | 7.11% | 1.50% | 14.69% | 1.86% | |
67 Neutral | ₩15.97T | 25.35 | ― | 1.54% | 2.46% | -17.84% | |
62 Neutral | ₩11.03T | 7.92 | ― | 5.25% | 8.88% | 42.81% | |
60 Neutral | ₩9.31T | 17.10 | ― | 2.36% | 2.68% | 15.30% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₩12.91T | 40.47 | ― | 0.26% | 6.14% | 92.16% | |
42 Neutral | ₩4.60T | 52.41 | ― | ― | 33.93% | 1786.13% |
* General Sector Average
KR:035420
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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.