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Kakao Corp. (KR:035720)
:035720
South Korea Market
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Kakao Corp. (035720) AI Stock Analysis

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KR:035720

Kakao Corp.

(035720)

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Neutral 54 (OpenAI - Gpt-5.6Sol)
Rating:54Neutral
Price Target:
$30,090.00
Action:N/A
Date:10/28/26
Overall score reflects mixed fundamentals but weak market signals. Financials show a supportive balance sheet and positive cash generation, offset by inconsistent profitability and a TTM step-down in free cash flow. Technical indicators are the largest near-term drag due to a clear downtrend and oversold momentum. Valuation also pressures the score given the high P/E and low dividend yield.
Positive Factors
Integrated Digital Ecosystem
Kakao’s broad, integrated ecosystem can deepen user engagement and create cross-selling opportunities across messaging, payments, mobility, content, commerce, and enterprise services. This platform breadth provides multiple avenues for durable growth and reduces reliance on a single product line.
Negative Factors
Inconsistent Profitability and Margin Compression
The history of a loss followed by only modest profitability shows that revenue growth has not consistently translated into durable earnings. Compressed margins reduce operating leverage and leave future results more sensitive to execution, investment intensity, and changes in business mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated Digital Ecosystem
Kakao’s broad, integrated ecosystem can deepen user engagement and create cross-selling opportunities across messaging, payments, mobility, content, commerce, and enterprise services. This platform breadth provides multiple avenues for durable growth and reduces reliance on a single product line.
Read all positive factors

Kakao Corp. (035720) vs. SPDR S&P 500 ETF (SPY)

Kakao Corp. Business Overview & Revenue Model

Company Description
Based in South Korea, Kakao Corporation manages a diverse array of mobile and internet-based platforms. These platforms encompass various ventures, including their messaging services, web portal activities, and additional enterprises. Through thes...

Kakao Corp. Financial Statement Overview

Summary
Financial quality is mixed. Income statement strength is tempered by uneven profitability and margin compression (Income Statement Score 56). The balance sheet is supportive with manageable leverage but low recent ROE (Balance Sheet Score 70). Cash generation is consistently positive, though TTM free cash flow fell sharply versus the prior year (Cash Flow Score 62).
Income Statement
56
Neutral
Balance Sheet
70
Positive
Cash Flow
62
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue8.25T8.10T7.87T7.56T6.80T5.91T
Gross Profit5.23T4.26T7.36T7.06T6.32T5.58T
EBITDA-123.66B1.55T1.04T1.20T2.03T2.35T
Net Income318.65B463.72B55.28B-1.01T1.36T1.39T
Balance Sheet
Total Assets27.67T27.78T25.77T25.18T22.96T22.78T
Cash, Cash Equivalents and Short-Term Investments12.14T9.89T8.83T8.10T6.57T7.12T
Total Debt3.12T4.03T4.24T4.48T4.15T3.82T
Total Liabilities12.60T12.56T11.83T11.32T9.43T9.19T
Stockholders Equity11.78T11.28T10.14T9.76T10.00T9.98T
Cash Flow
Free Cash Flow548.44B925.59B744.53B618.87B35.50B935.87B
Operating Cash Flow1.14T1.40T1.25T1.34T678.38B1.31T
Investing Cash Flow1.51T-695.81B10.42B-1.78T-1.57T-3.34T
Financing Cash Flow-252.10B-490.60B-521.32B1.02T411.82B4.44T

Kakao Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price―
Price Trends
50DMA
34135.00
Negative
100DMA
35552.00
Negative
200DMA
43538.23
Negative
Market Momentum
MACD
-1245.66
Positive
RSI
30.48
Neutral
STOCH
11.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:035720, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 31735.00, equal to the 50-day MA of 34135.00, and equal to the 200-day MA of 43538.23, indicating a bearish trend. The MACD of -1245.66 indicates Positive momentum. The RSI at 30.48 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:035720.

Kakao Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
₩7.90T9.64―1.22%54.95%-14.08%
68
Neutral
₩25.76T13.047.11%1.48%14.69%1.86%
63
Neutral
₩2.66T6.89―2.61%9.73%331.21%
60
Neutral
₩9.31T16.92―2.36%2.68%15.30%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
₩13.13T40.82―0.25%6.14%92.16%
42
Neutral
₩4.62T52.11――33.93%1786.13%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KR:035720
Kakao Corp.
29,800.00
-33,611.14
-53.01%
KR:035420
NAVER
178,000.00
-74,844.02
-29.60%
KR:251270
Netmarble Corp.
33,550.00
-20,413.68
-37.83%
KR:259960
Krafton, Inc.
183,200.00
-85,517.90
-31.82%
KR:323410
KakaoBank Corp.
19,530.00
-2,895.43
-12.91%
KR:377300
kakaopay Corp.
34,150.00
-18,250.00
-34.83%
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.Date of analysis: Oct 28, 2026