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Ncsoft Corporation (A036570) Report Analysis

Corporate Events

Neutral

Ncsoft Corporation, Q2 2022 Earnings Call, Aug 12, 2022

2022-08-12 00:00:00

Ncsoft Corporation, Q2 2022 Earnings Call, Aug 12, 2022

Neutral

Ncsoft Corporation, Q1 2022 Earnings Call, May 13, 2022

2022-05-13 00:00:00

Ncsoft Corporation, Q1 2022 Earnings Call, May 13, 2022

Positive

Ncsoft Corporation, 8550. (KRW), Cash Dividend,...

2021-11-24 00:00:00

Ncsoft Corporation, 8550. (KRW), Cash Dividend, Dec-29-2021

Neutral

Ncsoft Corporation, Q3 2021 Earnings Call, Nov 11, 2021

2021-11-06 04:14:00

Ncsoft Corporation, Q3 2021 Earnings Call, Nov 11, 2021

Positive

NCSOFT Launches Multi-Platform MMORPG Lineage W

2021-11-03 23:00:00

NCSOFT launched the company’s multi-platform MMORPG (massively multiplayer online role-playing game) ‘Lineage W’. Lineage W is now available i...

Positive

Ncsoft Corporation Announces Lineage W Takes Of...

2021-09-30 02:30:00

NCSOFT announced that the company’s upcoming multi-platform MMORPG, ‘Lineage W,’ launches simultaneously in 13 countries and regions on Novemb...

Neutral

Ncsoft Corporation, Q2 2022 Earnings Call, Aug 12, 2022

2022-08-12 00:00:00

Ncsoft Corporation, Q2 2022 Earnings Call, Aug 12, 2022

Neutral

Ncsoft Corporation, Q1 2022 Earnings Call, May 13, 2022

2022-05-13 00:00:00

Ncsoft Corporation, Q1 2022 Earnings Call, May 13, 2022

Positive

Ncsoft Corporation, 8550. (KRW), Cash Dividend, Dec-29-2021

2021-11-24 00:00:00

Ncsoft Corporation, 8550. (KRW), Cash Dividend, Dec-29-2021

Neutral

Ncsoft Corporation, Q3 2021 Earnings Call, Nov 11, 2021

2021-11-06 04:14:00

Ncsoft Corporation, Q3 2021 Earnings Call, Nov 11, 2021

Positive

NCSOFT Launches Multi-Platform MMORPG Lineage W

2021-11-03 23:00:00

NCSOFT launched the company’s multi-platform MMORPG (massively multiplayer online role-playing game) ‘Lineage W’. Lineage W is now available in 12 countries and regions, including Korea, Taiwan, Japan, Southeast Asia, and the Middle East. NCSOFT will expand service regions afterward to North America, South America, Europe, and Russia as well. Players can download Lineage W on iOS devices, Android devices, and PC (via PURPLE, NCSOFT’s proprietary PC cross-play service). Players can also select a gender for each class: Monarch, Knight, Elf, and Mage. Lineage W is a new title succeeding the legitimacy of PC MMORPG Lineage. Lineage W was developed for global players with the concept ‘Worldwide’. The game supports a single build for worldwide players, quarter view based on full 3D graphics and real-time AI translation. Cross-play on console is also under preparation.

Positive

Ncsoft Corporation Announces Lineage W Takes Off Across the Globe on November 4, 2021

2021-09-30 02:30:00

NCSOFT announced that the company’s upcoming multi-platform MMORPG, ‘Lineage W,’ launches simultaneously in 13 countries and regions on November 4, 2021. Lineage W launches at midnight of November 4 (UTC/GMT+9) in 13 countries and regions, including Korea, Taiwan, Japan, Russia, Southeast Asia, and the Middle East. Character name reservation for preferred server begins at 11 amSeptember 30 (UTC/GMT+9) on the event page.

Fundamental Summary

At a high level, the metrics from Ncsoft's Q1 financial report release were demonstrably positive. Their growth, value, and income factors indicate a well-executed and balanced strategy, which is generating exciting growth. These results lead us to believe that there should be significant upside potential for the stock. Therefore, they earned a total score of 89 out of 100 and a STRONG BUY recommendation.

Ncsoft reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported sales was KRW 751,241.39 million compared to KRW 466,945.91 million a year ago. Net income was KRW 168,901.65 million compared to KRW 80,877.13 million a year ago. Basic earnings per share from continuing operations was KRW 8,317 compared to KRW 3,925 a year ago. Diluted earnings per share from continuing operations was KRW 8,317 compared to KRW 3,925 a year ago. Basic earnings per share was KRW 8,317 compared to KRW 3,925 a year ago.

Business Description

Ncsoft develops and publishes online games worldwide. It is also involved in Call center management, Professional baseball team, and media content creation activities. The company was incorporated in 1997 and is headquartered in Seoul, South Korea.

Sector Overview

Ncsoft is included in the Entertainment according to GICS (global industry classification standard). The Entertainment industry, which is part of the Communication Services sector, includes Movies & Entertainment and Interactive Home Entertainment. Ncsoft's industry and sector affiliation are expected to positively boost their relative likelihood to overperform the market looking forward, as they should benefit significantly from the macroeconomic environment we see now.

Fundamental Highlights


Parameter Value Change Score
Assets 4.5T -2.0% 82
Liabilities 1.4T -5.5% 71
Price to Book 3.0 -29.7% 52
Cash & Equivalents 275.7B 7.7% 78
Equity 3.1T -0.3% 76
EBITDA 656.7B 41.1% 94
Total Revenues 2.6T 12.0% 42
Parameter Value Change Score
Return on Equity 15.7 24.5% 92
Net Cashflow 45.2B -54.2% 91
Capital Expenditure -319.6B -11.7% 52
Asset Turnover 0.6 10.7% 61
Free Cashflow Per Share 9.0K 77.0% 94
* All values are TTM

The below chart reflects Ncsoft's birds-eye view on its performance with respect to its peers, the company's fillings as reported or to a similar industry, market cap, and country of origin. While Ncsoft's peer average final assessment score stands on 66, Ncsoft's score is 89.

  •  A036570
  •  Peers average
Name Market Cap Balance Sheet Income Statement Cash Flow Rating Final Assessment mc_sort Hidden
KRAFTON, Inc. 9.6T 69 73 81
Hold
76
76 0 1
HYBE Co., Ltd. 5.4T 80 78 82
Buy
86
86 1 1
Netmarble Corporation 4.4T 55 49 49
Underperform
39
39 2 1
CJ CGV Co., Ltd. 722.8B 75 79 82
Buy
84
84 3 1
NHN Corporation 722.7B 74 51 48
Underperform
52
52 4 1
ContentreeJoongAng corp. 494.4B 68 77 91
Buy
82
82 5 1
M-net Media Corp 291.0B 63 49 60
Underperform
51
51 6 1
IHQ Inc. 121.1B 67 81 60
Hold
69
69 7 1
IHQ Inc. 76.2B 52 58 78
Underperform
52
52 8 1
Ascendio Co., Ltd. 72.1B 69 90 63
Hold
76
76 9 1
The Century Co., Ltd. 39.1B 67 79 60
Hold
69
69 10 1
Kakao Games Corp. 3.3T 54 78 64
Hold
62
62 11 1
Pearl Abyss Corp. 2.8T 62 80 77
Hold
74
74 12 1
Studio Dragon Corporation 1.9T 74 79 73
Buy
79
79 13 1
JYP Entertainment Corporation 1.8T 90 78 53
Buy
79
79 14 1
SM Entertainment Co., Ltd. 1.6T 76 58 65
Hold
64
64 15 1
CJ ENM CO., Ltd. 1.6T 73 67 73
Hold
71
71 16 1
Wemade Co.,Ltd. 1.5T 65 41 46
Underperform
40
40 17 1
Com2uS Corporation 884.0B 62 59 54
Underperform
51
51 18 1
Nexon GT Co., Ltd. 871.6B 69 83 86
Buy
84
84 19 1
YG Entertainment Inc. 836.4B 83 78 52
Hold
75
75 20 1
Wysiwyg Studios Co., Ltd. 789.5B 51 40 87
Underperform
48
48 21 1
NEOWIZ 750.7B 77 79 66
Hold
78
78 22 1
Wemade Max Co., Ltd. 453.9B 88 82 84
Strong Buy
94
94 23 1
Devsisters corporation 444.8B 64 57 48
Underperform
49
49 24 1
Webzen Inc. 419.9B 63 80 64
Hold
69
69 25 1
Neptune Company 383.8B 53 54 64
Underperform
47
47 26 1
GIANTSTEP Inc. 382.7B 63 40 44
Underperform
37
37 27 1
SM Culture & Contents Co., Ltd. 285.1B 72 85 79
Buy
84
84 28 1
Com2uS Holdings Corporation 283.4B 50 56 60
Underperform
45
45 29 1
Dexter Studios Co.,Ltd. 262.9B 67 59 69
Hold
61
61 30 1
Chorokbaem Media Co., Ltd. 253.6B 86 74 71
Buy
83
83 31 1
JOYCITY Corporation 245.3B 59 56 58
Underperform
52
52 32 1
Showbox Corp. 219.2B 63 79 66
Hold
67
67 33 1
Cube Entertainment, Inc. 204.1B 87 79 84
Strong Buy
93
93 34 1
Genie Music Corporation 195.2B 75 82 81
Buy
85
85 35 1
Wemade Play Co., Ltd. 186.2B 50 48 73
Underperform
43
43 36 1
Action Square CO., LTD. 180.8B 61 50 74
Underperform
53
53 37 1
NEOWIZ HOLDINGS Corporation 175.7B 69 59 79
Hold
66
66 38 1
ASTORY Co.,Ltd 175.5B 72 50 79
Hold
63
63 39 1
Next Entertainment World Co., Ltd. 156.3B 81 79 79
Strong Buy
87
87 40 1
SKONEC ENTERTAINMENT Co., Ltd. 148.3B 72 66 53
Underperform
59
59 41 1
RBW, Inc. 140.5B 53 57 80
Underperform
54
54 42 1
Daewon Media Co., Ltd. 135.9B 86 79 60
Buy
80
80 43 1
Bucket Studio Co., Ltd. 129.9B 37 63 65
Underperform
42
42 44 1
KEYEAST.Co.,Ltd. 117.6B 81 48 84
Hold
71
71 45 1
Mgame Corp. 112.6B 82 68 71
Hold
77
77 46 1
RaemongRaein Co., Ltd. 110.5B 72 47 60
Underperform
52
52 47 1
MOBIRIX Co., Ltd 104.7B 74 51 66
Underperform
59
59 48 1
Samhwa Networks Co., Ltd. 96.8B 83 78 87
Strong Buy
91
91 49 1
Pan Entertainment Co., Ltd. 85.3B 71 85 68
Hold
73
73 50 1
Aniplus Inc. 82.7B 76 58 68
Hold
66
66 51 1
HANBIT SOFT Inc. 78.8B 80 98 71
Strong Buy
92
92 52 1
Barunson Co., Ltd. 76.4B 65 49 70
Underperform
53
53 53 1
NHN BUGS Corporation 75.4B 57 58 69
Underperform
52
52 54 1
Actoz Soft Co.,Ltd. 74.8B 86 69 52
Hold
71
71 55 1
Studio Santa Claus Entertainment Co., Ltd. 74.4B 52 58 68
Underperform
48
48 56 1
Benoholdings, Inc. 71.4B 63 59 71
Underperform
57
57 57 1
FNC ENTERTAINMENT Co., Ltd. 68.2B 64 83 65
Hold
71
71 58 1
The E&M Co., Ltd. 63.3B 66 77 66
Hold
68
68 59 1
Barunson Entertainment & Arts Corporation 62.4B 73 54 63
Underperform
58
58 60 1
PLAYWITH Inc. 51.4B 55 84 53
Hold
63
63 61 1
CUROHOLDINGS Co., Ltd. 50.7B 90 72 51
Hold
75
75 62 1
Fantagio Corp. 49.3B 93 56 77
Buy
81
81 63 1
Dragonfly GF Co., Ltd 48.0B 68 70 66
Hold
66
66 64 1
IokCompany Co., Ltd. 45.6B 74 52 67
Underperform
60
60 65 1
Synopex Green Tech Inc. 38.1B 58 77 60
Underperform
56
56 66 1
Carriesoft Co., Ltd. 34.4B 73 79 71
Hold
77
77 67 1
VESPA Inc. 24.6B 43 70 78
Underperform
58
58 68 1
Y-Optics Manufacture Co., Ltd. 17.0B 58 67 79
Hold
66
66 69 1
J way Co., Ltd. 7.8B 46 56 59
Underperform
39
39 70 1

Macro Environment

Neutral
71

Typically, the stock market in South Korea will react to recent economic events, as well as be influenced by the sentiment in other major economies around the world, such as the United States, European Union, and China. Our assessment is that these two events may influence global market sentiment. On the negative side we have the tensions between Taiwan and China, and on the positive side we have the end of Covid-19 pandemic.

Positive End of covid-19 pandemic

The World Health Organization issued six policy briefs outlining essential steps governments could take to stop the pandemic. The briefings, which are based on evidence and experience from the previous 32 months, provide guidance on how to save lives, protect health systems, and minimize social and economic disruption.

Negative Tensions between taiwan and china

The tensions between Taiwan and China have spiked following Nancy Pelosi's visit to Taipei. China staged war games near Taiwan to express its anger at what it saw as stepped-up U.S. support for the island Beijing views as sovereign Chinese territory. Because Taiwan produces the majority of the world's semiconductors, which are used in every electronic device today, a war between China and Taiwan might be catastrophic for the global economy.

Besides the events we mentioned, there are also specific events related to the Media & Entertainment industry of which Ncsoft Corporation is a part. As a result, we believe that the rising inflation may cloud the sector's shares in the near time future.

Negative Rising inflation

The sudden increase in inflation is generally regarded as the most painful since it takes companies several quarters to pass on higher input costs to consumers. Historically, companies traded in the Media & Entertainment industry have been hit by high inflation times due to increased operating expenses and decreased revenues.

In considering the current macro environment and the risks that might affect Ncsoft Corporation stock, we came to the conclusion that recent events aren't likely to affect the company's performance in the short term, and thus rated Ncsoft Corporation macro environment with the score of 71.

Technical Analysis

When trying to optimize the timing of an investment, it's critical to analyze whether the stock looks overbought or oversold, and in which direction the momentum is moving. Ncsoft's stock is now priced below its 5-day, 50-day, and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is weakening. Historically, this is a negative setup in the near, medium, and long-term. The company is trading near it's 12-month low, which signals it struggle to keep above it support price. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Ncsoft's stock appears overbought. Overall, these technical indicators signal negative momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 31.

Bearish 31
Close Price 323500.0
52W Low 323500.0
52W High 786000.0
5D MA 331300.0
50D MA 369710.0
200D MA 459660.0
MACD -12288.03
RSI 99.98
STOCH 0.0

Balance Sheet Analysis

While the critical metrics for Ncsoft's balance sheet were not overwhelmingly positive, nonetheless, Ncsoft's leadership seems to be consistently making smart decisions related to managing their balance sheet. The company's assets section could set high expectations for Ncsoft's future attractiveness, as they went to 4.5T, which is a -2.0% change from the last period. This growth should support upward pressure on its's stock price, which better captures their intrinsic value. Consequently, their asset movement received a grade of 82. Also, Ncsoft's management was effective in improving its cash and cash equivalents metrics, which now sit at 275.7B. This represents 7.7% change from the last reporting period. This performance is significantly more impressive than its peers and competitors. It suggests that their stock price has room to grow to reflect its actual intrinsic value. Consequently, their cash and cash equivalents movement received a grade of 78. That said, one metric, Book Value Factors, stood out as particularly concerning. Ncsoft publishes discouraging results related to book value factors in this report. As of the current filing, price to book ratio (P/B) was reported as 3.0, representing a -29.7% change from the previous report. This characteristic can affect companies in the same industry and market capitalization by up to 23.6%. Their book value factor metrics are even more concerning when compared to their peers. Therefore, their book value factors earned a score of 52. Therefore, we scored the company's balance sheet a 77.

Parameter Value Change Score
Assets 4.5T -2.0% 82
Liabilities 1.4T -5.5% 71
Price to Book 3.0 -29.7% 52
Cash & Equivalents 275.7B 7.7% 78
Equity 3.1T -0.3% 76
* All values are TTM

The below chart describes Ncsoft's performance as reflected on its balance sheet with respect to its peers. While Ncsoft received a balance sheet score of 77, the average of its peers stands on 69.

  •  A036570
  •  Peers average
Name Market Cap Liabilities Movement Asset Change Equity/Intangibles Adjustments Cash & Equivalents Book Value Momentum Balance Sheet mc_sort Hidden
KRAFTON, Inc. 9.6T 75.0 70.0 59.0 43.0 75.0 69 0 1
HYBE Co., Ltd. 5.4T 58.0 72.0 58.0 83.0 73.0 80 1 1
Netmarble Corporation 4.4T 68.0 66.0 73.0 43.0 53.0 55 2 1
CJ CGV Co., Ltd. 722.8B 57.0 81.0 77.0 79.0 54.0 75 3 1
NHN Corporation 722.7B 75.0 67.0 91.0 84.0 53.0 74 4 1
ContentreeJoongAng corp. 494.4B 61.0 74.0 72.0 89.0 42.0 68 5 1
M-net Media Corp 291.0B 73.0 67.0 65.0 40.0 44.0 63 6 1
IHQ Inc. 121.1B 77.0 67.0 64.0 59.0 57.0 67 7 1
IHQ Inc. 76.2B 45.0 38.0 46.0 95.0 58.0 52 8 1
Ascendio Co., Ltd. 72.1B 43.0 74.0 71.0 45.0 55.0 69 9 1
The Century Co., Ltd. 39.1B 64.0 59.0 72.0 96.0 54.0 67 10 1
Kakao Games Corp. 3.3T 99.0 56.0 91.0 48.0 42.0 54 11 1
Pearl Abyss Corp. 2.8T 52.0 57.0 44.0 60.0 75.0 62 12 1
Studio Dragon Corporation 1.9T 68.0 73.0 76.0 87.0 52.0 74 13 1
JYP Entertainment Corporation 1.8T 71.0 71.0 59.0 90.0 84.0 90 14 1
SM Entertainment Co., Ltd. 1.6T 68.0 72.0 47.0 64.0 76.0 76 15 1
CJ ENM CO., Ltd. 1.6T 62.0 72.0 72.0 85.0 55.0 73 16 1
Wemade Co.,Ltd. 1.5T 69.0 68.0 90.0 80.0 42.0 65 17 1
Com2uS Corporation 884.0B 65.0 73.0 63.0 45.0 60.0 62 18 1
Nexon GT Co., Ltd. 871.6B 66.0 68.0 54.0 39.0 85.0 69 19 1
YG Entertainment Inc. 836.4B 64.0 74.0 47.0 94.0 69.0 83 20 1
Wysiwyg Studios Co., Ltd. 789.5B 73.0 65.0 69.0 47.0 42.0 51 21 1
NEOWIZ 750.7B 66.0 65.0 47.0 63.0 89.0 77 22 1
Wemade Max Co., Ltd. 453.9B 74.0 71.0 61.0 89.0 79.0 88 23 1
Devsisters corporation 444.8B 77.0 72.0 73.0 51.0 54.0 64 24 1
Webzen Inc. 419.9B 71.0 62.0 74.0 42.0 73.0 63 25 1
Neptune Company 383.8B 74.0 73.0 67.0 43.0 41.0 53 26 1
GIANTSTEP Inc. 382.7B 72.0 50.0 64.0 98.0 47.0 63 27 1
SM Culture & Contents Co., Ltd. 285.1B 68.0 68.0 92.0 90.0 48.0 72 28 1
Com2uS Holdings Corporation 283.4B 68.0 67.0 73.0 45.0 41.0 50 29 1
Dexter Studios Co.,Ltd. 262.9B 73.0 74.0 73.0 75.0 44.0 67 30 1
Chorokbaem Media Co., Ltd. 253.6B 68.0 68.0 40.0 96.0 85.0 86 31 1
JOYCITY Corporation 245.3B 64.0 53.0 54.0 50.0 68.0 59 32 1
Showbox Corp. 219.2B 87.0 69.0 57.0 37.0 64.0 63 33 1
Cube Entertainment, Inc. 204.1B 53.0 79.0 89.0 95.0 51.0 87 34 1
Genie Music Corporation 195.2B 78.0 66.0 77.0 47.0 89.0 75 35 1
Wemade Play Co., Ltd. 186.2B 37.0 39.0 71.0 43.0 54.0 50 36 1
Action Square CO., LTD. 180.8B 42.0 66.0 49.0 72.0 45.0 61 37 1
NEOWIZ HOLDINGS Corporation 175.7B 88.0 72.0 69.0 56.0 46.0 69 38 1
ASTORY Co.,Ltd 175.5B 72.0 63.0 77.0 45.0 85.0 72 39 1
Next Entertainment World Co., Ltd. 156.3B 60.0 73.0 76.0 68.0 85.0 81 40 1
SKONEC ENTERTAINMENT Co., Ltd. 148.3B 93.0 69.0 50.0 88.0 67.0 72 41 1
RBW, Inc. 140.5B 50.0 58.0 40.0 63.0 54.0 53 42 1
Daewon Media Co., Ltd. 135.9B 52.0 75.0 76.0 93.0 82.0 86 43 1
Bucket Studio Co., Ltd. 129.9B 60.0 39.0 46.0 41.0 39.0 37 44 1
KEYEAST.Co.,Ltd. 117.6B 42.0 78.0 54.0 97.0 86.0 81 45 1
Mgame Corp. 112.6B 82.0 70.0 77.0 74.0 87.0 82 46 1
RaemongRaein Co., Ltd. 110.5B 49.0 78.0 55.0 54.0 77.0 72 47 1
MOBIRIX Co., Ltd 104.7B 56.0 67.0 56.0 92.0 85.0 74 48 1
Samhwa Networks Co., Ltd. 96.8B 94.0 61.0 78.0 94.0 93.0 83 49 1
Pan Entertainment Co., Ltd. 85.3B 59.0 72.0 72.0 46.0 73.0 71 50 1
Aniplus Inc. 82.7B 62.0 75.0 52.0 90.0 74.0 76 51 1
HANBIT SOFT Inc. 78.8B 80.0 74.0 58.0 76.0 94.0 80 52 1
Barunson Co., Ltd. 76.4B 88.0 57.0 70.0 69.0 50.0 65 53 1
NHN BUGS Corporation 75.4B 63.0 54.0 71.0 45.0 60.0 57 54 1
Actoz Soft Co.,Ltd. 74.8B 44.0 77.0 76.0 86.0 84.0 86 55 1
Studio Santa Claus Entertainment Co., Ltd. 74.4B 90.0 52.0 45.0 61.0 47.0 52 56 1
Benoholdings, Inc. 71.4B 87.0 66.0 47.0 79.0 44.0 63 57 1
FNC ENTERTAINMENT Co., Ltd. 68.2B 62.0 62.0 74.0 53.0 70.0 64 58 1
The E&M Co., Ltd. 63.3B 83.0 60.0 70.0 66.0 52.0 66 59 1
Barunson Entertainment & Arts Corporation 62.4B 69.0 88.0 69.0 37.0 44.0 73 60 1
PLAYWITH Inc. 51.4B 65.0 58.0 73.0 65.0 52.0 55 61 1
CUROHOLDINGS Co., Ltd. 50.7B 45.0 79.0 77.0 95.0 86.0 90 62 1
Fantagio Corp. 49.3B 42.0 81.0 92.0 92.0 76.0 93 63 1
Dragonfly GF Co., Ltd 48.0B 64.0 61.0 70.0 79.0 51.0 68 64 1
IokCompany Co., Ltd. 45.6B 38.0 85.0 45.0 96.0 44.0 74 65 1
Synopex Green Tech Inc. 38.1B 76.0 46.0 60.0 82.0 92.0 58 66 1
Carriesoft Co., Ltd. 34.4B 55.0 50.0 76.0 90.0 84.0 73 67 1
VESPA Inc. 24.6B 71.0 60.0 45.0 40.0 37.0 43 68 1
Y-Optics Manufacture Co., Ltd. 17.0B 63.0 82.0 41.0 87.0 45.0 58 69 1
J way Co., Ltd. 7.8B 60.0 49.0 68.0 40.0 51.0 46 70 1

Income Statement Analysis

EBITDA and Return Factors stand out as the most significant drivers of Ncsoft's income statement's strength. Ncsoft's management was effective in improving its EBIDTA, which now sits at 656.7B and represents a 41.1% change from the last reporting period. Companies in the same industry and market capitalization are typically affected by this parameter by up to 21.9%. Their EBITDA metrics are even more impressive relative to their peers and competitors, and its likely the stock price has room to grow to reflect its intrinsic value accurately. Consequently, their EBITDA movement received a grade of 94. That said, one metric, Revenue Efficiency, stood out as particularly concerning. Ncsoft reported discouraging numbers for its revenue efficiency. As of the current filing, they were reported as 2.6T and represented 12.0% change from the previous period. This metric might have a 9.5 percent impact on companies in the same industry and with the same market capitalization. Its uninspiring revenue efficiency is even more concerning relative to its peers and competitors in the current market. Consequently, their revenue efficiency received a grade of 42. Therefore, it received a score of 81.

Parameter Value Change Score
EBITDA 656.7B 41.1% 94
Total Revenues 2.6T 12.0% 42
Return on Equity 15.7 24.5% 92
* All values are TTM

The below chart describes Ncsoft's performance as reflected on its income statement with respect to its peers. While Ncsoft received a income statement score of 81 , the average of its peers stands on 66.

  •  A036570
  •  Peers average
Name Market Cap Revenue Momentum Earning Movement Return Factors Momentum Income Statement mc_sort Hidden
KRAFTON, Inc. 9.6T 89.0 65.0 63.0 73 0 1
HYBE Co., Ltd. 5.4T 41.0 92.0 80.0 78 1 1
Netmarble Corporation 4.4T 58.0 46.0 39.0 49 2 1
CJ CGV Co., Ltd. 722.8B 40.0 93.0 89.0 79 3 1
NHN Corporation 722.7B 60.0 48.0 47.0 51 4 1
ContentreeJoongAng corp. 494.4B 40.0 90.0 90.0 77 5 1
M-net Media Corp 291.0B 55.0 47.0 44.0 49 6 1
IHQ Inc. 121.1B 95.0 68.0 61.0 81 7 1
IHQ Inc. 76.2B 95.0 38.0 74.0 58 8 1
Ascendio Co., Ltd. 72.1B 97.0 80.0 67.0 90 9 1
The Century Co., Ltd. 39.1B 75.0 78.0 77.0 79 10 1
Kakao Games Corp. 3.3T 40.0 91.0 89.0 78 11 1
Pearl Abyss Corp. 2.8T 69.0 83.0 80.0 80 12 1
Studio Dragon Corporation 1.9T 44.0 90.0 91.0 79 13 1
JYP Entertainment Corporation 1.8T 43.0 90.0 88.0 78 14 1
SM Entertainment Co., Ltd. 1.6T 84.0 47.0 47.0 58 15 1
CJ ENM CO., Ltd. 1.6T 47.0 79.0 45.0 67 16 1
Wemade Co.,Ltd. 1.5T 44.0 40.0 43.0 41 17 1
Com2uS Corporation 884.0B 49.0 63.0 56.0 59 18 1
Nexon GT Co., Ltd. 871.6B 43.0 87.0 86.0 83 19 1
YG Entertainment Inc. 836.4B 59.0 85.0 71.0 78 20 1
Wysiwyg Studios Co., Ltd. 789.5B 40.0 39.0 49.0 40 21 1
NEOWIZ 750.7B 54.0 87.0 80.0 79 22 1
Wemade Max Co., Ltd. 453.9B 38.0 97.0 96.0 82 23 1
Devsisters corporation 444.8B 97.0 41.0 41.0 57 24 1
Webzen Inc. 419.9B 85.0 76.0 71.0 80 25 1
Neptune Company 383.8B 54.0 50.0 67.0 54 26 1
GIANTSTEP Inc. 382.7B 46.0 38.0 42.0 40 27 1
SM Culture & Contents Co., Ltd. 285.1B 51.0 85.0 94.0 85 28 1
Com2uS Holdings Corporation 283.4B 85.0 43.0 44.0 56 29 1
Dexter Studios Co.,Ltd. 262.9B 41.0 64.0 69.0 59 30 1
Chorokbaem Media Co., Ltd. 253.6B 43.0 76.0 79.0 74 31 1
JOYCITY Corporation 245.3B 95.0 42.0 42.0 56 32 1
Showbox Corp. 219.2B 52.0 85.0 79.0 79 33 1
Cube Entertainment, Inc. 204.1B 47.0 91.0 59.0 79 34 1
Genie Music Corporation 195.2B 70.0 82.0 68.0 82 35 1
Wemade Play Co., Ltd. 186.2B 52.0 46.0 74.0 48 36 1
Action Square CO., LTD. 180.8B 63.0 44.0 70.0 50 37 1
NEOWIZ HOLDINGS Corporation 175.7B 59.0 58.0 65.0 59 38 1
ASTORY Co.,Ltd 175.5B 59.0 49.0 47.0 50 39 1
Next Entertainment World Co., Ltd. 156.3B 45.0 93.0 56.0 79 40 1
SKONEC ENTERTAINMENT Co., Ltd. 148.3B 90.0 52.0 68.0 66 41 1
RBW, Inc. 140.5B 68.0 49.0 74.0 57 42 1
Daewon Media Co., Ltd. 135.9B 69.0 80.0 59.0 79 43 1
Bucket Studio Co., Ltd. 129.9B 50.0 72.0 64.0 63 44 1
KEYEAST.Co.,Ltd. 117.6B 45.0 49.0 73.0 48 45 1
Mgame Corp. 112.6B 68.0 65.0 67.0 68 46 1
RaemongRaein Co., Ltd. 110.5B 46.0 48.0 68.0 47 47 1
MOBIRIX Co., Ltd 104.7B 51.0 50.0 78.0 51 48 1
Samhwa Networks Co., Ltd. 96.8B 38.0 93.0 63.0 78 49 1
Pan Entertainment Co., Ltd. 85.3B 90.0 78.0 64.0 85 50 1
Aniplus Inc. 82.7B 52.0 57.0 78.0 58 51 1
HANBIT SOFT Inc. 78.8B 89.0 95.0 58.0 98 52 1
Barunson Co., Ltd. 76.4B 45.0 51.0 68.0 49 53 1
NHN BUGS Corporation 75.4B 77.0 49.0 81.0 58 54 1
Actoz Soft Co.,Ltd. 74.8B 87.0 57.0 67.0 69 55 1
Studio Santa Claus Entertainment Co., Ltd. 74.4B 91.0 40.0 75.0 58 56 1
Benoholdings, Inc. 71.4B 64.0 58.0 47.0 59 57 1
FNC ENTERTAINMENT Co., Ltd. 68.2B 61.0 87.0 55.0 83 58 1
The E&M Co., Ltd. 63.3B 86.0 64.0 88.0 77 59 1
Barunson Entertainment & Arts Corporation 62.4B 75.0 44.0 68.0 54 60 1
PLAYWITH Inc. 51.4B 95.0 69.0 59.0 84 61 1
CUROHOLDINGS Co., Ltd. 50.7B 76.0 63.0 91.0 72 62 1
Fantagio Corp. 49.3B 72.0 47.0 68.0 56 63 1
Dragonfly GF Co., Ltd 48.0B 84.0 58.0 78.0 70 64 1
IokCompany Co., Ltd. 45.6B 58.0 46.0 87.0 52 65 1
Synopex Green Tech Inc. 38.1B 97.0 57.0 72.0 77 66 1
Carriesoft Co., Ltd. 34.4B 50.0 88.0 70.0 79 67 1
VESPA Inc. 24.6B 94.0 56.0 74.0 70 68 1
Y-Optics Manufacture Co., Ltd. 17.0B 40.0 76.0 80.0 67 69 1
J way Co., Ltd. 7.8B 93.0 46.0 87.0 56 70 1

Cash Flow Analysis

Free Cash flow and Net Cash Flow stand out as the most significant drivers of Ncsoft's cash flow's strength. Ncsoft did a great job related to free cash flow this period, which stood at 9.0K, representing a 77.0% change from the previous filing. This parameter could affect companies in the same industry and market capitalization by up to 2.6%. These free cash flow numbers show that management has executed well while generating cash flow and encouraging growth. The company's free cash flow movement, therefore, received a grade of 94. Also, Ncsoft's management was effective in improving their net cash flow, which now sits at 45.2B and represents a -54.2% change from the previous report. Their net cash flow metrics are especially remarkable relative to their peers. Consequently, their net cash flow movement received a grade of 91. At the same time, one critical cash flow metric, Capital Expenditure, was notably weak. Ncsoft's management did not a remarkable job this period managing capital expenditures (CapEx). In terms of the raw numbers, CapEx was reported as -319.6B, which represents a -11.7% change from the last period. They appears to be headed in the wrong direction regarding resource allocation, exhibiting prudent capital expenditure growth compared to its peers. Consequently, their CapEx movement received a grade of 52. Because the company's management is doing an excellent job managing these critical metrics, the cash flow was given a score of 86.

Parameter Value Change Score
Net Cashflow 45.2B -54.2% 91
Capital Expenditure -319.6B -11.7% 52
Asset Turnover 0.6 10.7% 61
Free Cashflow Per Share 9.0K 77.0% 94
* All values are TTM

The below chart describes Ncsoft's performance as reflected on its cash flow with respect to its peers. While Ncsoft received a cash flow score of 86, the average of its peers stands on 69.

  •  A036570
  •  Peers average
Name Market Cap Cashflow Momentum Free Cashflow Growth Capital Expenditure Growth Assets Factors Momentum Cash Flow mc_sort Hidden
KRAFTON, Inc. 9.6T 87.0 90.0 83.0 42.0 81 0 1
HYBE Co., Ltd. 5.4T 74.0 85.0 95.0 71.0 82 1 1
Netmarble Corporation 4.4T 40.0 38.0 54.0 86.0 49 2 1
CJ CGV Co., Ltd. 722.8B 76.0 92.0 56.0 94.0 82 3 1
NHN Corporation 722.7B 40.0 41.0 65.0 72.0 48 4 1
ContentreeJoongAng corp. 494.4B 77.0 92.0 95.0 92.0 91 5 1
M-net Media Corp 291.0B 49.0 38.0 50.0 81.0 60 6 1
IHQ Inc. 121.1B 51.0 75.0 81.0 59.0 60 7 1
IHQ Inc. 76.2B 84.0 45.0 95.0 61.0 78 8 1
Ascendio Co., Ltd. 72.1B 67.0 53.0 37.0 59.0 63 9 1
The Century Co., Ltd. 39.1B 47.0 50.0 85.0 77.0 60 10 1
Kakao Games Corp. 3.3T 69.0 85.0 38.0 63.0 64 11 1
Pearl Abyss Corp. 2.8T 89.0 43.0 43.0 70.0 77 12 1
Studio Dragon Corporation 1.9T 73.0 86.0 43.0 83.0 73 13 1
JYP Entertainment Corporation 1.8T 48.0 52.0 63.0 66.0 53 14 1
SM Entertainment Co., Ltd. 1.6T 58.0 50.0 94.0 61.0 65 15 1
CJ ENM CO., Ltd. 1.6T 75.0 44.0 52.0 81.0 73 16 1
Wemade Co.,Ltd. 1.5T 44.0 41.0 37.0 80.0 46 17 1
Com2uS Corporation 884.0B 53.0 46.0 45.0 75.0 54 18 1
Nexon GT Co., Ltd. 871.6B 90.0 90.0 42.0 97.0 86 19 1
YG Entertainment Inc. 836.4B 46.0 46.0 64.0 70.0 52 20 1
Wysiwyg Studios Co., Ltd. 789.5B 87.0 85.0 78.0 68.0 87 21 1
NEOWIZ 750.7B 71.0 80.0 38.0 68.0 66 22 1
Wemade Max Co., Ltd. 453.9B 77.0 97.0 94.0 68.0 84 23 1
Devsisters corporation 444.8B 48.0 41.0 84.0 38.0 48 24 1
Webzen Inc. 419.9B 62.0 56.0 84.0 55.0 64 25 1
Neptune Company 383.8B 66.0 73.0 83.0 40.0 64 26 1
GIANTSTEP Inc. 382.7B 37.0 38.0 40.0 89.0 44 27 1
SM Culture & Contents Co., Ltd. 285.1B 74.0 92.0 85.0 68.0 79 28 1
Com2uS Holdings Corporation 283.4B 56.0 87.0 43.0 78.0 60 29 1
Dexter Studios Co.,Ltd. 262.9B 56.0 79.0 86.0 77.0 69 30 1
Chorokbaem Media Co., Ltd. 253.6B 71.0 87.0 41.0 83.0 71 31 1
JOYCITY Corporation 245.3B 48.0 50.0 69.0 73.0 58 32 1
Showbox Corp. 219.2B 58.0 92.0 90.0 69.0 66 33 1
Cube Entertainment, Inc. 204.1B 78.0 40.0 82.0 84.0 84 34 1
Genie Music Corporation 195.2B 91.0 45.0 50.0 62.0 81 35 1
Wemade Play Co., Ltd. 186.2B 77.0 99.0 37.0 63.0 73 36 1
Action Square CO., LTD. 180.8B 73.0 53.0 58.0 72.0 74 37 1
NEOWIZ HOLDINGS Corporation 175.7B 82.0 90.0 40.0 69.0 79 38 1
ASTORY Co.,Ltd 175.5B 74.0 79.0 57.0 77.0 79 39 1
Next Entertainment World Co., Ltd. 156.3B 79.0 58.0 61.0 73.0 79 40 1
SKONEC ENTERTAINMENT Co., Ltd. 148.3B 46.0 93.0 98.0 55.0 53 41 1
RBW, Inc. 140.5B 79.0 42.0 90.0 74.0 80 42 1
Daewon Media Co., Ltd. 135.9B 61.0 48.0 93.0 55.0 60 43 1
Bucket Studio Co., Ltd. 129.9B 61.0 58.0 49.0 72.0 65 44 1
KEYEAST.Co.,Ltd. 117.6B 75.0 38.0 95.0 86.0 84 45 1
Mgame Corp. 112.6B 80.0 79.0 56.0 51.0 71 46 1
RaemongRaein Co., Ltd. 110.5B 58.0 80.0 59.0 60.0 60 47 1
MOBIRIX Co., Ltd 104.7B 69.0 77.0 48.0 54.0 66 48 1
Samhwa Networks Co., Ltd. 96.8B 76.0 41.0 85.0 94.0 87 49 1
Pan Entertainment Co., Ltd. 85.3B 70.0 46.0 87.0 58.0 68 50 1
Aniplus Inc. 82.7B 55.0 90.0 90.0 79.0 68 51 1
HANBIT SOFT Inc. 78.8B 84.0 45.0 60.0 49.0 71 52 1
Barunson Co., Ltd. 76.4B 63.0 94.0 48.0 74.0 70 53 1
NHN BUGS Corporation 75.4B 58.0 96.0 56.0 77.0 69 54 1
Actoz Soft Co.,Ltd. 74.8B 50.0 94.0 48.0 55.0 52 55 1
Studio Santa Claus Entertainment Co., Ltd. 74.4B 73.0 55.0 39.0 61.0 68 56 1
Benoholdings, Inc. 71.4B 74.0 38.0 89.0 60.0 71 57 1
FNC ENTERTAINMENT Co., Ltd. 68.2B 63.0 96.0 95.0 54.0 65 58 1
The E&M Co., Ltd. 63.3B 67.0 51.0 88.0 60.0 66 59 1
Barunson Entertainment & Arts Corporation 62.4B 64.0 51.0 81.0 58.0 63 60 1
PLAYWITH Inc. 51.4B 45.0 48.0 92.0 70.0 53 61 1
CUROHOLDINGS Co., Ltd. 50.7B 46.0 77.0 89.0 54.0 51 62 1
Fantagio Corp. 49.3B 87.0 89.0 41.0 56.0 77 63 1
Dragonfly GF Co., Ltd 48.0B 69.0 46.0 40.0 63.0 66 64 1
IokCompany Co., Ltd. 45.6B 66.0 54.0 56.0 67.0 67 65 1
Synopex Green Tech Inc. 38.1B 76.0 77.0 78.0 40.0 60 66 1
Carriesoft Co., Ltd. 34.4B 60.0 95.0 46.0 83.0 71 67 1
VESPA Inc. 24.6B 63.0 76.0 87.0 86.0 78 68 1
Y-Optics Manufacture Co., Ltd. 17.0B 70.0 77.0 41.0 87.0 79 69 1
J way Co., Ltd. 7.8B 56.0 97.0 40.0 66.0 59 70 1

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