Fact based stock research
Kakao Games (KOSDAQ:A293490)
KR7293490009
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Kakao Games stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), Kakao Games (Interactive Home Entertainment, South Korea) shares have lower financial characteristics compared with similar stocks. Shares of Kakao Games are low in value (priced high) with a consolidated Value Rank of 27 (worse than 73% of alternatives), and are riskily financed (Safety Rank of 6, which means above-average debt burdens) but show above-average growth (Growth Rank of 79). ...read more
RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on Kakao Games's financial characteristics. As the company Kakao Games shows low value with an Obermatt Value Rank of 27 (73% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 79% of comparable companies (Obermatt Growth Rank is 79). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 6 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Kakao Games, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | South Korea |
| Industry | Interactive Home Entertainment |
| Index | |
| Size class | Medium |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Kakao Games
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 22 |
|
3 |
|
27 |
|
27 |
|
| GROWTH | ||||||||
| GROWTH | 100 |
|
99 |
|
87 |
|
79 |
|
| SAFETY | ||||||||
| SAFETY | 80 |
|
26 |
|
16 |
|
6 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
70 |
|
19 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
38 |
|
12 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), Kakao Games (Interactive Home Entertainment, South Korea) shares have lower financial characteristics compared with similar stocks. Shares of Kakao Games are low in value (priced high) with a consolidated Value Rank of 27 (worse than 73% of alternatives), and are riskily financed (Safety Rank of 6, which means above-average debt burdens) but show above-average growth (Growth Rank of 79). ...read more
RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on Kakao Games's financial characteristics. As the company Kakao Games shows low value with an Obermatt Value Rank of 27 (73% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 79% of comparable companies (Obermatt Growth Rank is 79). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 6 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Kakao Games, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 22 |
|
3 |
|
27 |
|
27 |
|
| GROWTH | ||||||||
| GROWTH | 100 |
|
99 |
|
87 |
|
79 |
|
| SAFETY | ||||||||
| SAFETY | 80 |
|
26 |
|
16 |
|
6 |
|
| COMBINED | ||||||||
| COMBINED | 44 |
|
22 |
|
35 |
|
12 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 27 (worse than 73% compared with alternatives), Kakao Games shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Kakao Games. Price-to-Sales (P/S) is 55, which means that the stock price compared with what market professionals expect for future sales is lower than for 55% of comparable companies, indicating a good value concerning Kakao Games's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 68% of alternatives (32% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 16, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 27, is a hold recommendation based on Kakao Games's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Kakao Games may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 24 |
|
26 |
|
46 |
|
55 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 35 |
|
28 |
|
28 |
|
16 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 25 |
|
24 |
|
67 |
|
68 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 22 |
|
3 |
|
27 |
|
27 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 79 (better than 79% compared with alternatives) for 2024, Kakao Games shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Kakao Games. Sales Growth has a value of 78 which means that currently professionals expect the company to grow more than 78% of its competitors. Profit Growth with a value of 75 and Capital Growth with a rank of 76 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 5, which means that stock returns have recently been below 95% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 79, is a buy recommendation for growth and momentum investors. Kakao Games has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Kakao Games, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 92 |
|
86 |
|
90 |
|
78 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
67 |
|
92 |
|
75 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
100 |
|
77 |
|
76 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 98 |
|
95 |
|
3 |
|
5 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 100 |
|
99 |
|
87 |
|
79 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 6 (better than 6% compared with alternatives), the company Kakao Games has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Kakao Games is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Kakao Games. Liquidity is at 23, meaning that the company generates less profit to service its debt than 77% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 8, meaning the company has an above-average debt-to-equity ratio. It has more debt than 92% of its competitors. Finally, Refinancing is at a rank of 7 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 93% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 6 (worse than 94% compared with alternatives), Kakao Games has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Kakao Games because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 44 |
|
45 |
|
9 |
|
8 |
|
| REFINANCING | ||||||||
| REFINANCING | 48 |
|
57 |
|
39 |
|
7 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 97 |
|
24 |
|
42 |
|
23 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 80 |
|
26 |
|
16 |
|
6 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
53 |
|
31 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
18 |
|
46 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
66 |
|
33 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
87 |
|
54 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
70 |
|
19 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Kakao Games from December 19, 2024.
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