Fact based stock research
NCSOFT (KOSE:A036570)
KR7036570000
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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.
NCSOFT stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), NCSOFT (Interactive Home Entertainment, South Korea) shares have lower financial characteristics compared with similar stocks. Shares of NCSOFT are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), are safely financed (Safety Rank of 60, which means low debt burdens), but show below-average growth (Growth Rank of 1). ...read more
RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on NCSOFT's financial characteristics. As the company NCSOFT's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 1) while being safely financed (Obermatt Safety Rank of 60), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 59% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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 | KOSPI |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: NCSOFT
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 76 |
|
61 |
|
60 |
|
59 |
|
| GROWTH | ||||||||
| GROWTH | 1 |
|
25 |
|
17 |
|
1 |
|
| SAFETY | ||||||||
| SAFETY | 98 |
|
76 |
|
77 |
|
60 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
57 |
|
48 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
63 |
|
51 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), NCSOFT (Interactive Home Entertainment, South Korea) shares have lower financial characteristics compared with similar stocks. Shares of NCSOFT are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), are safely financed (Safety Rank of 60, which means low debt burdens), but show below-average growth (Growth Rank of 1). ...read more
RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on NCSOFT's financial characteristics. As the company NCSOFT's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 1) while being safely financed (Obermatt Safety Rank of 60), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 59% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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 | 76 |
|
61 |
|
60 |
|
59 |
|
| GROWTH | ||||||||
| GROWTH | 1 |
|
25 |
|
17 |
|
1 |
|
| SAFETY | ||||||||
| SAFETY | 98 |
|
76 |
|
77 |
|
60 |
|
| COMBINED | ||||||||
| COMBINED | 71 |
|
61 |
|
46 |
|
14 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), NCSOFT shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for NCSOFT. Expected dividend yields are higher than for 60% of comparable companies (a Dividend Yield rank of 60), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 72, which means that the stock price is lower compared with invested capital than for 72% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 39 which means that the stock price compared with what market professionals expect for future profits is higher than for 61% of comparable companies, indicating a low value concerning NCSOFT's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for NCSOFT with a rank of 37. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 63% of comparable companies, indicating a low value concerning NCSOFT's profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on NCSOFT's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, NCSOFT may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 52 |
|
40 |
|
41 |
|
39 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 81 |
|
65 |
|
60 |
|
37 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 43 |
|
46 |
|
74 |
|
72 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 83 |
|
66 |
|
64 |
|
60 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 76 |
|
61 |
|
60 |
|
59 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 1 (better than 1% compared with alternatives), NCSOFT shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for NCSOFT. While Sales Growth ranks at 58, professionals currently expect the company to grow more than 58% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 1, which means that, currently, professionals expect the company to grow its profits less than 99% of its competitors, and Capital Growth has a low rank of 4. Historic stock returns were also below average with a current Stock Returns rank of 21 which means that the stock returns have recently been below 79% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 1, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. 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, especially since the growth performance isn't stellar here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 3 |
|
93 |
|
51 |
|
58 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 21 |
|
14 |
|
10 |
|
1 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
25 |
|
52 |
|
4 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 13 |
|
21 |
|
7 |
|
21 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 1 |
|
25 |
|
17 |
|
1 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 60 (better than 60% compared with alternatives), the company NCSOFT has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of NCSOFT is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for NCSOFT and the other two below average. Refinancing is at 85, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 85% of its competitors. But Leverage is high with a rank of 42, meaning the company has an above-average debt-to-equity ratio. It has more debt than 58% of its competitors. Liquidity is also on the riskier side with a rank of 44, meaning the company generates less profit to service its debt than 56% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 60 (better than 60% compared with alternatives), NCSOFT has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for NCSOFT are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with NCSOFT and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 82 |
|
57 |
|
46 |
|
42 |
|
| REFINANCING | ||||||||
| REFINANCING | 55 |
|
72 |
|
84 |
|
85 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 100 |
|
66 |
|
57 |
|
44 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 98 |
|
76 |
|
77 |
|
60 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
78 |
|
41 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
18 |
|
52 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
9 |
|
18 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
93 |
|
87 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
57 |
|
48 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for NCSOFT from November 14, 2024.
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