Kakao turns the users it gathers through KakaoTalk, the messenger nearly every Korean uses, into revenue across a platform arm (Talk Biz ads and commerce, the Daum portal, mobility, and Pay) and a content arm (games, webtoons, and music), and its stakes in listed financial affiliates like KakaoBank and KakaoPay form another pillar of group value. Filings in this window are mostly routine and administrative, such as the corporate governance report and the large business group status disclosure, while profit continues to normalize with double-digit operating-profit growth as seen in Q1 2026. The strength worth watching is the gap between recovering earnings and a share price that sits 46% below its 52-week high. The cautions are that top-line growth has slowed to the low single digits, that the profit rebound could turn out to lean on one-off cost cuts, and that the debt ratio is high.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 246.4%).
- Revenue rose 3.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 11.1% higher than a year earlier.
- Even versus the prior quarter (Q4 2025), revenue was 8.4% lower.
- ROE is 4.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 9.0%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2020-12-31
Largest shareholder Kim Beom-su 14.12% (individual)
Controlling bloc incl. related parties 25.43%
With the controlling bloc holding 25%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Kakao's starting point is effectively KakaoTalk, the messenger nearly the whole country uses.
- It concentrates people and traffic in one place through the messenger, then earns money in several ways on top of that base.
- Revenue splits broadly into two arms.
- The first is the platform arm, which includes Talk Biz advertising and commerce (from the KakaoTalk chat list, gifting, and emoticons), the Portal Biz business that bundles Daum search and display advertising, and Kakao Mobility (taxi and driver services) and Kakao Pay payments.
- The second is the content arm, centered on Kakao Games' mobile and PC titles and Kakao Entertainment's webtoons, web novels, and music (Melon).
- On top of that, stakes in separately listed financial affiliates such as KakaoBank and KakaoPay support another pillar of group value.
- In short, the way this company makes money is by converting the users it gathers through its messenger into advertising, commerce, content, and finance revenue.
- The latest close is ₩33,650 and market cap is ₩14.9 trillion.
- The price sits below the 20-day line (₩36,400) and below the 60-day line (₩41,828).
- It trades under both its short- and mid-term moving averages, so the trend is subdued.
- The RSI (a gauge that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 34.5, a neutral level.
- The one-month change is -11.8%, the three-month change is -27.5%, and the price is -50.3% from its 52-week high.
- Relative strength versus the KOSPI is 3 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 98% by strength among all stocks.
- Over the past three months it lagged the index by 43.4%.
- Chart readings are best viewed alongside trading volume and the dates of disclosures.
- On confirmed annual (2025) figures, the P/E (how many times one year of net profit the price represents) is 30.24x and the P/B (how many times the company's net assets the price represents) is 1.32x.
- ROE (how much the company earns in a year on its equity) is 4.4%, operating margin (operating profit per ₩100 of revenue) is 9.0%, and net margin is 6.1%.
- The debt ratio (the size of debt relative to equity) is 246.4%, largely because the borrowings and lease liabilities of several subsidiaries such as Kakao Mobility and the content businesses are consolidated together.
- The most important point here is that this P/E of 33.93x uses last year's actual, already-completed one-year profit (trailing) as its denominator.
- Net profit in 2025 had just climbed back onto a normal track, rising to ₩491.5 billion from a very low prior-year base (₩55.3 billion in 2024), so with the denominator still early in its recovery, looking at last year's figure alone makes the multiple appear higher than it really is.
- On a forward P/E using this year's expected profit, normalizing earnings up one notch, the price sits in a far more reasonable position than the last-year figure implied.
- A P/B of 1.48x is also not far from the closest comparable, NAVER (about 1.3x), so this is not a stock carrying a striking premium to net assets.
- Revenue rose every year from ₩5.9 trillion in 2021 to ₩8.1 trillion in 2025.
- The pace of growth itself stepped down from +4.1% (2024) to +3.0% (2025), so top-line growth has clearly moderated.
- Over the same period, however, the earnings recovery is distinct.
- Operating profit accelerated in 2025, up +47.8% year on year to ₩732.0 billion, and net profit normalized quickly from a loss of over ₩1 trillion in 2023 to ₩55.3 billion in 2024 and ₩491.5 billion in 2025.
- Most recently, in Q1 2026, revenue of ₩1.9 trillion (+11.1%), operating profit of ₩211.4 billion (+66.0%), and net profit of ₩226.8 billion (+13.2%) extended the earnings improvement for one more quarter.
- Profit growing much faster than the top line reflects a classic profit-leverage phase, as the cost structure is streamlined and high-margin revenue that carries almost no incremental cost (such as Talk Biz advertising and commerce) grows as a share of the mix.
- The forward P/E on this year's expected profit falling well below last year's 33.93x is precisely a sign that this earnings recovery is enlarging the denominator with real numbers.
- It is true that revenue growth has slowed, but that does not erode the earnings recovery, and both should be read together.
- In this window, Kakao's disclosures are mostly routine and administrative filings about governance and ownership changes rather than major events like earnings or contracts.
- On May 28, 2026, a corporate governance report was filed, updating the board composition and shareholder-rights protections, and on the same day a large business group status disclosure laid out the group's affiliate structure.
- Between May 19 and 28, several ownership reports by executives and major shareholders were filed in succession; this is a procedure to transparently disclose changes in insider holdings and does not by itself signal good or bad.
- On June 1, a correction to the earlier group-status disclosure adjusted some of its wording.
- Disclosures on earnings or contracts that would shape the business direction will appear in the next quarterly report, so for now this is a quiet stretch dominated by routine filings rather than changes in the underlying business.
- The heart of this stock is the gap between earnings that are reviving and a price that has fallen well back.
- The bullish case rests on double-digit operating-profit growth continuing quarter by quarter as in Q1 2026, so that the P/E that stood at 33.93x on last year's figures settles into a range around 23.89x on this year's earnings, and on Talk Biz advertising and gifting adding to growth again.
- That earnings are normalizing while the price sits 46% below its 52-week high is itself a clear strength.
- On the cautionary side, top-line growth could congeal at the low-single-digit level, or this earnings recovery could prove to lean on one-off cost cuts, blunting momentum in the next quarter.
- Because the debt ratio is on the high side, the borrowing burden at subsidiaries could become a factor when rates or the business cycle wobble.
- In short, this is a stock whose weight rests on the durability of the recovery: the longer the earnings recovery is confirmed to last, the stronger it looks, and the more the slowdown in top-line growth becomes entrenched, the weaker.
🔎 Valuation vs peers Inconclusive
The primary comparable is NAVER, whose business reality of bundling advertising, commerce, and content on top of a messenger-and-search base is the closest match; because the sample of true same-sector peers is small, the whole-market median (P/E 25.66x, P/B 2.19x) is used only as a supplementary reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NAVER | 14.81x | 1.05x | 7.08% |
On P/E alone, Kakao looks about 1.5 times higher than NAVER. But this multiple is on last year's confirmed profit (trailing), so for a company that has just normalized off a 2025 loss base, the understated denominator inflates the apparent multiple. From a forward view, applying quarterly-distribution patterns to the confirmed Q1 result, a DART seasonality approximation suggests operating profit this year could recover to roughly the ₩1 trillion range, and if that path plays out the effective multiple falls. That said, this is an unverified approximation rather than an official company forecast, and with ROE trailing NAVER's and revenue growth slowing, it is more reasonable to hold judgment until the durability of the earnings recovery is confirmed than to simply call the stock cheap or expensive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. 2 ₩112.1 billion | approx. ₩298.9 billion | approx. ₩194.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩33,650 and the market capitalization is ₩14.9 trillion. The price sits below its 20-day moving average (₩36,400) and below its 60-day moving average (₩41,828). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.5, a neutral level. The one-month change is -11.8%, the three-month change is -27.5%, and the position relative to the 52-week high is -50.3%. Relative strength versus the KOSPI is 3 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 2% of all stocks. Over the past three months it lagged the index by 43.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -43.37% / 6M -67.27% / 12M -75.83%
Key metrics vs sector median
Valuation
The P/E of 30.24x is above the sector median (14.81x). The P/B of 1.32x is above the sector median (1.11x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.7%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 4.4%, below the sector average (12.0%). The operating margin is 9.0%. The debt ratio is 246.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.0B | $5.2B | $5.4B | +2.99% ↓ slower |
| Operating profit | $320.1M | $328.3M | $485.2M | +47.80% ↑ faster |
| Net profit | -$671.1M | $36.6M | $325.7M | +789.14% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.9B | $4.5B | $5.0B | $5.2B | $5.4B |
| Operating profit | $389.6M | $377.4M | $320.1M | $328.3M | $485.2M |
| Net profit | $919.5M | $900.0M | -$671.1M | $36.6M | $325.7M |
| Revenue CAGR | 4-yr avg 8.19% | ||||
Revenue rose 3.0% year over year (2023 ₩7.6 trillion → 2024 ₩7.9 trillion → 2025 ₩8.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 47.8% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.2%. The two-year revenue CAGR is 3.5%. In the most recent quarter (Q1 2026), revenue was 11.1% higher than the same period a year earlier. Because quarterly results are relatively even in this industry, revenue also came in 8.4% lower than the prior quarter (Q4 2025), so the recent trend looks soft.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
Technical indicators
What stands out
- —
Points to watch
- Revenue rose 3.0% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-28FilingCorporate governance report filed — a periodic review disclosing board composition, shareholder-rights protections, and internal-control status.The near-term price impact is limited, but governance transparency affects a platform company's credibility and its medium-to-long-term cost of financing. Source
- 2026-05-28FilingLarge business group status disclosure (representative company) — an annual summary of the group's affiliate structure and internal transactions.It offers an at-a-glance view of the group's affiliate structure. It is a resource for gauging the weight of unlisted and financial affiliates, not a direct driver of profit. Source
- 2026-05-19UpdateOwnership report on specific securities by executives and major shareholders — disclosing changes in insider holdings.This is a routine procedure that transparently discloses insider transactions. A single report is not enough to determine direction; the pattern as reports accumulate is what matters. Source
- 2026-06-01FilingLarge business group status disclosure [annual and Q1 version] correction — a partial revision to the wording of the earlier group-status disclosure.A correction to an existing disclosure, not a change in the underlying business. It is a procedural matter of maintaining disclosure accuracy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest close (2026-06-08) | ₩33,650 | — | Unverified | link |
| Cumulative Q1 2026 operating profit | ₩211.4 billion | ₩211.4 billion | Unverified | link |
| Five-year revenue trend | 2021 ₩5.9 trillion → 2025 ₩8.1 trillion | — | Unverified | link |
| 2026 full-year estimate (seasonality approximation) | revenue approx. 8 ₩171.4 billion · operating profit approx. 1 ₩133.1 billion | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-05-28Corporate governance report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28Large-business-group status disclosure
- 2026-05-28Large-business-group status disclosure
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.