NCSOFT (NC) develops and operates online and mobile games in-house. In-app purchases and subscription fees from MMORPGs represented by 'Lineage' are its main revenue source, and its structure is shifting so that new titles are added to long-standing flagship IP - it launched the new title Aion 2 in Korea and Taiwan in 2025 and began Lineage Classic in February 2026. Its preliminary first-quarter 2026 results (revenue ₩557.4 billion, operating profit ₩113.3 billion) confirmed a rebound, and under a three-year 2025-2027 shareholder-return plan it has committed to a cash dividend of 30% of consolidated net profit excluding one-off items and to retiring about 1.9% of shares outstanding. The strength is that on top of the stable cash flow from the Lineage IP, Aion 2 has been confirmed as real profit from the first quarter, with a global launch in the second half remaining as a growth axis. The main caution is that the durability of a new title's early success and the balance between the second-half global launch's success and marketing costs are the variables for second-half profit.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 4.5% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 54.7% higher than a year earlier.
- ROE is 10.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 1.1%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Taek-jin 12.2% (individual)
Controlling bloc incl. related parties 12.36%
With the controlling bloc holding 12%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis
- NCSOFT (NC) is a company that makes money by developing and operating online and mobile games in-house.
- The root of its revenue is MMORPGs (large role-playing games in which many people enjoy the same world together) represented by 'Lineage,' where in-app purchases that sell items and services inside the game and subscription fees are the main revenue source.
- On a 2025 basis, by platform, mobile games were about ₩794.4 billion and PC online games about ₩430.9 billion; by region, Korea was about ₩928.3 billion, Asia about ₩277.5 billion, and North America and Europe about ₩124.7 billion, with overseas and royalty accounting for about 38%.
- It launched the new title Aion 2 in Korea and Taiwan in November 2025 and began Lineage Classic in February 2026, so its structure is shifting so that new titles are added to long-standing flagship IP (intellectual property).
- The recent close is ₩249,500 and the market cap is ₩5.4 trillion.
- The price sits below its 20-day line (₩255,950) and below its 60-day line (₩264,250).
- Trading below both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the last 14 days on a 0-100 scale) is 45.5, a neutral level.
- The one-month change is -2.9%, the three-month change is +18.8%, and the position versus the 52-week high is -26.2%.
- Relative strength against the KOSPI is 42 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 58% of all stocks by strength.
- Over the past three months it lagged the index by 7.8%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- Looking at the valuation metrics, the P/E ratio (how many times one year's profit the share price represents) is 15.88x and the P/B (how many times book equity) is 1.64x.
- However, this P/E has a trap.
- 2025 net profit of about ₩346.7 billion contained large one-off gains such as the sale of a headquarters building (NC Tower 1), so net profit looks excessively large relative to that same year's operating profit (about ₩16.1 billion).
- In other words, the P/E on last year's basis does not fully show the strength of the core business.
- The balance sheet is on the sturdy side: the current ratio (cash-like assets against debt due within a year) is 353.5%, ample, and the ROE (how much is earned in a year per unit of equity) is 10.3%.
- The debt ratio (debt relative to equity) is shown as 128.8%, but given the nature of a game company, items that are not actual interest-bearing burdens - such as advance revenue and deferred revenue - are included, so it differs in character from pure borrowing burden.
- Revenue passed through a downturn, peaking at ₩2.57 trillion in 2022 and declining to ₩1.78 trillion in 2023, ₩1.58 trillion in 2024 and ₩1.51 trillion in 2025.
- Operating profit even posted a loss of about ₩109.2 billion in 2024.
- But in the first quarter of 2026 the flow changed.
- Quarterly revenue of ₩557.4 billion (+54.7% year over year), operating profit of ₩113.3 billion (more than 20 times the prior-year quarter) and net profit of ₩152.4 billion, as the success of Aion 2 and Lineage Classic lifted results.
- The PC segment posting record quarterly revenue was the axis of the rebound.
- What comes next matters more.
- Aion 2 is scheduled for a global PC launch in the second half of 2026 via Steam and Purple in North America, South America, Europe, Japan and elsewhere, adding a new revenue source in the second half.
- This year's profit is therefore on a trajectory that is heavier in the second half than the first, with room to expand into next year, when the global service is reflected for a full year.
- Even though last year's P/E looks high, the picture changes on a forward (future-earnings) basis as the core business recovers.
- Recent disclosures center on new-title performance and shareholder returns.
- On May 13, 2026 the company disclosed preliminary consolidated first-quarter results (revenue ₩557.4 billion, operating profit ₩113.3 billion), confirming the rebound, and on May 8 it announced an investor briefing (IR).
- On April 28 a report on the results of a treasury-share disposal was released; the company has stated a three-year 2025-2027 shareholder-return plan to pay a cash dividend of 30% of consolidated net profit excluding one-off gains and losses and to retire about 1.9% of shares outstanding (about 410,000 shares).
- On May 29 there was a correction disclosure to a single sale/supply contract signed in 2021.
- In June there were reports related to executive and major-shareholder ownership and large-holding positions.
- The strengths are clear.
- On top of the long-standing Lineage IP generating stable cash flow of roughly ₩1.5 trillion, the new title Aion 2 was confirmed as real profit from the first quarter of 2026, with a global launch in the second half remaining as an additional growth axis.
- The balance sheet is also cash-rich, and a three-year shareholder-return policy is spelled out, supporting the downside.
- Last year's P/E looks high because of the one-off gain on asset sales; on a forward basis reflecting the core-business recovery it is actually similar to or slightly below the game peer group.
- The point to watch is dependence on new titles.
- The variables for second-half profit are how well Aion 2's early success in Korea and Taiwan is sustained over time and how the balance between the second-half global launch's success and marketing costs is struck.
- If new-title performance continues, the forward profit estimate gains support; if the early success cools quickly, the structure reverts to being centered on legacy-IP cash flow.
🔎 Valuation vs peers Fairly valued
The peer set consists of representative large online and mobile game developers and publishers (new-title and IP-based).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Krafton | 14.98x | 1.56x | 10.43% |
| Netmarble | 13.93x | 0.58x | 4.14% |
| Nexon Games | — | 2.27x | -24.26% |
Last year's (2025) net profit contained large one-off gains such as the headquarters sale, so the 15.88x P/E does not fully show the strength of the core business. On a forward basis, with the core business rebounding, the valuation reads differently. Given that large game peers have P/Es of roughly 14-15x, the current valuation - reflecting both the results rebound and the growth axis of the second-half global launch - can be viewed within a fair range that is neither much more expensive nor cheaper than peers. That said, if forward profit is confirmed above the internal estimate (about ₩390.0 billion, a forward P/E of about 14.0x) there is room for it to become relatively cheap, while if the new title's early success cools quickly the burden grows.
Price history Close · MA20 · MA60
The latest close is ₩249,500 and the market capitalization is ₩5.4 trillion. The price sits below its 20-day moving average (₩255,950) and below its 60-day moving average (₩264,250). 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 45.5, a neutral level. The one-month change is -2.9%, the three-month change is +18.8%, and the position relative to the 52-week high is -26.2%. Relative strength versus the KOSPI is 42 (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 42% of all stocks. Over the past three months it lagged the index by 7.8%. 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 -7.83% / 6M -28.15% / 12M -48.11%
Key metrics vs sector median
Valuation
The P/E of 15.51x is in line with the sector median (14.98x). The P/B is 1.60x. 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.
Profitability & financials
Return on equity (ROE) is 10.3%, in line with the sector average (10.0%). The operating margin is 1.1%. The debt ratio is 128.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.2B | $1.0B | $998.8M | -4.51% ↑ faster |
| Operating profit | $91.0M | -$72.4M | $10.7M | — |
| Net profit | $140.6M | $62.4M | $229.8M | +267.96% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.5B | $1.7B | $1.2B | $1.0B | $998.8M |
| Operating profit | $248.7M | $370.5M | $91.0M | -$72.4M | $10.7M |
| Net profit | $262.3M | $289.0M | $140.6M | $62.4M | $229.8M |
| Revenue CAGR | 4-yr avg -10.12% | ||||
Revenue fell 4.5% year over year (2023 ₩1.8 trillion → 2024 ₩1.6 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -10.1%. The two-year revenue CAGR is -8.0%. In the most recent quarter (Q1 2026), revenue was 54.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 10.3% points to solid profitability.
Points to watch
- Revenue fell 4.5% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13EarningsPreliminary consolidated first-quarter 2026 operating results disclosure. Revenue of about ₩557.4 billion, operating profit of about ₩113.3 billion, and net profit of about ₩152.4 billion, a substantial improvement year over year.The starting point of a results rebound, as the success of Aion 2 and Lineage Classic is confirmed as real profit. Positive for short-term sentiment and a reference point for mid-term forward profit estimates. Source
- 2026-05-15FilingSubmission of the quarterly report as of the end of March 2026 (including business and financial details).Confirms and discloses the detailed financials behind the preliminary results. A basis for reviewing the business and financial structure over the mid term. Source
- 2026-04-28DividendDisclosure of a report on the results of a treasury-share disposal. Part of the execution of the three-year 2025-2027 shareholder-return plan (a cash dividend of 30% of consolidated net profit excluding one-off items plus retirement of about 1.9% of shares outstanding, about 410,000 shares).Continued shareholder returns support the downside. Mid-term dividend and retirement expectations. Source
- 2026-05-08IRDisclosure announcing an investor briefing (IR). Explaining the first-quarter results and the Aion 2 global strategy to the market.An official channel for communicating the company's business plans and outlook. Affects short-term sentiment and mid-term confidence. Source
- 2026-04-22IROfficial announcement of Aion 2's global launch in the second half of 2026. A PC-only service via Steam and Purple, with servers in North America, South America, Europe and Japan and support for 10 languages.Confirms a new second-half revenue source. A key axis of the mid-term growth trajectory. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | approx. ₩113.3 billion(base quarter op_income ₩113,276,557,964) | approx. ₩113.3 billion | Confirmed | link |
| Aion 2 global launch timing and platforms | 2026 PC | 2026 , · PC | Confirmed | link |
| Estimated 2026 normalized net profit (forward) | approx. ₩390.0 billion(self-estimate, forward PER approx. 14.0) | — | Unverified | link |
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-08Disclosure
- 2026-04-28OwnershipLargest-shareholder ownership change report
- 2026-04-28TreasuryTreasury-stock disposal decision
- 2026-04-23Amended filing
- 2026-04-23Amended filing
- 2026-04-22Amended filing
📖 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.