Neowiz makes money from games it develops or publishes itself, built on three axes: console/PC packaged titles such as the action RPG "Lies of P," released in 2023 and sold worldwide; the web-board games on its "Pmang" portal (a steady cash source); and mobile/PC online publishing. So a mix runs through it - packaged games that earn big when a hit lands, and steady web-board cash coming in regularly. A March treasury-share purchase result report and a share cancellation confirmed the shareholder-return trend, first-quarter results were finalized by the May 11 preliminary figures and the May 15 quarterly report, and a CEO change (designate) was disclosed on June 8. What stands out lately is the strength of proven global development capability from "Lies of P," the web-board cash flow, low debt, and treasury-share cancellation, together with a P/B of 0.63x that sits cheaper than peers (13-16x). The offsetting points are that one packaged title carries a large weight, so quarterly profit can swing with the timing of follow-up releases; first-quarter operating profit fell year over year; and strategic continuity through the CEO change should be watched.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 18.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 13.9% higher than a year earlier.
- ROE is 9.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 13.9%.
- The P/E sits below the sector median.
Ownership & governance As of 2024-12-31
Largest shareholder Neowiz Holdings 31% (corporate)
Controlling bloc incl. related parties 37.53%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- Neowiz earns money from games it develops or publishes itself.
- There are three core axes.
- First, console/PC packaged games: the action RPG "Lies of P," released in September 2023, sold worldwide and lifted the company's profit sharply, making it the flagship title (a global hit in the so-called soulslike genre).
- Second, web-board games through the "Pmang" portal (online go-stop, poker and other board games), a stable revenue source that generates relatively steady cash regardless of the economy.
- Third, mobile and PC online game publishing.
- In short, packaged games that earn big when a hit lands and web-board cash that comes in regularly every quarter are mixed within one company.
- The latest close is 18,160 won and the market cap is 392.9 billion won.
- The price sits below its 20-day line (18,200 won) and below its 60-day line (20,247 won).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores the strength of gains against losses over the past 14 days on a 0-100 scale) is 45.6, a neutral level.
- The one-month change is -6.2%, the three-month change is -20.7%, and the position versus the 52-week high is -41.3%.
- Relative strength against the KOSDAQ is 59 (1-99; the past year's return versus the index, weighted toward recent performance - higher means stronger than the market).
- That places it in roughly the top 41% of all listed names for strength.
- Over the past three months it has outpaced the index by 7.0%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On confirmed full-year (FY2025) figures, the P/E (how many times one year's profit the price represents) is 7.86x and the P/B (how many times net assets the price represents) is 0.74x.
- The forward P/B converted on this year's earnings is 0.74x, so on both yardsticks it sits below comparable game developers and publishers (generally 13-16x).
- ROE (how much is earned in a year on shareholders' equity) is 9.4% and the operating margin is 13.9%, both sound, while the debt ratio (debt against equity) is 23.3% and the current ratio is 353%, showing low debt and ample short-term liquidity.
- Game companies are an industry where profit swings year to year depending on whether a new title launches, so it is hard to call the stock cheap or expensive on a single year's trailing numbers alone; still, a P/E in the mid-single digits even on a forward basis that reflects this year's earnings supports the view that the price is on the cheap side relative to assets and profit.
- Over five years, revenue grew from 261.2 billion won in 2021 to 432.7 billion won in 2025, and over the same period operating profit rose from 21.2 billion won to 60.0 billion won.
- In 2025, when "Lies of P" was reflected for a full year, revenue rose 18.0% and operating profit 82.2% year over year, quickening the pace of growth.
- Net profit dipped sharply once to 2.4 billion won in 2024 before returning to 50.0 billion won in 2025, illustrating the launch-driven, one-off volatility typical of game companies.
- In first-quarter 2026 revenue rose to 101.4 billion won (+13.9%); operating profit was 7.0 billion won, down from the first quarter of last year, but net profit rose sharply to 15.5 billion won (+153.3%).
- The forward P/E reflecting this year's earnings trend rests on normalized earning power built from cumulative sales of "Lies of P," follow-up content and platform expansion, and the steady cash flow of the web-board business.
- This position points to a normal-year level of earnings stripped of last year's one-off swings - an unusually low multiple for the game industry.
- The main threads of recent disclosures are shareholder returns and governance change.
- A March 2026 treasury-share purchase result report and a share cancellation decision confirmed a trend of buying back and retiring treasury stock (a falling share count is favorable to per-share value), and first-quarter results were officially confirmed by the May 11 consolidated preliminary figures and the May 15 quarterly report.
- A May 26 investor presentation (IR) and a June 8 CEO change (designate) disclosure followed, with a management transition underway.
- All are facts verifiable in the original official documents, and the recent focus lies more on capital-policy and governance events than on revenue momentum such as a new-title hit.
- The strengths are that proven global console-game development capability from "Lies of P," the web-board's steady cash flow, and shareholder returns such as low debt and treasury-share cancellation come together.
- On top of this, a forward P/B of 0.63x on this year's earnings puts it clearly cheaper than comparable game developers and publishers (13-16x), so the undervaluation signal is distinct on both the earnings and the asset side.
- At the same time, one packaged title carries a large weight, so quarterly profit can swing with the schedule and performance of follow-up titles; first-quarter operating profit fell year over year; and strategic continuity through the CEO change needs to be checked - all points to watch.
- In sum, as long as follow-up content and a new-title pipeline are filled and the web-board cash flow is maintained, the current low valuation is easy to highlight; the longer the gap before the next title, the more earnings volatility works as a burden.
🔎 Valuation vs peers Undervalued
The peer set is domestic game developers and publishers closest in business substance: Krafton, which has console/PC packaged development capability; Netmarble, a large publisher; and Devsisters, an IP-based developer.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Krafton | 14.98x | 1.56x | 10.43% |
| Netmarble | 13.93x | 0.58x | 4.14% |
| Devsisters | 20.08x | 1.27x | 6.31% |
(a) Position versus peers - Neowiz's confirmed P/E of 8.5x and P/B of 0.80x are distinctly lower than Krafton, Netmarble, and Devsisters (P/E of 14-16x). (b) Discount background - with a small market cap of 426.9 billion won and high reliance on a single packaged title, a discount tends to attach when follow-up visibility is low. (c) Limits of trailing and the forward basis - this P/E is on FY2025 confirmed results with normalized net profit, so it is relatively reliable, but game companies see earnings inflect on whether a new title exists, so it is hard to be definitive on a single year's numbers. A DART seasonality approximation puts this year's operating profit at about 22.4 billion won, potentially below last year (60.0 billion won), so on a forward basis the discount could narrow. On balance, the valuation is clearly low versus peers, but given earnings volatility it reads as undervalued rather than being called outright cheap.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩105.3 billion | approx. ₩5.1 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩18,160 and the market capitalization is ₩392.9 billion. The price sits below its 20-day moving average (₩18,200) and below its 60-day moving average (₩20,247). 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 45.6, a neutral level. The one-month change is -6.2%, the three-month change is -20.7%, and the position relative to the 52-week high is -41.3%. Relative strength versus the KOSDAQ is 59 (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 59% of all stocks. Over the past three months it outpaced the index by 7.0%. 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 +6.98% / 6M -16.87% / 12M -26.69%
Key metrics vs sector median
Valuation
The P/E of 7.86x is below the sector median (14.98x). The P/B of 0.74x is below the sector median (1.58x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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 9.4%, in line with the sector average (10.0%). The operating margin is 13.9%. The debt ratio is 23.3%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $242.3M | $243.1M | $286.8M | +17.97% ↑ faster |
| Operating profit | $20.9M | $21.8M | $39.8M | +82.20% ↑ faster |
| Net profit | $32.3M | $1.6M | $33.1M | +1987.81% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $173.1M | $195.2M | $242.3M | $243.1M | $286.8M |
| Operating profit | $14.1M | $13.0M | $20.9M | $21.8M | $39.8M |
| Net profit | $37.6M | $8.7M | $32.3M | $1.6M | $33.1M |
| Revenue CAGR | 4-yr avg 13.45% | ||||
Revenue rose 18.0% year over year (2023 ₩365.6 billion → 2024 ₩366.8 billion → 2025 ₩432.7 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 82.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.5%. The two-year revenue CAGR is 8.8%. In the most recent quarter (Q1 2026), revenue was 13.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- Revenue grew 18.0% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-23UpdateTreasury-share purchase result report - buyback completed and result reportedA shareholder-return signal favorable to per-share value by reducing the share count. Whether it was done within the company's cash capacity should be checked alongside. Source
- 2026-03-27FilingShare cancellation decision - decision to retire held treasury sharesCancellation permanently reduces the share count, favorable to per-share value. It reads as a strengthening of returns following the buyback. Source
- 2026-05-11EarningsConsolidated preliminary operating results disclosure - first-quarter 2026 preliminary results announcedA document confirming that first-quarter revenue rose but operating profit fell year over year. A starting point for reviewing the quarterly profit trend. Source
- 2026-05-26IRInvestor presentation (IR) held - disclosure of a session where the company explains its business and results directlyA channel to hear the company's official account of items such as the new-title schedule and web-board trends. A first path to confirming official outlook. Source
- 2026-06-08FilingFair disclosure of ad-hoc-disclosure-related matter - regarding a CEO change (designate)A disclosure signaling a management transition underway. It can affect strategic continuity and new-title direction, so follow-up disclosures should be watched. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| FY2025 confirmed annual P/E | 8.5x (EPS ₩2,309.9) | DART net profit ₩50.0 billion | Unverified | link |
| First-quarter 2026 operating profit | ₩7.0 billion | DART (2026.03) | Unverified | link |
| Treasury-share cancellation decision | (2026-03-27) | DART | Confirmed | link |
| This year's operating profit seasonality approximation | approx. ₩22.4 billion | — | Unverified | link |
Recent filings
- 2026-06-08Fair-disclosure notice
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-26Disclosure
- 2026-05-20OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-04-20EarningsEarnings disclosure
- 2026-03-31OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-27Disclosure
- 2026-03-23TreasuryTreasury-stock acquisition decision
📖 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.