NHN (181710) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Despite the name, NHN is more than a game company: payment fees from NHN KCP and PAYCO support its revenue, Hangame web-board and mobile games add to earnings, and NHN Cloud drives growth. In May 2026 it decided to buy back and fully cancel about ₩16.7 billion of treasury stock, taking the first step in a three-year (2026-2028) shareholder-return policy that draws on 15% of the prior year's consolidated EBITDA. What stands out lately is that its strengths - net cash exceeds market cap so enterprise value is effectively negative, a 25% FCF yield, a P/B of 0.78x and an established treasury-cancellation shareholder-return program - sit alongside cautions: ROE is still low in the 2% range, and the game segment's web-board regulation and seasonality, plus whether the cloud business settles into profit, must be watched continuously.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Games” (Games, Entertainment & Content), a type typically read first through forward P/E.
Game companies' results hinge on new title launches, so expected future profits explain the share price better than past earnings do. That's why forward P/E — based on projected net income — comes before the trailing figure here.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 2.5% year over year, and the pace is slowing (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 11.9% higher than a year earlier.
- ROE is 2.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.1%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2021-12-31
Largest shareholder Lee Jun-ho 17.38% (individual)
Controlling bloc incl. related parties 47.22%
With the controlling bloc holding 47%, the ownership structure is stable.
🔎 In-depth analysis Reading
NHN earns money broadly in four ways. First is payments: NHN KCP, which processes card and account payments on behalf of merchants, and the simple-pay service PAYCO belong here, and this is the company's largest revenue axis. Second is games, earning from web-board games such as go-stop and poker via Hangame, and from mobile games. Third is the technology business, where NHN Cloud rents servers and infrastructure to companies and public institutions and has lately expanded into government-led AI and high-performance-computing projects. Fourth is other businesses such as commerce and content, where a restructuring to shed low-profitability parts has proceeded over recent years. In short, though the name suggests a game company, in reality payment fees support revenue, games add to earnings, and cloud drives growth.
The latest close is ₩43,100 and the market capitalization is ₩1.4 trillion. The price sits above its 20-day moving average (₩37,762) and above its 60-day moving average (₩39,079). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 60.6, a neutral level. The one-month change is +11.1%, the three-month change is +5.4%, and the position relative to the 52-week high is -27.7%. Relative strength versus the KOSPI is 61 (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 61% of all stocks. Over the past three months it outpaced the index by 29.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
In reading valuation, this company must be looked at through net cash first. Net debt (total borrowings minus cash) is -₩1,275.7 billion, meaning a net-cash position where cash exceeds debt by that much. This net cash is larger than market cap (about ₩1,143.1 billion), so enterprise value (EV, market cap plus net debt) turns negative. Put simply, cash on hand alone more than explains the whole value of the company. The FCF yield (cash actually generated relative to market cap) is a very high 25.1%, so cash-generating power itself is strong. The P/B (how many times net assets the price is) is 0.95x, trading below book equity. On the other hand, the P/E ratio (how many times a year's earnings the price is) looks high at 38.68x, because 2025 net profit (₩32.1 billion) was depressed. ROE (how much is earned in a year on equity) also came in low at 2.2%. The debt ratio (debt against equity) is 263%, but a large share of this debt is deposit-type funds that flow in and out by the nature of the payment business, so it differs in character from ordinary manufacturing debt.
Revenue is steady. 2025 revenue was ₩2,516.2 billion, up 2.5% from the prior year, and on a five-year average it is on a gentle upward trend. Earnings are passing an inflection point. In 2024 large one-off impairments related to commerce and content subsidiaries produced an operating loss (-₩32.6 billion) and a net loss (-₩132.5 billion). In 2025 it swung back to an operating profit of ₩132.4 billion, and net profit turned positive at ₩32.1 billion. Q1 2026 is decisive. Revenue was ₩671.4 billion, up 11.9% from the same period a year earlier, with even growth across the three axes of games, payments and technology. Net profit for this quarter alone was ₩31.1 billion, nearly matching the whole of 2025's net profit. As the one-off burden of the 2024 impairment clears, earnings strength is returning to a normal trajectory. Thus the 35x P/E, which simply extends last year's results, does not reflect the current earnings flow. On a forward basis reflecting earnings normalization, the P/E falls to around 13x.
Recent disclosures center on shareholder returns. In May 2026 the company decided to buy back and fully cancel about ₩16.7 billion of treasury stock. This is the first step in actually carrying out the three-year (2026-2028) shareholder-return policy disclosed in August 2025. That policy sets aside 15% of the prior year's consolidated EBITDA each year for cash dividends and treasury-stock buybacks and cancellations. In June, disclosures followed confirming the treasury-stock acquisition results and the share cancellation. A flow of a cash-rich company returning its generated cash to shareholders through dividends and cancellations is taking hold.
Strengths and weaknesses are clear. The strength is the financial structure. Net cash exceeds market cap so enterprise value is effectively negative, and the FCF yield reaches 25%. The P/B is also 0.78x, below book. On top of this, a shareholder-return program centered on treasury-stock cancellation has been established as policy. It is also positive that payments, games and cloud are growing evenly and that earnings are normalizing as the 2024 impairment burden clears. There are cautions as well. ROE is still low in the 2% range, so profit efficiency relative to equity is at the start of improvement. The game segment is sensitive to web-board regulation and seasonality, and the cloud business is growing but whether it settles into profit must be watched continuously. In short, it is strong under conditions where earnings reach a normal trajectory and cloud profitability and shareholder returns continue, and weaker if game regulation tightens or earnings normalization is delayed.
🔎 Valuation vs peers Undervalued
As a diversified IT firm mixing payments, games and cloud, the peer group is drawn more broadly than pure game makers - large internet and game companies - while accounting for differences in business substance.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NAVER | 18.15x | 1.20x | 6.18% |
| Netmarble | 14.20x | 0.56x | 6.18% |
| NCSOFT | 14.88x | 1.46x | 13.09% |
The surface P/E of 35.6x is inflated because 2025 net profit (₩32.1 billion) was a trough recovering from the large 2024 one-off impairment. For earnings-inflection stocks, last year's trailing P/E distorts the real picture. Q1 2026 net profit alone nearly filled last year's annual figure, and the forward P/E reflecting earnings normalization is around 13x, low even against peers (Netmarble 14, NCSOFT 16, NAVER 16). On top of this, net cash exceeds market cap so enterprise value is negative, and the FCF yield reaches 25%. The P/B is also 0.78x. Looking at the earnings flow together with cash and asset value, the current price reads as undervalued.
Price history Close · MA20 · MA60
The latest close is ₩43,100 and the market capitalization is ₩1.4 trillion. The price sits above its 20-day moving average (₩37,762) and above its 60-day moving average (₩39,079). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 60.6, a neutral level. The one-month change is +11.1%, the three-month change is +5.4%, and the position relative to the 52-week high is -27.7%. Relative strength versus the KOSPI is 61 (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 61% of all stocks. Over the past three months it outpaced the index by 29.5%. 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 +29.47% / 6M +9.30% / 12M -22.38%
Key metrics Computed vs sector median
Valuation
The P/E of 43.99x is above the sector median (11.94x). The P/B of 0.95x is in line with the sector median (1.10x).
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 2.2%, above the sector average (1.0%). The operating margin is 5.1%. The debt ratio is 104.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.6B | $1.7B | $1.8B | +2.45% ↓ slower |
| Operating profit | $39.1M | -$22.9M | $93.0M | — |
| Net profit | -$6.0M | -$93.1M | $22.5M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.4B | $1.5B | $1.6B | $1.7B | $1.8B |
| Operating profit | $68.8M | $27.4M | $39.1M | -$22.9M | $93.0M |
| Net profit | $82.1M | -$22.6M | -$6.0M | -$93.1M | $22.5M |
| Revenue CAGR | 4-yr avg 6.94% | ||||
Revenue rose 2.5% year over year (2023 ₩2.3 trillion → 2024 ₩2.5 trillion → 2025 ₩2.5 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.9%. The two-year revenue CAGR is 5.3%. In the most recent quarter (Q1 2026), revenue was 11.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Revenue rose 2.5% 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
- 2026-05-11UpdateDecision to acquire about ₩16.7 billion of treasury stock. The acquisition period is May 12 to August 11, 2026, with full cancellation planned after acquisition.A lower share count raises per-share value. A signal of actually carrying out the three-year shareholder-return policy; medium-term favorable. Source
- 2026-05-11FilingDisclosure of a share-cancellation decision to fully cancel the acquired treasury stock. A cancellation-result correction was later disclosed on June 4.Not temporary holding of treasury stock but actual cancellation that reduces the share count, directly enhancing shareholder value. Source
- 2026-05-12EarningsFair disclosure of Q1 2026 consolidated results. Revenue ₩671.4 billion (+11.9% year on year), operating profit ₩26.3 billion (-5.0%), with even growth across the three segments of games, payments and technology.This quarter's net profit (₩31.1 billion) matched 2025's full-year net profit, confirming an earnings-normalization phase. Source
- 2026-06-04UpdateA treasury-stock acquisition-result report and a share-cancellation correction disclosure wrapped up this round of treasury buyback and cancellation.Confirms that the shareholder-return policy was executed as planned. Source
- 2026-06-01FilingCorporate-governance report disclosure, revealing the governance status on board operations and shareholder rights.A routine disclosure on governance transparency, with limited direct impact on the share price. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-04Amended filing
- 2026-06-04TreasuryTreasury-stock acquisition decision
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Disclosure
- 2026-05-15Disclosure
- 2026-05-15Disclosure
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-11Disclosure
- 2026-05-11TreasuryMaterial-fact 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.