T3 Entertainment is a games and software company. With annual revenue of ₩69.5 billion and an operating margin in the mid-20% range, its economics point to a business that directly operates its own games and content and keeps a healthy slice of that as operating profit; its market cap is ₩139.4 billion, placing it among small- and mid-cap names. A March 2026 voluntary disclosure of a corporate value enhancement plan was followed in May by preliminary Q1 results (revenue ₩22.1 billion, operating profit ₩5.8 billion, net profit ₩6.4 billion) and full-year figures of ₩69.5 billion in revenue, ₩17.0 billion in operating profit and ₩16.9 billion in net profit — all pointing the same way, with revenue and profit rising together. The key point now is that if games and content keep up their current pace and the Q1 profit growth is confirmed on a full-year basis, the mid-20% operating margin, 17.8% ROE, dividend yield in the 5% range and light debt burden all work as strengths; but if revenue is concentrated in a single title or contract, that momentum could wobble when it turns.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 17.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 37.8% higher than a year earlier.
- ROE is 17.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 24.5%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Ki-young 26.77% (individual)
Controlling bloc incl. related parties 33.4%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- T3 Entertainment is a games and software company.
- Given that its operating margin sits in the mid-20% range against modest revenue (₩69.5 billion a year), the business appears to directly operate its own games and content and to keep a thick layer of operating profit.
- As a small- and mid-cap company with a market cap of ₩139.4 billion, the picture comes into sharper focus if you watch not only the steadiness of the underlying business but also the effect that a single quarterly disclosure can have on earnings and share count.
- The latest close is ₩3,005 and the market cap is ₩166.8 billion.
- The price sits above the 20-day line (₩2,660) and above the 60-day line (₩2,879).
- With the price above both the short- and medium-term moving averages, the trend is on the firmer side.
- The RSI (a supplementary gauge that weighs upward versus downward force over the last 14 days on a 0-100 scale) is 65.0, a neutral level.
- The one-month change is +19.2%, the three-month change is +19.2%, and the position versus the 52-week high is -17.8%.
- Relative strength versus the KOSDAQ is 91 (on a 1-99 scale, computed from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 8% of all stocks by strength.
- Over the last three months it outpaced the index by 54.2%.
- Chart reading is best done alongside trading volume and disclosure dates.
- Most recent annual revenue is ₩69.5 billion, with operating profit of ₩17.0 billion and net profit of ₩16.9 billion.
- An operating margin of 24.5% and a net margin of 24.4% mean the company converts what it earns into profit well, and ROE (how much it earns in a year on shareholders' equity) of 17.8% runs above the sector average.
- The debt ratio is 130.8%, but with a current ratio (assets that can be turned into cash quickly versus debt due within a year) of 916% and an interest coverage ratio (how many times operating profit covers interest) of 13.1x, the debt burden is light.
- A payout ratio of 43.3% returns a good part of profit to shareholders, and at the current price the dividend yield is in the 5.6% range.
- A trailing P/E of 8.23x and a P/B of 1.46x are not expensive in themselves, and with profit rising quickly, the forward P/E based on future earnings comes down.
- That is clearly below the sector median, so taken together with the profitability and financial stability, it reads as a signal of being undervalued.
- Revenue rose from ₩51.0 billion in 2023 to ₩59.3 billion in 2024 to ₩69.5 billion in 2025, with the growth rate quickening from +16.4% to +17.2%.
- Over the same span operating profit swelled from ₩7.6 billion to ₩10.5 billion to ₩17.0 billion, roughly a 50% annual pace over two years.
- The momentum grew stronger this year: in Q1 2026, revenue of ₩22.1 billion (+37.8%), operating profit of ₩5.8 billion (+69.8%) and net profit of ₩6.4 billion (+75.3%) all showed profit climbing even faster than revenue.
- This puts numbers to a trait of games and content — once a title takes hold, most of the additional revenue falls straight to profit.
- For the full year, revenue of about ₩91.5 billion, operating profit of ₩26.3 billion and net profit of ₩32.5 billion look attainable, and measuring that profit against the current price gives the forward P/E.
- That outlook is supported by the fact that Q1 alone already exceeded a third of last year's operating profit and that profit is growing faster than revenue.
- Because the company sits at an inflection in earnings, metrics based on future profit are closer to the real picture.
- Recent disclosures point the same way as the business.
- On 2026-03-20 the company itself put forward a corporate value enhancement plan (voluntary disclosure) laying out how it intends to build shareholder value, and on 2026-05-08 preliminary Q1 results (revenue ₩22.1 billion, operating profit ₩5.8 billion, net profit ₩6.4 billion) confirmed the growth.
- Earlier, the 2026-02-25 disclosure of a change in the profit-and-loss structure revealed full-year revenue of ₩69.5 billion, operating profit of ₩17.0 billion and net profit of ₩16.9 billion, capturing a sharp rise in profit.
- All three disclosures point the same way, with revenue and profit rising together.
- This is a company with clear strengths.
- Revenue and profit are growing at an accelerating annual pace, profitability is high with an operating margin in the mid-20% range and ROE of 17.8%, the debt burden is light, and the dividend yield is in the 5% range.
- The condition under which it works strongly is if games and content keep up their current pace and the profit growth seen in Q1 is confirmed on a full-year basis.
- Conversely, the condition under which it weakens is if revenue is concentrated in a particular title or contract and that momentum wobbles.
- Given the traits of a small- and mid-cap company, checking quarterly results and disclosures each quarter lets you gauge these two paths early.
🔎 Valuation vs peers Undervalued
Peers of comparable market cap within games and software.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Finger | 291.11x | 1.88x | 0.65% |
| Neptune | — | 0.32x | -12.71% |
| VUNO | — | 3.01x | -16.00% |
We first looked at a public-data peer set of comparable market cap within games and software. The current P/E (how many times a year's profit the price is) is 9.85x and the P/B (how many times book value the price is) is 1.75x. That said, for smaller-cap names, profit swings and financing disclosures carry a large effect, so we did not draw firm conclusions from metrics based on last year's confirmed results alone. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩91.5 billion | ₩26.3 billion | ₩32.5 billion |
| Next quarter | Q2 2026 | ₩26.2 billion | ₩8.2 billion | ₩11.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩3,005 and the market capitalization is ₩166.8 billion. The price sits above its 20-day moving average (₩2,660) and above its 60-day moving average (₩2,879). 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 65.0, a neutral level. The one-month change is +19.2%, the three-month change is +19.2%, and the position relative to the 52-week high is -17.8%. Relative strength versus the KOSDAQ is 91 (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 92% of all stocks. Over the past three months it outpaced the index by 54.2%. 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 +54.19% / 6M +101.00% / 12M +47.18%
Key metrics vs sector median
Valuation
The P/E of 9.85x is below the sector median (13.30x). The P/B of 1.75x is in line with the sector median (1.58x). 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 17.8%, above the sector average (5.0%). The operating margin is 24.5%. The debt ratio is 130.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $33.8M | $39.3M | $46.1M | +17.19% ↑ faster |
| Operating profit | $5.0M | $7.0M | $11.3M | +61.67% ↑ faster |
| Net profit | $3.7M | $7.6M | $11.2M | +47.77% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $45.5M | $50.5M | $33.8M | $39.3M | $46.1M |
| Operating profit | $6.1M | $8.5M | $5.0M | $7.0M | $11.3M |
| Net profit | $6.6M | $7.3M | $3.7M | $7.6M | $11.2M |
| Revenue CAGR | 4-yr avg 0.31% | ||||
Revenue rose 17.2% year over year (2023 ₩51.0 billion → 2024 ₩59.3 billion → 2025 ₩69.5 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 61.7% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.3%. The two-year revenue CAGR is 16.8%. In the most recent quarter (Q1 2026), revenue was 37.8% 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.
- The dividend yield, at 4.7%, is on the high side.
- ROE of 17.8% points to solid profitability.
- Revenue grew 17.2% 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
- 2026-03-20UpdateCorporate value enhancement plan (voluntary disclosure): review the company's plan as filedA planning document put forward directly by the company. If it contains figures, treat them as a primary basis for the outlook box; if not, treat it only as a directional reference. Source
- 2026-05-08EarningsOperating results on a consolidated basis (preliminary, fair disclosure): Q1 2026 revenue ₩22.1 billion, operating profit ₩5.8 billion, net profit ₩6.4 billionThe most recent confirmed or preliminary results. Check whether they run the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-02-25EarningsChange of 30% or more (15% for large corporations) in revenue or profit-and-loss structure: full-year revenue ₩69.5 billion, operating profit ₩17.0 billion, net profit ₩16.9 billionThe most recent confirmed or preliminary results. Check whether they run the same way as the annual trend and whether any one-off factors are involved. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩3,005 | ₩3,005 | Confirmed | link |
| Latest quarterly results | revenue ₩22.1 billion, operating profit ₩5.8 billion | revenue ₩22.1 billion, operating profit ₩5.8 billion | Confirmed | link |
| Annual results | revenue ₩69.5 billion, operating profit ₩17.0 billion | revenue ₩69.5 billion, operating profit ₩17.0 billion | Confirmed | link |
| Outlook/plan disclosure text | : | : | Confirmed | link |
| Results disclosure text | : 2026 1 revenue ₩22.1 billion · operating profit ₩5.8 billion · net profit ₩6.4 billion | : 2026 1 revenue ₩22.1 billion · operating profit ₩5.8 billion · net profit ₩6.4 billion | Confirmed | link |
| Results disclosure text | revenue30%: revenue ₩69.5 billion · operating profit ₩17.0 billion · net profit ₩16.9 billion | revenue30%: revenue ₩69.5 billion · operating profit ₩17.0 billion · net profit ₩16.9 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-08Disclosure
- 2026-05-22DividendCash/stock dividend decision (amended)
- 2026-05-22TreasuryTreasury-stock acquisition decision
- 2026-05-15PeriodicQuarterly report
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-30Dividend disclosure
- 2026-04-30DividendCash/stock dividend decision
- 2026-04-21OwnershipOwnership-change filing
- 2026-04-10OwnershipOwnership-change filing
- 2026-04-07Dividend disclosure
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-27DividendCash/stock dividend decision (amended)
📖 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.