Shift Up is a developer that builds and sells its own IP games directly. It develops and distributes in-house both the mobile collectible shooting RPG Goddess of Victory: Nikke (about 57% of 2025 revenue) and the console/PC action title Stellar Blade (about 39%), giving it very high margins, and the two IPs together account for roughly 96% of total revenue. First-quarter 2026 results are confirmed at revenue of ₩47.3 billion, operating profit of ₩21.5 billion and net profit of ₩37.8 billion; in April it acquired 100% of the Japanese studio Unbound, led by Shinji Mikami, and the new IP Project Spirit and a Stellar Blade sequel are in development. What stands out recently is that operating margins in the 60% range, an ROE in the 20% range and a net-cash balance sheet, along with an earnings multiple lower than large peers even on expected profit, are undervaluation signals, but revenue is concentrated in two IPs and 2026 is a gap year without a major new title, so the real picture comes with the new releases in 2027.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 31.4% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 12.0% higher than a year earlier.
- ROE is 20.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 61.6%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Hyung-tae 38.43% (individual)
Controlling bloc incl. related parties 42.17%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis
- Shift Up is a developer that builds and sells its own intellectual-property (IP) games directly.
- It earns money along two main pillars.
- The first is the mobile collectible shooting RPG 'Goddess of Victory: Nikke,' a live-service game that steadily generates revenue through character gacha and item sales, accounting for about 57% (roughly ₩166.8 billion) of 2025 revenue.
- The second is the console/PC action game 'Stellar Blade.' Following its 2024 PlayStation launch and 2025 expansion to PC (Steam), it made up about 39% (roughly ₩115.8 billion) of 2025 revenue.
- Because both IPs are developed and distributed in-house, little is shared with outside parties, giving very high margins.
- That said, these two games make up roughly 96% of total revenue, so the business weight is concentrated in a small number of IPs.
- The recent close is ₩34,850 and the market cap is ₩2.0 trillion.
- The price sits above the 20-day line (₩33,398) and above the 60-day line (₩32,190).
- Trading above both the short- and mid-term moving averages, the trend is on the favorable side.
- The RSI (an auxiliary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 57.0, a neutral level.
- The one-month change is +11.7%, the three-month change is +8.9%, and the position versus the 52-week high is -28.7%.
- Relative strength against the KOSPI is 23 (1-99, computed from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 78% of all stocks by strength.
- Over the past three months it lagged the index by 16.0%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The profitability metrics are notably strong.
- The ROE (how much is earned in a year on shareholders' equity) is 20.8%, well above the game-industry average.
- The operating margin is 61.6% and the net margin is 65.0%, leaving more than ₩600 of profit per ₩1,000 of revenue - the classic high margins of an in-house IP, in-house distribution structure.
- The balance sheet is very solid.
- The debt ratio (debt relative to equity) is a low 17.6%, and the current ratio is 819%, giving ample short-term payment capacity.
- Net debt (total borrowings minus cash) is -₩46.8 billion, a net-cash position where cash exceeds debt.
- Interest income from the large cash raised in the IPO supports net profit (the reason net profit exceeds operating profit).
- The FCF yield (the ratio of cash actually earned to market cap) is 7.7%, indicating good cash-generating power.
- On valuation, the P/E (how many times one year's profit the share price represents) is 10.68x and the P/B (how many times net assets the share price represents) is 2.22x.
- The EV/EBIT (an earnings multiple reflecting debt and cash) is 10.8x, similar to the P/E, so the picture does not change much even accounting for debt.
- That said, this P/E of about 10.5x is based on 2025 confirmed (trailing) profit that included the Stellar Blade launch boost, which should be viewed together.
- The three-year trend is one of clear growth.
- Revenue rose from ₩168.6 billion in 2023 to ₩224.1 billion in 2024 to ₩294.5 billion in 2025, a three-year annual average of about 32%.
- Net profit grew alongside it, from ₩106.7 billion to ₩148.0 billion to ₩191.4 billion.
- First-quarter 2026 has a slightly different tone, however.
- Revenue rose 12.0% year on year to ₩47.3 billion, but operating profit fell 18.1% to ₩21.5 billion, as the Stellar Blade launch boost passed its peak and new-title development staffing and costs went in ahead of time.
- Net profit, by contrast, rose 40.8% to ₩37.8 billion, the result of financial income from accumulated cash supporting profit.
- This company's revenue is structured to weight toward the second half, when Nikke's major updates and anniversary events cluster.
- A Nikke 3.5th-anniversary event is scheduled for the second quarter of 2026, leaving room for a recovery in revenue and profit.
- Taken together, 2026 is a gap year without a major new title, so operating profit may come in somewhat below 2025.
- However, factoring in financial income and second-half events, the decline in net profit is expected to be gentle.
- In that case, the P/E on this year's expected net profit is about 11.4x - slightly above last year's confirmed-profit basis (10.5x) but still a low level.
- The key events are results, new titles and an acquisition.
- The May 11 first-quarter preliminary-results disclosure confirmed revenue of ₩47.3 billion, operating profit of ₩21.5 billion and net profit of ₩37.8 billion.
- On April 1 it completed the acquisition of 100% of the Japanese game developer Unbound.
- Unbound is a studio led by Shinji Mikami, known for the Resident Evil and Devil May Cry series, and the acquisition reinforces the PC/console new-title pipeline.
- On the new-title front, the new IP 'Project Spirit,' targeting a global launch in 2027, and a Stellar Blade sequel (self-serviced) are in development.
- Whether they can build a third pillar following Nikke and Stellar Blade is the point to watch.
- The strengths are clear.
- Two in-house IPs deliver operating margins in the 60% range and an ROE in the 20% range, and the company runs debt-free on net cash.
- Stellar Blade has established itself as a steady seller carrying an 'Overwhelmingly Positive' user reception on Steam, and Nikke is a stable cash cow that has surpassed US$1 billion in cumulative mobile revenue.
- On valuation, despite higher growth and profitability, the P/E is lower than large peer game companies.
- Even on expected profit, the multiple remains low, so on the metrics alone it is an undervaluation signal.
- There are two points to watch.
- First, roughly 96% of revenue is concentrated in the two IPs, Nikke and Stellar Blade, so if either one's popularity cools, results could swing sharply.
- Second, 2026 is a gap year without a major new title, so operating profit is depressed.
- The real picture comes with the new releases in 2027.
- In short, this is a stock that is strong when its existing IP operations hold firm and second-half events pull their weight, and weak in the new-title gap if either of the two IPs wavers.
- The core of viewing this company is that its high profitability and net-cash balance sheet support its stamina through the new-title development period.
🔎 Valuation vs peers Undervalued
Listed Korean game developers that develop and distribute their own IP in-house.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Krafton | 14.98x | 1.56x | 10.43% |
| Pearl Abyss | — | 2.93x | -1.05% |
| Nexon Games | — | 2.27x | -24.26% |
The large profitable comparison, Krafton, has a P/E of 15.4x and an ROE of 10.4x, whereas Shift Up has a P/E of 10.5x and an ROE of 20.8%. Even though it leads in both growth (revenue +31.4%) and profitability, the earnings multiple is lower. Pearl Abyss and Nexon Games have recent profits near break-even or in the red, making P/E comparison difficult. That said, this 10.5x is limited in that it is based on 2025 confirmed profit that included the Stellar Blade launch boost. Viewed again on expected profit for 2026, a new-title gap year, the multiple rises slightly to about 11.4x. Even so, it remains lower than the lower-quality Krafton (15x), and the ROE is twice as high. The low multiple can be seen as reflecting the concentration in two IPs and the burden of the new-title gap. Even accounting for that risk, however, the earnings multiple relative to profitability and balance sheet sits at a discount to large peers.
Price history Close · MA20 · MA60
The latest close is ₩34,850 and the market capitalization is ₩2.0 trillion. The price sits above its 20-day moving average (₩33,398) and above its 60-day moving average (₩32,190). 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 57.0, a neutral level. The one-month change is +11.7%, the three-month change is +8.9%, and the position relative to the 52-week high is -28.7%. Relative strength versus the KOSPI is 23 (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 22% of all stocks. Over the past three months it lagged the index by 16.0%. 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 -15.97% / 6M -38.38% / 12M -68.07%
Key metrics vs sector median
Valuation
The P/E of 10.68x is below the sector median (13.30x). The P/B of 2.22x is above the sector median (1.58x).
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 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.918x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 20.8%, above the sector average (5.0%). The operating margin is 61.6%. The debt ratio is 17.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $111.7M | $148.5M | $195.2M | +31.44% ↓ slower |
| Operating profit | $73.6M | $101.2M | $120.2M | +18.83% ↓ slower |
| Net profit | $70.7M | $98.1M | $126.9M | +29.37% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $111.7M | $148.5M | $195.2M |
| Operating profit | — | — | $73.6M | $101.2M | $120.2M |
| Net profit | — | — | $70.7M | $98.1M | $126.9M |
| Revenue CAGR | 2-yr avg 32.18% | ||||
Revenue rose 31.4% year over year (2023 ₩168.6 billion → 2024 ₩224.1 billion → 2025 ₩294.5 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 18.8% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is 32.2%. The two-year revenue CAGR is 32.2%. In the most recent quarter (Q1 2026), revenue was 12.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 20.8% points to solid profitability.
- Revenue grew 31.4% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-11EarningsFirst-quarter 2026 consolidated preliminary-results fair disclosure - revenue of ₩47.3 billion (+12.0% year on year), operating profit of ₩21.5 billion (-18.1%), net profit of ₩37.8 billion (+40.8%).Revenue grew as the two IPs' revenue held, while operating profit fell on the new-title gap and pre-loaded development costs. Net profit rose on the strength of financial income, confirming the slow-season character of the first quarter. Source
- 2026-04-01FilingCompleted acquisition of 100% of the Japanese game developer Unbound (Shinji Mikami's studio) - reinforcing the PC/console new-IP pipeline.Internalizing world-class development talent expands development capacity for a third pillar following Nikke and Stellar Blade. A mid-to-long-term pipeline event. Source
- 2026-04-23IRNotice of an investor relations (IR) briefing and advance notice of the earnings disclosure.A routine communication channel for explaining results and the new-title pipeline (Project Spirit and the Stellar Blade sequel) to the market. Source
- 2026-03-18Filing2025 business report filed - full-year revenue of ₩294.5 billion (+31.4%), operating profit of ₩181.4 billion and net profit of ₩191.4 billion confirmed.Confirms three consecutive years of high growth. The in-house IP high-margin structure of a 61.6% operating margin and the Nikke/Stellar revenue mix are confirmed in an official document. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-04-23Disclosure
- 2026-04-23Disclosure
- 2026-04-23EarningsEarnings disclosure
- 2026-03-27Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-10Amended filing
- 2026-03-10Amended 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.