Naver Corp

Naver Corp maintains a strong liquidity position with KRW 3.24 trillion in cash and equivalents, but its net cash position is negative after subtracting total debt of KRW 4.06 trillion, indicating potential liquidity risk. The company's current ratio of 1.32 suggests it can cover its short-term liabilities with its current assets, but the margin is relatively narrow. The debt-to-equity ratio of 0.17 indicates a conservative capital structure, with equity significantly outweighing debt.

In terms of profitability, Naver Corp reported a net income of KRW 510.56 billion and an operating income of KRW 439.29 billion, translating to a return on equity (ROE) of 2.18% and a return on assets (ROA) of 1.43%. These figures are below the industry median for ROE and ROA, suggesting that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization.

The company's revenue is primarily concentrated in its domestic market, with a significant portion derived from its core online services and digital content offerings. While Naver Corp has a strong presence in South Korea, its international expansion remains limited, and it has not disclosed significant revenue from foreign operations.

Looking ahead, Naver Corp is projected to experience moderate growth, with analysts forecasting a mean price target of KRW 310,600 and a median price target of KRW 310,000. The company's free cash flow of KRW 643.62 billion and capital expenditure of KRW -73.79 billion indicate a focus on maintaining and optimizing existing operations rather than aggressive expansion. The risk assessment highlights a medium liquidity risk and a low dilution risk, with no significant dilution expected in the near term.

Recent events, including analyst estimates and recommendations, suggest a generally positive outlook for Naver Corp. The mean recommendation of 1.79, with 9 strong-buy and 17 buy ratings, indicates strong investor confidence. However, the company must continue to demonstrate consistent performance and innovation to maintain its market position and meet investor expectations.

Analysts project 54.5% upside to a mean price target of 310,600 KRW, reflecting strong market confidence.

Revenue grew 12.1% year-over-year to 12.0 trillion KRW in FY2026, showing consistent top-line expansion.

Cash conversion of 1.22 is above the cohort median of 1.06, highlighting strong cash generation capabilities.

Medium liquidity risk flags potential challenges in meeting short-term obligations or market trading constraints.

Revenue KRW 3.20T, +10,7% YoY; Operating income −73,3% YoY.

• ▍Revenue KRW 3.20T, +10,7% YoY
• ▍Operating income −73,3% YoY
• ▍Net income −43,5% YoY
• ▍Free cash flow −150,5% YoY
• ▍Net margin 9.8%

Revenue KRW 3.14T, +15,6% YoY; Operating income +8,6% YoY.

• ▍Revenue KRW 3.14T, +15,6% YoY
• ▍Operating income +8,6% YoY
• ▍Net income +39,6% YoY
• ▍Free cash flow +1,1% YoY
• ▍Net margin 23.1%

Revenue KRW 2.92T, +11,7% YoY; Operating income +10,3% YoY.

• ▍Revenue KRW 2.92T, +11,7% YoY
• ▍Operating income +10,3% YoY
• ▍Net income +44,4% YoY
• ▍Free cash flow +40,1% YoY
• ▍Net margin 16.8%

Revenue KRW 2.79T, +10,3% YoY; Operating income +15,0% YoY.

• ▍Revenue KRW 2.79T, +10,3% YoY
• ▍Operating income +15,0% YoY
• ▍Net income −16,8% YoY
• ▍Free cash flow −38,4% YoY
• ▍Net margin 15.2%

Revenue KRW 2.89T; Operating income KRW 542.02B.

• ▍Revenue KRW 2.89T
• ▍Operating income KRW 542.02B
• ▍Net margin 19.2%

Revenue KRW 2.72T; Operating income KRW 525.27B.

• ▍Revenue KRW 2.72T
• ▍Operating income KRW 525.27B
• ▍Net margin 19.2%

Revenue KRW 2.61T; Operating income KRW 472.69B.

• ▍Revenue KRW 2.61T
• ▍Operating income KRW 472.69B
• ▍Net margin 13.0%

Revenue KRW 2.53T; Operating income KRW 439.29B.

• ▍Revenue KRW 2.53T
• ▍Operating income KRW 439.29B
• ▍Net margin 20.2%

Revenue KRW 12.04T, +12,1% YoY; Operating income −22,6% YoY.

• ▍Revenue KRW 12.04T, +12,1% YoY
• ▍Operating income −22,6% YoY
• ▍Net income +1,6% YoY
• ▍Free cash flow −43,8% YoY
• ▍Net margin 16.2%

Revenue KRW 10.74T, +11,0% YoY; Operating income +57,1% YoY.

• ▍Revenue KRW 10.74T, +11,0% YoY
• ▍Operating income +57,1% YoY
• ▍Net income +90,0% YoY
• ▍Free cash flow +136,3% YoY
• ▍Net margin 17.9%

Revenue KRW 9.67T, +17,6% YoY; Operating income +16,5% YoY.

• ▍Revenue KRW 9.67T, +17,6% YoY
• ▍Operating income +16,5% YoY
• ▍Net income +33,1% YoY
• ▍Free cash flow +215,7% YoY
• ▍Net margin 10.5%

Revenue KRW 8.22T, +20,6% YoY; Operating income −6,3% YoY.

• ▍Revenue KRW 8.22T, +20,6% YoY
• ▍Operating income −6,3% YoY
• ▍Net income −95,4% YoY
• ▍Free cash flow −75,5% YoY
• ▍Net margin 9.2%