Neowiz

Neowiz maintains a strong liquidity position with a current ratio of 2.69, indicating the company can easily cover its short-term liabilities with its current assets. The company holds KRW 132.17 billion in cash and equivalents, which is a significant portion of its total assets of KRW 693.29 billion. This liquidity provides flexibility for operational needs and potential strategic investments.

Profitability metrics show that Neowiz is generating a return on equity (ROE) of 3.53% and a return on assets (ROA) of 2.58%. These figures are below the industry median for online services, suggesting that the company is not outperforming its peers in terms of asset and equity utilization. However, the company's net income of KRW 17.87 billion and operating income of KRW 14.84 billion indicate a solid earnings base.

Geographically, Neowiz's revenue is concentrated in South Korea, with a significant portion derived from its domestic market. The company's exposure to international markets is limited, which could pose a risk in the event of domestic economic downturns or regulatory changes. The company's business is also heavily dependent on its core gaming segments, with limited diversification into other software or IT services.

Looking ahead, Neowiz is projected to maintain a stable growth trajectory, with revenue expected to remain relatively flat in the current fiscal year. The company's capital expenditure is minimal, with a negative value of KRW 170.63 million, indicating a focus on cost control and efficient use of existing assets. This conservative approach to capital spending supports the company's liquidity position but may limit long-term growth opportunities.

Risk factors for Neowiz include the potential for dilution, although the risk is currently assessed as low. The company has not issued additional shares recently, and there are no immediate filing-based liquidity or dilution flags. However, the company's reliance on a single business model and geographic concentration could expose it to market-specific risks, such as changes in consumer preferences or regulatory shifts in the gaming industry.

Recent events, including analyst estimates and price targets, suggest a generally positive outlook for Neowiz. The mean price target is KRW 32,833.33, with a median of KRW 34,000.00, and the company has received a strong-buy recommendation from five analysts. These signals indicate that the market views Neowiz as a potentially attractive investment, although the company must continue to innovate and expand its market reach to sustain long-term growth.

Analysts project 66.1% upside to a mean price target of 32,833 KRW, signaling strong market confidence.

Net margin of 18.4% ranks above the 75th percentile among 386 Online Services peers.

Free cash flow surged 1,851.5% year-over-year to 55.5 billion KRW in fiscal 2026.

Low debt-to-equity ratio of 0.05 indicates a conservative capital structure with minimal leverage risk.

Operating income turned negative at -10.1 billion KRW in fiscal 2025, disrupting profitability trends.

Four-year net income CAGR is negative at -3.1%, indicating long-term earnings stagnation despite recent growth.

Return on equity of 3.5% barely exceeds the cohort median, suggesting limited capital efficiency gains.

Revenue growth of 18% in fiscal 2026 follows a period of inconsistent top-line expansion.

Revenue KRW 106.27B, +18,6% YoY; Operating income −31,6% YoY.

• ▍Revenue KRW 106.27B, +18,6% YoY
• ▍Operating income −31,6% YoY
• ▍Net income +111,1% YoY
• ▍Free cash flow +116,4% YoY
• ▍Net margin 2.6%

Revenue KRW 127.42B, +36,8% YoY; Operating income +309,5% YoY.

• ▍Revenue KRW 127.42B, +36,8% YoY
• ▍Operating income +309,5% YoY
• ▍Net income +1 732,3% YoY
• ▍Free cash flow +836,0% YoY
• ▍Net margin 20.4%

Revenue KRW 110.01B, +26,4% YoY; Operating income +291,8% YoY.

• ▍Revenue KRW 110.01B, +26,4% YoY
• ▍Operating income +291,8% YoY
• ▍Net income +79,8% YoY
• ▍Free cash flow +54,2% YoY
• ▍Net margin 12.7%

Revenue KRW 89.03B, −8,3% YoY; Operating income −31,1% YoY.

• ▍Revenue KRW 89.03B, −8,3% YoY
• ▍Operating income −31,1% YoY
• ▍Net income −59,3% YoY
• ▍Free cash flow −57,9% YoY
• ▍Net margin 8.2%

Revenue KRW 89.60B; Operating income KRW 6.87B.

• ▍Revenue KRW 89.60B
• ▍Operating income KRW 6.87B
• ▍Net margin -27.5%

Revenue KRW 93.13B; Operating income KRW 6.46B.

• ▍Revenue KRW 93.13B
• ▍Operating income KRW 6.46B
• ▍Net margin 1.5%

Revenue KRW 87.01B; Operating income KRW 4.74B.

• ▍Revenue KRW 87.01B
• ▍Operating income KRW 4.74B
• ▍Net margin 9.0%

Revenue KRW 97.06B; Operating income KRW 14.84B.

• ▍Revenue KRW 97.06B
• ▍Operating income KRW 14.84B
• ▍Net margin 18.4%

Revenue KRW 432.73B, +18,0% YoY; Operating income +612,3% YoY.

• ▍Revenue KRW 432.73B, +18,0% YoY
• ▍Operating income +612,3% YoY
• ▍Net income +1 987,8% YoY
• ▍Free cash flow +1 851,5% YoY
• ▍Net margin 11.5%

Revenue KRW 366.81B, +0,3% YoY; Operating income −124,0% YoY.

• ▍Revenue KRW 366.81B, +0,3% YoY
• ▍Operating income −124,0% YoY
• ▍Net income −95,1% YoY
• ▍Free cash flow −95,0% YoY
• ▍Net margin 0.7%

Revenue KRW 365.59B, +24,1% YoY; Operating income +1 490,4% YoY.

• ▍Revenue KRW 365.59B, +24,1% YoY
• ▍Operating income +1 490,4% YoY
• ▍Net income +272,5% YoY
• ▍Free cash flow +949,0% YoY
• ▍Net margin 13.3%

Revenue KRW 294.57B, +12,8% YoY; Operating income −111,1% YoY.

• ▍Revenue KRW 294.57B, +12,8% YoY
• ▍Operating income −111,1% YoY
• ▍Net income −77,0% YoY
• ▍Free cash flow −90,3% YoY
• ▍Net margin 4.4%