GRVYGravity Co., Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.2×).
Operating profit is fully backed by cash.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Margin-driven, fat margins on slower asset turns. ROE 15% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GRVY?
Gravity Co., Ltd. earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 17%
Operating margin · Electronic Gaming & Multimedia median −2.9% · fiscal year to FY2024
- Cash conversion
- 1.15×
Cash conversion · 1.06× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2019 | 13% |
| FY2020 | 22% |
| FY2021 | 23% |
| FY2022 | 23% |
| FY2023 | 22% |
| FY2024 | 17% |
Details›
- Gross marginfiscal year to FY2024
- 39%
- Operating marginfiscal year to FY2024
- 17%
- Net marginfiscal year to FY2024
- 17%
- Free cash flow margin
- 16%
- R&D as % of revenue
- 3.0%
- Revenue, trailing twelve months
- $500.8B
- Free cash flow, trailing twelve months
- $77.9B
- Net income, trailing twelve months
- $84.9B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Services
Ranks #5 of 124 by RyuScore