NEXON CoNEXOY -0.46%78 Gross Margin % is 67.07% as of Mar. 2026, which is 9% below its 10-year median of 73.72. GuruFocus rates NEXOY with a GF Score™ of 78/100 and a GF Value™ of $21.60 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 497 Interactive Media companies, NEXON Co ranks worse than 51.51% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NEXON Co's Gross Profit for the
three
months ended in Mar. 2026 was $643 Mil. NEXON Co's Revenue for the
three
months ended in Mar. 2026 was $959 Mil. Therefore, NEXON Co's Gross Margin % for the quarter that ended in Mar. 2026 was 67.07%.
Warning Sign:
NEXON Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.9%.
The historical rank and industry rank for NEXON Co's Gross Margin % or its related term are showing as below:
NEXOY'
s Gross Margin % Range Over the Past 10 Years
Min: 59.36 Med: 73.72 Max: 77.32
Current: 60.27
During the past 13 years, the highestGross Margin % of NEXON Co was 77.32%. The lowest was 59.36%. And the median was 73.72%.
NEXOY's Gross Margin % is ranked worse than 51.51% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs NEXOY: 60.27
NEXON Co had a gross margin of 67.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NEXON Co was -4.90% per year.
NEXON Co (OTCPK:NEXOY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
NEXON Co had a gross margin of 67.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
NEXON Co Gross Margin % Related Terms
NEXON Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for NEXON Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NEXOY vs NTES, EA, TTWO: Gross Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, NEXON Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NEXON Co Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NEXON Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NEXON Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
NEXON Co (NEXOY) has a Gross Margin % of 67.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NEXON Co and its competitors. This is near median its historical median of 73.72. Over the past decade, NEXON Co's Gross Margin % has ranged from 59.36 to 77.32. According to the industry distribution chart, NEXON Co ranks #256 out of 497 companies in the Interactive Media industry, placing it in the top 51.5%.
Is NEXON Co's Gross Margin % too high?
NEXON Co's current Gross Margin % of 67.07% is near median its 10-year median of 73.72. Over the past 10 years, this metric has ranged from a low of 59.36 to a high of 77.32. The Interactive Media industry median Gross Margin % is 62.58. NEXON Co's value of 67.07% is 7.2% above this industry median. Based on the distribution chart, NEXON Co ranks #256 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, NEXON Co has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NEXON Co's Gross Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, NEXON Co ranks #256 out of 497 companies for Gross Margin %. This places NEXON Co in the lower half of its industry. The industry median Gross Margin % is 62.58. NEXON Co's value of 67.07% is 7.2% above this benchmark. Historically, NEXON Co's own Gross Margin % has ranged from 59.36 to 77.32 over the past decade. While the company's 10-year median is 73.72 vs. the industry median of 62.58, NEXON Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NEXON Co's current Gross Margin % of 67.07% is 7.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on NEXON Co and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEXON Co's current Gross Margin % is 67.07%, which is near median its own 10-year median of 73.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEXON Co stock overvalued right now?
Based on GuruFocus' analysis, NEXON Co (NEXOY) is currently considered Significantly Undervalued. The stock's GF Value™ is $21.60, compared to a current price of $13.06 — trading 39.5% below its estimated fair value. The current Gross Margin % is 67.07%, which is near median its 10-year median of 73.72 and 7.2% above the Interactive Media industry median of 62.58. NEXON Co's overall GF Score™ is 78/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For NEXON Co (NEXOY), the current Gross Margin % is 67.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NEXON Co (NEXOY) Overvalued in 2026?
Based on GuruFocus' analysis, NEXON Co stock appears to be undervalued.
The current stock price of $13.06 is trading 39.5% below its estimated GF Value™ of $21.60.
GuruFocus considers NEXON Co to be Significantly Undervalued.
Key valuation signals for NEXOY:
Gross Margin %: 67.07% (near median its 10-year median of 73.72)
GF Value™: $21.60 vs. price of $13.06 (39.5% below fair value)
Industry Position: 7.2% above the Interactive Media median (#256 of 497)
No single metric tells the full story. See the NEXOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nexon is a South Korean online game developer and publisher, founded in 1994 in Korea by Kim Jung-ju. In 2005, the company moved its headquarters to Tokyo, Japan, and has operations in Korea, the US, Taiwan, and Thailand. The company's most notable franchises are MapleStory, Dungeon & Fighter, Sudden Attack, and KartRider. Nexon has been the publisher for EA's FC Online game franchise in Korea and Japan since 2013. Nexon acquired an independent game developer, Embark Studios AB, located in Stockholm, Sweden, in 2019.
78GF Score
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