NEXOF (NEXON Co) ROE %: 21.42% (As of Mar. 2026) — 69% Above Median


NEXOF NEXON Co Ltd NEXOF
82 GF Score
Price $14.13
GF Value $23.39
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is NEXON Co ROE %?

NEXON Co NEXOF -11.39% 82 ROE % is 21.42% as of Mar. 2026, which is 69% above its 10-year median of 12.69. GuruFocus rates NEXOF with a GF Score™ of 82/100 and a GF Value™ of $23.39 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 534 Interactive Media companies, NEXON Co ranks better than 71.72% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NEXON Co's annualized net income for the quarter that ended in Mar. 2026 was $1,443 Mil. NEXON Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $6,735 Mil. Therefore, NEXON Co's annualized ROE % for the quarter that ended in Mar. 2026 was 21.42%.

The historical rank and industry rank for NEXON Co's ROE % or its related term are showing as below:

NEXOF' s ROE % Range Over the Past 10 Years
Min: 5.39   Med: 12.69   Max: 21.1
Current: 11.82

During the past 13 years, NEXON Co's highest ROE % was 21.10%. The lowest was 5.39%. And the median was 12.69%.

NEXOF's ROE % is ranked better than
71.72% of 534 companies
in the Interactive Media industry
Industry Median: 2.345 vs NEXOF: 11.82

NEXON Co  (OTCPK:NEXOF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=1442.5/6735.097
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1442.5 / 3837.444)*(3837.444 / 8886.51)*(8886.51 / 6735.097)
=Net Margin %*Asset Turnover*Equity Multiplier
=37.59 %*0.4318*1.3194
=ROA %*Equity Multiplier
=16.23 %*1.3194
=21.42 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=1442.5/6735.097
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1442.5 / 1896.364) * (1896.364 / 1466.144) * (1466.144 / 3837.444) * (3837.444 / 8886.51) * (8886.51 / 6735.097)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7607 * 1.2934 * 38.21 % * 0.4318 * 1.3194
=21.42 %

Note: The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


NEXON Co ROE % Related Terms


NEXON Co ROE % Historical Data

* Premium members only.

The historical data trend for NEXON Co's ROE % 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.

NEXON Co ROE % Chart

NEXON Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.23 10.85 7.79 13.65 8.81

NEXON Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.62 6.69 14.41 4.01 21.42

NEXOF vs NTES, EA, TTWO: ROE % Comparison

For the Electronic Gaming & Multimedia subindustry, NEXON Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, NEXON Co's ROE % distribution charts can be found below:

* The bar in red indicates where NEXON Co's ROE % falls into.


NEXOF
82GF Score
NEXON Co Ltd NEXOF
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

NEXON Co ROE % Calculation

NEXON Co's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=590.399/( (6624.956+6782.824)/ 2 )
=590.399/6703.89
=8.81 %

NEXON Co's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=1442.5/( (6782.824+6687.37)/ 2 )
=1442.5/6735.097
=21.42 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 21.42% mean?
NEXON Co (NEXOF) has a ROE % of 21.42% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NEXON Co and its competitors. This is 69% above median its historical median of 12.69. Over the past decade, NEXON Co's ROE % has ranged from 5.39 to 21.10. According to the industry distribution chart, NEXON Co ranks #151 out of 534 companies in the Interactive Media industry, placing it in the top 28.3%.
Is NEXON Co's ROE % too high?
NEXON Co's current ROE % of 21.42% is 69% above median its 10-year median of 12.69. Over the past 10 years, this metric has ranged from a low of 5.39 to a high of 21.10. The Interactive Media industry median ROE % is 2.35. NEXON Co's value of 21.42% is 813.4% above this industry median. Based on the distribution chart, NEXON Co ranks #151 out of 534 companies in the Interactive Media industry, which is above the industry midpoint. Overall, NEXON Co has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NEXON Co's ROE % compare to NTES and EA?
According to the Interactive Media industry distribution chart, NEXON Co ranks #151 out of 534 companies for ROE %. This puts NEXON Co in the upper half of its industry. The industry median ROE % is 2.35. NEXON Co's value of 21.42% is 813.4% above this benchmark. Historically, NEXON Co's own ROE % has ranged from 5.39 to 21.10 over the past decade. While the company's 10-year median is 12.69 vs. the industry median of 2.35, 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 ROE % for an Interactive Media company?
The median ROE % among Interactive Media companies is 2.35, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NEXON Co's current ROE % of 21.42% is 813.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NEXON Co and its competitors. For the Interactive Media industry, the median ROE % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEXON Co's current ROE % is 21.42%, which is 69% above median its own 10-year median of 12.69. 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 (NEXOF) is currently considered Significantly Undervalued. The stock's GF Value™ is $23.39, compared to a current price of $14.13 — trading 39.6% below its estimated fair value. The current ROE % is 21.42%, which is 69% above median its 10-year median of 12.69 and 813.4% above the Interactive Media industry median of 2.35. NEXON Co's overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For NEXON Co (NEXOF), the current ROE % is 21.42% 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 (NEXOF) Overvalued in 2026?

Based on GuruFocus' analysis, NEXON Co stock appears to be undervalued. The current stock price of $14.13 is trading 39.6% below its estimated GF Value™ of $23.39. GuruFocus considers NEXON Co to be Significantly Undervalued.

Key valuation signals for NEXOF:

  • ROE %: 21.42% (69% above median its 10-year median of 12.69)
  • GF Value™: $23.39 vs. price of $14.13 (39.6% below fair value)
  • GF Score™: 82/100 with 2 warning signs
  • Industry Position: 813.4% above the Interactive Media median (#151 of 534)

No single metric tells the full story. See the NEXOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


NEXON Co Business Description

Address 1-4-5 Roppongi, Minato-ku, Tokyo, JPN, 106-0032
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.
82GF Score

Get the complete analysis for NEXOF

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$14.13
Price
$23.39
GF Value