Gravity Co., Ltd (GRVY) AI Stock Analysis
GRVY AI stock analysis summary
AI ResearchGravity Co., Ltd (GRVY) is an online and mobile game developer and publisher best known for its Ragnarok gaming franchise. The company generated $562.28B in trailing twelve month revenue with an operating margin of 15.1%. It maintains a strong financial cushion with net cash of $194.92B as of June 30, 2026.
- Market cap
- $463.6M
- Revenue (TTM)
- $562.28B
- P/E
- 7.8x fwd 9.2x
- 1Y return
- 20.0% S&P 500 16.8%
- Avg. target
- $0.00
Bull case
- Gravity maintains a robust balance sheet with $194.92B in net cash and a conservative debt-to-equity ratio of 0.01 as of June 30, 2026.
- Trailing twelve month operating margin of 15.1% outperforms the median of 13.3% across US-listed Communication Services peers.
- The stock delivers a 4.80% dividend yield supported by a sustainable payout ratio of 29.8%.
Bear case
- Annual operating margin compressed steadily from 23.4% in FY2021 to 14.2% in FY2025.
- The 5-year stock return of -26.1% significantly lagged the S&P 500 return of 83.0%.
- Quarterly revenue growth fell 4.6% year-over-year in the period ending June 30, 2026.
What Gravity does
Gravity Co., Ltd. develops and publishes online and mobile games, with a strong presence in South Korea, Taiwan, Thailand, and Japan. The company is known for massively multiplayer online role-playing games such as Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile lineup includes Ragnarok M: Eternal Love, Ragnarok Origin, and Ragnarok X: Next Generation. Gravity also publishes console games, including releases for Nintendo DS, Nintendo Switch, PlayStation Portable, PlayStation Vita, PlayStation 3, and Xbox 360. In addition, the company markets character-based merchandise like dolls, stationery, and food products, and delivers third-party system development, maintenance, and integration services.
Growth and profitability
Revenue expanded at a 5-year compound annual growth rate of 6.7% between FY2020 and FY2025. Annual revenue peaked in FY2023 at $725.52B before declining 31.0% to $500.85B in FY2024. In FY2025, revenue recovered 11.9% to $560.55B, while net income stood at $67.46B, down from $84.92B in FY2024. Operating margin declined from 23.4% in FY2021 to 14.2% in FY2025. Over the trailing twelve months, revenue reached $562.28B with a profit margin of 15.3% and EPS of $8.52. For the latest quarter ending June 30, 2026, quarterly revenue fell 4.6% year-over-year, while quarterly earnings grew 83.8%.
Balance sheet and cash flow
As of June 30, 2026, Gravity held $203.60B in cash and short-term investments against total debt of $8.68B, leaving net cash of $194.92B. The company features a debt-to-equity ratio of 0.01 and a current ratio of 7.27. Total assets stood at $742.66B compared to shareholders' equity of $636.86B. Operating cash flow in FY2025 was $77.12B, yielding free cash flow of $76.05B after capital expenditures of $1.07B. Share count showed a 0.0% change over 5 years.
Valuation and performance
Gravity closed at $66.71 on October 16, 2026, giving it a market cap of $463.6M and an enterprise value of -$15.8M. The stock trades at a trailing P/E of 7.8x and a forward P/E of 9.2x, below the median of its US-listed Communication Services peers of 16.2x and 14.1x, respectively. Its price-to-book ratio is 0.9x. Over the past year, Gravity gained 20.0%, outperforming the S&P 500 return of 16.8%. However, its 5-year return of -26.1% trails the S&P 500 return of 83.0%.
GRVY dividend
Gravity pays an annual forward dividend of $3.20 per share, representing a dividend yield of 4.80%. The company maintains a payout ratio of 29.8%. Its most recent ex-dividend date was June 30, 2026.
What analysts expect
Analysts track a mean price target of $0.00 for Gravity against its last close of $66.71. The company's next earnings date is scheduled for November 6, 2026. Institutional investors hold 17.6% of shares, while insiders own 59.3%, and short interest represents 0.8% of the float.
Key risks and what to watch
- Top-line performance has shown volatility, dropping 31.0% in FY2024 before rising 11.9% in FY2025.
- Gross margin decreased from 45.8% in FY2021 to 35.0% in FY2025, signaling potential cost pressure.
- Insiders control 59.3% of shares, creating high concentration of ownership.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this GRVY AI stock analysis
This page is an AI-written research summary of Gravity Co., Ltd (GRVY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: GRVY income statement, GRVY balance sheet, GRVY key metrics, GRVY chart. See the GRVY stock overview for the latest quote and news.
GRVY AI stock analysis FAQ
Does Gravity Co., Ltd pay a dividend?
Yes, Gravity pays an annual forward dividend of $3.20 per share, which equals a dividend yield of 4.80% and a payout ratio of 29.8%.
What is Gravity's valuation relative to its industry peers?
Gravity trades at a trailing P/E of 7.8x and a forward P/E of 9.2x, lower than the median of its US-listed Communication Services peers of 16.2x and 14.1x.
How strong is Gravity's balance sheet?
As of June 30, 2026, Gravity held $203.60B in cash and short-term investments against $8.68B in total debt, resulting in net cash of $194.92B and a current ratio of 7.27.
When is Gravity's next earnings report?
The company's next earnings date is November 6, 2026.