The average target price of 192080.KS is 66051 and suggests 32% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 74000.0. This translates into 48% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 56000.0. This suggests 12% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

DoubleUGames Co., Ltd. develops games. The company offers W. Casino, a social casino game, as well as table games and slot machines. It also operates one source multiplatform, as well as offers PC and mobile games. The company operates in approximately 120 countries. DoubleUGames Co., Ltd. was founded in 2012 and is based in Seoul, South Korea.

Korea

DoubleUGames Co., Ltd.

Consumer Cyclical

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been good and slightly above its peers. On average, the company pays dividends annually. 

192080.KS reported revenue of KRW 633 474mn in the last 12 months, up 9% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 26% from FY23 to KRW 9 440.44. Market expects EPS to reach KRW 8 325.03 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 5ppts over past six months and grown 12ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported good EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 62.2% in the last 12 months, up from 40.1% in FY23. 

Historically, 192080.KS has reported strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 29.5%, a growth from 25.6% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 13.3%, above the peers. The consensus estimate for FY24 for RoCE is 19.1%, again ahead of the peers. 

Another important profitability metric, return on assets (RoA), amounted to 12.8% in the last 12 months, an increase from 11.8% in FY23. The market analysts predict that RoA will be 11.7% in FY24, again stronger than its peers. 

DoubleUGames Co., Ltd. reported a return on equity (RoE) of 18.7% in the last 12 months, up from 18.6% in FY23. The market consensus projects an RoE of 17.8% in FY24, again ahead of its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.4 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

192080.KS has above average trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is usually very stable and is average on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, excessive margin volatility, and poor working capital management.

In highly turbulent market conditions, 192080.KS is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, 192080.KS is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. 

Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, underpriced on P/FCF. 

DoubleUGames Co., Ltd.

₩ 50200

5

DoubleUGames Co., Ltd.

₩ 50200

5

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₩ 50200

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