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NAVER Corp 035420

Morningstar Rating
KRW 187,400.00 +300.00 (0.16%)
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Company Report

Naver's Search, E-Commerce, and Payment Platforms Remain Strong

For the past 15 years, Naver has led the South Korean internet search market, through which it generates decent revenue growth, high margins, and strong cash flow. While Google has been taking overall search market share, we estimate that Naver retains around two thirds of the overall search market and a higher percentage of the lucrative local South Korean searches, which it monetizes primarily through display advertising and paid search placements. Naver’s strategy has been to use this strong search business to build an integrated internet platform business by adding other services including e-commerce, financial technology, content production, and cloud services. Naver has not yet been able to monetize these other businesses to the same extent as its search business but has strong number one or two positions in most of them in the South Korean market.

Price vs Fair Value

035420 is trading at a 26% discount.
Price
KRW 188,000.03
Fair Value
KRW 783,658.00
Uncertainty
High
1-Star Price
KRW 168,494.00
5-Star Price
KRW 711,185.00
Economic Moat
Ctwfh
Capital Allocation
Fymmcyfy

Bulls Say, Bears Say

Bulls

Naver’s domestic online advertising revenue will continue its strong growth momentum via increased e-commerce-related ads.

Bears

Google could continue to take internet search market share in South Korea, eventually killing Naver’s cash cow, or at least reducing its “milk production”.

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News

Trading Information

Previous Close Price
KRW 187,100.00
Day Range
KRW 185,100.00188,900.00
52-Week Range
KRW 178,000.00241,500.00
Bid/Ask
KRW 187,100.00 / KRW 187,100.00
Market Cap
KRW 28.26 Tril
Volume/Avg
633,233 / 808,899

Key Statistics

Price/Earnings (Normalized)
22.20
Price/Sales
2.91
Dividend Yield (Trailing)
0.64%
Dividend Yield (Forward)
0.64%
Total Yield
0.64%

Company Profile

Naver has been the leading search portal in South Korea for many years. The company has also been evolving into an internet platform providing a variety of internet services, such as news, a dictionary, maps, digital comic content, social networking, e-commerce, videos, fintech services based on online payments, and Cloud services. Naver was also the incubator of Line Yahoo, the leading mobile messaging app in Japan, Taiwan, Thailand, and Indonesia, which merged with Z Holdings (Yahoo Japan), with Naver now owning 32.5% of the merged entity renamed LY. Snow, the Snapchat-like mobile app launched in 2015, has also been well received in South Korea, Japan, and other Asian countries.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Large Core
Total Number of Employees
4,318

Competitors

Valuation

Metric
035420
GOOGL
BABA
Price/Earnings (Normalized)
22.2025.628.17
Price/Book Value
1.236.641.27
Price/Sales
2.916.251.42
Price/Cash Flow
17.1518.186.91
Price/Earnings
035420
GOOGL
BABA

Financial Strength

Metric
035420
GOOGL
BABA
Quick Ratio
1.081.941.71
Current Ratio
1.112.101.80
Interest Coverage
11.86266.7593.02
Quick Ratio
035420
GOOGL
BABA

Profitability

Metric
035420
GOOGL
BABA
Return on Assets (Normalized)
3.86%24.48%8.98%
Return on Equity (Normalized)
5.97%35.00%15.96%
Return on Invested Capital (Normalized)
4.76%30.54%12.33%
Return on Assets
035420
GOOGL
BABA
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