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WEBTOON Entertainment Inc. Common stock

WBTN·NASDAQ

$11.37

-9.5%
TechnologySoftware - Application

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company's platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. operates as a subsidiary of NAVER Corporation.

At a Glance

Live Snapshot
Market Cap$1.54B
EPS-2.6600
P/E Ratio-4.27
Earnings Date08/11/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -4.3).

Valuation inputs: P/E -4.3, earnings yield N/A, momentum -9.5%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -29.6%, ROIC -4.2%).

Profitability stack: net margin -25.0%, ROE -29.6%, ROIC -4.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +23.0%, momentum -9.5%, net margin -25.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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WEBTOON Entertainment Inc. Common stock Market vs Earnings Trajectory

WBTN · NASDAQ

Loading price and EPS data...

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WEBTOON Entertainment Inc. Common stock Fair Value Envelope

WBTN · NASDAQ

Our analysis suggests that WBTN has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $11.37, this represents a potential HIDDEN relative to our calculated worth for WEBTOON Entertainment Inc. Common stock.

Intrinsic Value
Current Price: $11.37
3Y+161.0%
5Y+161.0%
10Y+161.0%
3Y+28.0%
5Y+28.0%
10Y+28.0%
3Y+166.0%
5Y+166.0%
10Y+166.0%
3Y-108.0%
5Y-108.0%
10Y-108.0%
3Y-102.0%
5Y-102.0%
10Y-102.0%
3Y-21.0%
5Y-21.0%
10Y-21.0%
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WEBTOON Entertainment Inc. Common stock Profit Bridge

WBTN · NASDAQ
Revenue1.38B
Cost of Goods Sold (1.06B)
Gross Profit322.18M
Operating Expenses (378.88M)
Operating Income-56.70M
Interest Expense (56.00K)
Other Income/Expense-332.71M
Pretax Income-389.41M
Income Tax (-16.02M)
Net Income-345.93M
Net Income
-345.93M

Profitability Analysis

Gross Margin

23.3%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

-4.1%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-25.0%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.

23.30%
Gross Profit Margin
-7%
3Y-8.0%
5Y-8.0%
10Y-8.0%
-4.10%
Operating Profit Margin
-45%
3Y-61.0%
5Y-61.0%
10Y-61.0%
-25.02%
Net Profit Margin
134%
3Y+108.0%
5Y+108.0%
10Y+108.0%
-29.55%
Return on Equity
202%
3Y+215.0%
5Y+215.0%
10Y+215.0%
-21.68%
Return on Assets
192%
3Y+237.0%
5Y+237.0%
10Y+237.0%
-4.23%
Return on Invested Capital
-32%
3Y-37.0%
5Y-37.0%
10Y-37.0%
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WEBTOON Entertainment Inc. Common stock Cash Conversion Engine

WBTN · NASDAQ
Net Income-373.39M
Depreciation & Amortization35.43M
Stock-Based Compensation41.91M
Change in Working Capital-26.03M
Others362.26M
Capital Expenditures-7.62M
Free Cash Flow3.60M

Cash Flow Quality Analysis

FCF Conversion Rate

-1.0%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

67.9%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

-24.0%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$26.03M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.

Cash Flow Quality Insight

Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.

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WEBTOON Entertainment Inc. Common stock Funding & Solvency Profile

WBTN · NASDAQ
Cash & Cash Equivalents594.85M
Net Receivables182.78M
Inventory0.00
Other Current Assets73.37M
Total Current Assets851 M
Property, Plant & Equipment31.10M
Goodwill & Intangible Assets481.75M
Long-Term Investments64.35M
Other Non-Current Assets141.89M
Total Non-Current Assets237 M
Total Assets
1.59B

Financial Health Analysis

Current Ratio

2.72x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.29x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

538 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

53% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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WEBTOON Entertainment Inc. Common stock Street Expectations Map

WBTN · NASDAQ

Wall Street analysts project that WBTN stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 14.00, with estimates ranging from a low of 13.00 to a high of 15.00.

Lowest Target
13.00
14.34%
Consensus Target
14.00
23.13%
Highest Target
15.00
31.93%

The consensus 1-year price target stands at 14.00, with estimates ranging from a low of 13.00 to a high of 15.00.

Analyst Consensus Analysis

Upside Potential

+23.1%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

14.3% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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WEBTOON Entertainment Inc. Common stock Insider Positioning

WBTN · NASDAQ

During the last 12 months, insiders have sold $334K worth of WBTN shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

12.7K

214.22K

Net Activity

-214K

-$214K

9-12 Months

Bought

0

0.00

Sold

12.4K

119.49K

Net Activity

-119K

-$119K

Top Buyers

No buying activity

Top Sellers

1
LDJ

Lee David J.

Director, Officer: See Remarks

25.0K shares4 transactions

$334K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $334K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

No Dividend Yield Data

WBTN has not reported any dividend yield values in the available annual periods.

 

wbtn Dividend History

WBTN
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%