About GRAVITY Co.
Gravity Co., Ltd. develops, publishes, and distributes online games mainly in South Korea, Taiwan, Thailand, the Philippines, and internationally. It offers a massively multiplayer online role-playing game, including Ragnarok Online, Requiem, Dragonica, Ragnarok Online II, and Ragnarok Prequel II, as well as Ragnarok Clicker, a Web browser-based role-playing game. The company's mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; Sacred Blade; Dark Eden; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Action RO2: Spear of Odin; Tera Classic; the Lord; and the Color of Dream Fantasy, Latale. It also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; and Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3. In addition, the company offers games for IPTV, including Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications.
Further, it provides system development and maintenance services, as well as system integration services to third parties. As of December 31, 2020, it owned 129 registered domain names. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.
GRVY operates in the Services | Business Services | approximately 340 employees | led by CEO Hyun-Chul Park.
$439 million 7.6x P/E 1.1x P/B 1.1x EV/EBITDA 15.4% ROE -39.7% rev. growth
GRAVITY Co. earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #24 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 96/100, which places GRVY in the top 4 percent of all stocks on this measure. stability at 93/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Services sector, GRVY ranks 1st out of 50 peers, placing it in the 98th percentile. At $439 million, the company is a small-cap stock with higher potential but also higher risk.
Quality Analysis
GRAVITY Co.'s quality score of 82/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 15.4% exceeds the sector median of 6.0%. Gross margins of 38.7% are competitive for the sector. Operating margins of 17.1% sit above the 5.0% sector average.
Net margins of 16.9% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 96/100 puts GRVY in the top 4 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 7.6x, an EV/EBITDA of 1.1x, a price-to-book of 1.1x, a price-to-sales of 1.3x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 69/100 shows GRVY is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -39.7% is declining, which makes the momentum signal more precarious. A beta of 0.65 means GRAVITY Co. moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Small-cap illiquidity. At $439 million, GRVY has lower trading volume and wider bid-ask spreads than large-cap peers. This can amplify short-term price volatility and make it harder for larger investors to build or exit positions without moving the stock.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support GRAVITY Co.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
GRAVITY Co. earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #24 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position GRVY above the majority of the market.
Explore the full GRVY analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
