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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3275
Positioning
Market Dominance
Manufacturing
Printing And Publishing
$2.5B
Junkoo Kim
Our Vision To be the world’s storytelling technology platform empowering creation by anyone, for everyone. WEBTOON is a Delaware corporation and was incorporated in 2016. Our principal executive offices are located at 5700 Wilshire Blvd, Suite 220, Los Angeles, CA.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$WBTN WEBTOON Entertainment Inc. | 42 | 51 | 58 | 39 | - | - | -1.1% | -0.9% | 23.8% | -4.2% | -1.3% | 17.8% | 0.0% | 26.0x | $2.5B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
WEBTOON Entertainment Inc. (WBTN) receives a "Reduce" rating with a composite score of 42.0/100. It ranks #3275 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Junkoo Kim
Chief Executive Officer
51
28
34
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for WBTN
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for WBTN.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
ROE proxy -1.1% (sector -2.5%)
GM 24% vs sector 43%, OM -4% vs sector 1%
Capital turnover N/A
Rev growth 18%, 2yr history
Interest coverage -7439.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
WEBTOON Entertainment Inc. receives a Reduce rating from our analysis, with a composite score of 42.0/100 and 2 out of 5 stars, ranking #3275 out of 7,333 stocks. WBTN's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 51/100, WBTN shows adequate but unremarkable business quality. The company reports a return on equity of -1.1% (sector avg: -2.5%), gross margins of 23.8% (sector avg: 42.5%), net margins of -1.3% (sector avg: -0.2%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
WBTN's value score of 58/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/B ratio of 0.97x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
WEBTOON Entertainment Inc.'s investment score of 28/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 17.8% vs. a sector average of 5.9% and a return on assets of -0.9% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
WBTN is currently showing below-average momentum at 39/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 17.8% year-over-year, while a beta of 1.62 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
WBTN's stability score of 34/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.62 and a debt-to-equity ratio of 26.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
WEBTOON Entertainment Inc.'s short interest score of 27/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include high market sensitivity (beta: 1.62), elevated leverage (D/E: 26.00x). At $2.5B (mid-cap), WBTN carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
WEBTOON Entertainment Inc. is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3275 of 7,333 overall (55th percentile). Key comparisons include ROE of -1.1% exceeding the -2.5% sector median and operating margins of -4.2% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While WBTN currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Short Int. (27) would have the largest impact on the composite score.
ROE 56% BELOW SECTOR MEDIAN
Gross Margin 44% BELOW SECTOR MEDIAN
Op. Margin 429% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate WEBTOON Entertainment Inc. (WBTN) as a Reduce with a composite score of 42.0/100 at a current price of $11.13. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in value (58th percentile) and quality (51th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (28th percentile) and stability (34th percentile) tempers our overall conviction. We assign a No Moat rating (31/100), High uncertainty, and Poor capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
WEBTOON Entertainment Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 42.0/100 places it at rank #3275 in our full 7,333-stock universe. At $2.5B in market capitalization, WEBTOON Entertainment Inc. is a mid-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue is growing at 18%, though momentum at the 39th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 24% (-18.7pp vs sector) narrow to operating margins of -4% (-5.5pp vs sector) and net margins of -1.3%, yielding a gross-to-net conversion rate of -5%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $11.13, WEBTOON Entertainment Inc. is trading near fair value based on current fundamentals. Our value factor score of 58/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at P/B of 1.0x, P/S of 1.1x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Revenue growth of 18% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
A conservative balance sheet (26% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Reduce rating (composite 42.0/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Thin net margins of -1.3% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
High beta of 1.62 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
We assign a High uncertainty rating to WEBTOON Entertainment Inc.. Key risk factors include elevated market sensitivity (beta of 1.62), current negative profitability (net margin -1.3%), below-average price stability (34th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.62); current negative profitability (net margin -1.3%); below-average price stability (34th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 34th percentile and quality factor at the 51th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (26% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate WEBTOON Entertainment Inc.'s capital allocation as Poor. Key concerns include low returns on equity (-1.1%), negative profitability, weak asset returns (ROA -0.9%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — WEBTOON Entertainment Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, WEBTOON Entertainment Inc. receives a Reduce rating with a composite score of 42.0/100 (rank #3275 of 7,333). Our quantitative framework assigns a No Moat (31/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 42/100.
Our analysis does not support a constructive view on WEBTOON Entertainment Inc. at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign WEBTOON Entertainment Inc. a meaningful economic moat, scoring 31/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, margin superiority, reached only 8.7/20.
The strongest moat sources are margin superiority (8.7/20) and financial resilience (8.6/20). GM 24% vs sector 43%, OM -4% vs sector 1%. Interest coverage -7439.0x. These pillars form the core of WEBTOON Entertainment Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (5.2/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect WEBTOON Entertainment Inc.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include robust top-line growth of 18% expanding the revenue base. The margin cascade from 24% gross to -4% operating to -1.3% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 51th percentile.
The margin profile shows gross margins of 24%, operating margins of -4%, net margins of -1.3%. Return metrics include ROE of -1.1% and ROA of -0.9%. Relative to the Manufacturing sector, gross margins are 18.7 percentage points below the sector median of 43%, and ROE of -1.1% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 26%, revenue growth of 18%. The sector median D/E is 0%, putting WEBTOON Entertainment Inc. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Webtoon Entertainment reported Q2 2025 financial results with 8.5% revenue growth, beating analyst expectations. The company saw improved net losses, strategic Disney partnership, and continued focus on platform innovation and user engagement.
WEBTOON Entertainment is now facing an active securities fraud class action after a U.S. District Court in November 2025 denied its motion to dismiss allegations that it misled investors about Monthly Active Users at the time of its June 27, 2024 IPO. The court’s decision has prompted law firms to investigate potential breaches of fiduciary duty by WEBTOON’s officers and directors, raising fresh questions about its disclosure practices and governance controls. We’ll now examine how the...
WEBTOON Entertainment (WBTN) has been drawing attention after recent trading, with the share price closing at US$11.21. You might be asking whether the current valuation reflects its growth and recent returns. See our latest analysis for WEBTOON Entertainment. Recent trading has been choppy, with a 1 day share price return decline of 5.32% and a 30 day share price return decline of 17.02%. In contrast, the 1 year total shareholder return of 4.38% suggests longer term holders have seen a...
Perion Network (PERI) delivered earnings and revenue surprises of +1.03% and +0.32%, respectively, for the quarter ended December 2025. Do the numbers hold clues to what lies ahead for the stock?
Above 50MA
37.18%
Net New Highs
+51081