# Kakao (035720.KO)

Canonical: https://gigainvestors.com/s/035720.KO

Analysis as of: 2026-10-16T07:35:53.195Z. Financial observations: FY2008–FY2025.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 31,000.00 per share; close as of 2026-10-15.

Estimated value: low KRW 33,515.79 per share, central KRW 34,696.73 per share, high KRW 36,268.80 per share. Buy at or below the central value KRW 34,696.73 per share. Valuation as of 2026-10-16T07:35:53.195Z; scenarios are not confidence intervals.

Expected annual return: 14.5% at the stated quote. About 14.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 2

- Operating margin variation: 0.28×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.08×

- FY2018: 0.03×

- FY2019: 0.07×

- FY2020: 0.11×

- FY2021: 0.10×

- FY2022: 0.08×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.09×

### moat: pass

- ROIC, median of available years: 21.2%

- ROIC, second-lowest year: 14.8%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 93.9%

- Recent gross margin (lower of latest and 3-year median): 93.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.4%

- ROIC including acquisitions, ten-year median: 6.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 14.8%

- FY2017: 46.6%

- FY2018: 22.9%

- FY2019: 19.5%

- FY2020: 38.8%

- FY2021: 34.1%

- FY2022: 15.6%

- FY2023: 12.0%

- FY2024: 17.4%

- FY2025: 60.2%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.51×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 1.17T

- Net income, five-year total: KRW 2.28T

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -5.6 pp

- Working capital / revenue, final three-year average: 5.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.90×

- FY2022: 0.72×

- FY2023: 1.36×

- FY2024: -0.40×

- FY2025: 0.69×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 22.9% vs 17.4%

- Per-share earnings: 120.99 to 124.82 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: KRW -20.00T

- Cumulative retained earnings: KRW 2.28T

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.5%

- Per-share value change: KRW 3.83

- Per-share value, starting three-year median: KRW 120.99

- Per-share value, ending three-year median: KRW 124.82

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.5%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 5.17T

- Cumulative net income, 10 years: KRW 2.35T

- ROIC, first three-year median: 22.9%

- ROIC, last three-year median: 17.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW 319.86

- FY2018: KRW 120.99

- FY2019: KRW -734.25

- FY2020: KRW 361.86

- FY2021: KRW 3K

- FY2022: KRW 3K

- FY2023: KRW -2K

- FY2024: KRW 124.82

- FY2025: KRW 1K

### accounting: pass

- Sloan accruals: -3.3%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.86×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.46×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.7%

- FY2017: -4.1%

- FY2018: -5.6%

- FY2019: -12.1%

- FY2020: -6.8%

- FY2021: 0.4%

- FY2022: 3.0%

- FY2023: -9.3%

- FY2024: -4.6%

- FY2025: -3.3%

## Holders

## Price story

Down 75% since Oct 2021 · sales +3%

Story as of 2026-10-16T10:00:06.273Z; price observation 2026-10-15.

Price needs cash profits to shrink 5.1% a year for ten years

### Sales · FY2024–2025

sales +3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 1.46T 

- FY2017: KRW 1.97T 

- FY2018: KRW 2.42T 

- FY2019: KRW 3.07T 

- FY2020: KRW 4.16T 

- FY2021: KRW 6.14T 

- FY2022: KRW 6.80T 

- FY2023: KRW 7.56T 

- FY2024: KRW 7.86T 

- FY2025: KRW 8.10T 

### Gross margin · FY2025

gross margin 94.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: 91.5% 

- FY2019: 90.6% 

- FY2021: 94.7% 

- FY2022: 92.9% 

- FY2023: 93.5% 

- FY2024: 93.6% 

- FY2025: 94.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet content & information; annual sales are KRW 8.1 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2025: revenue 8099147815080; grossProfit 7618181491080; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 035720.KO: Kakao Corp. operates mobile and online platforms in South Korea. The company offers Kakao Pay, a financial service solution; Kakao Bank, a banking solution; Kakao Mobility for mobility services; Kakao Style, a lifestyle solution; Kakao Entertainment, a solution for entertainment industry; Kakao Games, a solution for the gaming industry; Kakao piccoma, a content service platform; Kakao Brain, an artificial intelligence solution; Kakao Enterprise, a cloud service solution; and Kakao Healthcare, a mobile-based personal healthcare solution. It also provides Linkagelab, a workplace for individuals with disabilities; investment services in start-ups under the Kakao Investment name; and various solutions under the KakaoTalk, Kakao Business Service, Daum, Kakao Ventures, and Kakao Map names. The company was formerly known as Daum Kakao Corp. and changed its name to Kakao Corp. in October 2015. Kakao Corp. was founded in 1995 and is headquartered in Jeju-si, South Korea.

### Why customers stay

Margins ranged from 93.5% to 94.1% during 2023–25; it earns 21.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2023: grossProfit / revenue = 93.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2024: grossProfit / revenue = 93.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2025: grossProfit / revenue = 94.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); 10-year return on capital observations [[2016,0.14784026937150913],[2017,0.46611700445143256],[2018,0.22947521680826058],[2019,0.19494394847589394],[2020,0.3880495973900978],[2021,0.34147590948538015],[2022,0.15564906412084234],[2023,0.11979185154998295],[2024,0.17445178837385913],[2025,0.6018796508499309]]; median 0.21220958264207726. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 93% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); Gross margin observations: [[2021,0.9465155638943107],[2022,0.9288937000757488],[2023,0.9347253055055263]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back KRW 86 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2016: growth capex 0; upkeep 105225126020; owner earnings 212033982650. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2017: growth capex 0; upkeep 75164746750; owner earnings 296762312770. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2018: growth capex 0; upkeep 97197179560; owner earnings 394272710350. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2020: growth capex 0; upkeep 183146811230; owner earnings 168494525750. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2021: growth capex 0; upkeep 216218815370; owner earnings 1251526937148. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2022: growth capex 61445156110; upkeep 581430811000; owner earnings 980458063330. Growth capex / owner earnings = 0.06266984627706504.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2025: growth capex 0; upkeep 614373324790; owner earnings 339108462648. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); Dividend observations: [[2016,11337891510],[2017,15999594000],[2018,13470136880],[2019,10252571910],[2020,13262621290],[2021,68742740670],[2022,22989645700],[2023,54575122920],[2024,43474643340],[2025,38946505860]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); FY2025: cash repurchases 85965166166.66666 KRW.

### Are managers owners

Insiders own 29.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 035720.KO SharesStats.PercentInsiders = 29.792999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:53.195Z); Ten-year compound average after fade. Initial solved rate -0.08445015303887488. Price 31000; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 76,400.00 per share

- 2016-11: KRW 77,700.00 per share

- 2016-12: KRW 77,000.00 per share

- 2017-01: KRW 77,700.00 per share

- 2017-02: KRW 85,400.00 per share

- 2017-03: KRW 83,100.00 per share

- 2017-04: KRW 90,400.00 per share

- 2017-05: KRW 98,800.00 per share

- 2017-06: KRW 101,500.00 per share

- 2017-07: KRW 120,000.00 per share

- 2017-08: KRW 123,000.00 per share

- 2017-09: KRW 144,000.00 per share

- 2017-10: KRW 144,000.00 per share

- 2017-11: KRW 136,500.00 per share

- 2017-12: KRW 137,000.00 per share

- 2018-01: KRW 140,000.00 per share

- 2018-02: KRW 128,000.00 per share

- 2018-03: KRW 132,000.00 per share

- 2018-04: KRW 111,000.00 per share

- 2018-05: KRW 103,500.00 per share

- 2018-06: KRW 114,500.00 per share

- 2018-07: KRW 112,500.00 per share

- 2018-08: KRW 125,000.00 per share

- 2018-09: KRW 119,000.00 per share

- 2018-10: KRW 91,600.00 per share

- 2018-11: KRW 112,500.00 per share

- 2018-12: KRW 103,000.00 per share

- 2019-01: KRW 99,300.00 per share

- 2019-02: KRW 103,500.00 per share

- 2019-03: KRW 103,500.00 per share

- 2019-04: KRW 120,000.00 per share

- 2019-05: KRW 124,500.00 per share

- 2019-06: KRW 131,500.00 per share

- 2019-07: KRW 127,000.00 per share

- 2019-08: KRW 134,500.00 per share

- 2019-09: KRW 135,500.00 per share

- 2019-10: KRW 141,500.00 per share

- 2019-11: KRW 155,500.00 per share

- 2019-12: KRW 153,500.00 per share

- 2020-01: KRW 159,000.00 per share

- 2020-02: KRW 172,000.00 per share

- 2020-03: KRW 155,500.00 per share

- 2020-04: KRW 184,000.00 per share

- 2020-05: KRW 263,500.00 per share

- 2020-06: KRW 267,500.00 per share

- 2020-07: KRW 343,500.01 per share

- 2020-08: KRW 407,000.01 per share

- 2020-09: KRW 364,500.01 per share

- 2020-10: KRW 330,000.01 per share

- 2020-11: KRW 368,000.01 per share

- 2020-12: KRW 389,500.01 per share

- 2021-01: KRW 441,000.01 per share

- 2021-02: KRW 488,000.01 per share

- 2021-03: KRW 498,000.01 per share

- 2021-04: KRW 113,500.00 per share

- 2021-05: KRW 123,000.00 per share

- 2021-06: KRW 163,000.00 per share

- 2021-07: KRW 147,000.00 per share

- 2021-08: KRW 155,000.00 per share

- 2021-09: KRW 118,000.00 per share

- 2021-10: KRW 125,500.00 per share

- 2021-11: KRW 122,000.00 per share

- 2021-12: KRW 112,500.00 per share

- 2022-01: KRW 85,000.00 per share

- 2022-02: KRW 94,100.00 per share

- 2022-03: KRW 106,500.00 per share

- 2022-04: KRW 89,900.00 per share

- 2022-05: KRW 85,000.00 per share

- 2022-06: KRW 69,900.00 per share

- 2022-07: KRW 74,800.00 per share

- 2022-08: KRW 73,400.00 per share

- 2022-09: KRW 57,100.00 per share

- 2022-10: KRW 50,700.00 per share

- 2022-11: KRW 56,400.00 per share

- 2022-12: KRW 53,100.00 per share

- 2023-01: KRW 61,400.00 per share

- 2023-02: KRW 62,400.00 per share

- 2023-03: KRW 61,100.00 per share

- 2023-04: KRW 58,100.00 per share

- 2023-05: KRW 56,200.00 per share

- 2023-06: KRW 49,100.00 per share

- 2023-07: KRW 51,300.00 per share

- 2023-08: KRW 48,100.00 per share

- 2023-09: KRW 43,950.00 per share

- 2023-10: KRW 37,800.00 per share

- 2023-11: KRW 50,500.00 per share

- 2023-12: KRW 54,300.00 per share

- 2024-01: KRW 52,500.00 per share

- 2024-02: KRW 53,300.00 per share

- 2024-03: KRW 53,700.00 per share

- 2024-04: KRW 48,600.00 per share

- 2024-05: KRW 43,300.00 per share

- 2024-06: KRW 40,650.00 per share

- 2024-07: KRW 39,200.00 per share

- 2024-08: KRW 37,200.00 per share

- 2024-09: KRW 36,150.00 per share

- 2024-10: KRW 36,950.00 per share

- 2024-11: KRW 40,100.00 per share

- 2024-12: KRW 38,200.00 per share

- 2025-01: KRW 38,350.00 per share

- 2025-02: KRW 43,150.00 per share

- 2025-03: KRW 39,100.00 per share

- 2025-04: KRW 38,250.00 per share

- 2025-05: KRW 42,700.00 per share

- 2025-06: KRW 60,000.00 per share

- 2025-07: KRW 58,000.00 per share

- 2025-08: KRW 62,500.00 per share

- 2025-09: KRW 59,600.00 per share

- 2025-10: KRW 65,100.00 per share

- 2025-11: KRW 58,700.00 per share

- 2025-12: KRW 60,100.00 per share

- 2026-01: KRW 61,400.00 per share

- 2026-02: KRW 62,300.00 per share

- 2026-03: KRW 45,800.00 per share

- 2026-04: KRW 47,300.00 per share

- 2026-05: KRW 41,950.00 per share

- 2026-06: KRW 34,550.00 per share

- 2026-07: KRW 37,400.00 per share

- 2026-08: KRW 36,550.00 per share

- 2026-09: KRW 33,550.00 per share

- 2026-10: KRW 31,300.00 per share

## Annual estimated value (KRW per share)

- FY2017: low KRW 13,897.56 per share, central KRW 15,214.83 per share, high KRW 16,968.38 per share

- FY2018: low KRW 15,997.39 per share, central KRW 17,382.18 per share, high KRW 19,225.64 per share

- FY2019: low KRW 17,063.74 per share, central KRW 18,698.11 per share, high KRW 20,873.79 per share

- FY2020: low KRW 23,729.14 per share, central KRW 25,838.51 per share, high KRW 28,646.52 per share

- FY2021: low KRW 39,409.47 per share, central KRW 42,618.35 per share, high KRW 46,890.04 per share

- FY2022: low KRW 34,927.55 per share, central KRW 38,263.51 per share, high KRW 42,704.38 per share

- FY2023: low KRW 20,758.09 per share, central KRW 24,838.12 per share, high KRW 27,213.94 per share

- FY2024: low KRW 22,117.93 per share, central KRW 23,202.72 per share, high KRW 24,646.80 per share

- FY2025: low KRW 25,570.18 per share, central KRW 26,728.51 per share, high KRW 28,270.50 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:35.238Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations