Webzen Profit Margin vs. Return On Equity

069080 Stock  KRW 15,890  850.00  5.65%   
Considering Webzen's profitability and operating efficiency indicators, Webzen Inc may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Webzen's ability to earn profits and add value for shareholders.
For Webzen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Webzen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Webzen Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Webzen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Webzen Inc over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Webzen's value and its price as these two are different measures arrived at by different means. Investors typically determine if Webzen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Webzen's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Webzen Inc Return On Equity vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Webzen's current stock value. Our valuation model uses many indicators to compare Webzen value to that of its competitors to determine the firm's financial worth.
Webzen Inc is rated second in profit margin category among its peers. It also is rated second in return on equity category among its peers reporting about  50.46  of Return On Equity per Profit Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Webzen by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Webzen's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Webzen Return On Equity vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Webzen

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.31 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Webzen

Return On Equity

 = 

Net Income

Total Equity

 = 
15.49
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Webzen Return On Equity Comparison

Webzen is currently under evaluation in return on equity category among its peers.

Webzen Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Webzen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Webzen will eventually generate negative long term returns. The profitability progress is the general direction of Webzen's change in net profit over the period of time. It can combine multiple indicators of Webzen, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Webzen Inc., a game company, engages in the PC, online, and mobile gaming business worldwide. Webzen Inc. was founded in 2000 and is headquartered in Seongnam, South Korea. Webzen is traded on Korean Securities Dealers Automated Quotations in South Korea.

Webzen Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Webzen. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Webzen position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Webzen's important profitability drivers and their relationship over time.

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Webzen without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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In addition to having Webzen in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Other Information on Investing in Webzen Stock

To fully project Webzen's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Webzen Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Webzen's income statement, its balance sheet, and the statement of cash flows.
Potential Webzen investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Webzen investors may work on each financial statement separately, they are all related. The changes in Webzen's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Webzen's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.