Kakao Corp. (035720.KS) stock analysis

In our weekly check, Kakao Corp. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 6, red flags: 4.

About Kakao Corp.

Kakao Corp. is a Communication Services company (Internet Content & Information) based in South Korea, listed on KSC as 035720.KS.

What our checks show for 035720.KS

Red flags

• The net margin fell by 19.6 points over 5 years, to 3.9%: the company keeps less of each sale as profit.
• The gross margin fell by 31.1 points, to 63.4%: costs are rising faster than prices.
• The net margin is only 3.9%: little room if costs rise.
• The stock has fallen as much as 82% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 3.2 times: a weak year could make the payments hard.
• Earnings per share fell 38.5% a year over the last 3 years.
• Net profit fell 38.3% a year over the last 3 years.
• The price swings a lot: 47.6% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 5.3%.

Strengths

• Debt is low: 0.27x equity.
• Operating cash flow is 3.58x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 54.4% a year over the next years.
• Analysts expect the net margin to improve by 6 points from today's 3.9%.
• The dividend takes 33% of profit: there is a cushion.
• A large company: market value $10 billion.

Next earnings report: 2026-11-05

Similar companies

035420.KS · 6098.T · 0700.HK · ETERNAL.NS · META

Questions

What grade does Kakao Corp. (035720.KS) have?

In our weekly check, Kakao Corp. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 6, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 035720.KS stock?

This week's biggest flags for Kakao Corp.: Margins falling, Gross margin falling, Thin margins. In total 10 of 25 checks show a warning or a red flag.

What does Kakao Corp. do?

Kakao Corp. is a Communication Services company (Internet Content & Information) based in South Korea, listed on KSC as 035720.KS.

When does Kakao Corp. report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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