Gravity Co., Ltd. GRVY

Gravity is a cash‑rich specialist with a beloved IP that still monetizes two decades on. The financials are healthy—mid‑teens free‑cash‑flow margins, no debt, and a negative cash conversion cycle—but growth and returns swing with the life of a few Ragnarok titles, and five‑year incremental returns on capital are low (~1.2%). If China and the Americas sustain momentum and marketing efficiency normalizes, there’s ample upside from today’s valuation; if not, investors should expect a lumpy, non‑linear journey rather than smooth compounding. In plain English: quality niche asset, wide price‑value gap, but the long‑term “compounder” badge remains to be earned through diversification and steadier reinvestment returns.