GRVY has nearly its entire market cap in cash, and management finally started using it
GRVY’s market cap is approximately $480 million from premarket trading. Its most recent cash balance is approximately $460 million at current KRW/USD exchange rate. The company also generated roughly $35 million of net profit in the first half of 2026!!!
So after adjusting for cash, the profitable operating business is being valued at almost nothing.
Why so cheap?
Because Gravity was a notorious cash hoarder. It accumulated cash for years without dividends, buybacks or a credible capital-deployment strategy. Investors reasonably applied a huge discount to cash they might never receive.
Today may be the inflection point.
Gravity announced:
Its first dividend since founding
KRW 4,400 per share
KRW 30.6 billion total distribution
$200 million allocated to growth and strategic investments
Shareholder returns as an explicit part of its capital-allocation framework
GungHo owns 59.3%, so governance remains a risk. But GungHo also became more shareholder-friendly this year, increasing its dividend, adopting a minimum 50% payout ratio and completing a JPY 5 billion buyback.
The discount existed because the cash looked permanently trapped. If management is now willing to return and deploy it, GRVY’s current valuation looks increasingly absurd.
Can anyone tell me more compelling stock to own?