MarkLines Co.Ltd. (3901) AI Stock Analysis

• Market Cap: ¥20.49B
• Dividend Yield: 3.1%
• Average Volume (3M): 35.75K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.76
• Revenue Growth: 9.20%
• EPS Growth: 2.32%
• Country: JP
• Employees: 136
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 25.70
• Shares Outstanding: 13,228,800
• 10 Day Avg. Volume: 37,180
• 30 Day Avg. Volume: 35,746
• PEG Ratio: 1.31
• Price to Book (P/B): 4.35
• Price to Sales (P/S): 5.17
• P/FCF Ratio: 31.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,714.00 ▲(12.03% Upside)

The score is driven primarily by strong financial performance (high and durable margins plus a debt-free balance sheet) and supported by reasonable valuation with an attractive dividend yield. This is offset by weak technicals, with the stock trading below key moving averages and negative MACD indicating a downtrend.

Positive Factors

Strong Profitability

High profitability margins indicate efficient operations and pricing power, supporting sustained earnings and competitive positioning.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without financial strain.

Head Office Relocation

The relocation aims to improve operational efficiency and departmental cooperation, potentially leading to better service delivery and sustainable growth.

Negative Factors

Weaker Cash Conversion

Reduced cash conversion indicates potential working-capital challenges, which could limit the company's ability to reinvest in growth or return capital to shareholders.

Revised Financial Forecast

The revised forecast reflects industry challenges and competitive pressures, potentially impacting future revenue and profitability.

Decline in Profitability

Decreasing profitability suggests challenges in cost management or revenue generation, which could affect long-term financial health and shareholder returns.

MarkLines Co.Ltd. Business Overview & Revenue Model

Company Description

MarkLines Co., Ltd. operates an automotive industry portal in Japan. Its information platform offers online information services, including information about suppliers, such as who supplies whom, plant data, and market trends; sales and production statistics; reports on technology and market trends; and model plan data comprising forecasts and others in Japanese, Chinese, and English. The company also provides B2B promotional support and advertisement services that include promotional emails and banner ads under the LINES name to its information platform members. It serves OEMs, parts and material suppliers, machinery and equipment manufacturers, solution vendors, transportation and trading companies, consulting firms, financial institutions, government, labor unions, universities, and construction companies. The company was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MarkLines Co., Ltd. generates revenue primarily through subscription-based services offered on its online platform. These subscriptions provide clients with access to detailed reports, data analytics, and industry insights. The company also earns money through consulting services, where it provides tailored market analysis and strategic advice to automotive industry stakeholders. Additionally, partnerships with industry organizations and participation in automotive events contribute to its revenue streams.

MarkLines Co.Ltd. Financial Statement Overview

Summary

MarkLines Co.Ltd. is in a strong financial position, characterized by solid revenue and profit growth, zero leverage, and robust cash flow generation. The company is well-positioned to sustain its growth trajectory while managing risks effectively. The financial statements reflect a well-managed business with strong fundamentals.

Income Statement

MarkLines Co.Ltd. demonstrates strong financial performance with a consistent upward trend in revenue and profitability. The Gross Profit Margin has been stable, and the Net Profit Margin has improved due to efficient cost management. Revenue growth has been robust, and the company maintains strong EBIT and EBITDA margins, indicating operational efficiency.

Balance Sheet

The balance sheet of MarkLines Co.Ltd. is solid with zero debt and a strong equity base, reflected in a high Equity Ratio. The Return on Equity is impressive, indicating effective utilization of shareholder funds to generate profits. This financial stability reduces risk and enhances the company's capacity for growth.

Cash Flow

MarkLines Co.Ltd. displays healthy cash flow management. Although there was a decline in operating cash flow, the Free Cash Flow remains strong, reflecting the company's ability to generate cash after capital expenditures. The Free Cash Flow to Net Income Ratio is favorable, indicating efficient cash operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.71B	5.56B	4.85B	4.13B	3.50B	2.66B
Gross Profit	3.70B	3.62B	3.19B	2.67B	2.24B	1.77B
EBITDA	2.25B	2.27B	2.02B	1.65B	1.32B	1.01B
Net Income	1.54B	1.58B	1.38B	1.14B	885.35M	630.30M
Balance Sheet
Total Assets	9.03B	8.75B	7.48B	6.10B	4.99B	4.02B
Cash, Cash Equivalents and Short-Term Investments	4.16B	6.06B	5.52B	4.75B	3.95B	3.30B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.29B	2.14B	1.98B	1.66B	1.40B	1.10B
Stockholders Equity	6.70B	6.62B	5.50B	4.44B	3.59B	2.92B
Cash Flow
Free Cash Flow	0.00	906.45M	1.47B	1.02B	1.07B	720.40M
Operating Cash Flow	0.00	1.54B	1.79B	1.39B	1.08B	760.57M
Investing Cash Flow	0.00	-564.33M	-601.39M	-368.65M	26.17M	-61.49M
Financing Cash Flow	0.00	-473.15M	-383.69M	-302.42M	-248.40M	-233.73M

MarkLines Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1530.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3901, the sentiment is Neutral. The current price of 1530 is above the 20-day moving average (MA) of 1506.37, below the 50-day MA of 1636.97, and below the 200-day MA of 1916.93, indicating a neutral trend. The MACD of -25.14 indicates Negative momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 62.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3901.

MarkLines Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3922	77 Outperform	¥39.93B	22.68	―	0.38%	18.02%	46.43%
3901	74 Outperform	¥20.49B	13.29	―	3.10%	9.20%	2.32%
3662	70 Outperform	¥22.62B	19.59	―	1.85%	0.63%	-1.84%
3843	66 Neutral	¥32.81B	11.23	―	1.90%	12.67%	-9.32%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

MarkLines Co.Ltd. Corporate Events

MarkLines Revises 2025 Financial Forecast Amid Industry Challenges

MarkLines Co., Ltd. has revised its full-year consolidated financial forecast for 2025, anticipating a decline in net sales, operating income, ordinary income, and net income attributable to shareholders. This revision is attributed to challenges faced by Japanese, European, and U.S. automotive manufacturers due to aggressive competition from Chinese automakers and the impact of U.S. tariff policies. The company notes a slump in orders across its businesses, except for the promotion advertising segment, and highlights the slow recovery of Japanese manufacturers affecting its order trends.

MarkLines Co., Ltd. Announces Head Office Relocation to Enhance Operations

MarkLines Co., Ltd. announced the relocation of its head office to Roppongi Central Tower in Tokyo, effective December 15, 2025. This move aims to enhance departmental cooperation, improve operational efficiency, and integrate functions within the Information Platform Division, thereby streamlining business processes and strengthening centralized information management. The relocation is expected to stabilize and enhance the company’s information services, contributing to sustainable growth in corporate value. The financial impact of this relocation on the company’s 2025 fiscal results is anticipated to be minimal.

MarkLines Co., Ltd. Reports Mixed Financial Results for Nine Months Ending September 2025

MarkLines Co., Ltd. reported its consolidated financial results for the nine months ended September 30, 2025, showing a slight increase in net sales by 4.3% compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability. The company’s total assets and equity-to-asset ratio also saw a slight decrease, reflecting a cautious financial position. Despite these challenges, MarkLines announced a forecasted increase in annual dividends per share, signaling confidence in future performance.

MarkLines Co., Ltd. Updates on Share Repurchase Progress

MarkLines Co., Ltd. has announced the progress of its share repurchase program, which was resolved by the Board of Directors on August 7, 2025. The company has acquired 140,100 shares at a cost of JPY 294,823,600 between September 1 and September 30, 2025, as part of a larger plan to repurchase up to 530,000 shares by November 30, 2025. This move is part of MarkLines’ strategy to manage its capital structure and potentially enhance shareholder value.