MarkLines Co.Ltd. (3901) AI Stock Analysis

• Market Cap: ¥20.65B
• Dividend Yield: 3.1%
• Average Volume (3M): 35.75K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.75
• 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

High-quality fundamentals: strong multi-year revenue compounding, best-in-class profitability (gross margin ~65%, operating margin ~40% in 2024), and an exceptionally conservative, debt-free balance sheet with strong ROE (~22%–26%). The main drag is weaker 2024 cash conversion (operating cash flow and free cash flow covering a smaller share of net income).

Income Statement

Revenue has compounded strongly over the period (from 2019 to 2024, with 2024 growing ~5.9%), and profitability is consistently excellent. Gross margin remains very high (~65%) and operating profitability is strong (operating margin ~40% in 2024), supporting a durable earnings profile. A minor watch item is modest margin compression versus 2023 (operating and EBITDA margins slightly lower), but overall margins remain best-in-class and net margin stays near ~28%.

Balance Sheet

The balance sheet is exceptionally conservative with zero debt across all reported years, implying minimal financial risk and strong flexibility. Equity has grown steadily (roughly ¥2.5B in 2019 to ~¥6.6B in 2024), and returns on equity are consistently strong (~22%–26%), indicating the company is generating attractive profits without leverage. The main limitation is that asset growth and returns are assessed without liquidity details (not provided), but the overall solvency profile is very strong.

Cash Flow

Cash generation is solid in absolute terms, with positive operating cash flow and free cash flow each year, and free cash flow increasing to ~¥0.9B in 2024. However, cash conversion weakened in 2024: operating cash flow covered less of net income (about 0.72x vs ~0.91x in 2023) and free cash flow was a lower share of net income (~0.59x vs ~0.82x in 2023). This suggests some working-capital or timing headwinds, though the overall cash flow profile remains healthy and consistently positive.

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: Positive
• Last Price: 1530.00
• 50DMA: Positive
• 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 Positive. The current price of 1530 is below the 20-day moving average (MA) of 1542.40, below the 50-day MA of 1551.19, and below the 200-day MA of 1862.22, indicating a neutral trend. The MACD of -3.23 indicates Negative momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 63.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥35.59B	16.65	―	0.38%	18.02%	46.43%
3901	74 Outperform	¥20.65B	13.40	―	3.10%	9.20%	2.32%
3662	70 Outperform	¥19.94B	17.27	―	1.85%	0.63%	-1.84%
3843	66 Neutral	¥31.68B	10.84	―	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 Reports Effective Board Governance, Sets Goals to Deepen Discussion and Transparency

MarkLines Co., Ltd. has disclosed the results of its annual effectiveness survey of the Board of Directors, based on a December 2025 questionnaire completed by all directors and corporate auditors in line with Japan’s Corporate Governance Code. The evaluation confirmed that the board is functioning effectively, with strong performance in discussions grounded in the company’s management philosophy, robust supervisory functions, and valuable, objective input from outside directors. At the same time, the review identified the need to further stimulate board discussions and enhance the quality and breadth of information provided, including non-financial data, as part of efforts to increase transparency, strengthen governance, and ultimately raise corporate value.

The most recent analyst rating on (JP:3901) stock is a Buy with a Yen1758.00 price target. To see the full list of analyst forecasts on MarkLines Co.Ltd. stock, see the JP:3901 Stock Forecast page.

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.