MKSystem Corp. (3910) AI Stock Analysis

• Market Cap: ¥1.62B
• Dividend Yield: 1.35%
• Average Volume (3M): 6.54K
• Price to Earnings (P/E): 266.1
• Beta (1Y): 0.55
• Revenue Growth: 9.45%
• EPS Growth: N/A
• Country: JP
• Employees: 118
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 4.71
• Shares Outstanding: 5,428,000
• 10 Day Avg. Volume: 7,000
• 30 Day Avg. Volume: 6,536
• PEG Ratio: 0.17
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 6.34
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ¥285.00 ▼(-5.00% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and liquidity issues. Technical analysis indicates a bearish trend, and valuation concerns are highlighted by a negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Despite challenges, MKSystem Corp. has experienced periods of revenue growth, indicating potential for recovery and market adaptability.

Innovative Business Model

MKSystem's focus on innovation in software and IT services positions it well for long-term competitiveness and client retention.

Strategic Partnerships

Partnerships enhance market reach and product offerings, providing a durable competitive advantage and potential for new revenue streams.

Negative Factors

High Debt Levels

High leverage can strain financial flexibility, impacting the company's ability to invest in growth and weather economic downturns.

Declining Revenue

Consistent revenue decline and net losses indicate operational challenges and potential difficulties in maintaining market position.

Liquidity Issues

Liquidity challenges could limit MKSystem's ability to fund operations and invest in growth, affecting long-term sustainability.

MKSystem Corp. Business Overview & Revenue Model

Company Description

MKSystem Corporation provides system development and cloud services in Japan.t operates through two segments, Sharo Dream Business and CuBe Business. The company offers Shalom, a business support cloud system for labor consultant and social insurance offices; Company Edition, to reduce the workload of the employment insurance / social insurance application procedure in the human resources and general affairs department for general companies; DirectHR, a solution for social insurance, labor consultant offices, and general enterprises; and eNEN for year-end adjustment changes. It also provides Cloud Pocket for uploading the documents; and GooooN for personnel management. The company serves social insurance, labor consultant offices and corporations, labor insurance affairs associations, small and medium enterprise welfare corporations, SR management labor centers, and general companies. MKSystem Corporation was incorporated in 1989 and is headquartered in Osaka, Japan.

How the Company Makes Money

MKSystem Corp. generates revenue through multiple streams, primarily from the sale of its software products and subscription-based cloud services. The company licenses its software to enterprise clients, providing ongoing support and updates that create a steady income stream. Additionally, MKSystem Corp. earns revenue from consulting and implementation services, helping organizations to effectively deploy and integrate its software solutions. Significant partnerships with major cloud providers and technology firms enhance its market reach and enable collaborative product offerings, further contributing to its earnings. Furthermore, the company may engage in strategic alliances that lead to joint ventures, increasing its exposure to new markets and customer segments.

MKSystem Corp. Financial Statement Overview

Summary

MKSystem Corp. faces challenges in profitability and cash flow management, with declining revenue and a significant net loss reported in 2025. The company maintains some balance sheet stability through equity financing, but high debt levels and liquidity issues are concerning.

Income Statement

MKSystem Corp. has faced declining revenue since 2023, with a significant net loss reported in 2025. The gross profit margin stands at approximately 38.4%, but the net profit margin is negative due to consistent net losses. The revenue growth over the past periods shows a fluctuating pattern, indicating instability in revenue generation.

Balance Sheet

The company has a relatively high debt-to-equity ratio of approximately 1.80 in 2025, reflecting a leveraged position. Stockholders' equity has decreased slightly, impacting the equity ratio, which is around 27.3% for 2025. Despite the financial leverage, the company's assets are primarily financed through equity, showcasing some stability.

Cash Flow

Operating cash flow improved in 2025 but remains lower than net income, demonstrating operational challenges. Free cash flow has turned positive, but the free cash flow to net income ratio indicates inefficiency in converting net income into cash. The cash flow situation suggests potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.35B	3.29B	2.64B	2.87B	2.74B	2.44B
Gross Profit	1.27B	1.26B	858.20M	1.35B	1.27B	1.20B
EBITDA	396.57M	324.66M	-216.03M	621.97M	547.27M	582.03M
Net Income	-80.03M	-118.57M	-668.52M	145.58M	91.39M	138.05M
Balance Sheet
Total Assets	2.13B	2.44B	2.56B	2.56B	2.23B	2.24B
Cash, Cash Equivalents and Short-Term Investments	741.72M	606.32M	711.78M	609.34M	468.15M	644.49M
Total Debt	1.11B	1.20B	1.33B	510.59M	378.85M	486.15M
Total Liabilities	1.52B	1.77B	1.74B	1.03B	807.30M	839.54M
Stockholders Equity	610.14M	667.43M	807.71M	1.52B	1.42B	1.36B
Cash Flow
Free Cash Flow	0.00	263.80M	-675.95M	53.88M	2.80M	-60.47M
Operating Cash Flow	0.00	276.07M	-316.74M	617.25M	493.73M	340.18M
Investing Cash Flow	0.00	-234.14M	-353.44M	-557.42M	-472.47M	-381.12M
Financing Cash Flow	0.00	-147.38M	772.62M	88.45M	-177.55M	-64.54M

MKSystem Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 300.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3910, the sentiment is Neutral. The current price of 300 is above the 20-day moving average (MA) of 291.30, above the 50-day MA of 293.90, and below the 200-day MA of 310.08, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 63.48 is Neutral, neither overbought nor oversold. The STOCH value of 90.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3910.

MKSystem Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3913	69 Neutral	¥2.86B	14.94	―	―	14.42%	3652.58%
4255	64 Neutral	¥4.24B	25.35	―	―	12.56%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4166	53 Neutral	¥2.23B	-16.46	―	―	12.27%	73.45%
4424	51 Neutral	¥2.11B	-5.48	―	―	-20.74%	36.84%
3910	44 Neutral	¥1.62B	266.10	―	1.35%	9.45%	―
4179	35 Underperform	¥1.75B	-11.65	―	―	30.10%	40.65%

MKSystem Corp. Corporate Events

MKSystem Corp. Reports Q2 Financial Results with Improved Equity Ratio

MKSystem Corporation reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, showing a slight increase in net sales by 1.6% compared to the previous year. Despite the increase in sales, the company experienced a minor operating profit and a loss attributable to the owners of the parent, indicating ongoing challenges in achieving profitability. The equity ratio improved to 31.0% from 27.3% as of March 31, 2025, reflecting a stronger financial position. The company has maintained its earnings forecasts for the fiscal year, expecting significant growth in net sales and profits, which suggests a positive outlook for the remainder of the fiscal year.