MKSystem Corp. (3910) AI Stock Analysis

• Market Cap: ¥1.71B
• Dividend Yield: 1.27%
• Average Volume (3M): 6.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 19.09%
• EPS Growth: 75.98%
• Country: JP
• Employees: 118
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -6.56
• Shares Outstanding: 5,428,000
• 10 Day Avg. Volume: 5,140
• 30 Day Avg. Volume: 6,480
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥300.00
• Price Target Upside: -4.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: ¥300.00 ▼(-4.76% Downside)

The overall stock score of 43 reflects significant challenges in financial performance, with negative profitability and cash flow inefficiencies. Technical analysis indicates bearish sentiment, while valuation concerns arise from a negative P/E ratio. These factors suggest a need for strategic improvements to enhance investor confidence.

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 the sale and licensing of its software products and solutions to businesses. The company employs a subscription-based model for its software services, providing regular updates and support as part of the package. Additionally, MKSystem may offer consulting and customization services to tailor its software solutions to the specific needs of its clients, thereby generating additional revenue. Key partnerships with other technology firms and integration with third-party platforms could also play a significant role in expanding its market reach and enhancing its service offerings.

MKSystem Corp. Financial Statement Overview

Summary

MKSystem Corp. exhibits challenges in profitability and cash flow management. The income statement reflects declining revenue and net losses, with a negative net profit margin. Although the balance sheet shows some stability through equity financing, the high debt-to-equity ratio and the cash flow issues suggest potential liquidity concerns.

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	3.29B	3.29B	2.64B	2.87B	2.74B	2.44B
Gross Profit	1.26B	1.26B	858.20M	1.35B	1.27B	1.20B
EBITDA	352.47M	324.66M	-216.03M	621.97M	547.27M	582.03M
Net Income	-118.45M	-118.57M	-668.52M	145.58M	91.39M	138.05M
Balance Sheet
Total Assets	2.44B	2.44B	2.56B	2.56B	2.23B	2.24B
Cash, Cash Equivalents and Short-Term Investments	606.32M	606.32M	711.78M	609.34M	468.15M	644.49M
Total Debt	1.20B	1.20B	1.33B	510.59M	378.85M	486.15M
Total Liabilities	1.77B	1.77B	1.74B	1.03B	807.30M	839.54M
Stockholders Equity	667.43M	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: 315.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 315 is below the 20-day moving average (MA) of 319.35, below the 50-day MA of 318.52, and above the 200-day MA of 313.53, indicating a neutral trend. The MACD of -1.54 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.32 is Neutral, 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	¥2.36B	23.13	―	―	1.83%	―
4255	60 Neutral	¥2.57B	23.82	-19.47%	―	16.42%	―
4424	51 Neutral	¥1.90B	-2.68	―	―	-24.70%	-129.02%
4166	46 Neutral	¥2.19B	-12.75	-30.65%	―	0.90%	65.04%
3910	43 Neutral	¥1.71B	―	―	1.27%	19.09%	75.98%
4179	35 Underperform	¥1.63B	-6.96	―	―	23.48%	-5.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

MKSystem Corp. Corporate Events

MKSystem Corp. Reports Improved Sales Amidst Continued Losses

MKSystem Corporation reported a significant improvement in its financial performance for the fiscal year ending March 31, 2025, with net sales increasing by 24.6% compared to the previous year. Despite the increase in sales, the company still faced challenges with a net loss, but it showed a positive cash flow from operating activities, indicating potential recovery and improved financial health.