MKSystem Corp. (3910) AI Stock Analysis

• Market Cap: ¥1.75B
• Dividend Yield: 1.25%
• Average Volume (3M): 8.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: 24.63%
• EPS Growth: 82.26%
• Country: JP
• Employees: 118
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 14.28
• Shares Outstanding: 5,428,000
• 10 Day Avg. Volume: 3,080
• 30 Day Avg. Volume: 8,530
• PEG Ratio: -0.49
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 46 Neutral
• Price Target: ¥307.00 ▼(-4.06%Downside)

The overall score reflects significant financial challenges, particularly in profitability and cash flow management. While the technical analysis remains neutral, the negative valuation due to unprofitability heavily impacts the score. The stock's performance is hindered by financial instability, requiring strategic improvements for better prospects.

MKSystem Corp. Business Overview & Revenue Model

Company Description

MKSystem Corp. (3910) is a Japanese technology company specializing in the development and provision of software solutions and services. The company focuses on providing enterprise resource planning (ERP) systems, human resources management systems (HRMS), and other business applications to streamline operations and improve efficiency for its clients. MKSystem Corp. caters to a diverse range of industries, offering tailored solutions that support businesses in optimizing their internal processes and enhancing productivity.

How the Company Makes Money

MKSystem Corp. generates revenue primarily through the sale of its software solutions and services. The company's key revenue streams include licensing fees for its software products, subscription fees for its cloud-based solutions, and maintenance and support services offered to clients. Additionally, the company may engage in systems integration projects and provide custom development services for businesses seeking specialized solutions. MKSystem Corp. also benefits from strategic partnerships with other technology providers and industry stakeholders, which may enhance its product offerings and expand its market reach.

MKSystem Corp. Financial Statement Overview

Summary

MKSystem Corp. exhibits robust revenue growth but faces significant profitability and cash flow issues. High leverage and negative equity returns reflect financial instability, posing risks to sustainable operations. Focus on profitability and cash flow improvements is essential for future resilience.

Income Statement

MKSystem Corp. shows significant revenue growth in the TTM period, but the company struggles with profitability. The gross profit margin for TTM is 39.65%, yet both the net profit margin and EBIT margin are negative due to substantial net losses and EBIT. This indicates high operational and financial challenges despite growing revenue.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 2.20 in the TTM period, indicating significant leverage. The equity ratio decreased to 25.05%, suggesting a reliance on debt financing. The return on equity is negative, further highlighting profitability concerns amidst high leverage.

Cash Flow

MKSystem Corp.'s cash flow position is weak with no free cash flow generation in the TTM period. The operating cash flow to net income ratio is negligible, indicating major cash flow challenges. The lack of positive free cash flow and negative cash flow growth rates underline financial instability.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	3.11B	2.64B	2.87B	2.74B	2.44B	2.38B
Gross Profit	1.23B	858.20M	1.35B	1.27B	1.20B	1.20B
EBITDA	122.94M	-216.03M	621.97M	547.27M	582.03M	623.00M
Net Income	-163.56M	-668.52M	145.58M	91.39M	138.05M	197.00M
Balance Sheet
Total Assets	2.35B	2.56B	2.56B	2.23B	2.24B	2.26B
Cash, Cash Equivalents and Short-Term Investments	701.00M	711.78M	609.34M	468.15M	644.49M	749.96M
Total Debt	1.29B	1.33B	510.59M	378.85M	486.15M	507.24M
Total Liabilities	1.76B	1.74B	1.03B	807.30M	839.54M	950.60M
Stockholders Equity	589.00M	807.71M	1.52B	1.42B	1.36B	1.27B
Cash Flow
Free Cash Flow	0.00	-675.95M	53.88M	2.80M	-60.47M	795.00M
Operating Cash Flow	0.00	-316.74M	617.25M	493.73M	340.18M	814.00M
Investing Cash Flow	0.00	-353.44M	-557.42M	-472.47M	-381.12M	-330.00M
Financing Cash Flow	0.00	772.62M	88.45M	-177.55M	-64.54M	-60.00M

MKSystem Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 320.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 320 is below the 20-day moving average (MA) of 321.20, above the 50-day MA of 318.06, and above the 200-day MA of 311.99, indicating a bullish trend. The MACD of 1.89 indicates Positive momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 43.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥1.95B	23.08		―	-0.88%	―
Sector *	63 Neutral	£564.00M	24.42	-6.00%	2.45%	3.52%	-29.29%
4255	51 Neutral	¥1.57B	80.51		―	17.30%	―
4424	51 Neutral	¥1.95B	―		―	-20.17%	-455.68%
4166	50 Neutral	¥2.04B	―		―	-11.56%	50.90%
3910	46 Neutral	¥1.75B	―		1.25%	24.63%	82.26%
4179	35 Underperform	¥1.76B	―		―	-5.40%	-18.52%

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.