MKSystem Corp. (3910) AI Stock Analysis

• Market Cap: ¥1.55B
• Dividend Yield: 1.35%
• Average Volume (3M): 6.54K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.41
• Revenue Growth: 9.45%
• EPS Growth: N/A
• Country: JP
• Employees: 118
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 9.64
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ¥284.00 ▼(-5.02% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

MKSystem Corp.'s overall stock score of 43 reflects significant financial weaknesses as the primary concern, with persistent losses, high debt, and declining equity overshadowing revenue growth. Technical indicators show bearish trends with the stock below key moving averages, while valuation is hampered by negative earnings despite a modest dividend yield. Financial performance carries the most weight in this assessment.

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.'s financial performance is weak despite revenue growth of 24.6% in 2025. Persistent net losses (-3.6% Net Profit Margin), high debt (Debt-to-Equity Ratio of 1.8), and declining equity (27.3% of Total Assets) are major concerns. Positive operating cash flow (276 million) offers some relief, but overall financial health remains fragile.

Income Statement

MKSystem Corp. shows mixed performance in its income statement. Revenue grew by 24.6% from 2024 to 2025, indicating strong top-line growth. However, profitability remains a concern with a negative Net Profit Margin of -3.6% and a slight EBIT loss in 2025. Gross Profit Margin improved to 38.4%, but EBITDA Margin, while positive at 9.9%, reflects limited operational efficiency. The trajectory shows revenue growth but persistent challenges in achieving consistent profitability.

Balance Sheet

The balance sheet of MKSystem Corp. reveals significant concerns. The Debt-to-Equity Ratio is high at 1.8 in 2025, indicating heavy reliance on debt financing, which poses financial risk. Stockholders' Equity has declined to 27.3% of Total Assets, reflecting a weaker equity base. Return on Equity is negative at -17.8%, driven by net losses. While the company maintains some liquidity with cash reserves, the high leverage and shrinking equity position are notable weaknesses.

Cash Flow

Cash flow performance for MKSystem Corp. shows improvement with a positive Operating Cash Flow of 276 million in 2025, recovering from a negative figure in 2024. Free Cash Flow also turned positive at 264 million, a significant improvement, though growth rates are volatile due to prior year losses. The Operating Cash Flow to Net Income Ratio is not meaningful due to negative net income, but the recovery in cash generation is a strength. Risks remain due to historical fluctuations in cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	428.80M	387.64M	52.89M	611.26M	561.18M	581.91M
Net Income	-79.42M	-118.57M	-668.52M	145.58M	91.39M	138.05M
Balance Sheet
Total Assets	2.13B	2.68B	2.78B	2.56B	2.23B	2.26B
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	2.01B	1.97B	1.03B	807.30M	852.93M
Stockholders Equity	610.14M	667.43M	807.71M	1.52B	1.42B	1.36B
Cash Flow
Free Cash Flow	0.00	263.80M	-350.83M	497.63M	444.74M	144.91M
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: 299.00
• 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:3910, the sentiment is Neutral. The current price of 299 is above the 20-day moving average (MA) of 296.10, below the 50-day MA of 303.12, and below the 200-day MA of 307.29, indicating a neutral trend. The MACD of -1.87 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 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
5033	71 Outperform	¥4.79B	21.99	―	―	7.60%	19.13%
5256	69 Neutral	¥2.66B	27.18	―	―	13.48%	61.77%
3917	66 Neutral	¥4.63B	62.68	―	―	7.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3976	52 Neutral	¥2.22B	-91.39	―	―	-14.55%	-8.13%
3909	51 Neutral	¥2.27B	206.76	―	―	-32.56%	―
3910	43 Neutral	¥1.55B	7.76	―	1.35%	9.45%	―

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.

The most recent analyst rating on (JP:3910) stock is a Hold with a Yen285.00 price target. To see the full list of analyst forecasts on MKSystem Corp. stock, see the JP:3910 Stock Forecast page.