MKSystem Corp. (JP:3910)
:3910
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MKSystem Corp.
(3910)
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Rating:70Outperform
Price Target:
¥340.00
▲(13.71% Upside)
Action:Upgraded
Date:05/11/26
The score is driven mainly by the 2026 financial turnaround and strong free cash flow, supported by attractive valuation (low P/E and dividend yield). Technicals add a modest boost as the stock trades above major moving averages with positive momentum. The main constraint is durability risk given recent revenue softness and high earnings/cash flow volatility in 2024–2025, alongside still-elevated leverage versus earlier years.
Positive Factors
Profitability Turnaround
Restored operating and net margins in 2026 indicate the core software business can generate sustainable profitability when execution aligns. Durable margins support reinvestment, dividend capacity, and stakeholder confidence versus earlier loss years, improving long-term viability if sustained.
Negative Factors
Top-line Weakness & Inconsistency
Persistent or recurring revenue declines and inconsistent top-line trends impair the business's ability to scale margins sustainably. Even with 2026 profitability, weak revenue growth raises concern about product demand durability and the company's capacity to fund growth initiatives over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
Restored operating and net margins in 2026 indicate the core software business can generate sustainable profitability when execution aligns. Durable margins support reinvestment, dividend capacity, and stakeholder confidence versus earlier loss years, improving long-term viability if sustained.
Read all positive factors
MKSystem Corp. (3910) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.53B
Dividend Yield1.35%
Average Volume (3M)6.54K
Price to Earnings (P/E)6.1
Beta (1Y)0.40
Revenue Growth-1.04%
EPS GrowthN/A
CountryJP
Employees118
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-14.63
Shares Outstanding5,428,000
10 Day Avg. Volume7,000
30 Day Avg. Volume6,536
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.73
Price to Sales (P/S)0.48
P/FCF Ratio2.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 insura...
How the Company Makes Money
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MKSystem Corp. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.35B | 3.26B | 3.29B | 2.64B | 2.87B | 2.74B |
| Gross Profit | 1.27B | 1.47B | 1.26B | 858.20M | 1.35B | 1.27B |
| EBITDA | 428.80M | 641.63M | 387.64M | 52.89M | 611.26M | 561.18M |
| Net Income | -79.42M | 256.61M | -118.57M | -668.52M | 145.58M | 91.39M |
Balance Sheet | ||||||
| Total Assets | 2.13B | 2.28B | 2.68B | 2.78B | 2.56B | 2.23B |
| Cash, Cash Equivalents and Short-Term Investments | 741.72M | 751.19M | 606.32M | 711.78M | 609.34M | 468.15M |
| Total Debt | 1.11B | 839.67M | 1.20B | 1.33B | 510.59M | 378.85M |
| Total Liabilities | 1.52B | 1.37B | 2.01B | 1.97B | 1.03B | 807.30M |
| Stockholders Equity | 610.14M | 902.33M | 667.43M | 807.71M | 1.52B | 1.42B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 704.62M | 263.80M | -350.83M | 497.63M | 444.74M |
| Operating Cash Flow | 0.00 | 711.71M | 276.07M | -316.74M | 617.25M | 493.73M |
| Investing Cash Flow | 0.00 | -181.58M | -234.14M | -353.44M | -557.42M | -472.47M |
| Financing Cash Flow | 0.00 | -385.27M | -147.38M | 772.62M | 88.45M | -177.55M |
MKSystem Corp. Technical Analysis
Negative
299.00
Price Trends
291.97
Negative
293.72
Negative
296.25
Negative
Market Momentum
-2.64
Positive
38.22
Neutral
13.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3910, the sentiment is Negative. The current price of 299 is above the 20-day moving average (MA) of 293.40, above the 50-day MA of 291.97, and above the 200-day MA of 296.25, indicating a bearish trend. The MACD of -2.64 indicates Positive momentum. The RSI at 38.22 is Neutral, neither overbought nor oversold. The STOCH value of 13.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3910.
MKSystem Corp. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥1.53B | 6.07 | ― | 1.35% | -1.04% | ― | |
69 Neutral | ¥2.86B | 23.13 | ― | ― | 21.42% | -14.33% | |
68 Neutral | ¥2.55B | 3.52 | ― | ― | -13.29% | ― | |
62 Neutral | ¥4.45B | 25.26 | ― | ― | 6.84% | -67.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | ¥3.50B | 5.87 | ― | ― | 5.60% | 4249.91% | |
44 Neutral | ¥2.18B | 0.73 | ― | ― | -58.00% | ― |
* Technology Sector Average
JP:3910
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MKSystem Corp. Corporate Events
MKSystem Returns to Profit and Confirms Full-Year Outlook
Feb 19, 2026
MKSystem Corporation reported modest growth in net sales to ¥2.28 billion for the nine months ended December 31, 2025, reversing last year’s losses to post an operating profit of ¥65 million and profit attributable to owners of par...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.