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MKSystem Corp.
(3910)
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Rating:68Neutral
Price Target:
¥301.00
▲(0.67% Upside)
Action:Downgraded
Date:08/11/26
The score is driven primarily by the 2026 financial turnaround and strong free cash flow, supported by very attractive valuation (low P/E and a ~2.9% yield). These positives are tempered by uneven revenue and prior-year volatility, plus mixed technicals with the stock still below longer-term moving averages and only neutral momentum.
Positive Factors
Strong free cash flow generation
In 2026 MKSystem converted reported earnings into cash very closely (FCF ≈ ¥705M; OCF ≈ ¥712M; FCF/NI ≈ 0.99). Durable cash conversion supports reinvestment, dividend capacity and debt service, improving long-term financial resilience versus profit-only recoveries.
Negative Factors
Top-line weakness and inconsistency
Revenue fell modestly in 2026 (≈ -2.7% YoY) and has shown uneven trends across recent years. Persistent top-line instability undermines margin sustainability and means future cash flow improvements may rely more on cost control than durable demand, limiting growth optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
In 2026 MKSystem converted reported earnings into cash very closely (FCF ≈ ¥705M; OCF ≈ ¥712M; FCF/NI ≈ 0.99). Durable cash conversion supports reinvestment, dividend capacity and debt service, improving long-term financial resilience versus profit-only recoveries.
Read all positive factors
MKSystem Corp. (3910) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.52B
Dividend Yield2.81%
Average Volume (3M)6.54K
Price to Earnings (P/E)4.8
Beta (1Y)0.35
Revenue Growth-3.10%
EPS GrowthN/A
CountryJP
Employees130
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)59.96
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, a company founded in 1989 and based in Osaka, Japan, specializes in providing system development and cloud-based services across Japan. Its business activities are segmented into two primary divisions: Sharo Dream Business an...
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 | 3.24B | 3.26B | 3.29B | 2.64B | 2.87B | 2.74B |
| Gross Profit | 1.56B | 1.47B | 1.26B | 858.20M | 1.35B | 1.27B |
| EBITDA | 731.81M | 653.21M | 324.66M | -216.03M | 621.97M | 547.27M |
| Net Income | 325.42M | 256.61M | -118.57M | -668.52M | 145.58M | 91.39M |
Balance Sheet | ||||||
| Total Assets | 2.10B | 2.28B | 2.68B | 2.78B | 2.56B | 2.23B |
| Cash, Cash Equivalents and Short-Term Investments | 838.51M | 751.19M | 606.32M | 711.78M | 609.34M | 468.15M |
| Total Debt | 793.35M | 839.67M | 1.20B | 1.33B | 510.59M | 378.85M |
| Total Liabilities | 1.20B | 1.37B | 2.01B | 1.97B | 1.03B | 807.30M |
| Stockholders Equity | 892.14M | 902.33M | 667.43M | 807.71M | 1.52B | 1.42B |
Cash Flow | ||||||
| Free Cash Flow | 171.06M | 704.62M | 263.80M | -350.83M | 497.63M | 444.74M |
| Operating Cash Flow | 173.16M | 711.71M | 276.07M | -316.74M | 617.25M | 493.73M |
| Investing Cash Flow | -36.33M | -181.58M | -234.14M | -353.44M | -557.42M | -472.47M |
| Financing Cash Flow | -101.29M | -385.27M | -147.38M | 772.62M | 88.45M | -177.55M |
MKSystem Corp. Technical Analysis
Neutral
299.00
Price Trends
275.74
Positive
282.92
Negative
286.40
Negative
Market Momentum
1.66
Negative
52.69
Neutral
79.68
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 278.00, above the 50-day MA of 275.74, and above the 200-day MA of 286.40, indicating a neutral trend. The MACD of 1.66 indicates Negative momentum. The RSI at 52.69 is Neutral, neither overbought nor oversold. The STOCH value of 79.68 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥5.93B | 37.24 | ― | ― | 7.04% | -67.36% | |
71 Outperform | ¥3.72B | 6.13 | ― | ― | 2.75% | ― | |
70 Outperform | ¥3.68B | 7.77 | ― | ― | -13.15% | ― | |
68 Neutral | ¥1.52B | 4.75 | ― | 1.35% | -3.10% | ― | |
62 Neutral | ¥3.32B | 62.35 | ― | ― | 23.30% | -71.34% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥1.95B | 2.95 | ― | ― | -57.12% | ― |
* Technology Sector Average
JP:3910
MKSystem Corp.
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-8.14%
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MKSystem Corp. Corporate Events
MKSystem outlines FY2026 results and AI-focused growth strategy
May 27, 2026
MKSystem Corporation released presentation materials for its earnings briefing for the fiscal year ended March 31, 2026, outlining consolidated financial results and performance. The materials highlight developments in its Shalom and CuBe business...
MKSystem Swings to Profit, Lifts Dividend as Balance Sheet Strengthens
May 25, 2026
MKSystem Corp. reported fiscal 2026 consolidated net sales of 3.26 billion yen, roughly flat year on year, but swung from a loss to a profit with operating and ordinary profit of 247 million yen and profit attributable to owners of parent of 256 m...
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.