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MKSystem Corp.
(3910)
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Rating:68Neutral
Price Target:
¥331.00
▲(10.70% 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
Profitability turnaround
The return to positive net income and operating profit shows a meaningful recovery from the losses recorded in 2024–2025. If maintained, restored profitability can support internal investment, improve resilience, and strengthen the company’s ability to fund operations without relying as heavily on external capital.
Negative Factors
Weak and inconsistent revenue
A declining 2026 revenue base and inconsistent recent top-line performance weaken visibility into sustained demand and make the profitability recovery harder to underwrite. Without renewed revenue growth, margin gains may be difficult to preserve and the company may have less operating leverage to support longer-term earnings expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround
The return to positive net income and operating profit shows a meaningful recovery from the losses recorded in 2024–2025. If maintained, restored profitability can support internal investment, improve resilience, and strengthen the company’s ability to fund operations without relying as heavily on external capital.
Read all positive factors
MKSystem Corp. (3910) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.65B
Dividend Yield2.63%
Average Volume (3M)3.89K
Price to Earnings (P/E)5.1
Beta (1Y)0.37
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. Volume4,120
30 Day Avg. Volume3,890
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...
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
Positive
299.00
Price Trends
284.92
Positive
280.91
Positive
287.26
Positive
Market Momentum
5.36
Negative
74.42
Negative
83.70
Negative
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 299 is above the 20-day moving average (MA) of 292.40, above the 50-day MA of 284.92, and above the 200-day MA of 287.26, indicating a bullish trend. The MACD of 5.36 indicates Negative momentum. The RSI at 74.42 is Negative, neither overbought nor oversold. The STOCH value of 83.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥3.78B | 6.33 | ― | ― | 2.75% | ― | |
68 Neutral | ¥1.65B | 5.07 | ― | 2.63% | -3.10% | ― | |
67 Neutral | ¥2.93B | 6.16 | ― | ― | -13.15% | ― | |
67 Neutral | ¥8.37B | 50.02 | ― | ― | 7.04% | -67.36% | |
62 Neutral | ¥4.78B | 82.27 | ― | ― | 23.30% | -70.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | ¥3.96B | 7.24 | ― | 1.34% | -57.12% | ― |
* Technology Sector Average
JP:3910
MKSystem Corp.
304.00
18.06
6.31%
JP:3909
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MKSystem Corp. Corporate Events
MKSystem Returns to Quarterly Profit While Keeping Dividend and Modest Growth Targets
Aug 24, 2026
MKSystem Corporation posted net sales of ¥722 million for the quarter ended June 30, 2026, a slight 1.8% decline year on year, but swung to a profit with operating income of ¥58 million and profit attributable to owners of parent of ...
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.