MKSystem Corp. (3910) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Adish Co. Ltd.

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MKSystem Corp.

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Silver Egg Technology Co., Ltd.

Institution for a Global Society Corp.

FueTrek Co., Ltd.

Ekitan & Co., Ltd.

LIGUA, Inc.

Why is MKSystem Corp. ?

Weak Long Term Fundamental Strength with a -159.52% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate -159.52% of over the last 5 years

With a growth in Net Profit of 104.82%, the company declared Very Positive results in Dec 25

NET PROFIT(Q) At JPY 52.31 MM has Grown at 271.4%
ROCE(HY) Highest at 18.75%
PRE-TAX PROFIT(Q) At JPY 59.67 MM has Grown at 151.25%

With ROE of -9.60%, it has a risky valuation with a 2.58 Price to Book Value

Over the past year, while the stock has generated a return of -12.69%, its profits have risen by 87.8%

Below par performance in long term as well as near term

Along with generating -12.69% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MKSystem Corp. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is MKSystem Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

MKSystem Corp.

-12.69%

-0.62

28.04%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.69%

EBIT Growth (5y)

-159.52%

EBIT to Interest (avg)

34.74

Debt to EBITDA (avg)

2.63

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

1.57

Tax Ratio

20.94%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.92%

ROE (avg)

5.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.58

EV to EBIT

-98.70

EV to EBITDA

5.98

EV to Capital Employed

1.83

EV to Sales

0.70

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.86%

ROE (Latest)

-9.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

NET PROFIT(Q)

At JPY 52.31 MM has Grown at 271.4%

ROCE(HY)

Highest at 18.75%

PRE-TAX PROFIT(Q)

At JPY 59.67 MM has Grown at 151.25%

RAW MATERIAL COST(Y)

Fallen by -20.08% (YoY

CASH AND EQV(HY)

Highest at JPY 1,406.75 MM

DEBT-EQUITY RATIO (HY)

Lowest at 29.23 %

-9What is not working for the Company

INTEREST(HY)

At JPY 5.83 MM has Grown at 14.85%

NET SALES(Q)

At JPY 750.19 MM has Fallen at -9.47%

Here's what is working for MKSystem Corp.

Net Profit

At JPY 52.31 MM has Grown at 271.4%

over average net sales of the previous four periods of JPY 14.08 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 59.67 MM has Grown at 151.25%

over average net sales of the previous four periods of JPY 23.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 1,406.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 29.23 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -20.08% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for MKSystem Corp.

Interest

At JPY 5.83 MM has Grown at 14.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 750.19 MM has Fallen at -9.47%

over average net sales of the previous four periods of JPY 828.7 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)