Reported Earnings • May 09
Full year 2026 earnings released: EPS: JP¥47.17 (vs JP¥21.74 loss in FY 2025) Full year 2026 results: EPS: JP¥47.17 (up from JP¥21.74 loss in FY 2025). Revenue: JP¥3.26b (down 1.0% from FY 2025). Net income: JP¥256.0m (up JP¥374.0m from FY 2025). Profit margin: 7.9% (up from net loss in FY 2025). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). New Risk • Mar 04
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: JP¥1.56b (US$9.93m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 36% per year over the past 5 years. Market cap is less than US$10m (JP¥1.56b market cap, or US$9.93m). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Feb 05
Third quarter 2026 earnings released: EPS: JP¥9.58 (vs JP¥11.42 loss in 3Q 2025) Third quarter 2026 results: EPS: JP¥9.58 (up from JP¥11.42 loss in 3Q 2025). Revenue: JP¥750.0m (flat on 3Q 2025). Net income: JP¥52.0m (up JP¥114.0m from 3Q 2025). Profit margin: 6.9% (up from net loss in 3Q 2025). Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Aankondiging • Dec 11
MKSystem Corporation to Report Q3, 2026 Results on Feb 04, 2026 MKSystem Corporation announced that they will report Q3, 2026 results on Feb 04, 2026 New Risk • Nov 20
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: JP¥1.54b (US$9.79m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 47% per year over the past 5 years. Market cap is less than US$10m (JP¥1.54b market cap, or US$9.79m). Minor Risks High level of debt (54% net debt to equity). Dividend is not well covered by earnings (362% payout ratio). Large one-off items impacting financial results. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥4.61 (vs JP¥11.06 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥4.61 (up from JP¥11.06 loss in 2Q 2025). Revenue: JP¥796.0m (down 3.7% from 2Q 2025). Net income: JP¥25.0m (up JP¥85.0m from 2Q 2025). Profit margin: 3.1% (up from net loss in 2Q 2025). Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 15% per year. Aankondiging • Sep 03
MKSystem Corporation to Report Q2, 2026 Results on Nov 06, 2025 MKSystem Corporation announced that they will report Q2, 2026 results on Nov 06, 2025 Reported Earnings • Aug 07
First quarter 2026 earnings released: JP¥6.45 loss per share (vs JP¥13.63 loss in 1Q 2025) First quarter 2026 results: JP¥6.45 loss per share (improved from JP¥13.63 loss in 1Q 2025). Revenue: JP¥735.0m (up 8.2% from 1Q 2025). Net loss: JP¥35.0m (loss narrowed 53% from 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. New Risk • Jul 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 103% Earnings have declined by 59% per year over the past 5 years. Minor Risks High level of debt (88% net debt to equity). Share price has been volatile over the past 3 months (5.8% average weekly change). Market cap is less than US$100m (JP¥1.70b market cap, or US$11.6m). Aankondiging • Jun 06
MKSystem Corporation to Report Q1, 2026 Results on Aug 05, 2025 MKSystem Corporation announced that they will report Q1, 2026 results on Aug 05, 2025 New Risk • May 28
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. Cash payout ratio: 103% Dividend yield: 2.5% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 103% Earnings have declined by 59% per year over the past 5 years. Minor Risks High level of debt (88% net debt to equity). Market cap is less than US$100m (JP¥1.68b market cap, or US$11.6m). Reported Earnings • May 08
Full year 2025 earnings released: JP¥21.74 loss per share (vs JP¥123 loss in FY 2024) Full year 2025 results: JP¥21.74 loss per share (improved from JP¥123 loss in FY 2024). Revenue: JP¥3.29b (up 25% from FY 2024). Net loss: JP¥118.0m (loss narrowed 82% from FY 2024). Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Aankondiging • May 07
MKSystem Corporation, Annual General Meeting, Jun 26, 2025 MKSystem Corporation, Annual General Meeting, Jun 26, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥4.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.6%). Aankondiging • Mar 18
MKSystem Corporation to Report Fiscal Year 2025 Results on May 07, 2025 MKSystem Corporation announced that they will report fiscal year 2025 results on May 07, 2025 Reported Earnings • Feb 06
Third quarter 2025 earnings released: JP¥11.42 loss per share (vs JP¥19.35 loss in 3Q 2024) Third quarter 2025 results: JP¥11.42 loss per share (improved from JP¥19.35 loss in 3Q 2024). Revenue: JP¥748.0m (up 12% from 3Q 2024). Net loss: JP¥62.0m (loss narrowed 41% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Aankondiging • Feb 05
MKSystem Corporation to Report Q3, 2025 Results on Feb 04, 2025 MKSystem Corporation announced that they will report Q3, 2025 results on Feb 04, 2025 New Risk • Nov 15
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: JP¥1.54b (US$9.91m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings have declined by 64% per year over the past 5 years. Market cap is less than US$10m (JP¥1.54b market cap, or US$9.91m). Declared Dividend • Nov 08
Dividend of JP¥4.00 announced Shareholders will receive a dividend of JP¥4.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 1.4%, which is about the same as the industry average. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. Aankondiging • Sep 13
MKSystem Corporation to Report Q2, 2025 Results on Nov 06, 2024 MKSystem Corporation announced that they will report Q2, 2025 results on Nov 06, 2024 Reported Earnings • Aug 10
First quarter 2025 earnings released: JP¥13.63 loss per share (vs JP¥75.91 loss in 1Q 2024) First quarter 2025 results: JP¥13.63 loss per share (improved from JP¥75.91 loss in 1Q 2024). Revenue: JP¥679.0m (up 33% from 1Q 2024). Net loss: JP¥74.0m (loss narrowed 82% from 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 62% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Market cap is less than US$100m (JP¥1.44b market cap, or US$10.1m). Aankondiging • Jun 30
MKSystem Corporation to Report Q1, 2025 Results on Aug 08, 2024 MKSystem Corporation announced that they will report Q1, 2025 results on Aug 08, 2024 Aankondiging • May 09
MKSystem Corporation, Annual General Meeting, Jun 27, 2024 MKSystem Corporation, Annual General Meeting, Jun 27, 2024. Reported Earnings • May 08
Full year 2024 earnings released: JP¥123 loss per share (vs JP¥26.72 profit in FY 2023) Full year 2024 results: JP¥123 loss per share (down from JP¥26.72 profit in FY 2023). Revenue: JP¥2.64b (down 8.0% from FY 2023). Net loss: JP¥668.0m (down JP¥813.0m from profit in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 91 percentage points per year, which is a significant difference in performance. Aankondiging • Apr 29
MKSystem Corporation to Report Fiscal Year 2024 Results on May 07, 2024 MKSystem Corporation announced that they will report fiscal year 2024 results on May 07, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥4.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (1.3%). Reported Earnings • Feb 08
Third quarter 2024 earnings released: JP¥19.35 loss per share (vs JP¥9.21 profit in 3Q 2023) Third quarter 2024 results: JP¥19.35 loss per share (down from JP¥9.21 profit in 3Q 2023). Revenue: JP¥671.0m (down 10% from 3Q 2023). Net loss: JP¥105.0m (down 310% from profit in 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Aankondiging • Dec 20
MKSystem Corporation to Report Q3, 2024 Results on Feb 05, 2024 MKSystem Corporation announced that they will report Q3, 2024 results on Feb 05, 2024 New Risk • Nov 08
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 37% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥1.81b market cap, or US$12.0m). Reported Earnings • Nov 07
Second quarter 2024 earnings released: JP¥33.72 loss per share (vs JP¥6.08 profit in 2Q 2023) Second quarter 2024 results: JP¥33.72 loss per share (down from JP¥6.08 profit in 2Q 2023). Revenue: JP¥608.0m (down 14% from 2Q 2023). Net loss: JP¥183.0m (down JP¥216.0m from profit in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 53 percentage points per year, which is a significant difference in performance. Aankondiging • Sep 21
MKSystem Corporation to Report Q2, 2024 Results on Nov 06, 2023 MKSystem Corporation announced that they will report Q2, 2024 results on Nov 06, 2023 Reported Earnings • Aug 09
First quarter 2024 earnings released: JP¥75.91 loss per share (vs JP¥3.13 loss in 1Q 2023) First quarter 2024 results: JP¥75.91 loss per share (further deteriorated from JP¥3.13 loss in 1Q 2023). Revenue: JP¥509.0m (down 19% from 1Q 2023). Net loss: JP¥412.0m (loss widened JP¥395.0m from 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Aankondiging • Jul 13
MKSystem Corporation to Report Q1, 2024 Results on Aug 03, 2023 MKSystem Corporation announced that they will report Q1, 2024 results on Aug 03, 2023 New Risk • Jun 11
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.5% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 9.0% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (5.5% increase in shares outstanding). Market cap is less than US$100m (JP¥2.23b market cap, or US$16.0m). Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share at 2.0% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 22 June 2023. Payout ratio is a comfortable 49% but the company is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Reported Earnings • Feb 04
Third quarter 2023 earnings released: EPS: JP¥9.21 (vs JP¥13.45 in 3Q 2022) Third quarter 2023 results: EPS: JP¥9.21 (down from JP¥13.45 in 3Q 2022). Revenue: JP¥746.0m (down 2.6% from 3Q 2022). Net income: JP¥50.0m (down 32% from 3Q 2022). Profit margin: 6.7% (down from 9.5% in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 27% per year whereas the company’s share price has fallen by 32% per year. Aankondiging • Dec 18
MKSystem Corporation to Report Q3, 2023 Results on Feb 03, 2023 MKSystem Corporation announced that they will report Q3, 2023 results on Feb 03, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Independent External Director Kohei Nomura was the last independent director to join the board, commencing their role in 2015. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 09
Second quarter 2023 earnings released: EPS: JP¥6.08 (vs JP¥2.76 in 2Q 2022) Second quarter 2023 results: EPS: JP¥6.08 (up from JP¥2.76 in 2Q 2022). Revenue: JP¥710.0m (up 7.9% from 2Q 2022). Net income: JP¥33.0m (up 120% from 2Q 2022). Profit margin: 4.6% (up from 2.3% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 29% per year whereas the company’s share price has fallen by 24% per year. Aankondiging • Sep 28
MKSystem Corporation to Report Q2, 2023 Results on Nov 07, 2022 MKSystem Corporation announced that they will report Q2, 2023 results on Nov 07, 2022 Aankondiging • Sep 13
MKSystem Corporation Provides Consolidated Earnings Guidance for the First Half and Full Year Ending March 31, 2023 MKSystem Corporation provided consolidated earnings guidance for the first half and full year ending March 31, 2023. For the first half year, the company expected net sales to be JPY 1,418 million, Operating profit to be JPY 37 million, Profit attributable to owners of parent to be JPY 22 million and Earnings per share to be JPY 4.17. For the full year, the company expected net sales to be JPY 3,115 million, Operating profit to be JPY 272 million, Profit attributable to owners of parent to be JPY 175 million and Earnings per share to be JPY 32.42. Reported Earnings • Aug 04
First quarter 2023 earnings released: JP¥3.13 loss per share (vs JP¥3.50 loss in 1Q 2022) First quarter 2023 results: JP¥3.13 loss per share (up from JP¥3.50 loss in 1Q 2022). Revenue: JP¥625.0m (up 7.2% from 1Q 2022). Net loss: JP¥17.0m (loss narrowed 11% from 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment improved over the past week After last week's 27% share price gain to JP¥520, the stock trades at a trailing P/E ratio of 31x. Average trailing P/E is 24x in the Software industry in Japan. Total loss to shareholders of 35% over the past three years. Aankondiging • Jun 29
MKSystem Corporation to Report Q1, 2023 Results on Aug 03, 2022 MKSystem Corporation announced that they will report Q1, 2023 results on Aug 03, 2022 Reported Earnings • Jun 24
Full year 2022 earnings released: EPS: JP¥16.77 (vs JP¥25.43 in FY 2021) Full year 2022 results: EPS: JP¥16.77 (down from JP¥25.43 in FY 2021). Revenue: JP¥2.74b (up 12% from FY 2021). Net income: JP¥91.0m (down 34% from FY 2021). Profit margin: 3.3% (down from 5.7% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 16% per year. Aankondiging • May 12
MKSystem Corporation, Annual General Meeting, Jun 21, 2022 MKSystem Corporation, Annual General Meeting, Jun 21, 2022. Reported Earnings • May 11
Full year 2022 earnings released: EPS: JP¥16.77 (vs JP¥25.43 in FY 2021) Full year 2022 results: EPS: JP¥16.77 (down from JP¥25.43 in FY 2021). Revenue: JP¥2.74b (up 12% from FY 2021). Net income: JP¥91.0m (down 34% from FY 2021). Profit margin: 3.3% (down from 5.7% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Independent External Director Kohei Nomura was the last independent director to join the board, commencing their role in 2015. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Aankondiging • Apr 08
MKSystem Corporation to Report Fiscal Year 2022 Results on May 09, 2022 MKSystem Corporation announced that they will report fiscal year 2022 results on May 09, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.8%). Reported Earnings • Feb 07
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥13.45 (up from JP¥5.90 in 3Q 2021). Revenue: JP¥766.0m (up 24% from 3Q 2021). Net income: JP¥73.0m (up 128% from 3Q 2021). Profit margin: 9.5% (up from 5.2% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥465, the stock trades at a trailing P/E ratio of 26.8x. Average trailing P/E is 23x in the Software industry in Japan. Total returns to shareholders of 12% over the past three years. Aankondiging • Nov 24
MKSystem Corporation Provides Consolidated Earnings Guidance for the Year Ending March 31, 2022 MKSystem Corporation provided consolidated earnings guidance for the year ending March 31, 2022. For the year ending March 31, 2022, the company expects net sales of JPY 2,892 million, operating profit of JPY 220 million and profit attributable to owners of parent of JPY 138 million or JPY 25.47 per basic share. Reported Earnings • Nov 05
Second quarter 2022 earnings released: EPS JP¥2.76 (vs JP¥5.53 in 2Q 2021) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2022 results: Revenue: JP¥658.0m (up 9.5% from 2Q 2021). Net income: JP¥15.0m (down 50% from 2Q 2021). Profit margin: 2.3% (down from 5.0% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 2% per year. Aankondiging • Sep 05
Mksystem Corporation Provides Consolidated Earnings Guidance for the First Half and Full Year of Fiscal Year Ending March 31, 2022 MKSystem Corporation provided consolidated earnings guidance for the first half and full year of fiscal year ending March 31, 2022. For the first half, the company expects Net sales of JPY 1,286 million, Operating loss of JPY 12 million, loss attributable to owners of parent of JPY 24 million and basic LPS of JPY 4.54.
For the full year, the company expects Net sales of JPY 2,892 million, Operating profit of JPY 220 million, Ordinary profit of JPY 219 million, Profit attributable to owners of parent of JPY 138 million and basic EPS of JPY 25.47. Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥556, the stock trades at a trailing P/E ratio of 27.7x. Average trailing P/E is 29x in the Software industry in Japan. Total loss to shareholders of 27% over the past three years. Reported Earnings • Aug 09
First quarter 2022 earnings released: JP¥3.50 loss per share (vs JP¥1.84 profit in 1Q 2021) The company reported a soft first quarter result with weaker earnings and weaker control over costs, although revenues improved. First quarter 2022 results: Revenue: JP¥583.0m (up 11% from 1Q 2021). Net loss: JP¥19.0m (down 290% from profit in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 26
Full year 2021 earnings released: EPS JP¥25.24 (vs JP¥36.30 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: JP¥2.44b (up 2.5% from FY 2020). Net income: JP¥137.0m (down 31% from FY 2020). Profit margin: 5.6% (down from 8.3% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • May 12
Full year 2021 earnings released: EPS JP¥25.24 (vs JP¥36.30 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: JP¥2.44b (up 2.5% from FY 2020). Net income: JP¥137.0m (down 31% from FY 2020). Profit margin: 5.6% (down from 8.3% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 26 June 2021. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.3%). Aankondiging • Mar 04
MKSystem Corporation to Report Fiscal Year 2021 Results on May 10, 2021 MKSystem Corporation announced that they will report fiscal year 2021 results on May 10, 2021 Is New 90 Day High Low • Feb 25
New 90-day low: JP¥701 The company is down 22% from its price of JP¥896 on 27 November 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 3.0% over the same period. Is New 90 Day High Low • Feb 08
New 90-day low: JP¥728 The company is down 16% from its price of JP¥871 on 10 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 1.0% over the same period. Reported Earnings • Feb 05
Third quarter 2021 earnings released: EPS JP¥5.90 (vs JP¥4.79 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥618.0m (up 7.9% from 3Q 2020). Net income: JP¥32.0m (up 23% from 3Q 2020). Profit margin: 5.2% (up from 4.5% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥944, the stock is trading at a trailing P/E ratio of 37.7x, up from the previous P/E ratio of 31.9x. This compares to an average P/E of 39x in the Software industry in Japan. Total return to shareholders over the past three years is a loss of 28%. Aankondiging • Dec 23
MKSystem Corporation to Report Q3, 2021 Results on Feb 03, 2021 MKSystem Corporation announced that they will report Q3, 2021 results on Feb 03, 2021 Is New 90 Day High Low • Dec 07
New 90-day low: JP¥816 The company is down 5.0% from its price of JP¥862 on 08 September 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 6.0% over the same period. Reported Earnings • Nov 07
Second quarter 2021 earnings released: EPS JP¥5.53 The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥601.0m (down 10% from 2Q 2020). Net income: JP¥30.0m (down 67% from 2Q 2020). Profit margin: 5.0% (down from 13% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 28
Market pulls back on stock over the past week After last week's 16% share price decline to JP¥919, the stock is trading at a trailing P/E ratio of 25.4x, down from the previous P/E ratio of 30.5x. This compares to an average P/E of 38x in the Software industry in Japan. Total return to shareholders over the past three years is a loss of 10%.