Johnan Academic Preparatory Institute, Inc. (4720) AI Stock Analysis

• Market Cap: ¥1.99B
• Dividend Yield: 2.3%
• Average Volume (3M): 9.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -2.46%
• EPS Growth: -102.48%
• Country: JP
• Employees: 392
• Sector: Consumer Defensive
• Sector Strength: 47
• Industry: Education & Training Services
• EPS (TTM): -19.07
• Shares Outstanding: 8,937,840
• 10 Day Avg. Volume: 12,910
• 30 Day Avg. Volume: 9,560
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥225.00
• Price Target Upside: -7.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: ¥225.00 ▼(-7.41% Downside)

The overall stock score is primarily driven by financial performance challenges, including declining revenue and persistent losses. Technical analysis provides a neutral outlook, while valuation concerns due to a negative P/E ratio and lack of dividend yield further impact the score negatively.

Johnan Academic Preparatory Institute, Inc. Business Overview & Revenue Model

Company Description

Johnan Academic Preparatory Institute, Inc. (4720) is an educational service provider based in Japan, specializing in preparatory education for students aiming to excel in academic pursuits. The company offers a wide range of programs designed to enhance learning and improve performance in standardized tests, focusing on personalized teaching methods tailored to individual student needs.

How the Company Makes Money

The company generates revenue primarily through tuition fees charged for its preparatory courses and educational programs. Key revenue streams include enrollment fees for standardized test preparation courses, personalized tutoring sessions, and educational materials. Additionally, Johnan Academic Preparatory Institute may engage in partnerships with schools and educational institutions to provide tailored learning solutions, contributing to its overall earnings.

Johnan Academic Preparatory Institute, Inc. Financial Statement Overview

Summary

Johnan Academic Preparatory Institute, Inc. is facing financial challenges with declining revenue and persistent losses. Increasing leverage and negative cash flow highlight potential liquidity concerns. Despite these challenges, the company maintains a relatively stable equity position.

Income Statement

The company has faced declining revenues, with a revenue decrease from 2024 to 2025. The gross profit margin has seen a decline, indicating higher costs or lower sales efficiency. Additionally, the company has experienced consistent net losses, with a significantly negative net profit margin. Both EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has increased over the years, suggesting rising leverage, which could pose financial risks. The equity ratio has slightly decreased, indicating a reduction in owners' equity relative to total assets. However, the company maintains a stable stockholders' equity position despite losses, which is a positive indicator.

Cash Flow

Operating cash flow has deteriorated, turning negative in 2025, which is concerning. Free cash flow has also been negative, indicating potential liquidity issues. The company's free cash flow to net income ratio is poor due to negative free cash flow, and there is a disparity between operating cash flow and net income, suggesting potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.62B	5.62B	5.85B	5.95B	6.25B	5.71B
Gross Profit	1.17B	1.17B	1.49B	1.57B	1.74B	1.05B
EBITDA	-148.25M	-200.81M	107.66M	76.48M	-320.00M	-728.66M
Net Income	-420.71M	-420.79M	-122.32M	-135.09M	-636.63M	-1.06B
Balance Sheet
Total Assets	5.23B	5.23B	4.88B	5.15B	5.44B	5.88B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.61B	1.43B	1.59B	1.64B	1.34B
Total Debt	1.24B	1.24B	638.91M	826.47M	938.25M	947.99M
Total Liabilities	3.79B	3.79B	2.99B	3.12B	3.33B	3.05B
Stockholders Equity	1.44B	1.44B	1.88B	2.03B	2.11B	2.84B
Cash Flow
Free Cash Flow	0.00	-182.97M	23.48M	-34.92M	322.03M	-874.22M
Operating Cash Flow	0.00	-68.17M	70.32M	49.03M	446.46M	-743.06M
Investing Cash Flow	0.00	-178.05M	-3.20M	-32.14M	-60.60M	-426.57M
Financing Cash Flow	0.00	401.47M	-229.04M	-65.93M	-164.27M	636.07M

Johnan Academic Preparatory Institute, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 243.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4720, the sentiment is Positive. The current price of 243 is above the 20-day moving average (MA) of 236.20, above the 50-day MA of 232.82, and above the 200-day MA of 239.78, indicating a bullish trend. The MACD of 3.47 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 52.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4720.

Johnan Academic Preparatory Institute, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4718	73 Outperform	¥51.86B	20.75		1.60%	7.19%	33.38%
4678	64 Neutral	¥1.99B	7.58		3.40%	2.62%	―
3998	63 Neutral	¥2.32B	19.41		―	-6.87%	-26.72%
4668	63 Neutral	¥19.46B	16.80		3.41%	10.85%	123.10%
Sector *	63 Neutral	$20.42B	14.38	-2.77%	3.17%	2.07%	-6.17%
4720	44 Neutral	¥1.99B	―		2.30%	-2.46%	-102.48%
4745	―	¥19.44B	17.46		3.36%	―	―