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Johnan Academic Preparatory Institute, Inc. (JP:4720)
:4720
Japanese Market
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Johnan Academic Preparatory Institute, Inc. (4720) AI Stock Analysis

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JP:4720

Johnan Academic Preparatory Institute, Inc.

(4720)

Rating:40Neutral
Price Target:
¥221.00
▼(-1.78%Downside)
The most significant factor is the company's poor financial performance, marked by declining revenue and losses, which pose serious risks. Technical indicators suggest bearish trends, while the valuation is unattractive due to negative earnings and no dividend yield. These factors contribute to a low overall stock score, highlighting the need for strategic improvements.

Johnan Academic Preparatory Institute, Inc. (4720) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionJohnan 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 MoneyThe 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
The company is facing severe financial challenges, including declining revenues, persistent net losses, and negative cash flow. These issues are compounded by increasing leverage, which poses financial risks. However, the stable equity position provides a minor positive.
Income Statement
35
Negative
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
50
Neutral
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
40
Negative
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue5.62B5.85B5.95B6.25B5.71B
Gross Profit1.17B1.49B1.57B1.74B1.05B
EBITDA-200.81M107.66M76.48M-320.00M-728.66M
Net Income-420.79M-122.32M-135.09M-636.63M-1.06B
Balance Sheet
Total Assets5.23B4.88B5.15B5.44B5.88B
Cash, Cash Equivalents and Short-Term Investments1.61B1.43B1.59B1.64B1.34B
Total Debt1.24B638.91M826.47M938.25M947.99M
Total Liabilities3.79B2.99B3.12B3.33B3.05B
Stockholders Equity1.44B1.88B2.03B2.11B2.84B
Cash Flow
Free Cash Flow-182.97M23.48M-34.92M322.03M-874.22M
Operating Cash Flow-68.17M70.32M49.03M446.46M-743.06M
Investing Cash Flow-165.25M-3.20M-32.14M-60.60M-426.57M
Financing Cash Flow401.47M-229.04M-65.93M-164.27M636.07M

Johnan Academic Preparatory Institute, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price225.00
Price Trends
50DMA
238.94
Negative
100DMA
231.95
Negative
200DMA
244.19
Negative
Market Momentum
MACD
-2.34
Positive
RSI
40.89
Neutral
STOCH
10.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4720, the sentiment is Negative. The current price of 225 is below the 20-day moving average (MA) of 229.20, below the 50-day MA of 238.94, and below the 200-day MA of 244.19, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 10.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4720.

Johnan Academic Preparatory Institute, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥48.92B19.58
0.99%6.70%14.21%
73
Outperform
¥2.02B6.77
3.32%3.37%
68
Neutral
¥196.51B21.308.22%2.26%4.84%0.81%
63
Neutral
¥2.34B53.29
-9.22%-75.53%
63
Neutral
¥18.71B16.15
3.35%10.85%123.10%
40
Neutral
¥1.81B
2.30%-3.89%-244.00%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4720
Johnan Academic Preparatory Institute, Inc.
227.00
-86.00
-27.48%
JP:3998
SuRaLa Net Co., Ltd.
348.00
-96.00
-21.62%
JP:4668
Meiko Network Japan Co., Ltd.
758.00
92.14
13.84%
JP:4678
Shuei Yobiko Co., Ltd.
302.00
20.51
7.29%
JP:4718
Waseda Academy Co., Ltd.
2,594.00
1,136.96
78.03%
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.Date of analysis: Jul 17, 2025