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

• Market Cap: ¥1.84B
• Dividend Yield: 2.3%
• Average Volume (3M): 28.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -3.89%
• EPS Growth: -244.00%
• Country: JP
• Employees: 392
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Education & Training Services
• EPS (TTM): -35.07
• Shares Outstanding: 8,937,840
• 10 Day Avg. Volume: 7,620
• 30 Day Avg. Volume: 28,460
• PEG Ratio: 0.29
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -88.87
• 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: ¥234.00
• Price Target Upside: 1.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ¥234.00 ▲(1.74%Upside)

The overall score is primarily driven by the company's weak financial performance, marked by declining revenues and persistent losses. Technical analysis shows mixed signals with some short-term weakness but potential medium-term stability. Valuation is not attractive due to negative earnings and lack of dividends. These factors collectively result in a below-average stock score, highlighting significant challenges and limited attractiveness.

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

Company Description

Johnan Academic Preparatory Institute, Inc. (4720) is a Japanese company operating in the education sector. The company specializes in providing preparatory and tutoring services, focusing on enhancing students' academic performance and preparing them for entrance examinations. It offers a range of educational programs and courses designed to meet the diverse needs of students across various age groups and educational levels.

How the Company Makes Money

Johnan Academic Preparatory Institute, Inc. generates revenue primarily through tuition fees charged for its educational programs and tutoring services. The company offers a variety of courses and customized educational plans, catering to students preparing for entrance exams as well as those seeking to improve their academic skills. Additionally, the company may engage in partnerships with educational institutions to expand its service offerings and leverage its expertise in educational content. Revenue is also supported by supplementary educational materials and resources provided to students as part of their learning experience.

Johnan Academic Preparatory Institute, Inc. Financial Statement Overview

Summary

The company 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. Overall, the financial health indicates a need for strategic improvements to ensure sustainability and growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.68B	5.62B	5.85B	5.95B	6.25B	5.71B
Gross Profit	1.31B	1.17B	1.49B	1.57B	1.74B	1.05B
EBITDA	10.38M	-200.81M	107.66M	76.48M	-320.00M	-728.66M
Net Income	-255.03M	-420.79M	-122.32M	-135.09M	-636.63M	-1.06B
Balance Sheet
Total Assets	5.26B	5.23B	4.88B	5.15B	5.44B	5.88B
Cash, Cash Equivalents and Short-Term Investments	1.76B	1.61B	1.43B	1.59B	1.64B	1.34B
Total Debt	1.26B	1.24B	638.91M	826.47M	938.25M	947.99M
Total Liabilities	3.54B	3.79B	2.99B	3.12B	3.33B	3.05B
Stockholders Equity	1.72B	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	-165.25M	-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: Negative
• Last Price: 230.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 230 is below the 20-day moving average (MA) of 231.25, below the 50-day MA of 237.00, and below the 200-day MA of 249.85, indicating a bearish trend. The MACD of -3.43 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 10.26 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4718	73 Outperform	¥47.54B	19.84		0.79%	6.70%	14.21%
4678	73 Outperform	¥2.03B	6.82		3.30%	3.37%	―
Sector *	65 Neutral	$27.02B	15.16	-4.24%	3.17%	1.01%	1.94%
3998	63 Neutral	¥2.31B	52.68		―	-9.22%	-75.53%
4668	63 Neutral	¥18.61B	19.12		3.50%	9.70%	45.81%
4720	48 Neutral	¥1.84B	―		2.30%	-3.89%	-244.00%