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

• Market Cap: ¥2.01B
• Dividend Yield: 2.3%
• Average Volume (3M): 105.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -3.89%
• EPS Growth: -244.00%
• Country: JP
• Employees: 392
• Sector: Consumer Defensive
• Sector Strength: 68
• Industry: Education & Training Services
• EPS (TTM): -35.07
• Shares Outstanding: 8,937,840
• 10 Day Avg. Volume: 150,970
• 30 Day Avg. Volume: 105,850
• PEG Ratio: 0.20
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ¥262.00 ▲(1.55%Upside)

The stock score is primarily impacted by the company's weak financial performance, highlighted by negative earnings and cash flow issues. The technical analysis provides some positive signals, indicating potential short-term price momentum. However, the poor valuation due to a negative P/E ratio and lack of dividend yield further detracts from the stock's appeal.

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 faces significant challenges in profitability and cash flow management, with negative net income and cash flow figures, although it maintains a moderate debt level.

Income Statement

The company has faced declining revenues, with a negative revenue growth rate when comparing the TTM to the previous year. The gross profit margin is relatively healthy at 23.0% (TTM), but net income remains negative, leading to a negative net profit margin of -4.5% (TTM). Negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The company's debt-to-equity ratio is 0.74 (TTM), suggesting moderate leverage. However, the return on equity is negative due to sustained net losses. The equity ratio at 32.6% (TTM) provides some stability in asset financing, although the declining equity poses potential risk.

Cash Flow

The recent absence of operating and free cash flow figures in the TTM indicates cash flow management issues. Previous periods show fluctuating free cash flow, though often negative, reflecting ongoing financial instability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
5.68B	5.85B	5.95B	6.25B	5.71B	6.75B
	Gross Profit
1.31B	1.49B	1.57B	1.74B	1.05B	1.38B
	EBIT
-70.86M	30.24M	-32.81M	78.12M	-637.37M	-679.00M
	EBITDA
10.38M	107.66M	76.48M	-320.00M	-728.66M	-390.00M
	Net Income Common Stockholders
-255.03M	-122.32M	-135.09M	-636.63M	-1.06B	299.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.76B	1.43B	1.59B	1.64B	1.34B	1.87B
	Total Assets
5.26B	4.88B	5.15B	5.44B	5.88B	6.56B
	Total Debt
1.26B	638.91M	826.47M	938.25M	947.99M	175.51M
	Net Debt
-494.00M	-786.38M	-757.91M	-691.53M	-394.83M	-1.67B
	Total Liabilities
3.54B	2.99B	3.12B	3.33B	3.05B	2.62B
	Stockholders Equity
1.72B	1.88B	2.03B	2.11B	2.84B	3.94B
Cash Flow		Free Cash Flow
0.00	23.48M	-34.92M	322.03M	-874.22M	-598.00M
	Operating Cash Flow
0.00	70.32M	49.03M	446.46M	-743.06M	-168.00M
	Investing Cash Flow
0.00	-3.20M	-32.14M	-60.60M	-426.57M	1.39B
	Financing Cash Flow
0.00	-229.04M	-65.93M	-164.27M	636.07M	-131.00M

Johnan Academic Preparatory Institute, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 258 is above the 20-day moving average (MA) of 252.10, above the 50-day MA of 231.10, and above the 200-day MA of 256.81, indicating a neutral trend. The MACD of 7.60 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, 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	76 Outperform	¥43.37B	18.10		2.39%	6.70%	14.08%
4678	73 Outperform	¥1.98B	6.48		3.39%	3.37%	―
4668	70 Outperform	¥18.36B	19.02		3.39%	9.70%	45.81%
Sector *	65 Neutral	$8.88B	14.98	4.76%	203.76%	3.54%	-2.49%
3998	63 Neutral	¥2.43B	55.43		―	-9.22%	-75.53%
4720	53 Neutral	¥2.01B	―		2.30%	-3.89%	-244.00%