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

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

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JP:4720

Johnan Academic Preparatory Institute, Inc.

(4720)

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Neutral 42 (OpenAI - 5.2)
Rating:42Neutral
Price Target:
¥242.00
▼(-15.09% Downside)
Action:ReiteratedDate:04/01/26
The score is held down primarily by deteriorating financial performance (deeper losses, renewed cash burn, and higher leverage). Technical indicators also remain bearish despite oversold readings. Valuation is relatively low on P/E, but it is not enough to offset the fundamental weakness.
Positive Factors
Balance sheet cushion
Despite recent stress, the company retains meaningful equity which provides a durable capital buffer to absorb losses, support operations, and underwrite restructuring or turnaround plans. This equity base preserves access to financing and limits immediate insolvency risk over the medium term.
Negative Factors
Revenue contraction trend
Multi-year declines in revenue shrink scale, undermine fixed-cost absorption, and constrain the ability to invest in curriculum or marketing. Persistent top-line weakness is a structural risk for enrollment-driven education businesses and limits sustainable margin recovery over months to quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet cushion
Despite recent stress, the company retains meaningful equity which provides a durable capital buffer to absorb losses, support operations, and underwrite restructuring or turnaround plans. This equity base preserves access to financing and limits immediate insolvency risk over the medium term.
Read all positive factors

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

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

Company Description
Johnan Academic Preparatory Institute, Inc. engages in the education business primarily in Japan. The company manages cram schools and other various classrooms, as well as provides recruitment and management guidance for preparatory schools and cl...

Johnan Academic Preparatory Institute, Inc. Financial Statement Overview

Summary
Fundamentals are weak in 2025: revenue continues to contract, margins deteriorated, and losses deepened (net margin ~-7.5%). Cash flow also reversed to burn (negative operating and free cash flow), while leverage rose sharply (debt-to-equity ~0.87) and returns on equity are negative, increasing financial risk.
Income Statement
26
Negative
Balance Sheet
44
Neutral
Cash Flow
33
Negative
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue5.65B5.62B5.85B5.95B6.25B5.71B
Gross Profit1.20B1.15B1.46B1.54B1.71B1.02B
EBITDA-52.71M-101.49M155.79M115.98M318.27M-387.90M
Net Income-357.03M-420.79M-122.32M-135.09M-636.63M-1.06B
Balance Sheet
Total Assets4.80B5.23B4.88B5.15B5.44B5.88B
Cash, Cash Equivalents and Short-Term Investments1.32B1.61B1.43B1.59B1.64B1.34B
Total Debt1.16B1.24B638.91M826.47M938.25M947.99M
Total Liabilities3.52B3.79B2.99B3.12B3.33B3.05B
Stockholders Equity1.28B1.44B1.88B2.03B2.11B2.84B
Cash Flow
Free Cash Flow0.00-170.17M42.72M-11.45M353.94M-855.23M
Operating Cash Flow0.00-55.37M70.32M49.03M446.46M-743.06M
Investing Cash Flow0.00-178.05M-3.20M-32.14M-60.60M-426.57M
Financing Cash Flow0.00401.47M-229.04M-65.93M-164.27M636.07M

Johnan Academic Preparatory Institute, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price285.00
Price Trends
50DMA
276.52
Negative
100DMA
274.71
Negative
200DMA
252.59
Negative
Market Momentum
MACD
-10.99
Positive
RSI
25.08
Positive
STOCH
3.97
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 285 is above the 20-day moving average (MA) of 271.91, above the 50-day MA of 276.52, and above the 200-day MA of 252.59, indicating a bearish trend. The MACD of -10.99 indicates Positive momentum. The RSI at 25.08 is Positive, neither overbought nor oversold. The STOCH value of 3.97 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥4.27B2.262.60%8.85%-1.34%
76
Outperform
¥32.97B17.485.00%
75
Outperform
¥44.17B28.752.28%7.30%60.93%
70
Outperform
¥37.77B18.912.56%7.41%22.70%
69
Neutral
¥2.24B1.393.34%1.92%71.20%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
42
Neutral
¥1.96B8.75-1.21%-50.91%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4720
Johnan Academic Preparatory Institute, Inc.
244.00
44.73
22.45%
JP:2179
Seigakusha Co., Ltd.
769.00
49.21
6.84%
JP:4678
Shuei Yobiko Co., Ltd.
334.00
78.71
30.83%
JP:4714
Riso Kyoiku Co., Ltd.
194.00
-30.60
-13.62%
JP:4718
Waseda Academy Co., Ltd.
2,003.00
-72.84
-3.51%
JP:9470
Gakken Holdings Co., Ltd.
1,015.00
73.20
7.77%
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: Apr 01, 2026