PROGRIT, Inc. (9560) AI Stock Analysis

• Market Cap: ¥8.89B
• Dividend Yield: 2.06%
• Average Volume (3M): 125.20K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.53
• Revenue Growth: 29.06%
• EPS Growth: 41.54%
• Country: JP
• Employees: 209
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 24.98
• Shares Outstanding: 12,739,837
• 10 Day Avg. Volume: 235,220
• 30 Day Avg. Volume: 125,196
• PEG Ratio: 0.35
• Price to Book (P/B): 5.82
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 15.67
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥782.00 ▼(-18.46% Downside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is driven primarily by strong financial performance (rapid growth, improved margins, low leverage, and solid free-cash-flow conversion). Offsetting this, technicals are only neutral-to-weak with price below key longer-term averages and slightly negative MACD. Valuation is supportive with a moderate P/E and a modest dividend yield.

Positive Factors

Revenue Growth

Sustained multi-year revenue expansion more than doubled scale over five years, indicating durable demand and successful market penetration. Larger revenue base supports reinvestment in products, scale economies and diversification of revenue streams, improving long-term resilience.

Margin Improvement

Material margin expansion to very high gross margins and positive net margins signals structural advantages such as differentiated offerings or high operating leverage. Higher margins provide buffer for reinvestment and downside protection versus lower-margin peers over medium term.

Low Leverage / Strong Equity Base

Marked de-risking of leverage and a larger equity base meaningfully improves financial flexibility. Very low debt levels reduce refinancing and interest risk, enabling capital allocation to growth, M&A, or shareholder returns without jeopardizing solvency in downturns.

Negative Factors

Operating Cash Flow Variability

Despite strong FCF, the decline in operating cash flow indicates sensitivity in working capital or collection dynamics. Persistent variability can constrain reinvestment or dividend plans and makes cash-driven strategy planning harder during slower growth periods.

Prior Period Downturn

A past episode of negative operating and free cash flow highlights cyclicality or vulnerability to demand shocks. Historical downturns imply that margins and cash conversion can reverse under stress, increasing the need for conservative planning and liquidity cushions.

ROE Volatility Risk

Reported mid-to-high 30%+ ROE is attractive but partly driven by a small historical equity base, which can exaggerate swings. This structural feature risks uneven reported returns and complicates expectations for sustained high ROE as equity normalizes with growth.

PROGRIT, Inc. Business Overview & Revenue Model

Company Description

PROGRIT Inc. provides English coaching and subscription-based English learning services in Japan. It offers courses, such as business English conversation, beginner, TOEIC L&R, and TOEFL iBT TEST/IELTS. The company was incorporated in 2016 and is based in Tokyo, Japan.

How the Company Makes Money

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PROGRIT, Inc. Financial Statement Overview

Summary

Strong multi-year improvement: revenue expanded materially (2.18B in 2020 to 5.75B in 2025), margins rose sharply (gross margin ~74% in 2025), and profitability has been consistently stronger since 2022. Balance sheet risk is reduced with very low debt-to-equity (~0.08–0.11x in 2024–2025). Cash conversion is solid with high FCF-to-net-income (~0.93–1.00 in 2022–2025), though operating cash flow softened in 2025 and the 2021 downturn shows prior volatility.

Income Statement

Profitability and growth have strengthened materially. Revenue rose from 2.18B (2020) to 5.75B (2025), with a notable acceleration in 2025 (+4.47 vs. +0.47 in 2024). Margins expanded significantly over the period—gross margin improved to ~74% (2025) from ~60% (2020), while net margin reached ~15.5% (2025) after a loss in 2021. The main weakness is volatility earlier in the period (2021 loss and negative operating margin), though results since 2022 show a consistent and improving earnings profile.

Balance Sheet

Leverage has been de-risked meaningfully and the equity base has grown. Debt-to-equity improved from very high levels in 2020–2021 (~2.0x and ~1.8x) to low levels by 2024–2025 (~0.08–0.11x), alongside equity growth to ~2.28B (2025). Returns on equity are strong (mid-to-high 30%+ in 2023–2025), signaling efficient capital use. A key watch item is that the very high returns include periods where equity was much smaller (earlier years), which can make ROE more volatile across cycles.

Cash Flow

Cash generation is solid and generally tracks earnings well in recent years. Free cash flow is strong (846M in 2025; 1,022M in 2024; 795M in 2023) and free cash flow to net income is consistently high (~0.93–1.00 from 2022–2025), indicating good cash conversion. The weakness is some variability in operating cash flow versus revenue/earnings (operating cash flow fell from 1,077M in 2024 to 907M in 2025) and a prior period of negative operating/free cash flow in 2021, suggesting sensitivity during weaker operating environments.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	5.75B	4.45B	3.02B	2.25B	1.98B
Gross Profit	4.26B	3.20B	2.14B	1.51B	1.18B
EBITDA	1.26B	843.38M	514.96M	343.56M	-87.42M
Net Income	888.76M	610.13M	360.84M	187.06M	-76.83M
Balance Sheet
Total Assets	4.49B	3.89B	2.63B	1.51B	1.04B
Cash, Cash Equivalents and Short-Term Investments	3.42B	3.04B	1.98B	975.54M	437.65M
Total Debt	249.54M	152.04M	166.28M	248.83M	288.25M
Total Liabilities	2.21B	2.09B	1.54B	1.10B	877.92M
Stockholders Equity	2.28B	1.80B	1.09B	409.63M	159.32M
Cash Flow
Free Cash Flow	846.36M	1.02B	795.12M	492.21M	-102.72M
Operating Cash Flow	907.12M	1.08B	796.94M	494.48M	-85.67M
Investing Cash Flow	-189.35M	-82.87M	-16.74M	12.83M	3.67M
Financing Cash Flow	-344.08M	71.77M	239.90M	30.58M	7.78M

PROGRIT, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 959.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9560, the sentiment is Negative. The current price of 959 is above the 20-day moving average (MA) of 742.57, above the 50-day MA of 826.21, and below the 200-day MA of 994.70, indicating a bearish trend. The MACD of -31.41 indicates Negative momentum. The RSI at 31.05 is Neutral, neither overbought nor oversold. The STOCH value of 14.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9560.

PROGRIT, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6200	75 Outperform	¥59.13B	18.77	―	2.94%	16.32%	23.04%
9560	74 Outperform	¥8.89B	9.46	―	2.06%	29.06%	41.54%
9345	63 Neutral	¥2.11B	12.00	―	1.92%	4.25%	-6.45%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9562	61 Neutral	¥3.23B	-47.40	―	2.00%	25.16%	127.57%
9339	60 Neutral	¥2.86B	31.62	―	1.33%	-7.47%	378.86%
6096	55 Neutral	¥2.91B	6.04	―	1.68%	-4.16%	―