PROGRIT, Inc. (9560) AI Stock Analysis

• Market Cap: ¥9.99B
• Dividend Yield: 2.06%
• Average Volume (3M): 125.20K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.54
• 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: 12,729,937
• 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: ¥879.00 ▼(-8.34% 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

Multi-year revenue growth more than doubled from 2020 to 2025, indicating durable demand expansion and successful scaling of offerings. Sustained top-line expansion supports long-term reinvestment, increases bargaining power with customers, and provides a base for continued margin improvement and cash generation.

Margin Expansion

Significant improvement in gross and net margins signals structural enhancements—higher pricing power, scalable delivery, or a shift to higher-margin services. Durable margin expansion increases free cash flow potential and resilience through cycles, enabling sustained investment in product and competitive differentiation.

Low Leverage & Cash Conversion

Very low leverage combined with near-1.0 FCF-to-net-income shows financially flexible capital structure and strong cash conversion. This durability reduces refinancing risk, funds organic growth or dividends internally, and provides capacity to pursue M&A or weather shocks without stressing the balance sheet.

Negative Factors

Prior Downturn/Volatility

Historical volatility and a 2021 loss show the business can be sensitive to adverse cycles or execution slips. While recent years improved, the earlier downturn highlights structural exposure to demand swings or execution risk that could re-emerge during macro stress, affecting earnings durability.

Operating Cash Flow Variability

Notable decline in operating cash flow and a prior period of negative OCF indicate that cash generation can be inconsistent with earnings. Persistent OCF variability could constrain capital allocation flexibility, limit sustained buybacks/dividends, and require precautionary liquidity buffers in weaker periods.

ROE Sensitivity to Equity Base

Very high ROE partly reflects a smaller historical equity base, making returns sensitive to capital structure and growth. As equity normalizes with scale, ROE could compress; this sensitivity cautions that past high returns may not fully persist and can produce volatile investor expectations.

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

PROGRIT, Inc. generates revenue through its language coaching and training services, which are offered through subscription-based models and one-time service fees. The company provides tailored language learning programs that cater to the specific needs of its clients, including business professionals and individuals aiming to improve their English proficiency. Revenue streams include direct sales of language coaching packages, corporate training contracts, and partnerships with educational institutions or organizations seeking to provide language development opportunities to their members. By utilizing a combination of digital platforms and personalized coaching, PROGRIT, Inc. effectively monetizes its language training expertise.

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	1.03B
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	873.59M
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 814.01, above the 50-day MA of 889.70, and below the 200-day MA of 1019.49, indicating a bearish trend. The MACD of -33.13 indicates Negative momentum. The RSI at 34.95 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 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
4668	78 Outperform	¥18.01B	10.39	―	3.81%	9.96%	252.72%
9560	74 Outperform	¥9.99B	11.25	―	2.06%	29.06%	41.54%
9769	72 Outperform	¥26.91B	14.85	―	4.01%	-1.18%	-12.01%
4718	70 Outperform	¥38.94B	15.47	―	2.56%	7.41%	22.70%
7030	65 Neutral	¥23.72B	18.10	―	2.85%	10.25%	115.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%