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

Johnan Academic Preparatory Institute, Inc.

(TSE/TYO:4720)

Select Model

Rating:50Neutral

Price Target:JPY 244.00▲(2.52% Upside)

Action:reiterated

Date:08/21/26

The overall score reflects a company in early-stage recovery, weighed down by a fragile balance sheet. The return to profitability and positive cash flow are encouraging, but high leverage and thin margins remain significant risks. Technicals show short-term strength, but the stock is still in a longer-term downtrend, and the negative P/E limits valuation support.

Positive Factors

Return to ProfitabilityThe return to profitability and stronger gross profit indicate operational improvement after several loss-making years. While earnings remain thin, restoring positive results could support reinvestment and strengthen the business if the improvement becomes consistent.

Negative Factors

Persistent Revenue DeclineA multi-year revenue decline points to a challenged growth profile and may indicate weaker enrollment, demand or market position. Without renewed top-line growth, the company has less ability to spread fixed costs and sustain profitability.

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

Market Cap: JPY 1.91B
Dividend Yield: 2.94%
Average Volume (3M): 2,888
Price to Earnings (P/E): -109.2
Beta (1Y): 0.13
Revenue Growth: -1.10%
EPS Growth: 95.12%
Country: Japan
Employees: 394
Sector: Consumer Defensive
Sector Strength: 62
Industry: Education & Training Services

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

Company Description

Johnan Academic Preparatory Institute, Inc. operates predominantly within Japan's education sector. The company manages various cram schools and educational centers, and also facilitates the establishment and operation of preparatory schools and clas...

How the Company Makes Money

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Johnan Academic Preparatory Institute, Inc. Financial Statement Overview

Summary

Financial recovery is tentative: revenue decline stabilized and profitability returned, but net margin is razor-thin at 0.09%. High debt (0.92x equity) and a 51% equity erosion over five years keep financial risk elevated, despite positive operating cash flow of ¥123 million.

Income Statement

48Neutral

Balance Sheet

42Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.58B	5.62B	5.62B	5.85B	5.95B	6.25B
Gross Profit	1.31B	1.35B	1.15B	1.46B	1.54B	1.71B
EBITDA	179.95M	212.82M	-101.49M	155.79M	115.98M	318.27M
Net Income	-17.41M	4.89M	-420.79M	-122.32M	-135.09M	-636.63M
Balance Sheet
Total Assets	4.81B	5.11B	5.23B	4.88B	5.15B	5.44B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.76B	1.61B	1.43B	1.59B	1.64B
Total Debt	1.19B	1.28B	1.24B	638.91M	826.47M	938.25M
Total Liabilities	3.65B	3.71B	3.79B	2.99B	3.12B	3.33B
Stockholders Equity	1.16B	1.39B	1.44B	1.88B	2.03B	2.11B
Cash Flow
Free Cash Flow	0	101.11M	-170.17M	42.72M	-11.45M	353.94M
Operating Cash Flow	0	123.23M	-55.37M	70.32M	49.03M	446.46M
Investing Cash Flow	0	122.61M	-178.05M	-3.20M	-32.14M	-60.60M
Financing Cash Flow	0	-43.64M	401.47M	-229.04M	-65.93M	-164.27M

Johnan Academic Preparatory Institute, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price238.00

Price Trends

50DMA241.36Negative

100DMA239.26Negative

200DMA252.10Negative

Market Momentum

MACD-0.73Negative

RSI44.26Neutral

STOCH11.11Positive

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 238.00 is below the 20-day moving average (MA) of 238.95, below the 50-day MA of 241.36, and below the 200-day MA of 252.10, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 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

JP:4720 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4718	86Outperform	JPY 52.03B	19.03	―	2.39%	8.48%	20.40%
JP:2179	76Outperform	JPY 4.52B	7.13	―	3.39%	5.63%	62.61%
JP:4714	72Outperform	JPY 49.97B	25.34	―	3.40%	4.45%	40.72%
JP:9470	68Neutral	JPY 44.39B	12.09	―	2.85%	7.30%	12.44%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:4678	61Neutral	JPY 2.23B	22.13	―	3.01%	1.03%	-62.01%
JP:4720	50Neutral	JPY 1.92B	-109.17	―	2.94%	-1.10%	95.12%

* Consumer Defensive Sector Average

Performance Comparison

JP:4720 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4720	Johnan Academic Preparatory Institute, Inc.	238.00	13.33	5.93%
JP:2179	Seigakusha Co., Ltd.	811.00	52.80	6.96%
JP:4678	Shuei Yobiko Co., Ltd.	329.00	51.39	18.51%
JP:4714	Riso Kyoiku Co., Ltd.	294.00	106.52	56.81%
JP:4718	Waseda Academy Co., Ltd.	2715.00	456.20	20.20%
JP:9470	Gakken Holdings Co., Ltd.	1017.00	16.31	1.63%

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: Aug 21, 2026

Johnan Academic Preparatory Institute, Inc. AI Stock Analysis