| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 838.77 | -8 |
| Intrinsic value (DCF) | 12984.07 | 1324 |
| Graham-Dodd Method | 380.07 | -58 |
| Graham Formula | 2548.86 | 179 |
PROGRIT Inc. is a leading provider of English coaching and subscription-based English learning services in Japan, catering to both individuals and professionals. Founded in 2016 and headquartered in Tokyo, the company offers specialized courses in business English conversation, beginner English, TOEIC L&R, and TOEFL iBT TEST/IELTS preparation. Operating in the Education & Training Services sector, PROGRIT leverages a consumer-defensive business model, ensuring steady demand for language learning amid economic fluctuations. With a market capitalization of approximately ¥13.7 billion, PROGRIT has established itself as a key player in Japan's growing English education market, which is driven by globalization and corporate demand for bilingual talent. The company’s subscription-based model provides recurring revenue, while its focus on practical, results-driven learning differentiates it from traditional language schools. PROGRIT’s strong cash position and low debt levels underscore its financial stability, making it a noteworthy contender in Japan’s competitive education sector.
PROGRIT Inc. presents an attractive investment opportunity due to its strong position in Japan’s English education market, a sector with resilient demand. The company’s subscription-based revenue model ensures predictable cash flows, while its focus on high-demand courses like TOEIC and business English aligns with corporate and individual needs. Financially, PROGRIT boasts a healthy net income of ¥610 million, robust operating cash flow of ¥1.08 billion, and a solid cash reserve of ¥3.04 billion against minimal debt. However, risks include intense competition in Japan’s crowded language education market and potential saturation in urban areas. The company’s beta of 0.922 suggests lower volatility compared to the broader market, appealing to risk-averse investors. A dividend yield of approximately 1.2% (based on a ¥13 per share dividend) adds income appeal, though growth investors may seek higher EPS expansion beyond the current ¥47.83.
PROGRIT Inc. competes in Japan’s fragmented English education market, where differentiation is critical. Its competitive advantage lies in its specialized, results-oriented curriculum—particularly for business professionals and test-takers—which contrasts with broader, less targeted offerings from traditional language schools. The subscription model enhances customer retention and revenue predictability, a strength over one-time course providers. However, PROGRIT faces stiff competition from both established players like Berlitz and agile online platforms such as DMM英会話. The company’s asset-light digital approach reduces overhead compared to brick-and-mortar competitors, but it lacks the global brand recognition of international players like EF Education First. PROGRIT’s domestic focus is a double-edged sword: it deepens local market penetration but limits growth potential compared to multinational rivals. Its financial health (notably high cash reserves and low leverage) provides flexibility to invest in marketing or technology, though scaling beyond Japan’s saturated urban centers remains a challenge. The company’s niche positioning in test prep and business English helps mitigate direct competition with casual learning apps but requires continuous innovation to maintain relevance.