Sustained Revenue GrowthConsistent top-line growth, including a notable 17.76% increase in 2025, indicates sustained demand and successful project wins. Over 2-6 months this underpins backlog replenishment, scale benefits and bargaining leverage with suppliers on multi-year civil and infrastructure contracts.

Specialist Marine And Port FranchiseA clear niche in marine, port and reclamation works and integrated EPC capabilities create durable competitive advantages: technical know-how, specialized fleet/equipment needs, and relationships with public-sector clients. These traits support repeatable contract wins and higher switching costs for clients.

Solid Equity Base Provides BufferAn equity ratio near 26% offers balance-sheet resilience for large, lumpy civil projects and absorbs construction risk. This capital cushion supports bidding capacity and access to project financing over months, reducing short-term solvency pressures while the firm executes multi-year contracts.

Bears Say

Severe Negative Free Cash FlowMaterial negative FCF (~¥61.48B) reflects cash strain from project working capital and high capex, limiting the company's ability to self-fund operations or new bids. Over several months this reduces liquidity flexibility, increases reliance on external financing, and raises refinancing risk on large projects.

Declining Gross And Net MarginsEroding gross and net margins signal rising input or execution costs and weaker project-level profitability. Persisting margin compression reduces cash generation and return metrics, pressuring ROE and the ability to invest in fleet or technology over the medium term without structural operational fixes.

Rising Leverage And Falling ROEDebt-to-equity approaching 1.0 alongside declining ROE increases financial risk on large, long-duration contracts. Higher leverage raises interest exposure and reduces balance-sheet flexibility for bidding and absorbing overruns, making the company more vulnerable to project delays or cost shocks over months.

1893 FAQ

What was Penta-Ocean Construction Co Ltd’s price range in the past 12 months?

Penta-Ocean Construction Co Ltd lowest stock price was ¥631.20 and its highest was ¥2257.00 in the past 12 months.

What is Penta-Ocean Construction Co Ltd’s market cap?

Penta-Ocean Construction Co Ltd’s market cap is ¥589.40B.

When is Penta-Ocean Construction Co Ltd’s upcoming earnings report date?

Penta-Ocean Construction Co Ltd’s upcoming earnings report date is May 08, 2026 which is in 78 days.

How were Penta-Ocean Construction Co Ltd’s earnings last quarter?

Penta-Ocean Construction Co Ltd released its earnings results on Feb 09, 2026. The company reported ¥43.1 earnings per share for the quarter, beating the consensus estimate of N/A by ¥43.1.

Is Penta-Ocean Construction Co Ltd overvalued?

According to Wall Street analysts Penta-Ocean Construction Co Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Penta-Ocean Construction Co Ltd pay dividends?

Penta-Ocean Construction Co Ltd pays a Semiannually dividend of ¥17 which represents an annual dividend yield of 1.88%. See more information on Penta-Ocean Construction Co Ltd dividends here

What is Penta-Ocean Construction Co Ltd’s EPS estimate?

Penta-Ocean Construction Co Ltd’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Penta-Ocean Construction Co Ltd have?

Penta-Ocean Construction Co Ltd has 286,013,920 shares outstanding.

What happened to Penta-Ocean Construction Co Ltd’s price movement after its last earnings report?

Penta-Ocean Construction Co Ltd reported an EPS of ¥43.1 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 5.063%.

Which hedge fund is a major shareholder of Penta-Ocean Construction Co Ltd?

Currently, no hedge funds are holding shares in JP:1893

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Penta-Ocean Construction Co Ltd

Penta-Ocean Construction Co., Ltd. engages in the civil engineering and building construction activities in Japan, Southeast Asia, and internationally. The company operates through three segments: Domestic Civil Engineering, Domestic Building Construction, and Overseas. It constructs ports and harbors, airports, power stations, bridges, offices, commercial buildings and lodges, and residential and education buildings, as well as undertakes water supply and sewerage, railway, environmental facility, recreational, and dam and river work projects. The company is also involved in the development of real estate properties; and shipbuilding, leasing, insurance, and environment businesses. Penta-Ocean Construction Co., Ltd. was founded in 1896 and is headquartered in Tokyo, Japan.