Obayashi (1802) AI Stock Analysis

• Market Cap: $1.71T
• Dividend Yield: 3.3%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.64
• Revenue Growth: 6.50%
• EPS Growth: 47.04%
• Country: JP
• Employees: 16,986
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 25.59
• Shares Outstanding: 706,951,050
• 10 Day Avg. Volume: 2,200,270
• 30 Day Avg. Volume: 2,746,770
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 5.57
• Enterprise Value/Ebitda: 7.63
• 1Y Price Target: $2,600.00
• Price Target Upside: 5.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥2,520.00 ▲(2.61% Upside)

Obayashi's strong financial performance and attractive valuation are key strengths, indicating a stable and potentially rewarding investment. Technical indicators suggest a generally positive outlook, albeit with some room for improvement in momentum.

Obayashi Business Overview & Revenue Model

Company Description

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, riverbanks, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in metropolitan areas, as well as property management activities; solar, biomass, hydropower, geothermal, and wind power generation business; and PPP and agriculture business. In addition, the company sells materials and equipment for construction; develops and sells computer software; sells and leases electronic equipment; offers finance-related services; and operates golf clubs. Further, it engages in the provision of urban development, contracted engineering, management, consultancy services, etc.; and is involved in the M&E design and construction activities. The company was founded in 1892 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Obayashi Corporation generates revenue primarily through its construction and engineering contracts, which include the building and civil engineering sectors. In building construction, Obayashi undertakes projects ranging from commercial buildings and residential complexes to hospitals and schools. The civil engineering segment contributes significantly through infrastructure projects like roads, bridges, and tunnels. Additionally, Obayashi earns income from its real estate development activities, which involve the acquisition, development, and sale or lease of properties. The company also invests in renewable energy projects, such as solar and wind farms, which provide an ancillary source of income. Strategic partnerships and joint ventures with other construction firms and government contracts further enhance Obayashi's revenue streams.

Obayashi Financial Statement Overview

Summary

Obayashi demonstrates strong financial performance with robust revenue growth, stable profit margins, and efficient leverage. The improved cash flow and solid equity returns indicate a commendable financial position, although cash flow conversion can improve.

Income Statement

The company has shown robust revenue growth of 12.69% from 2024 to 2025. Gross profit margin remains stable at 11.36% for 2025, with a net profit margin of 5.57%. EBIT and EBITDA margins are healthy at 5.47% and 9.48% respectively, indicating strong operational efficiency and profitability. The consistent upward trend in revenue and profitability metrics suggests solid performance in the income statement.

Balance Sheet

The debt-to-equity ratio is 0.32, indicating a conservative leverage strategy. The return on equity (ROE) stands at 12.61%, reflecting good profitability relative to equity. The equity ratio is 38.05%, suggesting a balanced capital structure. Overall, the balance sheet portrays financial stability with efficient leverage usage and solid equity returns.

Cash Flow

The company achieved significant improvement in free cash flow from a deficit in 2024 to a positive 35.45 billion Yen in 2025. The operating cash flow to net income ratio is 0.59, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.24, reflecting moderate conversion of profits to free cash flow. This positive trend in cash flow metrics shows improved liquidity and cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.62T	2.33T	1.98T	1.92T	1.77T
Gross Profit	297.83B	219.60B	216.57B	154.34B	225.78B
EBITDA	248.22B	138.49B	140.30B	78.61B	156.60B
Net Income	146.05B	75.06B	77.67B	39.13B	98.78B
Balance Sheet
Total Assets	3.04T	3.02T	2.61T	2.42T	2.27T
Cash, Cash Equivalents and Short-Term Investments	406.14B	347.62B	426.69B	271.03B	262.95B
Total Debt	373.63B	332.90B	344.36B	280.87B	266.99B
Total Liabilities	1.83T	1.82T	1.57T	1.43T	1.31T
Stockholders Equity	1.16T	1.15T	997.11B	955.69B	931.01B
Cash Flow
Free Cash Flow	35.45B	-27.99B	131.87B	11.67B	-32.63B
Operating Cash Flow	85.63B	50.40B	228.46B	69.70B	24.80B
Investing Cash Flow	10.78B	-84.47B	-101.61B	-49.83B	-79.08B
Financing Cash Flow	-51.77B	-51.92B	22.12B	-12.46B	-8.48B

Obayashi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2456.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1802, the sentiment is Positive. The current price of 2456 is above the 20-day moving average (MA) of 2395.10, above the 50-day MA of 2277.48, and above the 200-day MA of 2117.68, indicating a bullish trend. The MACD of 41.42 indicates Positive momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 83.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1802.

Obayashi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1802	80 Outperform	$1.71T	12.57	12.51%	3.30%	6.50%	47.04%
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
2PW	―	€1.81B	9.20	17.85%	―	―	―
KAJMF	―	$14.66B	14.19	11.30%	2.62%	―	―
SHMUF	―	$9.15B	15.76	8.70%	3.49%	―	―
TISCF	―	$12.37B	13.79	15.06%	2.41%	―	―
1860	75 Outperform	¥322.04B	12.59		2.73%	16.62%	42.69%

Obayashi Corporate Events

Obayashi Completes Share Buyback to Enhance Shareholder Value

Obayashi Corporation announced the completion of its acquisition of 1,939,400 of its own common shares, valued at approximately ¥4.25 billion, as part of a broader plan to acquire up to 20 million shares. This move is part of a strategic initiative to manage its capital structure and enhance shareholder value, reflecting the company’s commitment to optimizing its financial operations.

The most recent analyst rating on (JP:1802) stock is a Buy with a Yen2400.00 price target. To see the full list of analyst forecasts on Obayashi stock, see the JP:1802 Stock Forecast page.

Obayashi Corporation Advances Share Buyback Program

Obayashi Corporation announced the acquisition of 2,368,100 of its own common shares, totaling approximately ¥5.2 billion, as part of a larger buyback program authorized by its Board of Directors. This move is part of a strategic initiative to enhance shareholder value and optimize capital structure, reflecting the company’s commitment to its investors.

The most recent analyst rating on (JP:1802) stock is a Buy with a Yen2250.00 price target. To see the full list of analyst forecasts on Obayashi stock, see the JP:1802 Stock Forecast page.

Obayashi Corporation Proposes Increased Year-End Dividend

Obayashi Corporation announced a proposal to increase its year-end dividend to 41 yen per share, up from the previously forecasted 40 yen, as part of its commitment to stable dividends. This decision reflects a consolidated dividend payout ratio of 39.7%, indicating a strategic focus on rewarding shareholders while maintaining financial stability.

The most recent analyst rating on (JP:1802) stock is a Buy with a Yen2250.00 price target. To see the full list of analyst forecasts on Obayashi stock, see the JP:1802 Stock Forecast page.

Obayashi Corporation Reports Strong Financial Performance for Fiscal Year 2025

Obayashi Corporation reported a strong financial performance for the fiscal year ended March 31, 2025, with net sales increasing by 12.7% and profit attributable to owners of the parent rising by 94.6% year-on-year. This robust growth reflects positively on the company’s operational efficiency and market positioning, indicating a solid return on equity and a stable financial position, which could have favorable implications for stakeholders.

The most recent analyst rating on (JP:1802) stock is a Buy with a Yen2250.00 price target. To see the full list of analyst forecasts on Obayashi stock, see the JP:1802 Stock Forecast page.

Obayashi Corporation Updates on Share Buyback Progress

Obayashi Corporation announced the status of its share buyback program, acquiring 4,362,700 common shares for approximately ¥8.6 billion between April 1 and April 30, 2025. This move is part of a larger plan authorized by the Board of Directors to acquire up to 20 million shares, aiming to enhance shareholder value and optimize capital structure.