Obayashi (JP:1802)
:1802
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Obayashi
(1802)
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Rating:65Neutral
Price Target:
¥3,434.00
▼(-6.81% Downside)
Action:Downgraded
Date:05/15/26
The score is driven primarily by improving fundamentals (stronger revenue and margins, moderate leverage and rising ROE), tempered by inconsistent cash-flow conversion. Technical signals are mildly negative with the stock below key moving averages and a negative MACD, while valuation appears reasonable with a mid P/E and a moderate dividend yield.
Positive Factors
Multi-year revenue expansion
Sustained top-line growth over several years indicates stronger market penetration and ability to win large contracts. That scale supports operational leverage, backlog durability and reinvestment capacity, improving resilience across business cycles over the next 2–6 months.
Negative Factors
Uneven cash-flow conversion
Material volatility in operating and free cash flow, driven by working-capital and project timing, reduces predictability of internal funding. Inconsistent conversion makes capital allocation, dividends and debt servicing more sensitive to project timing and cycle swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue expansion
Sustained top-line growth over several years indicates stronger market penetration and ability to win large contracts. That scale supports operational leverage, backlog durability and reinvestment capacity, improving resilience across business cycles over the next 2–6 months.
Read all positive factors
Obayashi (1802) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.20T
Dividend Yield2.47%
Average Volume (3M)3.01M
Price to Earnings (P/E)15.1
Beta (1Y)0.69
Revenue Growth-1.29%
EPS Growth22.69%
CountryJP
Employees16,986
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)193.49
Shares Outstanding691,811,340
10 Day Avg. Volume2,598,730
30 Day Avg. Volume3,014,840
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)2.08
Price to Sales (P/S)1.01
P/FCF Ratio20.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,633.33Price Target Upside25.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)230.79
Revenue Forecast (FY)¥2.73T
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 scho...
How the Company Makes Money
Obayashi primarily generates revenue by contracting to deliver construction projects. Its core revenue stream comes from (1) building construction work (e.g., offices, factories, logistics facilities, and other private-sector buildings) and (2) ci...
Obayashi Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.57T | 2.59T | 2.62T | 2.33T | 1.98T | 1.92T |
| Gross Profit | 300.37B | 364.69B | 297.83B | 219.60B | 216.57B | 154.34B |
| EBITDA | 220.73B | 231.03B | 248.22B | 138.49B | 140.30B | 78.61B |
| Net Income | 138.28B | 173.76B | 146.05B | 75.06B | 77.67B | 39.13B |
Balance Sheet | ||||||
| Total Assets | 2.88T | 3.14T | 3.04T | 3.02T | 2.61T | 2.42T |
| Cash, Cash Equivalents and Short-Term Investments | 468.11B | 440.68B | 406.14B | 347.62B | 426.69B | 271.03B |
| Total Debt | 367.47B | 356.48B | 373.63B | 332.90B | 344.36B | 280.87B |
| Total Liabilities | 1.71T | 1.83T | 1.83T | 1.82T | 1.57T | 1.43T |
| Stockholders Equity | 1.12T | 1.26T | 1.16T | 1.15T | 997.11B | 955.69B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 127.29B | 35.45B | -27.99B | 131.87B | 11.67B |
| Operating Cash Flow | 0.00 | 252.92B | 85.63B | 50.40B | 228.46B | 69.70B |
| Investing Cash Flow | 0.00 | -83.03B | 10.78B | -84.47B | -101.61B | -49.83B |
| Financing Cash Flow | 0.00 | -142.78B | -51.77B | -51.92B | 22.12B | -12.46B |
Obayashi Technical Analysis
Negative
3685.00
Price Trends
3714.79
Negative
3704.43
Negative
3138.03
Positive
Market Momentum
-121.02
Positive
31.07
Neutral
2.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1802, the sentiment is Negative. The current price of 3685 is above the 20-day moving average (MA) of 3591.35, below the 50-day MA of 3714.79, and above the 200-day MA of 3138.03, indicating a neutral trend. The MACD of -121.02 indicates Positive momentum. The RSI at 31.07 is Neutral, neither overbought nor oversold. The STOCH value of 2.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1802.
Obayashi Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥313.40B | 10.29 | 16.55% | 4.26% | 3.40% | 12.42% | |
66 Neutral | ¥2.66T | 12.49 | 13.56% | 1.96% | 5.34% | 42.44% | |
66 Neutral | ¥246.26B | 13.10 | 7.62% | 3.44% | -2.18% | 114.64% | |
66 Neutral | ¥1.70T | 10.29 | 11.22% | 1.48% | 5.83% | 96.00% | |
65 Neutral | ¥2.20T | 15.06 | 14.23% | 2.47% | -1.29% | 22.69% | |
64 Neutral | ¥2.18T | 15.66 | 16.64% | 1.83% | -3.02% | 50.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Obayashi Corporate Events
Obayashi launches ESOP trust to align managers with long-term growth
Mar 27, 2026
Obayashi Corporation’s board has approved the introduction of a Stock-Granting Employee Stock Ownership Plan Trust as a new stock-based incentive program for selected managers. The plan is designed to shift away from a seniority-based person...
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.