Obayashi (JP:1802)
:1802
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Obayashi
(1802)
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Rating:75Outperform
Price Target:
¥4,267.00
▲(12.50% Upside)
Action:ReiteratedDate:02/10/26
The score is driven primarily by strong financial performance (growth, profitability, conservative balance sheet, and improved free cash flow). Technicals remain bullish but are heavily overextended (very high RSI/Stoch), which reduces the score. Valuation is reasonable with a mid-teens P/E and a moderate dividend yield.
Positive Factors
Revenue & Profitability Trend
Sustained revenue growth with stable gross and healthy EBITDA margins indicates durable demand and operational efficiency across projects. This trend supports mid-term earnings visibility and provides a clearer base for reinvestment, tender competitiveness, and predictable cash flow generation.
Negative Factors
Moderate Cash Conversion
Earnings do not fully convert to free cash, reflecting working-capital intensity typical of construction. Moderate cash conversion constrains internal funding for new contracts and increases sensitivity to billing timing, potentially forcing short-term financing or slower payout policies.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profitability Trend
Sustained revenue growth with stable gross and healthy EBITDA margins indicates durable demand and operational efficiency across projects. This trend supports mid-term earnings visibility and provides a clearer base for reinvestment, tender competitiveness, and predictable cash flow generation.
Read all positive factors
Obayashi (1802) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.61T
Dividend Yield2.47%
Average Volume (3M)3.01M
Price to Earnings (P/E)10.5
Beta (1Y)0.70
Revenue Growth2.27%
EPS Growth70.36%
CountryJP
Employees16,986
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)77.55
Shares Outstanding691,811,340
10 Day Avg. Volume2,598,730
30 Day Avg. Volume3,014,840
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.23
Price to Sales (P/S)0.54
P/FCF Ratio40.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,742.02Price Target Upside25.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)228.68
Revenue Forecast (FY)¥2.70T
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 makes money by earning revenue from construction and engineering contracts. Its core revenue stream is contract-based construction work, where it is paid for delivering building construction projects (e.g., commercial, public, a...
Obayashi Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.57T | 2.62T | 2.33T | 1.98T | 1.92T | 1.77T |
| Gross Profit | 300.37B | 297.83B | 219.60B | 216.57B | 154.34B | 225.78B |
| EBITDA | 220.73B | 248.22B | 138.49B | 140.30B | 78.61B | 156.60B |
| Net Income | 138.28B | 146.05B | 75.06B | 77.67B | 39.13B | 98.78B |
Balance Sheet | ||||||
| Total Assets | 2.88T | 3.04T | 3.02T | 2.61T | 2.42T | 2.27T |
| Cash, Cash Equivalents and Short-Term Investments | 468.11B | 406.14B | 347.62B | 426.69B | 271.03B | 262.95B |
| Total Debt | 367.47B | 373.63B | 332.90B | 344.36B | 280.87B | 266.99B |
| Total Liabilities | 1.71T | 1.83T | 1.82T | 1.57T | 1.43T | 1.31T |
| Stockholders Equity | 1.12T | 1.16T | 1.15T | 997.11B | 955.69B | 931.01B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 35.45B | -27.99B | 131.87B | 11.67B | -32.63B |
| Operating Cash Flow | 0.00 | 85.63B | 50.40B | 228.46B | 69.70B | 24.80B |
| Investing Cash Flow | 0.00 | 10.78B | -84.47B | -101.61B | -49.83B | -79.08B |
| Financing Cash Flow | 0.00 | -51.77B | -51.92B | 22.12B | -12.46B | -8.48B |
Obayashi Technical Analysis
Neutral
3793.00
Price Trends
3893.11
Negative
3558.05
Positive
2943.12
Positive
Market Momentum
-20.24
Negative
48.12
Neutral
55.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1802, the sentiment is Neutral. The current price of 3793 is below the 20-day moving average (MA) of 3805.56, below the 50-day MA of 3893.11, and above the 200-day MA of 2943.12, indicating a neutral trend. The MACD of -20.24 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 55.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥357.11B | 11.11 | 16.55% | 4.26% | 9.49% | 64.79% | |
75 Outperform | ¥2.61T | 10.54 | 14.23% | 2.47% | 2.27% | 70.36% | |
75 Outperform | ¥1.93T | 12.97 | 11.22% | 1.48% | 5.14% | 773.86% | |
74 Outperform | ¥268.57B | 9.47 | 7.62% | 3.44% | 7.54% | 115.47% | |
71 Outperform | ¥3.01T | 15.14 | 13.56% | 1.96% | 10.52% | 71.09% | |
67 Neutral | ¥2.67T | 15.64 | 16.64% | 1.83% | 6.60% | 114.38% | |
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...
Obayashi to Cancel 2.1% of Outstanding Shares to Tighten Capital Base
Jan 22, 2026
Obayashi Corporation’s board has approved the cancellation of 15,139,700 common treasury shares, representing 2.1% of its issued shares, which were previously repurchased under an earlier board resolution. Following the planned cancellation ...
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.