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Penta-Ocean Construction Co Ltd (JP:1893)
:1893

Penta-Ocean Construction Co (1893) AI Stock Analysis

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Penta-Ocean Construction Co

(OTC:1893)

Rating:69Neutral
Price Target:
¥959.00
▲(9.35%Upside)
Penta-Ocean Construction Co's stock scores well due to strong technical analysis indicators and moderate valuation metrics. However, financial performance is weighed down by profitability and cash flow challenges, which are significant risks.

Penta-Ocean Construction Co (1893) vs. iShares MSCI Japan ETF (EWJ)

Penta-Ocean Construction Co Business Overview & Revenue Model

Company DescriptionPenta-Ocean Construction Co., established in 1893, is a leading Japanese construction company specializing in civil engineering and marine construction. The company operates in several sectors, including infrastructure development, urban development, and coastal and waterfront projects. Penta-Ocean is renowned for its expertise in dredging, reclamation, and port construction, providing comprehensive services from project planning and design to execution and maintenance.
How the Company Makes MoneyPenta-Ocean Construction Co. generates revenue through several key streams. Primarily, the company earns money by securing contracts for large-scale construction projects, including public infrastructure, commercial facilities, and residential developments. A significant portion of its earnings comes from marine construction services, such as dredging and reclamation projects, which are crucial for port development and land expansion in coastal areas. Additionally, Penta-Ocean engages in partnerships and joint ventures with other construction firms and government entities to undertake complex projects. The company's expertise and reputation in handling challenging marine environments and its ability to deliver integrated construction solutions contribute significantly to its revenue generation.

Penta-Ocean Construction Co Financial Statement Overview

Summary
Penta-Ocean Construction Co exhibits strong revenue growth, but profitability and cash flow challenges are significant concerns. Increasing debt levels add to the risk profile, despite a solid equity base.
Income Statement
67
Positive
Penta-Ocean Construction Co has shown a consistent revenue growth trend over the past years, with a significant increase of 17.76% in 2025. However, the gross profit margin has decreased from 2024 to 2025, indicating rising costs. The net profit margin also declined, suggesting profitability challenges. Despite these issues, the company maintains positive EBIT and EBITDA margins, although both have seen a downward trend.
Balance Sheet
62
Positive
The company maintains a solid equity base with an equity ratio of 26.06% in 2025, showing a strong reliance on equity financing. However, the increasing debt-to-equity ratio, which reached 0.97 in 2025, points to a rising leverage risk. Return on equity has declined, reflecting reduced profitability relative to equity. Overall, the balance sheet shows solid equity but increasing leverage concerns.
Cash Flow
58
Neutral
Penta-Ocean Construction Co faced severe cash flow challenges in 2025, with a negative free cash flow of ¥61.48 billion. The operating cash flow to net income ratio is negative, indicating that the company's operations are not generating enough cash to cover the costs, exacerbated by high capital expenditures. Free cash flow to net income ratio also indicates cash flow strain.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
697.94B727.49B617.71B502.20B458.23B471.06B
Gross Profit
48.90B47.58B53.33B26.42B37.23B50.04B
EBIT
23.20B21.70B29.15B4.12B15.94B30.46B
EBITDA
24.53B30.52B37.30B11.66B22.42B38.12B
Net Income Common Stockholders
14.11B12.46B17.88B684.00M10.75B20.99B
Balance SheetCash, Cash Equivalents and Short-Term Investments
51.44B57.27B60.19B50.50B44.86B59.79B
Total Assets
701.87B660.13B566.03B508.18B467.36B452.25B
Total Debt
232.04B166.47B110.32B93.69B92.56B82.21B
Net Debt
180.64B109.20B50.17B43.20B47.72B22.43B
Total Liabilities
532.42B488.00B392.97B351.23B307.58B293.85B
Stockholders Equity
169.26B172.06B173.01B156.84B159.60B158.28B
Cash FlowFree Cash Flow
0.00-61.48B-1.75B9.57B-16.34B19.65B
Operating Cash Flow
0.00-23.33B9.14B19.69B-7.69B30.69B
Investing Cash Flow
0.00-23.22B-6.41B-11.70B-11.82B-12.80B
Financing Cash Flow
0.0043.88B6.71B-6.96B1.36B-3.11B

Penta-Ocean Construction Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price877.00
Price Trends
50DMA
812.67
Positive
100DMA
738.24
Positive
200DMA
677.70
Positive
Market Momentum
MACD
13.57
Positive
RSI
55.36
Neutral
STOCH
22.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1893, the sentiment is Positive. The current price of 877 is above the 20-day moving average (MA) of 875.52, above the 50-day MA of 812.67, and above the 200-day MA of 677.70, indicating a neutral trend. The MACD of 13.57 indicates Positive momentum. The RSI at 55.36 is Neutral, neither overbought nor oversold. The STOCH value of 22.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1893.

Penta-Ocean Construction Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
€262.40B8.6316.30%5.49%7.87%90.40%
76
Outperform
¥296.92B9.13
5.01%
70
Outperform
¥192.46B10.97
4.92%-8.67%40.83%
69
Neutral
$246.85B19.637.12%2.77%17.77%-29.70%
69
Neutral
¥103.75B15.80
3.83%2.61%-9.10%
67
Neutral
¥276.34B10.78
3.22%12.29%59.70%
66
Neutral
$4.52B12.345.41%3.62%4.15%-12.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1893
Penta-Ocean Construction Co
877.00
257.47
41.56%
JP:1720
Tokyu Construction Co., Ltd.
1,001.00
290.48
40.88%
JP:1820
Nishimatsu Construction Co., Ltd.
4,869.00
757.63
18.43%
JP:1860
Toda Corporation
890.00
-122.41
-12.09%
JP:5076
INFRONEER Holdings Inc.
1,197.00
-25.20
-2.06%
JP:1719
Hazama Ando
1,442.00
399.62
38.34%
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.