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Penta-Ocean Construction Co
(1893)
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Rating:57Neutral
Price Target:
¥1,494.00
▼(-4.78% Downside)
Action:Reiterated
Date:07/30/26
The score is primarily driven by improved profitability and revenue growth, but it is held back by weak cash-flow quality (negative free cash flow despite strong earnings) and a clear downtrend with the price below key moving averages. A reasonable P/E and a ~3.3% dividend yield provide partial support.
Positive Factors
Marine & civil engineering specialization
Penta-Ocean's long history (founded 1893) and technical specialization in ports, dredging and reclamation create a durable competitive moat. Complex marine projects favor established contractors with experience and equipment, supporting steady access to public and large private tenders over months to years.
Negative Factors
Negative free cash flow and cash volatility
Persistent negative free cash flow despite reported profits signals weak earnings quality: cash tied up in working capital or investments can force external funding. Over months this constrains reinvestment, dividend reliability and increases refinancing risk if project receipts slow.
Read all positive and negative factors
Positive Factors
Negative Factors
Marine & civil engineering specialization
Penta-Ocean's long history (founded 1893) and technical specialization in ports, dredging and reclamation create a durable competitive moat. Complex marine projects favor established contractors with experience and equipment, supporting steady access to public and large private tenders over months to years.
Read all positive factors
Penta-Ocean Construction Co (1893) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥427.47B
Dividend Yield3.43%
Average Volume (3M)1.66M
Price to Earnings (P/E)11.0
Beta (1Y)1.10
Revenue Growth7.37%
EPS Growth152.37%
CountryJP
Employees3,991
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)125.77
Shares Outstanding286,013,920
10 Day Avg. Volume1,976,700
30 Day Avg. Volume1,658,796
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.27
Price to Sales (P/S)0.57
P/FCF Ratio-16.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)134.38
Revenue Forecast (FY)¥815.42B
Penta-Ocean Construction Co Business Overview & Revenue Model
Company Description
Penta-Ocean Construction Co., Ltd. is a prominent enterprise specializing in civil engineering and building construction across Japan, Southeast Asia, and various international regions. The company's operations are strategically divided into three...
How the Company Makes Money
Penta-Ocean Construction makes money primarily by contracting and delivering construction and engineering projects. Its core revenue model is project-based: clients (typically government agencies, port authorities, and private developers/industria...
Penta-Ocean Construction Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 794.31B | 727.49B | 617.71B | 502.21B | 458.23B |
| Gross Profit | 83.33B | 47.58B | 53.33B | 26.42B | 37.23B |
| EBITDA | 66.08B | 30.52B | 37.29B | 10.16B | 23.46B |
| Net Income | 34.69B | 12.46B | 17.88B | 684.00M | 10.75B |
Balance Sheet | |||||
| Total Assets | 790.41B | 665.06B | 571.01B | 511.66B | 470.02B |
| Cash, Cash Equivalents and Short-Term Investments | 71.77B | 57.27B | 60.19B | 50.50B | 44.86B |
| Total Debt | 196.13B | 166.66B | 110.46B | 93.84B | 92.65B |
| Total Liabilities | 591.38B | 492.93B | 397.94B | 354.70B | 310.23B |
| Stockholders Equity | 198.26B | 172.06B | 173.01B | 156.85B | 159.60B |
Cash Flow | |||||
| Free Cash Flow | -27.55B | -61.48B | -1.75B | 9.57B | -16.34B |
| Operating Cash Flow | 68.39B | -23.33B | 9.14B | 19.69B | -7.69B |
| Investing Cash Flow | -66.31B | -23.22B | -6.41B | -11.70B | -11.82B |
| Financing Cash Flow | 9.59B | 43.88B | 6.71B | -6.96B | 1.36B |
Penta-Ocean Construction Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥2.46T | 12.56 | 13.44% | 2.58% | 3.72% | 36.12% | |
66 Neutral | ¥240.04B | 10.89 | 10.92% | 3.44% | -3.78% | 95.71% | |
66 Neutral | ¥1.60T | 9.43 | 13.92% | 2.85% | 5.73% | 132.70% | |
65 Neutral | ¥2.08T | 10.72 | 14.65% | 2.68% | 4.54% | 45.54% | |
64 Neutral | ¥2.10T | 12.13 | 19.37% | 2.27% | 1.52% | 43.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | ¥427.47B | 11.00 | 18.79% | 3.03% | 7.37% | 152.37% |
* Industrials Sector Average
JP:1893
Penta-Ocean Construction Co
1,400.50
371.69
36.13%
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Penta-Ocean Construction Co Corporate Events
Penta-Ocean Sets New Three-Year Plan Aiming for Record Sales and Profit
May 8, 2026
Penta-Ocean Construction has unveiled a new three-year Medium-Term Management Plan for fiscal years 2026 to 2028, responding to an environment of rising construction costs but resilient demand in Japan and solid infrastructure needs in Asia. The c...
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.