Penta-Ocean Construction Co (1893) AI Stock Analysis

• Market Cap: ¥268.20B
• Dividend Yield: 2.55%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.63
• Revenue Growth: 17.77%
• EPS Growth: -29.69%
• Country: JP
• Employees: 3,824
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): 11.77
• Shares Outstanding: 286,013,920
• 10 Day Avg. Volume: 1,399,580
• 30 Day Avg. Volume: 1,567,223
• PEG Ratio: -2.81
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥958.32
• Price Target Upside: 1.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥959.00 ▲(1.78%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 Business Overview & Revenue Model

Company Description

Penta-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 Money

Penta-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

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

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

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	697.94B	727.49B	617.71B	502.20B	458.23B	471.06B
Gross Profit	48.90B	47.58B	53.33B	26.42B	37.23B	50.04B
EBITDA	24.53B	30.52B	37.30B	11.66B	22.42B	38.12B
Net Income	14.11B	12.46B	17.88B	684.00M	10.75B	20.99B
Balance Sheet
Total Assets	701.87B	660.13B	566.03B	508.18B	467.36B	452.25B
Cash, Cash Equivalents and Short-Term Investments	51.44B	57.27B	60.19B	50.50B	44.86B	59.79B
Total Debt	232.04B	166.47B	110.32B	93.69B	92.56B	82.21B
Total Liabilities	532.42B	488.00B	392.97B	351.23B	307.58B	293.85B
Stockholders Equity	169.26B	172.06B	173.01B	156.84B	159.60B	158.28B
Cash Flow
Free Cash Flow	0.00	-61.48B	-1.75B	9.57B	-16.34B	19.65B
Operating Cash Flow	0.00	-23.33B	9.14B	19.69B	-7.69B	30.69B
Investing Cash Flow	0.00	-23.22B	-6.41B	-11.70B	-11.82B	-12.80B
Financing Cash Flow	0.00	43.88B	6.71B	-6.96B	1.36B	-3.11B

Penta-Ocean Construction Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 942.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 942.2 is above the 20-day moving average (MA) of 901.72, above the 50-day MA of 879.24, and above the 200-day MA of 706.55, indicating a bullish trend. The MACD of 16.86 indicates Negative momentum. The RSI at 70.12 is Negative, neither overbought nor oversold. The STOCH value of 85.83 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1719	81 Outperform	€274.84B	9.04	16.30%	5.25%	7.87%	90.38%
1860	75 Outperform	¥294.86B	11.45		3.02%	12.29%	59.92%
5076	75 Outperform	¥305.71B	9.94		4.79%	―	―
Sector *	71 Outperform	¥255.13B	13.43	8.49%	3.04%	6.31%	12.97%
1820	70 Outperform	¥191.63B	10.92		4.94%	-8.67%	40.83%
1893	69 Neutral	¥268.20B	21.35	7.12%	2.55%	17.77%	-29.69%
1720	69 Neutral	¥107.30B	16.34		3.65%	2.61%	-9.19%