Penta-Ocean Construction Co (1893) AI Stock Analysis

• Market Cap: $248.56B
• Dividend Yield: 2.63%
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.64
• Revenue Growth: 17.77%
• EPS Growth: -29.70%
• Country: JP
• Employees: 3,824
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 11.77
• Shares Outstanding: 286,013,920
• 10 Day Avg. Volume: 1,677,070
• 30 Day Avg. Volume: 1,876,943
• PEG Ratio: -0.57
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥959.00 ▲(9.99%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

The company shows strong revenue growth and improved profitability in terms of gross and net profit margins. However, the declining EBIT margin indicates operational challenges. The balance sheet displays moderate leverage with an improved return on equity, but the cash flow situation is concerning due to missing recent data and past volatility.

Income Statement

The company shows a solid performance with improving revenue, reflected in a TTM gross profit margin of 7.0% and a net profit margin of 2.0%. Revenue growth from the previous annual report is 13.0%, indicating positive growth momentum. However, the EBIT margin has decreased to 3.3% in TTM, suggesting some operational challenges.

Balance Sheet

The balance sheet shows a manageable debt-to-equity ratio of 1.37, indicating a moderate level of leverage. The equity ratio stands at 24.1%, suggesting stability but highlighting a potential risk in asset financing with significant liabilities. Return on equity has improved to 8.3% in TTM, showcasing enhanced profitability from equity investments.

Cash Flow

Cash flow analysis reveals a lack of operating and free cash flow data in the TTM period, which raises concerns about cash generation. Historically, the company had a fluctuating cash flow performance, with negative free cash flow in recent periods, which could pose a risk to liquidity management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
697.94B	617.71B	502.20B	458.23B	471.06B	573.84B
	Gross Profit
48.90B	53.33B	26.42B	37.23B	50.04B	51.90B
	EBIT
23.20B	29.15B	4.12B	15.94B	30.46B	33.16B
	EBITDA
24.53B	37.30B	11.66B	22.42B	38.12B	42.50B
	Net Income Common Stockholders
14.11B	17.88B	684.00M	10.75B	20.99B	23.35B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.47B	60.19B	50.50B	44.86B	59.79B	43.70B
	Total Assets
294.25B	566.03B	508.18B	467.36B	452.25B	428.88B
	Total Debt
85.84B	110.32B	93.69B	92.56B	82.21B	77.53B
	Net Debt
29.40B	50.17B	43.20B	47.72B	22.43B	33.91B
	Total Liabilities
239.78B	392.97B	351.23B	307.58B	293.85B	287.58B
	Stockholders Equity
54.44B	173.01B	156.84B	159.60B	158.28B	141.17B
Cash Flow		Free Cash Flow
0.00	-1.75B	9.57B	-16.34B	19.65B	-5.29B
	Operating Cash Flow
0.00	9.14B	19.69B	-7.69B	30.69B	4.44B
	Investing Cash Flow
0.00	-6.41B	-11.70B	-11.82B	-12.80B	-9.08B
	Financing Cash Flow
0.00	6.71B	-6.96B	1.36B	-3.11B	13.50B

Penta-Ocean Construction Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 871.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1893, the sentiment is Neutral. The current price of 871.9 is below the 20-day moving average (MA) of 877.38, above the 50-day MA of 803.87, and above the 200-day MA of 673.84, indicating a neutral trend. The MACD of 19.13 indicates Positive momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 30.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€263.30B	8.66	16.30%	4.94%	7.87%	90.40%
1720	78 Outperform	¥99.45B	15.15		4.00%	2.61%	-9.10%
5076	76 Outperform	¥297.78B	9.16		4.99%	―	―
1893	69 Neutral	$248.56B	19.76	7.12%	2.63%	17.77%	-29.70%
1860	69 Neutral	¥277.87B	10.84		3.31%	12.29%	59.70%
1820	67 Neutral	¥189.74B	10.82		4.58%	-8.67%	40.83%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%