Penta-Ocean Construction Co (1893) AI Stock Analysis

• Market Cap: ¥498.31B
• Dividend Yield: 1.88%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.96
• Revenue Growth: 16.67%
• EPS Growth: 5.82%
• Country: JP
• Employees: 3,824
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 43.10
• Shares Outstanding: 286,013,920
• 10 Day Avg. Volume: 1,976,700
• 30 Day Avg. Volume: 1,658,796
• PEG Ratio: -0.54
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -3.27
• 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
• EPS Forecast (FY): 127.07
• Revenue Forecast (FY): ¥788.90B

• Rating: 64 Neutral
• Price Target: ¥1,870.00 ▲(14.41% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by mixed fundamentals: strong revenue growth is outweighed by declining margins, rising leverage, and especially severe negative free cash flow. Technicals are supportive due to a strong uptrend above key moving averages, but momentum is very stretched (high RSI/Stoch), which tempers the technical score. Valuation is reasonable on earnings but the dividend yield is modest.

Positive Factors

Revenue Growth

Consistent +17.76% revenue growth in 2025 signals durable project wins and contract execution ability. For a project-based contractor this drives scale, backlog visibility and better fixed-cost absorption, supporting revenue predictability and reinvestment capacity over the next 2–6 months.

Negative Factors

Severely Negative Free Cash Flow

Material negative free cash flow of ¥61.48B shows operations plus capex are consuming cash rather than generating it. For a capital‑intensive contractor, persistent FCF deficits increase reliance on external financing, constrain working capital and limit strategic flexibility over the medium term.

Penta-Ocean Construction Co Business Overview & Revenue Model

Company Description

Penta-Ocean Construction Co., Ltd. engages in the civil engineering and building construction activities in Japan, Southeast Asia, and internationally. The company operates through three segments: Domestic Civil Engineering, Domestic Building Cons...

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Penta-Ocean Construction Co., Ltd. engages in the civil engineering and building construction activities in Japan, Southeast Asia, and internationally. The company operates through three segments: Domestic Civil Engineering, Domestic Building Cons...

How the Company Makes Money

Penta-Ocean Construction primarily makes money by contracting to plan, engineer, and build construction and civil engineering projects for customers such as government entities and private-sector developers. Revenue is recognized from construction...

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Penta-Ocean Construction primarily makes money by contracting to plan, engineer, and build construction and civil engineering projects for customers such as government entities and private-sector developers. Revenue is recognized from construction...

Penta-Ocean Construction Co Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	747.28B	727.49B	617.71B	502.21B	458.23B	471.06B
Gross Profit	50.90B	47.58B	53.33B	26.42B	37.23B	50.04B
EBITDA	20.41B	30.52B	37.29B	10.16B	23.46B	38.35B
Net Income	14.14B	12.46B	17.88B	684.00M	10.75B	20.99B
Balance Sheet
Total Assets	683.11B	665.06B	571.01B	511.66B	470.02B	455.40B
Cash, Cash Equivalents and Short-Term Investments	53.03B	57.27B	60.19B	50.50B	44.86B	59.79B
Total Debt	219.32B	166.66B	110.46B	93.84B	92.65B	82.33B
Total Liabilities	511.15B	492.93B	397.94B	354.70B	310.23B	296.99B
Stockholders Equity	171.90B	172.06B	173.01B	156.85B	159.60B	158.29B
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: 1634.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1634.5 is below the 20-day moving average (MA) of 1759.06, below the 50-day MA of 1839.08, and above the 200-day MA of 1388.19, indicating a neutral trend. The MACD of -12.20 indicates Negative momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 78.65 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1802	75 Outperform	¥2.66T	10.54	14.23%	2.47%	2.27%	70.36%
1803	75 Outperform	¥1.93T	12.97	11.22%	1.48%	5.14%	773.86%
1861	74 Outperform	¥274.80B	9.47	7.62%	3.44%	7.54%	115.47%
1812	71 Outperform	¥3.01T	15.14	13.56%	1.96%	10.52%	71.09%
1801	67 Neutral	¥2.67T	15.64	16.64%	1.83%	6.60%	114.38%
1893	64 Neutral	¥498.31B	9.14	10.95%	1.88%	16.67%	5.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%