DB:PO6

Stock Analysis Report

Penta-Ocean Construction

Executive Summary

Penta-Ocean Construction Co., Ltd. engages in the construction of civil engineering and building construction projects in Japan, Southeast Asia, and internationally.


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.

Share Price & News

How has Penta-Ocean Construction's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PO6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.4%

PO6

-6.7%

DE Construction

-0.9%

DE Market


1 Year Return

25.6%

PO6

-23.1%

DE Construction

12.8%

DE Market

Return vs Industry: PO6 exceeded the German Construction industry which returned -23.1% over the past year.

Return vs Market: PO6 exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

PO6IndustryMarket
7 Day-5.4%-6.7%-0.9%
30 Day-4.5%-2.9%0.6%
90 Day0%-2.7%2.9%
1 Year30.4%25.6%-19.9%-23.1%16.3%12.8%
3 Year31.3%21.3%-19.3%-25.3%15.8%5.7%
5 Year81.3%63.9%63.6%45.2%19.7%3.3%

Price Volatility Vs. Market

How volatile is Penta-Ocean Construction's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Penta-Ocean Construction undervalued compared to its fair value and its price relative to the market?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PO6 (€5.3) is trading below our estimate of fair value (€6.45)

Significantly Below Fair Value: PO6 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PO6 is good value based on its PE Ratio (7.9x) compared to the Construction industry average (12.4x).

PE vs Market: PO6 is good value based on its PE Ratio (7.9x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: PO6 is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: PO6 is overvalued based on its PB Ratio (1.3x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

How is Penta-Ocean Construction forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PO6's forecast earnings growth (3% per year) is above the savings rate (-0.4%).

Earnings vs Market: PO6's earnings (3% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: PO6's earnings are forecast to grow, but not significantly.

Revenue vs Market: PO6's revenue (2.4% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: PO6's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PO6's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Penta-Ocean Construction performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PO6 has high quality earnings.

Growing Profit Margin: PO6's current net profit margins (4%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: PO6's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: PO6's earnings growth over the past year (42.7%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: PO6 earnings growth over the past year (42.7%) exceeded the Construction industry 2.1%.


Return on Equity

High ROE: PO6's Return on Equity (17%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Penta-Ocean Construction's financial position?


Financial Position Analysis

Short Term Liabilities: PO6's short term assets (¥351.6B) exceed its short term liabilities (¥290.1B).

Long Term Liabilities: PO6's short term assets (¥351.6B) exceed its long term liabilities (¥29.8B).


Debt to Equity History and Analysis

Debt Level: PO6's debt to equity ratio (86.9%) is considered high.

Reducing Debt: PO6's debt to equity ratio has reduced from 131% to 86.9% over the past 5 years.

Debt Coverage: PO6's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PO6's interest payments on its debt are well covered by EBIT (109.6x coverage).


Balance Sheet

Inventory Level: PO6 has a high level of physical assets or inventory.

Debt Coverage by Assets: PO6's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Penta-Ocean Construction's current dividend yield, its reliability and sustainability?

3.08%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 23 2020Ex Dividend DateMar 30 2020Dividend Pay DateJun 26 202088 days from Ex DividendBuy in the next 35 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: PO6's dividend (3.08%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: PO6's dividend (3.08%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: PO6's dividends per share have been stable in the past 10 years.

Growing Dividend: PO6's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23%), PO6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Takuzo Shimizu 0

5.7yrs

Tenure

Mr. Takuzo Shimizu has been the Chief Executive Officer and President of Penta-Ocean Construction Co. Ltd. since June 27, 2014. Mr. Shimizu served as a Senior Managing Officer of Penta-Ocean Construction C ...


Leadership Team

NamePositionTenureCompensationOwnership
Takuzo Shimizu
President5.7yrsno data0.020% ¥300.0k
Sumio Yamashita
Senior Managing Executive Officer0yrsno datano data
Makoto Shimoishi
Senior Managing Executive Officer1.8yrsno datano data
Osamu Ochi
Senior Managing Executive Officer0yrsno datano data
Yuji Nakamitsu
Senior Managing Executive Officer & Head of Building Construction Divisions3.8yrsno datano data
Kazuya Ueda
Executive VP & Representative Director0yrsno data0.0056% ¥85.8k
Tetsushi Noguchi
Senior Managing Executive Officers & Director0yrsno data0.0039% ¥58.9k
Michio Inatomi
Senior Managing Executive Officer0yrsno data0.0042% ¥64.4k
Kazushi Yamashita
Executive Officer & GM of Singapore Office3.8yrsno datano data
Ryoji Tahara
Senior Managing Executive Officer & Director0yrsno data0.0028% ¥42.8k

3.8yrs

Average Tenure

Experienced Management: PO6's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Takuzo Shimizu
President5.7yrsno data0.020% ¥300.0k
Kazuya Ueda
Executive VP & Representative Director0yrsno data0.0056% ¥85.8k
Tetsushi Noguchi
Senior Managing Executive Officers & Director0yrsno data0.0039% ¥58.9k
Ryoji Tahara
Senior Managing Executive Officer & Director0yrsno data0.0028% ¥42.8k
Junji Katsumura
Managing Exec. Officer1.1yrsno data0.0028% ¥42.8k
Hiroshi Watanabe
Senior Managing Executive Officer & Director2.7yrsno data0.0056% ¥85.8k
Tomoyuki Yamashita
Managing Executive Officer & Director1.7yrsno data0.0024% ¥37.5k
Naoki Furuya
Outside Director0yrsno data0.00035% ¥5.4k
Yasuhiro Kawashima
Outside Director3.7yrsno data0.00070% ¥10.7k
Hidenori Takahashi
Outside Director0yrsno data0.00035% ¥5.4k

2.7yrs

Average Tenure

Experienced Board: PO6's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Penta-Ocean Construction Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Penta-Ocean Construction Co., Ltd.
  • Ticker: PO6
  • Exchange: DB
  • Founded: 1896
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: JP¥185.493b
  • Listing Market Cap: JP¥1.529b
  • Shares outstanding: 285.37m
  • Website: https://www.penta-ocean.co.jp

Number of Employees


Location

  • Penta-Ocean Construction Co., Ltd.
  • 2-8, Koraku 2-chome
  • Bunkyo–ku
  • Tokyo
  • 112-8576
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNOC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
1893TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
PO6DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Penta-Ocean Construction Co., Ltd. engages in the construction of civil engineering and building construction projects in Japan, Southeast Asia, and internationally. The company also constructs tunnels and subways. In addition, it is involved in the sale or rent of real estate and other activities; and shipbuilding, leasing, insurance, and environment businesses. The company was founded in 1896 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:31
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.