Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,808, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Construction industry in Japan. Total returns to shareholders of 175% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,499 per share. Buy Or Sell Opportunity • May 19
Now 21% overvalued Over the last 90 days, the stock has fallen 14% to JP¥1,808. The fair value is estimated to be JP¥1,499, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 52%. For the next 3 years, revenue is forecast to grow by 3.4% per annum. Earnings are also forecast to grow by 4.8% per annum over the same time period. Reported Earnings • May 09
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥126 (up from JP¥44.12 in FY 2025). Revenue: JP¥794.3b (up 9.2% from FY 2025). Net income: JP¥34.7b (up 178% from FY 2025). Profit margin: 4.4% (up from 1.7% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates by 3.7%. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Live News • May 09
Penta-Ocean Targets Record Sales With New Digital and Green Transformation Plan Penta-Ocean Construction has announced a new three-year Medium-Term Management Plan covering fiscal years 2026 to 2028.
The company is targeting record consolidated net sales and net income under this plan.
Management is putting a strong focus on sustainability and on using AI, robotics, and other tools to accelerate digital and green transformation, while working against the pressure of rising construction costs.
For you as an investor, the key takeaway is that Penta-Ocean is setting explicit financial ambitions for the 2026 to 2028 period and tying them to a clear set of priorities: growing project volume, addressing higher input costs, and leaning into technology and sustainability. The company’s emphasis on AI and robotics suggests a push to improve productivity and project management, which is an important theme for construction groups dealing with cost and labor pressures.
The plan also frames sustainability management as a core part of how the company intends to run its business, not just a side initiative. If you follow the stock, it is worth tracking how management discloses progress against these targets over the next few years, including any updates on order intake, project pipeline, and the practical rollout of digital and green transformation across its construction sites. Price Target Changed • Apr 21
Price target increased by 11% to JP¥2,066 Up from JP¥1,863, the current price target is an average from 5 analysts. New target price is 23% above last closing price of JP¥1,681. Stock is up 114% over the past year. The company is forecast to post earnings per share of JP¥118 for next year compared to JP¥44.12 last year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥27.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 25 June 2026. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.4%). Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,764, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Construction industry in Japan. Total returns to shareholders of 207% over the past three years. Reported Earnings • Feb 10
Third quarter 2026 earnings released: EPS: JP¥43.21 (vs JP¥2.64 loss in 3Q 2025) Third quarter 2026 results: EPS: JP¥43.21 (up from JP¥2.64 loss in 3Q 2025). Revenue: JP¥202.0b (up 7.5% from 3Q 2025). Net income: JP¥11.9b (up JP¥12.6b from 3Q 2025). Profit margin: 5.9% (up from net loss in 3Q 2025). Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 48% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,906, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Construction industry in Japan. Total returns to shareholders of 237% over the past three years. Announcement • Jan 08
Penta-Ocean Construction Co., Ltd. to Report Q3, 2026 Results on Feb 09, 2026 Penta-Ocean Construction Co., Ltd. announced that they will report Q3, 2026 results on Feb 09, 2026 Price Target Changed • Dec 25
Price target increased by 11% to JP¥1,718 Up from JP¥1,542, the current price target is an average from 6 analysts. New target price is 11% above last closing price of JP¥1,555. Stock is up 141% over the past year. The company is forecast to post earnings per share of JP¥108 for next year compared to JP¥44.12 last year. Price Target Changed • Dec 11
Price target increased by 10.0% to JP¥1,542 Up from JP¥1,402, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of JP¥1,570. Stock is up 150% over the past year. The company is forecast to post earnings per share of JP¥107 for next year compared to JP¥44.12 last year. Declared Dividend • Dec 09
First half dividend of JP¥17.00 announced Shareholders will receive a dividend of JP¥17.00. Ex-date: 30th March 2026 Payment date: 25th June 2026 Dividend yield will be 2.1%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is covered by earnings (41% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 21% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 57% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 09
Penta-Ocean Construction Co., Ltd. (TSE:1893) announces an Equity Buyback for 4,500,000 shares, representing 1.63% for ¥5,000 million. Penta-Ocean Construction Co., Ltd. (TSE:1893) announces a share repurchase program. Under the program, the company will repurchase up to 4,500,000 shares, representing 1.63% of its issued share capital (excluding treasury stock), for a total purchase price of ¥5,000 million. The purpose of the program is to strengthen the management base for the future by strengthening the capital, improve profitability and increase the corporate value by investing in growth, such as in technological development and capital investment, and to provide continuous and stable dividends to shareholders, as well as to enhance shareholder returns and improve capital efficiency. The program will continue through March 31, 2025. As of September 30, 2025, the company had 276,240,794 issued shares (excluding treasury stock) and 9,773,116 treasury shares. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥36.98 (vs JP¥16.53 in 2Q 2025) Second quarter 2026 results: EPS: JP¥36.98 (up from JP¥16.53 in 2Q 2025). Revenue: JP¥204.8b (up 18% from 2Q 2025). Net income: JP¥10.2b (up 119% from 2Q 2025). Profit margin: 5.0% (up from 2.7% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,475, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Construction industry in Japan. Total returns to shareholders of 124% over the past three years. Announcement • Oct 08
Penta-Ocean Construction Co., Ltd. to Report Q2, 2026 Results on Nov 07, 2025 Penta-Ocean Construction Co., Ltd. announced that they will report Q2, 2026 results on Nov 07, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥17.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 09 December 2025. Payout ratio is a comfortable 48% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.8%). Price Target Changed • Sep 10
Price target increased by 12% to JP¥1,103 Up from JP¥988, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥1,097. Stock is up 86% over the past year. The company is forecast to post earnings per share of JP¥90.57 for next year compared to JP¥44.12 last year. Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥24.63 (vs JP¥18.40 in 1Q 2025) First quarter 2026 results: EPS: JP¥24.63 (up from JP¥18.40 in 1Q 2025). Revenue: JP¥174.1b (up 13% from 1Q 2025). Net income: JP¥6.90b (up 32% from 1Q 2025). Profit margin: 4.0% (up from 3.4% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 2.4% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 11
Price target increased by 8.6% to JP¥988 Up from JP¥910, the current price target is an average from 5 analysts. New target price is 5.0% above last closing price of JP¥941. Stock is up 42% over the past year. The company is forecast to post earnings per share of JP¥88.14 for next year compared to JP¥44.12 last year. Declared Dividend • Jul 09
Final dividend of JP¥17.00 announced Shareholders will receive a dividend of JP¥17.00. Ex-date: 29th September 2025 Payment date: 9th December 2025 Dividend yield will be 3.1%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is covered by earnings (72% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 27% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 83% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 08
Penta-Ocean Construction Co., Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Penta-Ocean Construction Co., Ltd. announced that they will report Q1, 2026 results on Aug 07, 2025 New Risk • Jul 04
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 13% per year over the past 5 years. High level of non-cash earnings (29% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.7% net profit margin). Reported Earnings • Jun 25
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥44.12 (down from JP¥62.72 in FY 2024). Revenue: JP¥727.5b (up 18% from FY 2024). Net income: JP¥12.5b (down 30% from FY 2024). Profit margin: 1.7% (down from 2.9% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.0%. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 10
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥44.12 (down from JP¥62.72 in FY 2024). Revenue: JP¥727.5b (up 18% from FY 2024). Net income: JP¥12.5b (down 30% from FY 2024). Profit margin: 1.7% (down from 2.9% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.0%. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is forecast to stay flat during the next 3 years compared to a 2.3% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • May 09
Penta-Ocean Construction Co., Ltd., Annual General Meeting, Jun 24, 2025 Penta-Ocean Construction Co., Ltd., Annual General Meeting, Jun 24, 2025. Announcement • Apr 05
Penta-Ocean Construction Co., Ltd. to Report Fiscal Year 2025 Results on May 09, 2025 Penta-Ocean Construction Co., Ltd. announced that they will report fiscal year 2025 results on May 09, 2025 Announcement • Mar 24
Penta-Ocean Construction Co., Ltd.(TSE:1893) dropped from FTSE All-World Index (USD) Penta-Ocean Construction Co., Ltd.(TSE:1893) dropped from FTSE All-World Index (USD) Upcoming Dividend • Mar 21
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 26 June 2025. Payout ratio is a comfortable 72% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (3.3%). Major Estimate Revision • Mar 05
Consensus EPS estimates fall by 15%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from JP¥667.0b to JP¥678.7b. EPS estimate fell from JP¥61.33 to JP¥51.85 per share. Net income forecast to grow 52% next year vs 5.9% growth forecast for Construction industry in Japan. Consensus price target of JP¥843 unchanged from last update. Share price rose 8.5% to JP¥698 over the past week. Major Estimate Revision • Feb 14
Consensus EPS estimates fall by 16% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥73.39 to JP¥61.33 per share. Revenue forecast steady at JP¥667.0b. Net income forecast to grow 51% next year vs 6.8% growth forecast for Construction industry in Japan. Consensus price target of JP¥843 unchanged from last update. Share price rose 4.9% to JP¥676 over the past week. New Risk • Feb 08
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.0% Last year net profit margin: 3.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (0.5% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.0% net profit margin). Announcement • Jan 17
Penta-Ocean Construction Co., Ltd. to Report Q3, 2025 Results on Feb 07, 2025 Penta-Ocean Construction Co., Ltd. announced that they will report Q3, 2025 results on Feb 07, 2025 Declared Dividend • Dec 10
First half dividend of JP¥12.00 announced Shareholders will receive a dividend of JP¥12.00. Ex-date: 28th March 2025 Payment date: 26th June 2025 Dividend yield will be 3.8%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is covered by earnings (36% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 23% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 37% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥16.53 (vs JP¥14.13 in 2Q 2024) Second quarter 2025 results: EPS: JP¥16.53 (up from JP¥14.13 in 2Q 2024). Revenue: JP¥173.7b (up 15% from 2Q 2024). Net income: JP¥4.66b (up 16% from 2Q 2024). Profit margin: 2.7% (in line with 2Q 2024). Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Oct 06
Penta-Ocean Construction Co., Ltd. to Report Q2, 2025 Results on Nov 07, 2024 Penta-Ocean Construction Co., Ltd. announced that they will report Q2, 2025 results on Nov 07, 2024 Reported Earnings • Aug 08
First quarter 2025 earnings released: EPS: JP¥18.40 (vs JP¥16.75 in 1Q 2024) First quarter 2025 results: EPS: JP¥18.40 (up from JP¥16.75 in 1Q 2024). Revenue: JP¥154.3b (up 21% from 1Q 2024). Net income: JP¥5.22b (up 9.3% from 1Q 2024). Profit margin: 3.4% (down from 3.8% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has fallen by 5% per year and the company’s share price has also fallen by 5% per year. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥551, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Construction industry in Japan. Total loss to shareholders of 10% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥448 per share. Announcement • Jul 05
Penta-Ocean Construction Co., Ltd. to Report Q1, 2025 Results on Aug 06, 2024 Penta-Ocean Construction Co., Ltd. announced that they will report Q1, 2025 results on Aug 06, 2024 Price Target Changed • Jun 19
Price target decreased by 7.8% to JP¥878 Down from JP¥952, the current price target is an average from 5 analysts. New target price is 38% above last closing price of JP¥637. Stock is down 18% over the past year. The company is forecast to post earnings per share of JP¥77.47 for next year compared to JP¥62.72 last year. Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥666, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Construction industry in Japan. Total loss to shareholders of 10.0% over the past three years. Reported Earnings • May 12
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: JP¥62.72 (up from JP¥2.40 in FY 2023). Revenue: JP¥617.7b (up 23% from FY 2023). Net income: JP¥17.9b (up JP¥17.2b from FY 2023). Profit margin: 2.9% (up from 0.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to grow 3.5% p.a. on average during the next 2 years, compared to a 2.5% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Mar 28
Penta-Ocean Construction Co., Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 Penta-Ocean Construction Co., Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥24.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 33% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.7%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥14.40 (vs JP¥42.37 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥14.40 (up from JP¥42.37 loss in 3Q 2023). Revenue: JP¥157.2b (up 32% from 3Q 2023). Net income: JP¥4.10b (up JP¥16.2b from 3Q 2023). Profit margin: 2.6% (up from net loss in 3Q 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Feb 09
Penta-Ocean Construction Co., Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2024 Penta-Ocean Construction Co., Ltd. provided consolidated earnings guidance for the fiscal year ending March 31, 2024. For the year, the company expects net sales to be JPY 610,000 million, operating profit to be JPY 34,000 million, net income attributable to owners of parent to be JPY 22,000 million or JPY 77.20 per share. Announcement • Dec 13
Penta-Ocean Construction Co., Ltd. to Report Q3, 2024 Results on Feb 08, 2024 Penta-Ocean Construction Co., Ltd. announced that they will report Q3, 2024 results on Feb 08, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥14.13 (up from JP¥5.55 in 2Q 2023). Revenue: JP¥151.3b (up 26% from 2Q 2023). Net income: JP¥4.03b (up 155% from 2Q 2023). Profit margin: 2.7% (up from 1.3% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.2%. Earnings per share (EPS) also surpassed analyst estimates by 1.3%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Construction industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Announcement • Sep 29
Penta-Ocean Construction Co., Ltd. to Report Q2, 2024 Final Results on Nov 09, 2023 Penta-Ocean Construction Co., Ltd. announced that they will report Q2, 2024 final results on Nov 09, 2023 Price Target Changed • Aug 09
Price target increased by 7.2% to JP¥920 Up from JP¥858, the current price target is an average from 5 analysts. New target price is 14% above last closing price of JP¥805. Stock is up 13% over the past year. The company is forecast to post earnings per share of JP¥80.53 for next year compared to JP¥2.40 last year. Reported Earnings • Aug 03
First quarter 2024 earnings released: EPS: JP¥16.75 (vs JP¥11.35 in 1Q 2023) First quarter 2024 results: EPS: JP¥16.75 (up from JP¥11.35 in 1Q 2023). Revenue: JP¥127.3b (up 19% from 1Q 2023). Net income: JP¥4.78b (up 48% from 1Q 2023). Profit margin: 3.8% (up from 3.0% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Construction industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 74 percentage points per year, which is a significant difference in performance. Announcement • Jun 01
Penta-Ocean Construction Co., Ltd., Annual General Meeting, Jun 27, 2023 Penta-Ocean Construction Co., Ltd., Annual General Meeting, Jun 27, 2023, at 10:00 Tokyo Standard Time. Location: Conference Room, 11th Floor 2-8 Koraku 2-chome, Bunkyo-ku Tokyo Japan Agenda: To consider the Business Report, the Consolidated Financial Statements, and the audit results of the Consolidated Financial Statements by the Accounting Auditor and the Audit and Supervisory Board for the 73rd Fiscal Year (from April 1, 2022, to March 31, 2023); to consier the Non-consolidated Financial Statements for the 73rd Fiscal Year (from April 1, 2022, to March 31, 2023); to consider the appropriation of Retained Earnings; and to consider the election of Ten (10) Members of the Board. Reported Earnings • May 17
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥2.40 (down from JP¥37.72 in FY 2022). Revenue: JP¥502.2b (up 9.6% from FY 2022). Net income: JP¥684.0m (down 94% from FY 2022). Profit margin: 0.1% (down from 2.3% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 89%. Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥24.00 per share at 3.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.6%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: JP¥42.37 loss per share (vs JP¥2.05 profit in 3Q 2022) Third quarter 2023 results: JP¥42.37 loss per share (down from JP¥2.05 profit in 3Q 2022). Revenue: JP¥119.5b (up 2.6% from 3Q 2022). Net loss: JP¥12.1b (down JP¥12.7b from profit in 3Q 2022). Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Jan 09
Penta-Ocean Construction Co., Ltd. to Report Q3, 2023 Results on Feb 10, 2023 Penta-Ocean Construction Co., Ltd. announced that they will report Q3, 2023 results on Feb 10, 2023 Major Estimate Revision • Nov 30
Consensus EPS estimates fall by 32% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from JP¥516.0b to JP¥487.5b. EPS estimate also fell from JP¥73.65 per share to JP¥49.95 per share. Net income forecast to grow 155% next year vs 11% growth forecast for Construction industry in Japan. Consensus price target of JP¥852 unchanged from last update. Share price was steady at JP¥650 over the past week. Reported Earnings • Nov 16
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: JP¥5.55 (down from JP¥13.53 in 2Q 2022). Revenue: JP¥120.5b (up 8.4% from 2Q 2022). Net income: JP¥1.58b (down 59% from 2Q 2022). Profit margin: 1.3% (down from 3.5% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 40%. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Outside Director Mina Sekiguchi was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 12
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: JP¥5.55 (down from JP¥13.53 in 2Q 2022). Revenue: JP¥120.5b (up 8.4% from 2Q 2022). Net income: JP¥1.58b (down 59% from 2Q 2022). Profit margin: 1.3% (down from 3.5% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 40%. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Construction industry in Japan. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 05
First quarter 2023 earnings released: EPS: JP¥11.35 (vs JP¥15.96 in 1Q 2022) First quarter 2023 results: EPS: JP¥11.35 (down from JP¥15.96 in 1Q 2022). Revenue: JP¥107.2b (up 8.3% from 1Q 2022). Net income: JP¥3.24b (down 29% from 1Q 2022). Profit margin: 3.0% (down from 4.6% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 12%, compared to a 12% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Major Estimate Revision • May 25
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast fell from JP¥581.0b to JP¥522.6b. EPS estimate unchanged from JP¥74.72 per share at last update. Construction industry in Japan expected to see average net income growth of 6.4% next year. Consensus price target of JP¥806 unchanged from last update. Share price was steady at JP¥631 over the past week. Reported Earnings • May 16
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥37.72 (down from JP¥73.62 in FY 2021). Revenue: JP¥458.2b (down 2.7% from FY 2021). Net income: JP¥10.8b (down 49% from FY 2021). Profit margin: 2.3% (down from 4.5% in FY 2021). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 23%. Over the next year, revenue is forecast to grow 27%, compared to a 7.9% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Major Estimate Revision • May 15
Consensus revenue estimates increase by 11% The consensus outlook for revenues in 2023 has improved. 2023 revenue forecast increased from JP¥521.8b to JP¥581.0b. EPS estimate increased from JP¥74.72 to JP¥79.87 per share. Net income forecast to grow 37% next year vs 1.4% growth forecast for Construction industry in Japan. Consensus price target of JP¥806 unchanged from last update. Share price was steady at JP¥626 over the past week. Price Target Changed • Apr 27
Price target decreased to JP¥806 Down from JP¥915, the current price target is an average from 5 analysts. New target price is 31% above last closing price of JP¥616. Stock is down 27% over the past year. The company is forecast to post earnings per share of JP¥48.70 for next year compared to JP¥73.62 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Outside Director Hokuto Nakano was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. 
