Penta-Ocean Construction Co., Ltd.

TSE:1893 Stock Report

Market Cap: JP¥173.1b

Penta-Ocean Construction Valuation

Is 1893 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1893 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1893 (¥609.2) is trading below our estimate of fair value (¥1237.22)

Significantly Below Fair Value: 1893 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1893?

Key metric: As 1893 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1893. This is calculated by dividing 1893's market cap by their current earnings.
What is 1893's PE Ratio?
PE Ratio9.1x
EarningsJP¥18.96b
Market CapJP¥173.09b

Price to Earnings Ratio vs Peers

How does 1893's PE Ratio compare to its peers?

The above table shows the PE ratio for 1893 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.1x
1979 Taikisha
10.9x-1.9%JP¥159.2b
1719 Hazama Ando
10.9x-0.6%JP¥182.3b
1949 Sumitomo DensetsuLtd
14x-2.5%JP¥172.0b
1833 Okumura
12.6xn/aJP¥144.7b
1893 Penta-Ocean Construction
9.1x10.3%JP¥173.1b

Price-To-Earnings vs Peers: 1893 is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (12.1x).

Price to Earnings Ratio vs Industry

How does 1893's PE Ratio compare vs other companies in the JP Construction Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1893 9.1xIndustry Avg. 11.0xNo. of Companies20PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1893 is good value based on its Price-To-Earnings Ratio (9.1x) compared to the JP Construction industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is 1893's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1893 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.1x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: 1893 is good value based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1893 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥609.20
JP¥838.00
+37.6%
4.6%JP¥900.00JP¥790.00n/a5
Nov ’25JP¥626.20
JP¥838.00
+33.8%
4.6%JP¥900.00JP¥790.00n/a5
Oct ’25JP¥640.70
JP¥838.00
+30.8%
4.6%JP¥900.00JP¥790.00n/a5
Sep ’25JP¥640.30
JP¥872.00
+36.2%
6.1%JP¥960.00JP¥810.00n/a5
Aug ’25JP¥642.20
JP¥872.00
+35.8%
6.1%JP¥960.00JP¥810.00n/a5
Jul ’25JP¥668.70
JP¥872.00
+30.4%
6.1%JP¥960.00JP¥810.00n/a5
Jun ’25JP¥631.20
JP¥952.00
+50.8%
9.4%JP¥1,050.00JP¥840.00n/a5
May ’25JP¥795.20
JP¥996.00
+25.3%
8.8%JP¥1,080.00JP¥840.00n/a5
Apr ’25JP¥775.10
JP¥996.00
+28.5%
8.8%JP¥1,080.00JP¥840.00n/a5
Mar ’25JP¥782.60
JP¥996.00
+27.3%
8.8%JP¥1,080.00JP¥840.00n/a5
Feb ’25JP¥786.30
JP¥996.00
+26.7%
8.8%JP¥1,080.00JP¥840.00n/a5
Jan ’25JP¥791.90
JP¥982.50
+24.1%
9.5%JP¥1,080.00JP¥840.00n/a4
Dec ’24JP¥806.40
JP¥986.00
+22.3%
8.5%JP¥1,080.00JP¥840.00n/a5
Nov ’24JP¥903.40
JP¥970.00
+7.4%
7.3%JP¥1,050.00JP¥840.00JP¥626.205
Oct ’24JP¥889.20
JP¥970.00
+9.1%
7.3%JP¥1,050.00JP¥840.00JP¥640.705
Sep ’24JP¥870.00
JP¥970.00
+11.5%
7.3%JP¥1,050.00JP¥840.00JP¥640.305
Aug ’24JP¥773.90
JP¥876.00
+13.2%
7.0%JP¥960.00JP¥780.00JP¥642.205
Jul ’24JP¥772.10
JP¥858.00
+11.1%
5.2%JP¥900.00JP¥780.00JP¥668.705
Jun ’24JP¥711.00
JP¥812.00
+14.2%
7.4%JP¥870.00JP¥700.00JP¥631.205
May ’24JP¥669.00
JP¥812.00
+21.4%
7.4%JP¥870.00JP¥700.00JP¥795.205
Apr ’24JP¥632.00
JP¥812.00
+28.5%
7.4%JP¥870.00JP¥700.00JP¥775.105
Mar ’24JP¥646.00
JP¥812.00
+25.7%
7.4%JP¥870.00JP¥700.00JP¥782.605
Feb ’24JP¥638.00
JP¥812.00
+27.3%
7.4%JP¥870.00JP¥700.00JP¥786.305
Jan ’24JP¥618.00
JP¥812.00
+31.4%
7.4%JP¥870.00JP¥700.00JP¥791.905
Dec ’23JP¥647.00
JP¥836.00
+29.2%
5.6%JP¥900.00JP¥770.00JP¥806.405
Nov ’23JP¥734.00
JP¥856.00
+16.6%
5.7%JP¥900.00JP¥770.00JP¥903.405

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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