Penta-Ocean Construction Co., Ltd. (1893) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

INFRONEER Holdings, Inc.

Kandenko Co., Ltd.

SHO-BOND Holdings Co. Ltd.

EXEO Group, Inc.

Penta-Ocean Construction Co., Ltd.

Kinden Corp.

Toda Corp.

COMSYS Holdings Corp.

JGC Holdings Corp.

Shimizu Corp.

Kyudenko Corp.

Why is Penta-Ocean Construction Co., Ltd. ?

Weak Long Term Fundamental Strength with a -8.01% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 4.86% and Operating profit at -8.01% over the last 5 years

RAW MATERIAL COST(Y) Fallen by -11.82% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 32.21%
OPERATING PROFIT(Q) Highest at JPY 12,502 MM

With ROCE of 7.80%, it has a very attractive valuation with a 1.27 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 147.44%, its profits have fallen by -28.8%
At the current price, the company has a high dividend yield of 0.1

Market Beating performance in long term as well as near term

Along with generating 147.44% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Penta-Ocean Construction Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Penta-Ocean Construction Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Penta-Ocean Construction Co., Ltd.

147.44%

4.44

31.35%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.86%

EBIT Growth (5y)

-8.01%

EBIT to Interest (avg)

19.77

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

1.96

Tax Ratio

35.29%

Dividend Payout Ratio

54.40%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

9.46%

ROE (avg)

7.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.44

EV to EBIT

16.28

EV to EBITDA

11.58

EV to Capital Employed

1.27

EV to Sales

0.49

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

7.80%

ROE (Latest)

7.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.82% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 32.21%

OPERATING PROFIT(Q)

Highest at JPY 12,502 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.18 %

PRE-TAX PROFIT(Q)

Highest at JPY 9,987 MM

NET PROFIT(Q)

Highest at JPY 6,900.69 MM

EPS(Q)

Highest at JPY 24.63

-9What is not working for the Company

NET PROFIT(9M)

At JPY 7,916.51 MM has Grown at -47.18%

INTEREST(HY)

At JPY 1,404 MM has Grown at 16.13%

Here's what is working for Penta-Ocean Construction Co., Ltd.

Operating Profit

Highest at JPY 12,502 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 7.18 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 9,987 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 6,900.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 24.63

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 32.21%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -11.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Penta-Ocean Construction Co., Ltd.

Interest

At JPY 1,404 MM has Grown at 16.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)