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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

INFRONEER Holdings, Inc.

JGC Holdings Corp.

Penta-Ocean Construction Co., Ltd.

SHO-BOND Holdings Co. Ltd.

Toda Corp.

EXEO Group, Inc.

Kinden Corp.

Kandenko Co., Ltd.

Kyudenko Corp.

Shimizu Corp.

COMSYS Holdings Corp.

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

With a growth in Operating Profit of 84.7%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 18.74%
PRE-TAX PROFIT(Q) At JPY 9,681 MM has Grown at 121.74%
RAW MATERIAL COST(Y) Fallen by -47.39% (YoY)

With ROCE of 10.64%, it has a fair valuation with a 1.73 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 100.43%, its profits have risen by 107.3% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 100.43% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you buy?

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Penta-Ocean Construction Co., Ltd.

87.57%

3.61

46.17%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.57%

EBIT Growth (5y)

11.63%

EBIT to Interest (avg)

19.77

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

1.85

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

2.89

EV to EBIT

16.23

EV to EBITDA

13.69

EV to Capital Employed

1.73

EV to Sales

1.05

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

10.64%

ROE (Latest)

17.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

19What is working for the Company

ROCE(HY)

Highest at 18.74%

PRE-TAX PROFIT(Q)

At JPY 9,681 MM has Grown at 121.74%

RAW MATERIAL COST(Y)

Fallen by -47.39% (YoY

CASH AND EQV(HY)

Highest at JPY 124,414 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 34.23 times

DIVIDEND PER SHARE(HY)

Highest at JPY 1.97

NET SALES(Q)

Highest at JPY 213,295 MM

NET PROFIT(Q)

At JPY 6,069.38 MM has Grown at 85.44%

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,102.85

INTEREST(Q)

Highest at JPY 1,262 MM

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

Pre-Tax Profit

At JPY 9,681 MM has Grown at 121.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 213,295 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 6,069.38 MM has Grown at 85.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 124,414 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 34.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 1.97

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -47.39% (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

Depreciation

Highest at JPY 2,923 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 1,262 MM has Grown at 47.6%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,102.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 1,262 MM

in the last five periods and Increased by 47.6% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)