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Obayashi
(1802)
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Rating:67Neutral
Price Target:
¥3,310.00
▲(11.34% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving fundamentals (growth, margins, ROE, and moderate leverage), supported by attractive valuation (low P/E and a ~2.9% yield). These positives are partially offset by weak technicals, with the stock trading below major moving averages and negative momentum signals, despite oversold readings.
Positive Factors
Revenue and Margin Expansion
Sustained revenue growth alongside stronger gross and net margins indicates improved project economics and operating execution, giving Obayashi a stronger earnings base over the next several quarters.
Negative Factors
Uneven Cash-Flow Conversion
Volatile cash conversion suggests working-capital movements and project timing materially affect liquidity. This can make internally funded growth and shareholder distributions less predictable despite reported profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
Sustained revenue growth alongside stronger gross and net margins indicates improved project economics and operating execution, giving Obayashi a stronger earnings base over the next several quarters.
Read all positive factors
Obayashi (1802) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.07T
Dividend Yield2.96%
Average Volume (3M)3.01M
Price to Earnings (P/E)10.6
Beta (1Y)0.77
Revenue Growth4.54%
EPS Growth45.54%
CountryJP
Employees18,031
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)281.43
Shares Outstanding691,811,340
10 Day Avg. Volume2,598,730
30 Day Avg. Volume3,014,840
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)2.08
Price to Sales (P/S)1.01
P/FCF Ratio20.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,025.00Price Target Upside35.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)238.03
Revenue Forecast (FY)¥2.95T
Obayashi Business Overview & Revenue Model
Company Description
Obayashi Corporation is a leading Japanese construction firm with an extensive international presence, operating across Japan, North America, Asia, the Middle East, Europe, and Oceania. Its core business involves constructing a wide array of build...
How the Company Makes Money
Obayashi primarily makes money by contracting and delivering construction projects for public- and private-sector customers. Its revenue model is largely project-based: it bids for or negotiates contracts, performs engineering and construction wor...
Obayashi Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.69T | 2.59T | 2.62T | 2.33T | 1.98T | 1.92T |
| Gross Profit | 387.92B | 364.69B | 297.83B | 219.60B | 216.57B | 154.34B |
| EBITDA | 295.65B | 291.07B | 248.22B | 138.49B | 140.30B | 78.61B |
| Net Income | 194.78B | 173.76B | 146.05B | 75.06B | 77.67B | 39.13B |
Balance Sheet | ||||||
| Total Assets | 3.06T | 3.14T | 3.04T | 3.02T | 2.61T | 2.42T |
| Cash, Cash Equivalents and Short-Term Investments | 467.23B | 440.68B | 406.14B | 347.62B | 426.69B | 271.03B |
| Total Debt | 355.66B | 356.48B | 373.63B | 332.90B | 344.36B | 280.87B |
| Total Liabilities | 1.76T | 1.83T | 1.83T | 1.82T | 1.57T | 1.43T |
| Stockholders Equity | 1.24T | 1.26T | 1.16T | 1.15T | 997.11B | 955.69B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 127.29B | 35.45B | -27.99B | 131.87B | 11.67B |
| Operating Cash Flow | 0.00 | 252.92B | 85.63B | 50.40B | 228.46B | 69.70B |
| Investing Cash Flow | 0.00 | -83.03B | 10.78B | -84.47B | -101.61B | -49.83B |
| Financing Cash Flow | 0.00 | -142.78B | -51.77B | -51.92B | 22.12B | -12.46B |
Obayashi Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥343.14B | 9.83 | 15.87% | 4.26% | 3.73% | 12.75% | |
67 Neutral | ¥2.07T | 10.56 | 14.65% | 2.68% | 4.54% | 45.54% | |
67 Neutral | ¥224.82B | 10.99 | 10.92% | 3.44% | -3.78% | 95.71% | |
64 Neutral | ¥2.09T | 12.30 | 19.37% | 2.27% | 1.52% | 43.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥2.35T | 12.38 | 13.44% | 2.58% | 3.72% | 36.12% | |
61 Neutral | ¥1.59T | 9.51 | 13.92% | 2.85% | 5.73% | 132.70% |
* Industrials Sector Average
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Obayashi Corporate Events
Obayashi boosts stock-based incentive trusts for executives and managers
Aug 7, 2026
Obayashi has approved additional funding for its Board Incentive Plan Trust and confirmed the launch funding for a new Stock-Granting ESOP Trust, both designed as stock-based remuneration schemes. The programmes target directors, executive officer...
Obayashi Confirms Governance Compliance After Audit Board Member’s Passing
Jul 27, 2026
Obayashi Corporation announced that Audit Supervisory Board Member Yohei Ueda passed away on July 24, 2026, resulting in his resignation from the board on the same day. The company expressed its condolences and formally notified stakeholders of h...
Obayashi to Acquire Multiplex in Push for Global Construction Expansion
Jun 18, 2026
Obayashi Corporation has agreed to acquire all shares of BCI UK Holdings Limited, the parent of Multiplex Global Limited, making Multiplex and related holding entities its specified subsidiaries. Multiplex, a leading contractor in Australia with s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.