Obayashi (JP:1802)
:1802
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Obayashi
(1802)
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Rating:65Neutral
Price Target:
¥3,437.00
▼(-6.73% Downside)
Action:Downgraded
Date:05/15/26
The score is driven primarily by improving fundamentals (stronger revenue and margins, moderate leverage and rising ROE), tempered by inconsistent cash-flow conversion. Technical signals are mildly negative with the stock below key moving averages and a negative MACD, while valuation appears reasonable with a mid P/E and a moderate dividend yield.
Positive Factors
Revenue Growth
Multi-year revenue expansion demonstrates Obayashi's ability to win larger or more projects and scale its operations. Durable top-line growth supports backlog strength, enhances bargaining power with suppliers and clients, and underpins capacity to fund investments or withstand cyclical downturns over the next 2–6 months.
Negative Factors
Cash-Flow Volatility
Operating and free-cash-flow swings driven by working-capital and project timing reduce predictability of internal funding. This uneven conversion means strong years may mask liquidity pressure in weak years, complicating investment planning and debt servicing over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Multi-year revenue expansion demonstrates Obayashi's ability to win larger or more projects and scale its operations. Durable top-line growth supports backlog strength, enhances bargaining power with suppliers and clients, and underpins capacity to fund investments or withstand cyclical downturns over the next 2–6 months.
Read all positive factors
Obayashi (1802) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.25T
Dividend Yield2.47%
Average Volume (3M)3.01M
Price to Earnings (P/E)12.9
Beta (1Y)0.71
Revenue Growth-1.29%
EPS Growth22.69%
CountryJP
Employees16,986
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)193.49
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
¥4,100.00Price Target Upside11.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)231.9
Revenue Forecast (FY)¥2.88T
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 generates revenue by contracting to deliver construction projects. Its core revenue stream comes from (1) building construction work (e.g., offices, factories, logistics facilities, and other private-sector buildings) and (2) ci...
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 | 2.57T | 2.59T | 2.62T | 2.33T | 1.98T | 1.92T |
| Gross Profit | 300.37B | 364.69B | 297.83B | 219.60B | 216.57B | 154.34B |
| EBITDA | 220.73B | 291.07B | 248.22B | 138.49B | 140.30B | 78.61B |
| Net Income | 138.28B | 173.76B | 146.05B | 75.06B | 77.67B | 39.13B |
Balance Sheet | ||||||
| Total Assets | 2.88T | 3.14T | 3.04T | 3.02T | 2.61T | 2.42T |
| Cash, Cash Equivalents and Short-Term Investments | 468.11B | 440.68B | 406.14B | 347.62B | 426.69B | 271.03B |
| Total Debt | 367.47B | 356.48B | 373.63B | 332.90B | 344.36B | 280.87B |
| Total Liabilities | 1.71T | 1.83T | 1.83T | 1.82T | 1.57T | 1.43T |
| Stockholders Equity | 1.12T | 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 Technical Analysis
Positive
3685.00
Price Trends
3466.56
Negative
3669.34
Negative
3232.27
Positive
Market Momentum
-68.05
Negative
50.04
Neutral
64.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1802, the sentiment is Positive. The current price of 3685 is above the 20-day moving average (MA) of 3192.80, above the 50-day MA of 3466.56, and above the 200-day MA of 3232.27, indicating a neutral trend. The MACD of -68.05 indicates Negative momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 64.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1802.
Obayashi Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥318.99B | 9.51 | 16.55% | 4.26% | 3.40% | 12.42% | |
66 Neutral | ¥2.90T | 15.78 | 13.56% | 1.96% | 5.34% | 42.44% | |
66 Neutral | ¥238.83B | 11.85 | 7.62% | 3.44% | -2.18% | 114.64% | |
66 Neutral | ¥1.71T | 13.90 | 11.22% | 1.48% | 5.83% | 96.00% | |
65 Neutral | ¥2.25T | 12.93 | 14.23% | 2.47% | -1.29% | 22.69% | |
64 Neutral | ¥2.41T | 14.37 | 16.64% | 1.83% | -3.02% | 50.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Obayashi Corporate Events
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...
Obayashi launches ESOP trust to align managers with long-term growth
Mar 27, 2026
Obayashi Corporation’s board has approved the introduction of a Stock-Granting Employee Stock Ownership Plan Trust as a new stock-based incentive program for selected managers. The plan is designed to shift away from a seniority-based person...
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.