Komatsu Ltd. (6301) AI Stock Analysis

• Market Cap: ¥4.63T
• Dividend Yield: 4.06%
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.24
• Revenue Growth: 0.40%
• EPS Growth: 8.40%
• Country: JP
• Employees: 65,738
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 92.69
• Shares Outstanding: 950,953,100
• 10 Day Avg. Volume: 2,633,020
• 30 Day Avg. Volume: 2,544,656
• PEG Ratio: 0.66
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 12.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,631.00 ▲(12.37% Upside)

Komatsu Ltd. scores well in valuation due to its low P/E ratio and high dividend yield, making it attractive for value and income investors. However, the technical analysis indicates bearish market momentum, which is a concern. Financial performance is solid, but recent declines in revenue and free cash flow warrant caution. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strategic Partnerships

The partnership with Bentley Systems to enhance digital construction capabilities strengthens Komatsu's market position and innovation edge, potentially increasing efficiency and safety in construction processes.

Operational Efficiency

Consistent operational efficiency through strong EBIT and EBITDA margins ensures Komatsu can effectively manage costs and maintain profitability, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with manageable leverage provides Komatsu with financial stability and flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Revenue Decline

A decline in revenue could signal challenges in market demand or competitive pressures, potentially impacting long-term growth and profitability if not addressed.

Free Cash Flow Decline

Declining free cash flow may limit Komatsu's ability to fund operations and invest in new projects, affecting future growth and financial health if the trend continues.

Market Momentum

Persistent bearish market momentum could reflect broader investor concerns about Komatsu's growth prospects, potentially affecting its ability to attract capital and maintain investor confidence.

Komatsu Ltd. Business Overview & Revenue Model

Company Description

Komatsu Ltd. manufactures and sells construction, mining, and utility equipment; and forest and industrial machinery worldwide. The company operates through three segments: Construction, Mining and Utility Equipment; Retail Finance; and Industrial Machinery and Others. It offers construction and mining equipment, including electric rope shovels, continuous miners, hydraulic excavators, wheel loaders, bulldozers, motor graders, dump trucks, mini excavators, utility equipment, and other mining equipment. The company also provides forklift trucks; forestry equipment, including harvesters, forwarders, and feller bunchers, as well as forestry-specific machines based on construction equipment; recycling equipment, such as mobile crushers, soil recyclers, and mobile tub grinders; tunneling machines, which comprise shield and tunnel-boring machines, as well as small diameter pipe jacking machines; and diesel engines, hydraulic equipment, and iron and steel castings products. In addition, it offers metal forging and stamping presses, including large presses, and small and medium-sized presses; sheet-metal machines, such as press brakes, shears, laser cutting machines, and fine plasma cutting machines; machine tools, which comprise crankshaft millers, transfer machines, machining centers, grinding machines, and wire saws; excimer lasers for semiconductor lithography tools; thermoelectric modules and temperature-control equipment for semiconductor manufacturing; and defense-related equipment, as well as provides warehousing and packing services. Further, the company provides other specific equipment for demolition, metal recycle, and slag handling; wear parts, periodic replacement parts, attachments, and remanufacturing parts; and retail financing for construction and mining equipment. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Komatsu generates revenue primarily through the sale of heavy equipment and machinery used in construction, mining, and other industrial sectors. The company's revenue model is driven by several key streams: first, the direct sale of new machinery, which constitutes a significant portion of its earnings; second, the sale of used equipment and parts; and third, after-sales services including maintenance and repair, which provide ongoing revenue. Additionally, Komatsu benefits from strategic partnerships with other companies in the construction and mining sectors, enhancing its market reach and product offerings. The company also invests in technology and innovation, such as automation and smart construction solutions, which are increasingly popular in the industry and contribute to its revenue growth.

Komatsu Ltd. Financial Statement Overview

Summary

Komatsu Ltd. presents a robust financial profile with strong profitability and a stable balance sheet. While the company faces challenges in revenue growth and free cash flow generation, its operational efficiency and effective capital management provide a solid foundation for future performance.

Income Statement

Komatsu Ltd. demonstrates solid profitability with a consistent gross profit margin around 32% and a net profit margin over 10% in recent periods. However, the company experienced a slight revenue decline in the TTM period, indicating potential challenges in maintaining growth momentum. EBIT and EBITDA margins remain strong, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leverage. Return on Equity (ROE) is healthy, suggesting effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure. However, the increase in total debt over time warrants monitoring.

Cash Flow

Komatsu's cash flow performance is mixed, with a decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is moderate, indicating reasonable cash generation relative to net income. The free cash flow to net income ratio is strong, but the recent decline in free cash flow growth suggests potential liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.03T	4.10T	3.87T	3.54T	2.80T	2.19T
Gross Profit	1.30T	1.32T	1.21T	1.04T	779.58B	581.05B
EBITDA	793.24B	825.44B	787.01B	658.49B	473.14B	309.67B
Net Income	413.11B	439.26B	393.43B	326.40B	224.93B	106.24B
Balance Sheet
Total Assets	5.92T	5.77T	5.64T	4.88T	4.35T	3.78T
Cash, Cash Equivalents and Short-Term Investments	345.20B	385.57B	403.18B	289.98B	316.67B	243.13B
Total Debt	1.35T	1.22T	1.27T	1.12T	1.01T	965.85B
Total Liabilities	2.54T	2.43T	2.44T	2.20T	1.99T	1.77T
Stockholders Equity	3.22T	3.17T	3.03T	2.54T	2.23T	1.91T
Cash Flow
Free Cash Flow	233.76B	311.31B	231.83B	22.94B	138.01B	172.58B
Operating Cash Flow	427.15B	517.17B	434.78B	206.47B	300.97B	354.13B
Investing Cash Flow	-200.50B	-210.67B	-204.42B	-169.52B	-143.57B	-163.06B
Financing Cash Flow	-296.51B	-321.42B	-122.04B	-66.61B	-93.87B	-199.67B

Komatsu Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5011.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6301, the sentiment is Negative. The current price of 5011 is below the 20-day moving average (MA) of 5049.55, below the 50-day MA of 5196.22, and above the 200-day MA of 4721.73, indicating a neutral trend. The MACD of -54.72 indicates Negative momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 43.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6301.

Komatsu Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6432	81 Outperform	¥324.27B	11.82	―	2.94%	0.31%	-11.04%
6326	76 Outperform	$2.64T	14.78	7.16%	2.18%	-3.22%	-29.63%
6305	69 Neutral	¥996.91B	11.31	10.54%	4.02%	-2.72%	29.43%
6301	68 Neutral	¥4.63T	11.09	―	4.06%	0.40%	8.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6395	62 Neutral	¥137.80B	12.51	5.59%	2.85%	10.49%	-5.19%
7105	54 Neutral	¥164.65B	-81.32	―	1.56%	-4.63%	-109.63%

Komatsu Ltd. Corporate Events

Komatsu Completes Share Buyback Program

Komatsu Ltd. has completed a share buyback program, repurchasing 2,684,900 shares of common stock for approximately 13.78 billion yen between November 1 and November 27, 2025. This move is part of a broader buyback plan authorized by the Board of Directors, aiming to repurchase up to 40 million shares, indicating a strategic effort to enhance shareholder value and optimize capital structure.

Komatsu Ltd. Reports Progress on Share Buyback Initiative

Komatsu Ltd. has announced the status of its share buyback program, which is part of its strategic financial management. During October 2025, the company repurchased nearly 3 million shares at the Tokyo Stock Exchange, amounting to approximately 15.99 billion yen. This buyback is part of a larger plan approved by the Board of Directors to repurchase up to 40 million shares, with a total budget of 100 billion yen, aimed at enhancing shareholder value.

Komatsu Ltd. Announces Dividend Payment from Retained Earnings

Komatsu Ltd. has announced a dividend payment from retained earnings, with a record date of September 30, 2025. The dividend per share is set at JPY 95, reflecting the company’s policy of maintaining a consolidated payout ratio of 40% or higher. This move highlights Komatsu’s commitment to stable dividend payments and its strategic focus on strengthening its financial position to enhance corporate value.

Komatsu Ltd. Reports Decline in Financial Performance Amidst Rising Comprehensive Income

Komatsu Ltd. reported a decline in financial performance for the first half of the fiscal year ending March 31, 2026, with net sales and operating income decreasing by 3.9% and 8.7% respectively compared to the previous year. Despite the downturn, comprehensive income saw a significant increase of 124.3% from the previous year, indicating potential resilience in certain areas of the business.

Komatsu Ltd. Announces Progress in Share Buyback Program

Komatsu Ltd. announced the status of its share buyback program, revealing that it repurchased 2,165,800 shares for approximately 11.16 billion yen between September 1 and September 30, 2025. This move is part of a larger plan approved by the Board of Directors to buy back up to 40 million shares, representing 4.3% of outstanding shares, by November 28, 2025, with a total budget of 100 billion yen. The buyback is conducted through the Tokyo Stock Exchange and reflects the company’s strategy to enhance shareholder value.