Komatsu Ltd. (6301) AI Stock Analysis

• Market Cap: ¥4.68T
• Dividend Yield: 3.75%
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.30
• Revenue Growth: 3.12%
• EPS Growth: 8.28%
• Country: JP
• Employees: 65,738
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 99.08
• Shares Outstanding: 950,953,100
• 10 Day Avg. Volume: 2,286,420
• 30 Day Avg. Volume: 2,645,266
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥5,278.25
• Price Target Upside: -0.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: ¥5,713.00 ▲(7.57% Upside)

Komatsu Ltd.'s overall stock score reflects strong financial health and valuation, buoyed by technical indicators supporting potential growth. However, recent earnings call highlights challenges in sales and income, which temper the outlook despite notable segment successes and strategic project wins.

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 Ltd. generates revenue primarily through the sale and leasing of its construction and mining equipment. The company's key revenue streams include the manufacturing and sale of machinery and equipment, providing after-sales services, and offering leasing options for its products. Komatsu also benefits from its parts and service business, which ensures a steady stream of revenue through the provision of maintenance, repairs, and spare parts to its customers globally. Additionally, Komatsu has strategic partnerships with other companies to enhance its technological capabilities and expand its reach into emerging markets, further bolstering its revenue potential.

Komatsu Ltd. Financial Statement Overview

Summary

Komatsu Ltd. demonstrates strong revenue growth, profitability, and robust cash flow generation. The company maintains a stable balance sheet with moderate leverage and efficient capital use. Vigilant monitoring of debt levels is advisable.

Income Statement

Komatsu Ltd. demonstrates strong revenue growth and profitability. The Gross Profit Margin for 2025 is 32.21%, with an impressive Net Profit Margin of 10.71%. The Revenue Growth Rate from 2024 to 2025 is 6.19%, showcasing a consistent upward trajectory. EBIT and EBITDA margins are healthy at 16.16% and 20.11%, respectively, indicating operational efficiency and robust earnings performance.

Balance Sheet

The company maintains a stable financial structure with a Debt-to-Equity Ratio of 0.38, reflecting moderate leverage. Return on Equity (ROE) is strong at 13.84%, suggesting efficient use of equity. The Equity Ratio stands at 54.98%, indicating a solid equity base relative to total assets, though the increase in total debt warrants careful monitoring.

Cash Flow

Komatsu's cash flow generation is robust, with a Free Cash Flow Growth Rate of 34.23% from 2024 to 2025, reflecting improved capital efficiency. The Operating Cash Flow to Net Income Ratio is 1.18, indicating strong cash generation relative to net profits. A Free Cash Flow to Net Income Ratio of 0.71 supports the company's capability to fund operations and growth initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10T	3.87T	3.54T	2.80T	2.19T
Gross Profit	1.32T	1.21T	1.04T	779.58B	581.05B
EBITDA	825.44B	787.01B	658.49B	473.14B	309.67B
Net Income	439.26B	393.43B	326.40B	224.93B	106.24B
Balance Sheet
Total Assets	5.77T	5.64T	4.88T	4.35T	3.78T
Cash, Cash Equivalents and Short-Term Investments	385.57B	403.18B	289.98B	316.67B	243.13B
Total Debt	1.22T	1.27T	1.12T	1.01T	965.85B
Total Liabilities	2.43T	2.44T	2.20T	1.99T	1.77T
Stockholders Equity	3.17T	3.03T	2.54T	2.23T	1.91T
Cash Flow
Free Cash Flow	311.31B	231.83B	22.94B	138.01B	172.58B
Operating Cash Flow	517.17B	434.78B	206.47B	300.97B	354.13B
Investing Cash Flow	-210.67B	-204.42B	-169.52B	-143.57B	-163.06B
Financing Cash Flow	-321.42B	-122.04B	-66.61B	-93.87B	-199.67B

Komatsu Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5311.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6301, the sentiment is Positive. The current price of 5311 is above the 20-day moving average (MA) of 5170.65, above the 50-day MA of 5059.64, and above the 200-day MA of 4510.03, indicating a bullish trend. The MACD of 85.16 indicates Negative momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 83.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6301.

Komatsu Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	78 Outperform	¥4.68T	11.13	―	3.75%	3.12%	8.28%
6432	74 Outperform	¥252.26B	9.92	15.64%	3.78%	-2.83%	-10.80%
6326	73 Outperform	¥2.20T	12.79	7.17%	2.62%	-6.12%	-32.56%
6305	70 Outperform	¥1.02T	14.99	8.59%	3.65%	-4.59%	-21.22%
6395	64 Neutral	¥135.27B	23.54	3.52%	2.91%	9.20%	-40.76%
7105	54 Neutral	¥194.17B	73.28	6.99%	1.32%	-6.01%	-90.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Komatsu Ltd. Corporate Events

Komatsu Announces Progress in Share Buyback Initiative

Komatsu Ltd. announced the status of its share buyback program, revealing that it repurchased 2,877,300 shares for approximately 14.1 billion yen between July 1 and July 31, 2025. This buyback is part of a broader initiative approved by the Board of Directors to repurchase up to 40 million shares, reflecting a strategic move to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6301) stock is a Hold with a Yen4000.00 price target. To see the full list of analyst forecasts on Komatsu Ltd. stock, see the JP:6301 Stock Forecast page.

Komatsu Ltd. Continues Performance-Linked Remuneration System

Komatsu Ltd. announced the continuation of its performance-linked stock-based remuneration system for its directors and senior managerial employees. This system, which aligns with the company’s Strategic Growth Plan for 2025-2027, aims to enhance corporate value by incentivizing eligible persons based on performance indicators such as ROE, ROA, and sales growth. The plan includes structures like the Board Incentive Plan Trust and Employee Stock Ownership Plan Trust, designed to deliver shares or equivalent cash payments depending on the achievement of performance targets, thereby reinforcing Komatsu’s commitment to long-term growth and stakeholder value.

The most recent analyst rating on (JP:6301) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on Komatsu Ltd. stock, see the JP:6301 Stock Forecast page.

Komatsu Ltd. Updates on Share Buyback Progress

Komatsu Ltd. has announced the status of its ongoing share buyback program, revealing that it has repurchased 2,725,500 shares for a total of 13,375,606,218 yen between July 1 and July 28, 2025. This move is part of a broader strategy approved by the Board of Directors to buy back up to 40 million shares, representing 4.3% of outstanding shares, with a total budget of 100 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:6301) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on Komatsu Ltd. stock, see the JP:6301 Stock Forecast page.

Komatsu Ltd. Reports Decline in Q1 2025 Financial Results

Komatsu Ltd. reported a decline in financial performance for the three months ended June 30, 2025, with net sales and net income attributable to the company decreasing by 5.2% and 16.9%, respectively, compared to the same period in 2024. The company also noted a significant drop in comprehensive income by 77.7% from the previous year, which may impact its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:6301) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on Komatsu Ltd. stock, see the JP:6301 Stock Forecast page.

Komatsu Ltd. Announces Progress in Share Buyback Program

Komatsu Ltd. announced the status of its share buyback program, revealing that it repurchased 2,939,600 shares for approximately 12.99 billion yen from June 1 to June 30, 2025. This move is part of a broader strategy approved by the Board of Directors to buy back up to 40 million shares, representing 4.3% of outstanding shares, with a total budget of 100 billion yen, indicating a strong commitment to enhancing shareholder value.

The most recent analyst rating on (JP:6301) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on Komatsu Ltd. stock, see the JP:6301 Stock Forecast page.

Komatsu Ltd. Updates on Share Buyback Progress

Komatsu Ltd. has announced the status of its share buyback program, revealing that it repurchased 3,832,300 shares of common stock for a total of 16,573,351,277 yen between May 1 and May 31, 2025. This move is part of a broader strategy approved by the Board of Directors to buy back up to 40 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6301) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on Komatsu Ltd. stock, see the JP:6301 Stock Forecast page.

Komatsu Ltd. Announces Share Buyback Status

Komatsu Ltd. announced the status of its share buyback program, repurchasing 222,200 common shares at a total cost of 909,758,503 yen. This move is part of a broader plan approved by the Board of Directors to buy back up to 40 million shares, aiming to enhance shareholder value and optimize the company’s capital structure.