Komatsu Ltd. (6301) AI Stock Analysis

• Market Cap: ¥4.01T
• Dividend Yield: 4.38%
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.31
• Revenue Growth: 5.97%
• EPS Growth: 13.78%
• Country: JP
• Employees: 65,738
• Sector: Industrials
• Sector Strength: 93
• Industry: Agricultural - Machinery
• EPS (TTM): 140.19
• Shares Outstanding: 950,953,100
• 10 Day Avg. Volume: 2,481,000
• 30 Day Avg. Volume: 2,793,343
• PEG Ratio: 0.83
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.05
• 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: ¥4,920.00
• Price Target Upside: 13.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 79 Outperform
• Price Target: ¥5,006.00 ▲(15.32%Upside)

Komatsu Ltd. achieves a strong overall score driven by robust financial performance and favorable valuation metrics. The company's solid fundamentals are complemented by positive technical indicators, suggesting continued growth potential. However, careful monitoring of the stock's technical indicators is advised due to potential overbought conditions.

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 has a diverse revenue model that includes manufacturing and selling heavy machinery, providing aftermarket parts and services, and offering rental and leasing options. Key revenue streams include sales of new equipment, which account for a significant portion of the company's earnings, and the aftermarket segment, which includes parts, maintenance, and repair services. Komatsu also benefits from strategic partnerships and collaborations with other industry players to enhance its product offerings and expand its market reach. The company's focus on innovation and technology, such as autonomous vehicles and smart construction solutions, also contributes to its growth and revenue generation.

Komatsu Ltd. Financial Statement Overview

Summary

Komatsu Ltd. is in a strong financial position with consistent revenue and profit growth, effective cost management, and substantial cash flow generation. The company's stable balance sheet and efficient use of capital underline its resilience and potential for future expansion, though 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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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
	EBIT
663.53B	607.19B	490.69B	317.01B	167.33B
	EBITDA
825.44B	787.01B	658.49B	473.14B	309.67B
	Net Income Common Stockholders
439.26B	393.43B	326.40B	224.93B	106.24B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
385.57B	403.18B	289.98B	316.67B	243.13B
	Total Assets
5.77T	5.64T	4.88T	4.35T	3.78T
	Total Debt
1.22T	1.27T	1.12T	1.01T	965.85B
	Net Debt
835.13B	867.24B	826.58B	692.46B	724.04B
	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: 4341.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 4341 is below the 20-day moving average (MA) of 4367.15, above the 50-day MA of 4215.74, and above the 200-day MA of 4140.54, indicating a bullish trend. The MACD of 48.67 indicates Positive momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.13 is Neutral, 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	79 Outperform	¥4.01T	9.17		4.38%	5.97%	13.78%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
HTCMF		$6.47B	12.23	9.99%	3.77%	―	―
KUBTF		$12.79B	10.42	8.29%	2.79%	―	―
TN0		€745.16M	14.75	4.46%	2.37%	―	―
6432		¥216.97B	8.24		4.39%	―	―
7105	65 Neutral	¥224.66B	25.90		1.14%	-5.15%	-68.51%

Komatsu Ltd. Corporate Events

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.

Komatsu Announces Share Buyback and Treasury Stock Cancellation

Komatsu Ltd. has announced a strategic move to repurchase up to 40 million shares of its common stock, representing 4.3% of its outstanding shares, with a maximum purchase price of 100 billion yen. This decision, along with the cancellation of the repurchased shares, aims to enhance corporate value and improve shareholder returns by optimizing capital efficiency and maintaining financial soundness.

Komatsu Ltd. Increases Year-End Dividend Amid Strategic Financial Planning

Komatsu Ltd. has announced a decision to increase its year-end dividend per share to JPY 107, up from the previously projected JPY 84, reflecting a commitment to maintaining a stable dividend payout ratio of 40% or higher. This move is part of Komatsu’s strategy to sustain corporate value growth by considering consolidated business results and future investment plans, despite a projected decrease in net income for the next fiscal year.

Komatsu Ltd. Reports Strong Financial Performance for Fiscal Year 2025

Komatsu Ltd. reported an increase in net sales and operating income for the fiscal year ended March 31, 2025, with net sales rising by 6.2% and operating income by 8.2% compared to the previous year. Despite a decline in comprehensive income, the company maintained a stable return on equity and increased its annual dividends, reflecting a strong financial position and commitment to shareholder returns.