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Komatsu Ltd. (JP:6301)
:6301
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Komatsu Ltd.
(6301)
80Outperform
Komatsu Ltd. (6301) vs. S&P 500 (SPY)
Market Cap
¥3.93T
Dividend Yield4.52%
Average Volume (3M)3.20M
Price to Earnings (P/E)9.0
Beta (1Y)1.31
Revenue Growth5.97%
EPS Growth13.78%
CountryJP
Employees65,738
SectorIndustrials
Sector Strength80
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)140.19
Shares Outstanding950,953,100
10 Day Avg. Volume3,623,690
30 Day Avg. Volume3,204,570
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,700.00Price Target Upside11.93% Upside
Rating ConsensusHold
Number of Analyst Covering3
Komatsu Ltd. Business Overview & Revenue Model
Company DescriptionKomatsu Ltd. is a leading global manufacturer of construction, mining, and utility equipment, headquartered in Tokyo, Japan. The company operates in various sectors including construction and mining equipment, industrial machinery, and electronics. Komatsu's core products include hydraulic excavators, bulldozers, wheel loaders, dump trucks, and motor graders. The company is also involved in the production of forestry and agricultural machinery, as well as providing industrial solutions and services.
How the Company Makes MoneyKomatsu 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.78
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 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.87T | 3.54T | 2.80T | 2.19T | 2.44T | Gross Profit |
| 1.21T | 1.04T | 779.58B | 581.05B | 695.82B | EBIT |
| 607.19B | 490.69B | 317.01B | 167.33B | 250.71B | EBITDA |
| 787.01B | 658.49B | 473.14B | 309.67B | 379.30B | Net Income Common Stockholders |
| 393.43B | 326.40B | 224.93B | 106.24B | 153.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 403.18B | 289.98B | 316.67B | 243.13B | 249.67B | Total Assets |
| 5.64T | 4.88T | 4.35T | 3.78T | 3.65T | Total Debt |
| 1.27T | 1.12T | 1.01T | 965.85B | 1.07T | Net Debt |
| 867.24B | 826.58B | 692.46B | 724.04B | 818.32B | Total Liabilities |
| 2.44T | 2.20T | 1.99T | 1.77T | 1.80T | Stockholders Equity |
| 3.03T | 2.54T | 2.23T | 1.91T | 1.77T |
| Cash Flow | Free Cash Flow | |||
| 231.83B | 22.94B | 138.01B | 172.58B | 110.47B | Operating Cash Flow |
| 434.78B | 206.47B | 300.97B | 354.13B | 295.18B | Investing Cash Flow |
| -204.42B | -169.52B | -143.57B | -163.06B | -190.93B | Financing Cash Flow |
| -122.04B | -66.61B | -93.87B | -199.67B | -3.46B |
Komatsu Ltd. Technical Analysis
Positive
4199.00
Price Trends
4243.86
Negative
4275.52
Negative
4132.87
Positive
Market Momentum
-12.01
Negative
53.16
Neutral
81.66
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 4199 is above the 20-day moving average (MA) of 4037.35, below the 50-day MA of 4243.86, and above the 200-day MA of 4132.87, indicating a neutral trend. The MACD of -12.01 indicates Negative momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 81.66 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥3.93T | 8.99 | 4.52% | 5.97% | 13.78% | ||
75 Outperform | $915.89B | 11.25 | 9.99% | 3.91% | -2.46% | -12.73% | |
74 Outperform | $9.38T | 36.64 | 11.89% | 0.75% | 9.25% | 26.69% | |
73 Outperform | ¥156.06B | 8.46 | 2.48% | 11.87% | -3.06% | ||
69 Neutral | $1.41T | 17.01 | 13.26% | 1.60% | 15.31% | ― | |
64 Neutral | $4.24B | 11.64 | 5.23% | 249.83% | 4.07% | -10.54% |
* Industrials Sector Average
Performance Comparison
JP:6301
Komatsu Ltd.
4,197.00
-256.54
-5.76%
JP:7004
Hitachi Zosen Corporation
925.00
-275.74
-22.96%
JP:7012
Kawasaki Heavy Industries
8,445.00
2,737.55
47.96%
JP:7011
Mitsubishi Heavy Industries
2,892.50
1,623.49
127.93%
JP:6305
Hitachi Construction Machinery Co
4,284.00
-31.78
-0.74%
Komatsu Ltd. Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q3-2024)
| % Change Since: 4.06%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with record-high financial results and strategic advancements in electrification and battery technology. Despite challenges in specific segments and regions, the overall business performance and future outlook remain strong.Q3-2024 Updates
Positive Updates
Record-High Financial Metrics
Net sales increased by 5.6% year-on-year to JPY972 billion with operating income rising 15.9% to JPY156.4 billion. Net income saw a significant increase of 42.4% to JPY98.7 billion, marking record highs for net sales, segment profit, and operating income in the third quarter.
Construction, Mining, and Utility Equipment Growth
Sales in this segment increased by 6.3% to JPY918.2 billion with segment profit advancing by 22.2% to JPY149.1 billion, showing a strong segment profit ratio improvement to 16.2%.
Positive Impact of Foreign Exchange Rates
The depreciation of the yen against major currencies contributed to a positive impact on net sales and operating income.
Expansion into Electrified Equipment
Introduction of a 13-ton class PC138E-11 electric excavator with lithium-ion battery to the market, aiming to accelerate toward carbon neutrality by 2050.
Acquisition of American Battery Solutions
Strategic acquisition to enhance battery technology capabilities, crucial for developing electrified construction and mining equipment.
Negative Updates
Decline in Retail Finance and Industrial Machinery Profits
Retail finance segment profit decreased by 10.6% to JPY5.7 billion and industrial machinery segment profit declined by 72.8% to JPY1.3 billion.
Decreased Sales in Key Regions
Sales decreased in Asia, CIS, and Europe, with a significant demand decrease in the Chinese market by 51% year-on-year for hydraulic excavators.
Challenging Market Conditions in Europe and Southeast Asia
Europe saw a 15% decrease in Q3 demand due to higher interest rates and energy prices, while Southeast Asia experienced an 11% drop due to economic uncertainties.
Company Guidance
During the call, Komatsu provided detailed financial and operational guidance for fiscal year 2023, particularly focusing on the third quarter. The company reported a 5.6% year-on-year increase in net sales to JPY972 billion, with operating income rising by 15.9% to JPY156.4 billion. The operating income to net sales ratio improved by 1.4 percentage points to 16.1%, while net income surged by 42.4% to JPY98.7 billion. Komatsu highlighted that the construction, mining, and utility equipment segment saw a 6.3% rise in net sales to JPY918.2 billion, with segment profit growing by 22.2% to JPY149.1 billion. Despite a challenging environment, including the Noto Peninsula earthquake, Komatsu maintained its annual forecast, leveraging improved selling prices and favorable foreign exchange rates. The company also addressed demand trends, expecting a decrease in overall fiscal 2023 demand by 10% to 15%, with notable declines in Europe and China, while the North American market demonstrated resilience. Additionally, Komatsu discussed strategic initiatives such as the introduction of electrified construction equipment and the acquisition of battery technology to drive future growth and profitability.Komatsu Ltd. Corporate Events
Komatsu Ltd. Announces Share Buyback Status
May 7, 2025
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
Apr 28, 2025
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
Apr 28, 2025
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
Apr 28, 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.
Komatsu Announces Reorganization of North American Subsidiaries
Feb 18, 2025
Komatsu Ltd. announced a reorganization of its subsidiaries in North America, leading to the establishment of a new company, Komatsu North America Corp. This move aims to enhance customer convenience and governance by transferring certain sales and service functions for construction and mining equipment to the new entity. The reorganization is not expected to significantly impact the financial results of the Komatsu Group as it involves only internal consolidations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.