Komatsu Ltd. (JP:6301)
:6301
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Komatsu Ltd.
(6301)
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Rating:75Outperform
Price Target:
¥7,153.00
▲(5.05% Upside)
Action:ReiteratedDate:02/04/26
The score is driven primarily by strong underlying profitability and solid multi-year growth, supported by reasonable valuation and a ~3.25% dividend yield. Offsetting these positives are weaker cash conversion, somewhat higher leverage in the TTM view, and technical indicators that look overextended (high RSI/Stochastics), which raises near-term downside risk.
Positive Factors
Strong Profitability & Margins
Komatsu’s TTM margin profile and scale demonstrate persistent operating efficiency and pricing power across its heavy-equipment portfolio. High gross and operating margins support durable earnings generation, provide headroom for reinvestment in R&D and dealer networks, and underpin capacity to sustain dividends and strategic initiatives over the coming months.
Negative Factors
Weaker Cash Conversion
FCF at ~55% of net income signals that reported profits are not fully converting to cash due to working-capital swings and elevated investment demands. This persistent conversion gap can constrain internal funding for capex, dealer financing, or shareholder returns, and increases reliance on external financing during slower demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability & Margins
Komatsu’s TTM margin profile and scale demonstrate persistent operating efficiency and pricing power across its heavy-equipment portfolio. High gross and operating margins support durable earnings generation, provide headroom for reinvestment in R&D and dealer networks, and underpin capacity to sustain dividends and strategic initiatives over the coming months.
Read all positive factors
Komatsu Ltd. (6301) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.14T
Dividend Yield4.06%
Average Volume (3M)2.54M
Price to Earnings (P/E)12.0
Beta (1Y)1.36
Revenue Growth0.40%
EPS Growth8.40%
CountryJP
Employees65,738
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)104.02
Shares Outstanding930,340,640
10 Day Avg. Volume2,633,020
30 Day Avg. Volume2,544,656
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)1.26
Price to Sales (P/S)0.97
P/FCF Ratio12.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,242.22Price Target Upside6.36% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)429.97
Revenue Forecast (FY)¥4.23T
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...
How the Company Makes Money
Komatsu primarily makes money by selling heavy equipment and related solutions to customers in construction, mining, and industrial/infrastructure end markets. A major revenue stream is the sale of new machinery (e.g., construction and mining equi...
Komatsu Ltd. Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive achievements, such as record highs in net sales and income, and challenges, particularly in specific regional markets and segments. While the company reported strong performance in retail finance and launched new products, it also faced decreased demand in key regions and rising production costs.Positive Updates
Record Highs in Net Sales and Income
Net sales increased by 1.8% year-on-year to ¥989.2 billion and operating income by 4% to ¥162.6 billion in Q3. Net income rose by 9.7% to ¥108.3 billion, marking third quarter record highs for net sales and income.
Negative Updates
Decline in Construction and Mining Equipment Segment Profits
Segment profits for Construction, Mining & Utility Equipment decreased by 1.4% to ¥147 billion, with the profit ratio declining by 0.2 points to 16%.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Highs in Net Sales and Income
Net sales increased by 1.8% year-on-year to ¥989.2 billion and operating income by 4% to ¥162.6 billion in Q3. Net income rose by 9.7% to ¥108.3 billion, marking third quarter record highs for net sales and income.
Read all positive updates
Company Guidance
In the call, Komatsu provided detailed financial guidance for fiscal 2024 Q3. Key metrics highlighted include a 1.8% year-on-year increase in net sales to ¥989.2 billion, with operating income rising by 4% to ¥162.6 billion, resulting in an operating income ratio of 16.4%. Net income saw a significant increase of 9.7% to ¥108.3 billion, marking a record high for the third quarter. Segment performance varied, with Construction, Mining & Utility Equipment's sales remaining flat at ¥918.2 billion, while Retail Finance and Industrial Machinery & Others segments saw sales increases of 11.1% and 7.5%, respectively. Exchange rates played a crucial role, with the yen at ¥148.8 to the dollar and ¥161.4 to the euro, impacting sales and profitability. Looking ahead, the company projects a decline in demand for fiscal 2024, with specific regional insights provided, such as a 12% decrease in Japanese market demand and a 3% increase in North America. Despite challenges, Komatsu remains optimistic about future growth, particularly in the construction and mining equipment sectors, with ongoing investments in technology and market expansion.Komatsu Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.06T | 4.10T | 3.87T | 3.54T | 2.80T | 2.19T |
| Gross Profit | 1.28T | 1.32T | 1.21T | 1.04T | 779.58B | 581.05B |
| EBITDA | 783.49B | 820.13B | 767.53B | 646.39B | 457.42B | 304.19B |
| Net Income | 399.24B | 439.61B | 393.43B | 326.40B | 224.93B | 106.24B |
Balance Sheet | ||||||
| Total Assets | 6.31T | 5.77T | 5.64T | 4.88T | 4.35T | 3.78T |
| Cash, Cash Equivalents and Short-Term Investments | 428.74B | 385.57B | 403.18B | 289.98B | 316.67B | 243.13B |
| Total Debt | 1.53T | 1.22T | 1.27T | 1.12T | 1.01T | 965.85B |
| Total Liabilities | 2.76T | 2.43T | 2.44T | 2.20T | 1.99T | 1.77T |
| Stockholders Equity | 3.36T | 3.17T | 3.03T | 2.54T | 2.23T | 1.91T |
Cash Flow | ||||||
| Free Cash Flow | 252.31B | 311.31B | 231.83B | 22.94B | 138.01B | 172.58B |
| Operating Cash Flow | 460.73B | 517.17B | 434.78B | 206.47B | 300.97B | 354.13B |
| Investing Cash Flow | -194.88B | -210.67B | -204.43B | -174.25B | -163.64B | -163.06B |
| Financing Cash Flow | -250.59B | -321.42B | -122.03B | -61.88B | -73.80B | -199.67B |
Komatsu Ltd. Technical Analysis
Positive
6809.00
Price Trends
6816.86
Negative
5959.08
Positive
5440.23
Positive
Market Momentum
-21.07
Negative
55.59
Neutral
89.32
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 6809 is above the 20-day moving average (MA) of 6430.85, below the 50-day MA of 6816.86, and above the 200-day MA of 5440.23, indicating a neutral trend. The MACD of -21.07 indicates Negative momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 89.32 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥6.14T | 12.01 | ― | 4.06% | 0.40% | 8.40% | |
73 Outperform | ¥341.43B | 12.67 | ― | 2.99% | 0.31% | -11.04% | |
70 Outperform | ¥185.85B | 7.33 | 9.45% | 2.86% | 10.49% | -5.19% | |
70 Outperform | ¥90.25B | 15.03 | ― | 4.79% | 1.68% | 18.85% | |
67 Neutral | ¥1.21T | 13.34 | 9.16% | 3.98% | -2.72% | 29.43% | |
65 Neutral | ¥3.07T | 13.56 | 7.55% | 2.22% | -3.22% | -29.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:6301
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Komatsu Ltd. Corporate Events
Komatsu Reshapes Top Leadership, Elevates Kusaba as New Representative Director
Feb 16, 2026
Komatsu announced a reshuffle of its top management, appointing Taisuke Kusaba as Representative Director and Senior Executive Officer, effective April 1, 2026, as part of a broader change in its management structure. President and CEO Takuya Imay...
Komatsu Posts Lower Nine-Month Profits but Maintains Full-Year Outlook and Dividend Plan
Jan 30, 2026
Komatsu reported a modest 1.4% decline in net sales to ¥2.92 trillion for the nine months ended December 31, 2025, with operating income down 10.1% and net income attributable to the parent falling 13.0% year on year, reflecting weaker profit...
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.