Komatsu Ltd. (JP:6301)
:6301
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Komatsu Ltd.
(6301)
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Rating:74Outperform
Price Target:
¥7,679.00
▲(14.61% Upside)
Action:ReiteratedDate:04/29/26
Overall score is driven primarily by strong underlying financial performance over the cycle, tempered by 2026 margin compression, higher debt, and volatile free cash flow. Technicals are neutral-to-supportive with longer-term trend strength but limited short-term momentum. Valuation is attractive with a moderate P/E and a solid dividend yield.
Positive Factors
Multi-year revenue growth
Komatsu delivered sustained revenue expansion through 2025, building scale and market coverage. Multi-year top-line growth supports long-term investments in product development, dealer networks and service infrastructure, increasing resilience across equipment cycles.
Negative Factors
2026 margin compression
Profit and margin deterioration in 2026 signals cost pressures or pricing weakness that could persist. Sustained margin compression would lower operating leverage and free cash generation, constraining investment capacity and stressing stakeholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Komatsu delivered sustained revenue expansion through 2025, building scale and market coverage. Multi-year top-line growth supports long-term investments in product development, dealer networks and service infrastructure, increasing resilience across equipment cycles.
Read all positive factors
Komatsu Ltd. (6301) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.92T
Dividend Yield4.06%
Average Volume (3M)2.54M
Price to Earnings (P/E)14.5
Beta (1Y)1.39
Revenue Growth0.69%
EPS Growth-12.55%
CountryJP
Employees65,738
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)118.08
Shares Outstanding930,340,640
10 Day Avg. Volume2,633,020
30 Day Avg. Volume2,544,656
Financial Highlights & Ratios
PEG Ratio-1.15
Price to Book (P/B)1.56
Price to Sales (P/S)1.32
P/FCF Ratio23.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,208.89Price Target Upside7.60% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)422.35
Revenue Forecast (FY)¥4.22T
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:Aug 05, 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
83
Very Positive
Balance Sheet
76
Positive
Cash Flow
69
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.13T | 4.10T | 3.87T | 3.54T | 2.80T |
| Gross Profit | 1.26T | 1.32T | 1.21T | 1.04T | 779.58B |
| EBITDA | 733.00B | 820.13B | 767.53B | 646.39B | 457.42B |
| Net Income | 376.39B | 439.61B | 393.43B | 326.40B | 224.93B |
Balance Sheet | |||||
| Total Assets | 6.42T | 5.77T | 5.64T | 4.88T | 4.35T |
| Cash, Cash Equivalents and Short-Term Investments | 439.70B | 385.57B | 403.18B | 289.98B | 316.67B |
| Total Debt | 1.42T | 1.22T | 1.27T | 1.12T | 1.01T |
| Total Liabilities | 2.72T | 2.43T | 2.44T | 2.20T | 1.99T |
| Stockholders Equity | 3.51T | 3.17T | 3.03T | 2.54T | 2.23T |
Cash Flow | |||||
| Free Cash Flow | 236.70B | 311.31B | 231.83B | 22.94B | 138.01B |
| Operating Cash Flow | 448.96B | 517.17B | 434.78B | 206.47B | 300.97B |
| Investing Cash Flow | -199.23B | -210.67B | -204.43B | -174.25B | -163.64B |
| Financing Cash Flow | -208.54B | -321.42B | -122.03B | -61.88B | -73.80B |
Komatsu Ltd. Technical Analysis
Positive
6700.00
Price Trends
6908.94
Negative
6049.76
Positive
5506.28
Positive
Market Momentum
70.91
Negative
50.38
Neutral
60.93
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 6700 is above the 20-day moving average (MA) of 6514.63, below the 50-day MA of 6908.94, and above the 200-day MA of 5506.28, indicating a neutral trend. The MACD of 70.91 indicates Negative momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 60.93 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥334.76B | 12.26 | ― | 2.99% | 5.65% | 11.14% | |
74 Outperform | ¥5.92T | 14.52 | ― | 4.06% | 0.69% | -12.55% | |
74 Outperform | ¥89.93B | 12.90 | ― | 4.79% | 0.52% | 20.09% | |
70 Outperform | ¥174.19B | 7.33 | 9.45% | 2.86% | 19.89% | 176.66% | |
65 Neutral | ¥2.91T | 13.56 | 7.55% | 2.22% | 0.09% | -17.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥1.16T | 15.32 | 9.16% | 3.98% | 2.49% | -10.13% |
* Industrials Sector Average
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Komatsu Ltd. Corporate Events
Komatsu Weighs Cutting Minimum Investment Unit to Broaden Investor Base
Apr 28, 2026
Komatsu has outlined its stance on potentially lowering the minimum investment unit of its shares below ¥500,000, acknowledging that a reduced threshold could help attract a wider base of investors and improve liquidity in its stock. The comp...
Komatsu to Maintain ¥190 Dividend, Unlocks Reserves for Capital Flexibility
Apr 28, 2026
Komatsu plans a year-end dividend of ¥95 per share for the fiscal year ended March 31, 2026, bringing total annual dividends to ¥190 per share, unchanged from the prior year and implying a consolidated payout ratio of 45.9%. Despite proj...
Komatsu Launches ¥100 Billion Share Buyback and Treasury Stock Cancellation
Apr 28, 2026
Komatsu’s board has approved a share buyback of up to 25 million common shares, representing about 2.8% of outstanding stock, for a total consideration of as much as 100 billion yen. The repurchase, to be conducted on the Tokyo Stock Exchang...
Komatsu Profit Slides Despite Higher Sales as Firm Holds Dividend Steady
Apr 28, 2026
Komatsu reported fiscal year 2026 net sales of ¥4.13 trillion, up 0.7% year-on-year, but operating income fell 13.7% and net income attributable to the parent declined 14.4%, reflecting margin pressure despite stable top-line growth. Returns ...
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.