Kubota (6326) AI Stock Analysis

• Market Cap: $2.01T
• Dividend Yield: 2.92%
• Average Volume (3M): 3.87M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.12
• Revenue Growth: -2.02%
• EPS Growth: -16.84%
• Country: JP
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 93
• Industry: Agricultural - Machinery
• EPS (TTM): 35.97
• Shares Outstanding: 1,150,896,900
• 10 Day Avg. Volume: 3,606,210
• 30 Day Avg. Volume: 3,867,803
• PEG Ratio: -0.76
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.12
• 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: $1,727.34
• Price Target Upside: 0.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: ¥1,987.00 ▲(16.00%Upside)

Kubota's overall stock score reflects a well-rounded performance with strong financial fundamentals, attractive valuation, and positive technical indicators. Key strengths include robust profitability and bullish technical momentum, while maintaining a reasonable valuation enhances its appeal to investors. Managing debt levels and addressing revenue growth challenges remain crucial for sustaining this positive outlook.

Positive Factors

Currency Exchange Rates

Kubota's earnings and share price benefit significantly from a weaker yen, which could become an upside factor if the depreciation trend continues.

Management Reshuffle

A major management reshuffle could lead to a meaningful announcement and potentially a major upgrade to the company's shareholder returns policy.

Negative Factors

Earnings Outlook

Earnings are unlikely to rise in the near term due to excess inventory in the North American compact construction machinery market.

Operating Profit

4Q operating profit was 42% lower year-over-year, primarily due to higher raw material costs and reduced production.

Profit Growth Challenges

Kubota's profit growth trend has been driven mainly by external factors, making it unlikely to overcome challenging conditions through internal efforts alone.

Kubota Business Overview & Revenue Model

Company Description

Kubota Corporation, founded in 1890 and headquartered in Osaka, Japan, is a leading manufacturer in the machinery industry. The company specializes in the production of agricultural machinery, construction equipment, engines, and water systems. Kubota's diverse product lineup includes tractors, combine harvesters, excavators, and utility vehicles, which are designed to meet the needs of farmers, construction professionals, and municipal governments around the world.

How the Company Makes Money

Kubota Corporation generates revenue primarily through the sale of its agricultural machinery and construction equipment. The company's key revenue streams include the production and sale of tractors, combine harvesters, rice transplanters, and other farm equipment, which account for a significant portion of its earnings. Additionally, Kubota sells construction machinery such as mini excavators and compact track loaders. The company also earns revenue from its engine segment, which provides small to medium-sized engines used in various industrial and commercial applications. Kubota's water and environment systems division contributes to earnings by offering solutions for water treatment and sewage processing. The company benefits from strong global distribution networks and strategic partnerships that enhance its market reach and customer base.

Kubota Financial Statement Overview

Summary

Kubota exhibits a strong financial position with robust profit margins and effective equity utilization, despite challenges in revenue growth and fluctuating cash flows. Stable leverage and strong cash generation capacity support a positive outlook, but careful management of debt levels is crucial.

Income Statement

Kubota demonstrates a solid performance with strong gross and net profit margins, reflecting efficient cost management. The TTM data shows a gross profit margin of 30.74% and a net profit margin of 6.73%, indicating robust profitability. However, revenue growth has been inconsistent, with a decline in the latest period compared to the previous year, which suggests potential market challenges or competitive pressures.

Balance Sheet

The balance sheet indicates a balanced financial structure with a debt-to-equity ratio of 0.91, suggesting moderate leverage. Return on equity stands at an impressive 8.29%, reflecting effective utilization of shareholders’ funds. The equity ratio of 41.57% showcases a solid equity base, though the rising debt levels may warrant close monitoring to ensure long-term financial stability.

Cash Flow

Kubota's cash flow performance is mixed, with free cash flow growth indicating improvement from negative figures in past years to a positive TTM figure. The operating cash flow to net income ratio of 1.43 suggests strong cash flow generation relative to earnings. However, historical volatility in free cash flow growth highlights potential challenges in sustaining consistent cash flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02T	3.02T	2.68T	2.20T	1.85T
Gross Profit	927.98B	876.47B	696.52B	631.81B	534.85B
EBITDA	462.40B	454.81B	322.40B	325.61B	254.91B
Net Income	230.44B	238.46B	156.47B	174.76B	128.52B
Balance Sheet
Total Assets	6.02T	5.36T	4.73T	3.77T	3.19T
Cash, Cash Equivalents and Short-Term Investments	295.13B	305.14B	297.31B	309.51B	272.89B
Total Debt	2.28T	1.99T	1.61T	1.09T	874.44B
Total Liabilities	3.28T	2.94T	2.65T	1.99T	1.62T
Stockholders Equity	2.48T	2.18T	1.88T	1.68T	1.48T
Cash Flow
Free Cash Flow	68.09B	-189.75B	-177.33B	-33.21B	58.17B
Operating Cash Flow	282.08B	-17.27B	-7.68B	92.51B	142.92B
Investing Cash Flow	-208.88B	-173.44B	-318.50B	-127.37B	-47.13B
Financing Cash Flow	-26.28B	178.40B	282.56B	60.59B	-68.35B

Kubota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1713.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6326, the sentiment is Positive. The current price of 1713 is above the 20-day moving average (MA) of 1640.40, above the 50-day MA of 1604.27, and below the 200-day MA of 1767.67, indicating a neutral trend. The MACD of 26.25 indicates Negative momentum. The RSI at 60.96 is Neutral, neither overbought nor oversold. The STOCH value of 86.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6326.

Kubota Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6326	76 Outperform	$2.01T	10.28	8.29%	2.92%	-2.02%	-16.84%
6305	76 Outperform	¥1.01T	12.38	9.99%	3.77%	-2.46%	-12.73%
6395	75 Outperform	€140.21B	16.59	4.46%	2.86%	11.41%	-6.80%
6301	73 Outperform	¥5.05T	11.55		3.52%	5.97%	13.80%
Sector *	71 Outperform	¥269.20B	13.89	8.47%	2.88%	6.35%	13.11%
6310	57 Neutral	¥32.72B	―		2.07%	1.56%	-720.36%

Kubota Corporate Events

Kubota Corporation Announces Strategic Share Repurchase

Kubota Corporation has announced its decision to repurchase its own shares through the Tokyo Stock Exchange Trading Network, aiming to acquire over 12 million common shares at a total cost of nearly ¥20 billion. This strategic move, approved by the Board of Directors, is intended to enhance shareholder value and reflects the company’s confidence in its financial stability and future growth prospects.

The most recent analyst rating on (JP:6326) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Reports No Share Repurchase in May 2025

Kubota Corporation announced that no shares were repurchased during the specified period of May 2025, despite a board resolution allowing for the repurchase of up to 16 million shares. This decision reflects the company’s current strategic focus and may influence its financial positioning and shareholder relations.

The most recent analyst rating on (JP:6326) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Announces No Share Repurchases in April 2025

Kubota Corporation announced that it did not repurchase any of its own shares during the specified period from April 23 to April 30, 2025, despite having a board resolution authorizing the repurchase of up to 16 million shares or ¥20 billion worth of shares by December 15, 2025. The lack of repurchase activity may impact the company’s stock market strategy and shareholder value, as share buybacks are often used to return value to shareholders and adjust capital structure.