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Kubota Corporation (JP:6326)
:6326

Kubota (6326) AI Stock Analysis

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JP:6326

Kubota

(6326)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
¥3,269.00
▲(2.93% Upside)
Action:DowngradedDate:02/18/26
The score is primarily driven by solid but mixed fundamentals: strong multi-year growth and decent profitability are offset by volatile cash generation and some recent margin pressure. Technicals add support due to a strong uptrend and positive momentum, but overbought readings temper the impact. Valuation is only moderately supportive given a ~19x P/E and a modest ~1.64% dividend yield.
Positive Factors
Multi‑year Revenue Expansion
Sustained revenue expansion (~+63% 2020–2025) indicates durable demand and successful geographic/product penetration. This scale supports fixed‑cost absorption, long‑term dealer and supplier relationships, and provides a base for incremental margin improvement and reinvestment over multiple cycles.
Consistent Profitability Margins
Stable gross margins around 29–31% and historically double‑digit operating profit reflect manufacturing efficiency and pricing power in equipment markets. These structural margins underpin steady returns and give resilience to absorb cyclical cost swings while funding R&D and product support.
Improving Free Cash Flow & Capital Base
Return to positive FCF (~¥142B) alongside rising equity (~¥2.62T) strengthens financing flexibility. Improved cash conversion supports capex, product development and shareholder distributions without relying solely on external funding, enhancing medium‑term strategic optionality.
Negative Factors
Volatile Cash Generation
Historic OCF volatility (negative in 2022–23, rebound thereafter) points to working‑capital swings and uneven cash conversion. This uncertainty limits predictable reinvestment, increases reliance on financing during downturns, and weakens the durability of reported earnings.
Higher Leverage
Elevated debt‑to‑equity (~0.85) reduces balance‑sheet flexibility versus prior years. Higher leverage increases interest sensitivity and constrains the company’s ability to pursue opportunistic M&A or absorb cyclical revenue declines without raising cost of capital or cutting investment.
Margin Compression & Slowing Growth
Recent margin deterioration and decelerating top‑line (flat 2024, +2.6% 2025) suggest rising cost or pricing pressure and weaker end‑market momentum. If persistent, this erodes return on invested capital and limits cash available for strategic initiatives over the medium term.

Kubota (6326) vs. iShares MSCI Japan ETF (EWJ)

Kubota Business Overview & Revenue Model

Company DescriptionKubota Corporation manufactures and markets machinery and related solutions in the food, water, and environment markets in Japan, North America, Europe, Asia, and internationally. It operates in three segments: Farm & Industrial Machinery, Water & Environment, and Other. The Farm & Industrial Machinery segment offers tractors, power tillers, combine harvesters, rice transplanters, turf equipment, utility vehicles, other agricultural machinery, implements, attachments, post-harvest machinery, vegetable production equipment, and other agricultural equipment; cooperative drying, rice seedling, and gardening facilities; rice mill plants; scales, weighing and measuring control systems, and air purifiers; engines for farming, construction, industrial machinery, and generators; and mini excavators, wheel and skid steer loaders, compact track and, and other construction machinery related products. The Water & Environment segment provides ductile iron and plastic pipes, valves, and single stack drain fittings, as well as design and construction services; reformer and cracking tubes, hearth and steel mill rolls, TXAX friction materials, and spiral welded steel pipes; air-conditioning equipment; wastewater treatment equipment and plants, pumps and plants, membrane solutions, flue gas desulfurization apparatus, membrane methane fermentation plants, and bathtubs; and water purification, night-soil treatment, waste incinerating and melting, and waste shredding and sorting plants. The Other segment offers logistics; and roofing and siding materials. The company also engages in non-life insurance underwriting, finance leasing and factoring services, building maintenance, security guarding, transportation, storage, distribution, and cargo handling businesses; and export and import of repair parts related to farm equipment, engines, and construction machinery. It serves customers through a network of dealers. The company was founded in 1890 and is headquartered in Osaka, Japan.
How the Company Makes MoneyKubota generates revenue primarily through the sale of its machinery and equipment in various sectors, including agriculture and construction. The company has a diversified revenue model, with key revenue streams coming from the sale of agricultural equipment, construction machinery, and engines. Additionally, Kubota earns income from parts and service sales, which provide ongoing support to customers. The company has established significant partnerships with distributors and dealers worldwide, enhancing its market reach and customer base. Furthermore, Kubota benefits from global trends such as increasing food production demands and infrastructure development, which drive the need for its products and services.

Kubota Financial Statement Overview

Summary
Income statement is solid (multi-year revenue expansion and generally healthy margins), but 2025 margin compression reduces quality of recent performance. Balance sheet is supportive yet more leveraged than earlier years (higher debt-to-equity). Cash flow is the main weakness due to prior negative operating cash flow and uneven cash conversion despite improved FCF in 2024–2025.
Income Statement
74
Positive
Revenue scaled meaningfully from 2020 to 2025 (about +63% overall), but growth has cooled recently (flat in 2024 and ~+2.6% in 2025). Profitability is solid for the industry with gross margin holding near ~29–31% and operating profitability in the low double-digits at its peak; however, 2025 shows margin compression versus 2023–2024 (net margin down to ~6.2% from ~7.6–7.9%), indicating some cost or pricing pressure.
Balance Sheet
67
Positive
The company is well-capitalized with equity rising to ~¥2.62T in 2025 and a growing asset base, but leverage has increased versus 2020–2021. Debt-to-equity has moved up to ~0.85 in 2025 (and peaked near ~0.94 in 2023), which is manageable but reduces balance sheet flexibility if the cycle weakens. Returns on equity were healthy in 2022–2024 (~8–11%) where reported, supporting the view that the balance sheet is being used productively.
Cash Flow
52
Neutral
Cash generation is the main soft spot: operating cash flow was negative in 2022 and 2023, then rebounded in 2024–2025, suggesting working-capital volatility. Free cash flow is positive in 2024–2025 (improving to ~¥142B in 2025), but it remains uneven year-to-year and covers only a modest portion of earnings in 2024–2025 (free cash flow is ~24–43% of net income), which limits the quality of reported profits from a cash perspective.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.02T3.02T3.02T2.68T2.20T
Gross Profit884.31B927.98B876.47B696.52B631.81B
EBITDA408.99B462.40B454.81B322.40B325.61B
Net Income186.69B230.44B238.46B156.47B174.76B
Balance Sheet
Total Assets6.20T6.02T5.36T4.73T3.77T
Cash, Cash Equivalents and Short-Term Investments276.96B398.92B305.14B297.31B309.51B
Total Debt2.24T2.28T2.05T1.66T1.14T
Total Liabilities3.33T3.28T2.94T2.65T1.99T
Stockholders Equity2.62T2.48T2.18T1.88T1.68T
Cash Flow
Free Cash Flow142.00B68.09B-189.75B-177.33B-33.21B
Operating Cash Flow327.90B282.08B-17.27B-7.68B92.51B
Investing Cash Flow-163.73B-208.88B-173.44B-318.50B-127.37B
Financing Cash Flow-184.46B-26.28B178.40B282.56B60.59B

Kubota Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3176.00
Price Trends
50DMA
2548.08
Positive
100DMA
2321.45
Positive
200DMA
1999.59
Positive
Market Momentum
MACD
182.21
Negative
RSI
72.38
Negative
STOCH
67.44
Neutral
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 3176 is above the 20-day moving average (MA) of 2890.47, above the 50-day MA of 2548.08, and above the 200-day MA of 1999.59, indicating a bullish trend. The MACD of 182.21 indicates Negative momentum. The RSI at 72.38 is Negative, neither overbought nor oversold. The STOCH value of 67.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6326.

Kubota Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥6.80T17.284.06%0.40%8.40%
73
Outperform
¥357.65B13.232.99%0.31%-11.04%
70
Outperform
¥186.74B10.175.59%2.86%10.49%-5.19%
67
Neutral
¥1.49T19.7310.54%3.98%-2.72%29.43%
65
Neutral
¥3.61T19.437.16%2.22%-3.22%-29.63%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥48.27B17.521.56%10.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6326
Kubota
3,176.00
1,396.19
78.45%
JP:6305
Hitachi Construction Machinery Co
7,027.00
3,276.32
87.35%
JP:6395
TADANO
1,473.00
414.28
39.13%
JP:6301
Komatsu Ltd.
7,533.00
3,221.05
74.70%
JP:6310
Iseki & Co., Ltd.
2,135.00
1,018.10
91.15%
JP:6432
Takeuchi Mfg.Co., Ltd.
7,500.00
2,540.18
51.22%

Kubota Corporate Events

Kubota Sets Out Mid-term Business Plan Through 2030
Feb 13, 2026

Kubota Corporation has unveiled a new Mid-term Business Plan that will guide its operations from fiscal 2026 through fiscal 2030, outlining strategic priorities and financial targets for the five-year period. The plan, detailed in materials published for investors, is expected to shape Kubota’s capital allocation, growth initiatives and longer-term positioning in its core machinery and infrastructure-related businesses, providing stakeholders with a clearer view of the company’s medium-term direction.

By formalizing this roadmap to 2030, Kubota signals an intention to adapt proactively to changing demand in agriculture and construction, as well as evolving economic conditions in its key markets. The release underscores that execution of the plan will be subject to macroeconomic trends, government agricultural policies, capital spending levels and competitive dynamics, factors that could materially influence outcomes for investors, customers and partners.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2838.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota to Dispose of Treasury Shares for Executive Stock Compensation Plan
Feb 12, 2026

Kubota Corporation will dispose of 280,000 treasury shares as stock-based compensation, transferring them on March 3, 2026 to a trust managed by Sumitomo Mitsui Trust Bank at a disposal price of 2,742 yen per share, for total proceeds of about 767.76 million yen. The shares, representing about 0.02% of outstanding stock, will be used to grant equity to directors and executive officers under an existing stock-based compensation plan that links management pay to share performance.

The move extends Kubota’s medium- to long-term incentive scheme for both internal and outside directors, aiming to strengthen alignment between management, outside directors and shareholders through shared exposure to the company’s share value. Kubota argues the dilution impact on existing shareholders and the secondary market will be minimal, and it chose the disposal price based on the latest Tokyo Stock Exchange closing price to ensure an objective, market-based valuation.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2838.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Expands Executive Stock Compensation Trust With Additional Share Acquisition
Feb 12, 2026

Kubota has approved an additional cash entrustment to its existing stock-based compensation trust for executive officers, enabling the trustee to acquire more Kubota shares for long-term incentive purposes. The move underscores the company’s continued reliance on equity-linked pay to align management with shareholder interests, as the trust is scheduled to purchase 280,000 shares via disposal of treasury stock by March 2026 and remain in place through April 2027.

Under the updated arrangement, the trust will acquire common stock worth ¥767.76 million, with voting rights on the shares remaining unexercised during the trust period to prevent management from using them to influence control. By expanding this restricted stock plan, Kubota signals ongoing commitment to performance-linked governance and retention of senior executives, which could support strategic continuity and enhance corporate value over the medium term.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2838.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota to Boost Indian Finance Arm With ₹5 Billion Capital Infusion
Feb 12, 2026

Kubota and its Indian subsidiary Escorts Kubota Limited will inject up to 5 billion Indian rupees into Escorts Kubota Finance Limited by the end of 2027, elevating the finance arm to a specified subsidiary once its capital exceeds 10% of Kubota’s own. The capital is intended to support EKFL’s rapid expansion in captive financing, enabling more tailored loan programs linked to agricultural and construction machinery sales, which could strengthen Kubota’s competitive position in India even as the company reviews the eventual impact on its overall performance.

The staged infusion, coming on top of earlier approved investments, underscores Kubota’s strategy to deepen its presence in India’s farm and construction sectors through finance-led growth. By bolstering EKFL’s balance sheet and governance ties with Kubota executives, the group aims to scale its financing operations in line with rising equipment demand, potentially enhancing customer access to credit while concentrating more financial risk and scrutiny on the captive lender’s results.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2838.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Keeps Annual Dividend Steady at ¥50 Per Share for Fiscal 2025
Feb 12, 2026

Kubota’s board has approved a year-end dividend of ¥25 per common share for the fiscal year ended December 31, 2025, with payment scheduled for March 23, 2026. The total payout for the year-end dividend amounts to ¥28.46 billion, including dividends on shares held in a performance-linked stock compensation plan.

Including the already-paid interim dividend of ¥25 per share, Kubota’s annual dividend for 2025 comes to ¥50 per common share, unchanged from the prior fiscal year. The decision underscores the company’s stated policy of maintaining and gradually increasing stable dividends while using flexible share buybacks and treasury share retirements to return profits to shareholders, signaling continuity and predictability for investors.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2838.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Beats 2025 Profit Forecast on Weaker Yen and Strong North American, Japanese Sales
Feb 12, 2026

Kubota reported full-year 2025 consolidated results that significantly exceeded its earlier forecast, with revenue rising to ¥3,018.9 billion and operating profit reaching ¥265.5 billion, both above projections and roughly in line with the prior year’s sales level. Profit attributable to owners of the parent climbed to ¥186.7 billion, about 31% higher than the company’s earlier estimate, boosting basic earnings per share to ¥163.44 despite remaining below 2024 earnings.

Management attributed the upside to a weaker yen versus prior assumptions, tighter control and compression of fixed costs, and stronger-than-expected sales in North America and Japan. The results suggest improved operational efficiency and robust demand in key markets, which may support Kubota’s profitability and strategic positioning, though investors will note that profits have not yet returned to the peak levels achieved in the previous fiscal year.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2838.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Profit Slides Despite Flat Revenue as Margins Tighten
Feb 12, 2026

Kubota reported consolidated revenue of about ¥3.02 trillion for the year ended December 31, 2025, essentially flat year on year, while operating profit fell 15.9%, compressing its operating margin to 8.8%. Profit attributable to owners of the parent declined 19.0% and return ratios weakened, indicating margin pressure despite stable top-line performance.

The company maintained a solid financial position with total assets of roughly ¥6.2 trillion and an equity ratio above 40%, supported by positive operating cash flow but sizable investing and financing outflows. Kubota kept annual dividends at ¥50 per share for 2025 and guided to modest revenue and profit growth in 2026, while signaling a slight dividend increase, suggesting confidence in earnings recovery and continued shareholder returns.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2838.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Revamps Audit & Supervisory Board Lineup Ahead of March Shareholders’ Meeting
Jan 26, 2026

Kubota Corporation has announced planned changes to its Audit & Supervisory Board, resolving at a board meeting on January 26, 2026 to put forward a slate of candidates for shareholder approval at the ordinary general meeting scheduled for late March. The proposal calls for the reappointment of current Audit & Supervisory Board Member Masashi Tsunematsu, the new nomination of Senior Executive Officer Hideki Mori as an Audit & Supervisory Board Member, and the reappointment of outside member Keijiro Kimura, while current Audit & Supervisory Board Member Yasuhiko Hiyama is set to retire at the conclusion of the March meeting. The reshuffle signals Kubota’s intent to maintain continuity in its oversight structure while adding senior executive experience to the board, a move that may influence its governance practices and risk monitoring framework in the face of evolving market and regulatory demands.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2838.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Corporation to Retire 1.1% of Its Common Shares to Boost Shareholder Value
Dec 11, 2025

Kubota Corporation has announced its decision to retire 12,180,000 shares of its common stock, which constitutes 1.1% of the total shares issued. This move, planned for December 26, 2025, aims to enhance shareholder value by increasing the value per share, reflecting the company’s ongoing strategy to return profits to its shareholders.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2272.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

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.Date of analysis: Feb 18, 2026