Kubota (6326) AI Stock Analysis

• Market Cap: $2.20T
• Dividend Yield: 2.62%
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.09
• Revenue Growth: -6.12%
• EPS Growth: -32.56%
• Country: JP
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 44.63
• Shares Outstanding: 1,150,896,900
• 10 Day Avg. Volume: 3,034,740
• 30 Day Avg. Volume: 3,414,336
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 10.06
• 1Y Price Target: $1,927.91
• Price Target Upside: 0.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ¥1,962.00 ▲(2.75% Upside)

Kubota's stock is supported by strong valuation metrics and positive technical indicators. The stable profitability and balanced capital structure are strengths, but challenges in revenue growth and cash flow management are notable risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Negative Factors

Kubota Business Overview & Revenue Model

Company Description

Kubota 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 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 demonstrates stable profitability with solid profit margins but faces challenges in revenue growth and cash flow management. The company maintains a balanced capital structure, but increasing leverage and declining revenue growth are potential risks.

Income Statement

Kubota's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by -2.1%, which is concerning. However, the company maintains a healthy gross profit margin of approximately 30.7% and a net profit margin of 6.7%, reflecting stable profitability. The EBIT and EBITDA margins are also solid at 10% and 13.9%, respectively, indicating efficient operations. The overall trend suggests stable profitability but challenges in revenue growth.

Balance Sheet

Kubota's balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.91, which is manageable but slightly elevated compared to previous years. The return on equity (ROE) is 8.2%, indicating decent returns for shareholders. The equity ratio stands at 42.4%, suggesting a balanced capital structure. While the company has a stable financial position, the increasing debt levels could pose a risk if not managed properly.

Cash Flow

The cash flow statement reveals some concerns. Although free cash flow grew by 17.4% in the TTM period, the operating cash flow to net income ratio is relatively low at 0.17, indicating potential cash flow management issues. The free cash flow to net income ratio is 0.39, suggesting that a significant portion of net income is not being converted into free cash flow. While there is growth in free cash flow, the overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.89T	3.02T	3.02T	2.68T	2.20T	1.85T
Gross Profit	885.00B	927.98B	876.47B	696.52B	631.81B	534.85B
EBITDA	397.13B	462.40B	454.81B	322.40B	325.61B	254.91B
Net Income	172.11B	230.44B	238.46B	156.47B	174.76B	128.52B
Balance Sheet
Total Assets	5.67T	6.02T	5.36T	4.73T	3.77T	3.19T
Cash, Cash Equivalents and Short-Term Investments	200.86B	398.92B	305.14B	297.31B	309.51B	272.89B
Total Debt	2.08T	2.28T	2.05T	1.66T	1.14T	916.56B
Total Liabilities	3.01T	3.28T	2.94T	2.65T	1.99T	1.62T
Stockholders Equity	2.40T	2.48T	2.18T	1.88T	1.68T	1.48T
Cash Flow
Free Cash Flow	129.88B	68.09B	-189.75B	-177.33B	-33.21B	58.17B
Operating Cash Flow	295.50B	282.08B	-17.27B	-7.68B	92.51B	142.92B
Investing Cash Flow	-162.99B	-208.88B	-173.44B	-318.50B	-127.37B	-47.13B
Financing Cash Flow	-215.96B	-26.28B	178.40B	282.56B	60.59B	-68.35B

Kubota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1909.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1909.5 is above the 20-day moving average (MA) of 1823.20, above the 50-day MA of 1764.12, and above the 200-day MA of 1736.49, indicating a bullish trend. The MACD of 36.28 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 77.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	78 Outperform	¥4.90T	11.65	13.84%	3.58%	3.12%	8.28%
6432	74 Outperform	¥252.26B	9.92	15.64%	3.78%	-2.83%	-10.80%
6326	73 Outperform	$2.20T	12.79	7.15%	2.62%	-6.12%	-32.56%
6305	70 Outperform	¥1.02T	14.99	8.59%	3.65%	-4.59%	-21.22%
6395	64 Neutral	¥135.27B	23.54	3.52%	2.91%	9.20%	-40.76%
6310	57 Neutral	¥50.96B	56.99	-4.47%	1.33%	5.63%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kubota Corporate Events

Kubota Corporation Declares Stable Interim Dividend for 2025

Kubota Corporation announced an interim dividend of ¥25 per common share for the fiscal year ending December 31, 2025, maintaining the same dividend as the previous year. This decision aligns with the company’s policy of providing stable returns to shareholders while considering current business performance, reflecting its commitment to shareholder value.

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 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.