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Kubota Corporation (JP:6326)
:6326
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Kubota (6326) AI Stock Analysis

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JP:6326

Kubota

(OTC:6326)

Rating:76Outperform
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 (6326) vs. iShares MSCI Japan ETF (EWJ)

Kubota Business Overview & Revenue Model

Company DescriptionKubota 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 MoneyKubota 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
78
Positive
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
72
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.02T3.02T2.68T2.20T1.85T
Gross Profit927.98B876.47B696.52B631.81B534.85B
EBITDA462.40B454.81B322.40B325.61B254.91B
Net Income230.44B238.46B156.47B174.76B128.52B
Balance Sheet
Total Assets6.02T5.36T4.73T3.77T3.19T
Cash, Cash Equivalents and Short-Term Investments295.13B305.14B297.31B309.51B272.89B
Total Debt2.28T1.99T1.61T1.09T874.44B
Total Liabilities3.28T2.94T2.65T1.99T1.62T
Stockholders Equity2.48T2.18T1.88T1.68T1.48T
Cash Flow
Free Cash Flow68.09B-189.75B-177.33B-33.21B58.17B
Operating Cash Flow282.08B-17.27B-7.68B92.51B142.92B
Investing Cash Flow-208.88B-173.44B-318.50B-127.37B-47.13B
Financing Cash Flow-26.28B178.40B282.56B60.59B-68.35B

Kubota Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1713.00
Price Trends
50DMA
1604.27
Positive
100DMA
1661.78
Positive
200DMA
1767.67
Negative
Market Momentum
MACD
26.25
Negative
RSI
60.96
Neutral
STOCH
86.78
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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.01T10.288.29%2.92%-2.02%-16.84%
76
Outperform
¥1.01T12.389.99%3.77%-2.46%-12.73%
75
Outperform
€140.21B16.594.46%2.86%11.41%-6.80%
73
Outperform
¥5.05T11.55
3.52%5.97%13.80%
71
Outperform
¥269.20B13.898.47%2.88%6.35%13.11%
57
Neutral
¥32.72B
2.07%1.56%-720.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6326
Kubota
1,713.00
-407.38
-19.21%
JP:6301
Komatsu Ltd.
5,397.00
1,070.40
24.74%
JP:6310
Iseki & Co., Ltd.
1,435.00
442.85
44.64%
JP:6395
TADANO
1,082.50
-23.30
-2.11%
JP:6305
Hitachi Construction Machinery Co
4,643.00
1,044.28
29.02%

Kubota Corporate Events

Kubota Corporation Announces Strategic Share Repurchase
Jun 10, 2025

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
Jun 4, 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
May 9, 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.

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: Jul 24, 2025