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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

(6326)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥2,751.00
▼(-1.64% Downside)
Action:Downgraded
Date:08/05/26
The score is mainly supported by improving recent profitability and a reasonable valuation (P/E ~14.3), but it is held back by cash-flow inconsistency (including prior periods of negative OCF/FCF) and weaker technical momentum with the stock trading below key moving averages.
Positive Factors
Diversified product mix & recurring aftermarket
Kubota's diversified exposure across agricultural, construction, engines and water systems and a large installed base create recurring aftermarket revenue (parts, service, maintenance). This durable revenue mix smooths cycles, supports margins and funds reinvestment over a multi-month horizon.
Negative Factors
Choppy cash-flow conversion
Historical swings to negative operating and free cash flow in 2022–2023 and a moderate FCF-to-net-income ratio (~0.58) point to inconsistent cash conversion. This reduces internal funding reliability for capex, dividends or acquisitions during weaker periods and raises refinancing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified product mix & recurring aftermarket
Kubota's diversified exposure across agricultural, construction, engines and water systems and a large installed base create recurring aftermarket revenue (parts, service, maintenance). This durable revenue mix smooths cycles, supports margins and funds reinvestment over a multi-month horizon.
Read all positive factors

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

Kubota Business Overview & Revenue Model

Company Description
Kubota Corporation is a global enterprise that develops and markets machinery and related solutions across the food, water, and environment sectors. Its operations span Japan, North America, Europe, Asia, and other international markets. The compa...
How the Company Makes Money
Kubota makes money primarily by manufacturing and selling equipment and related products across its major business areas. A core revenue stream is the sale of agricultural machinery (e.g., tractors, harvesting equipment, implements), typically sol...

Kubota Financial Statement Overview

Summary
Income statement trends are constructive (TTM revenue +4.4% with improved net margin ~7.0% and stable gross margin ~29–31%), but the balance sheet is only mid-strength (debt ~0.85x equity; ROE ~8.6%) and cash-flow quality is the main drag due to historical volatility (negative OCF/FCF in 2022–2023 and only moderate earnings-to-cash conversion with FCF/NI ~0.58).
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
56
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.25T3.02T3.02T3.02T2.68T2.20T
Gross Profit983.71B884.31B927.98B876.47B685.68B631.81B
EBITDA523.64B430.98B403.39B399.57B264.38B286.30B
Net Income267.89B186.69B230.44B238.46B156.47B175.64B
Balance Sheet
Total Assets6.35T6.20T6.02T5.36T4.77T3.77T
Cash, Cash Equivalents and Short-Term Investments303.28B276.96B295.13B222.12B225.80B258.64B
Total Debt2.26T2.24T2.34T2.05T1.66T1.14T
Total Liabilities3.31T3.33T3.28T2.94T2.66T1.99T
Stockholders Equity2.79T2.62T2.48T2.18T1.87T1.68T
Cash Flow
Free Cash Flow223.77B174.89B100.91B-167.16B-142.25B-4.92B
Operating Cash Flow375.70B327.90B282.08B-17.27B-7.68B92.51B
Investing Cash Flow-152.35B-163.73B-208.88B-173.44B-318.50B-127.37B
Financing Cash Flow-149.18B-184.46B-26.28B178.40B282.56B60.59B

Kubota Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2797.00
Price Trends
50DMA
2758.36
Positive
100DMA
2692.48
Positive
200DMA
2521.69
Positive
Market Momentum
MACD
-13.74
Positive
RSI
51.80
Neutral
STOCH
45.51
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 2797 is above the 20-day moving average (MA) of 2740.88, above the 50-day MA of 2758.36, and above the 200-day MA of 2521.69, indicating a bullish trend. The MACD of -13.74 indicates Positive momentum. The RSI at 51.80 is Neutral, neither overbought nor oversold. The STOCH value of 45.51 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
78
Outperform
¥355.26B12.172.99%10.92%14.74%
76
Outperform
¥6.24T16.582.72%5.24%-7.42%
68
Neutral
¥1.15T12.768.61%3.08%5.87%32.02%
64
Neutral
¥41.80B15.341.56%11.98%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥3.12T14.308.59%1.82%5.51%12.24%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6326
Kubota
2,760.00
997.09
56.56%
JP:6305
Hitachi Construction Machinery Co
5,609.00
1,101.68
24.44%
JP:6301
Komatsu Ltd.
7,349.00
2,572.53
53.86%
JP:6310
Iseki & Co., Ltd.
1,938.00
160.35
9.02%
JP:6432
Takeuchi Mfg.Co., Ltd.
7,700.00
2,331.73
43.44%

Kubota Corporate Events

Kubota Launches ¥40 Billion Share Buyback to Boost Shareholder Value
Aug 4, 2026
Kubota Corporation has approved a share repurchase program aimed at enhancing value per share and reinforcing its shareholder return measures as part of its capital management strategy. The decision underscores the company’s confidence in it...
Kubota Raises Interim Dividend, Signals Stronger Shareholder Returns
Aug 4, 2026
Kubota Corporation is a Japan-based manufacturer best known for agricultural machinery, construction equipment, and industrial engines, serving global markets tied to farming, infrastructure, and related capital investment. The company targets sta...
Kubota lifts full-year outlook after weaker yen and U.S. tariff refunds boost profits
Aug 4, 2026
Kubota reported that results for the six months to June 30, 2026, significantly exceeded its earlier forecast, with revenue up 5.6% to ¥1.69 trillion and operating profit surging 47.2% as a weaker yen and U.S. tariff refunds bolstered margins...
Kubota Delivers Strong First-Half Earnings and Raises Full-Year Outlook
Aug 4, 2026
Kubota reported consolidated revenue of ¥1,690.3 billion for the six months ended June 30, 2026, up 16.2% year on year, with operating profit surging 64.7% to ¥235.6 billion and profit attributable to owners of the parent rising 87.8% to...
Kubota Completes ¥30 Billion Share Buyback to Boost Shareholder Value
Jun 12, 2026
Kubota Corporation has completed a share repurchase program authorized by its board in April 2026, aiming to enhance shareholder returns and increase value per share. The company bought back 11,104,900 common shares for a total of ¥29,999,887...
Kubota Launches ¥30 Billion Share Buyback Via ToSTNeT-3
Jun 11, 2026
Kubota Corporation has set the specific terms for a share repurchase under a previously approved buyback program, opting to acquire 11,104,900 common shares for up to ¥29,999,887,350 through the Tokyo Stock Exchange’s ToSTNeT-3 off-auct...
Kubota Leaves Newly Authorized Share Buyback Untapped Through May 2026
Jun 3, 2026
Kubota Corporation reported on the status of its ongoing share repurchase program authorized under Japan’s Companies Act, confirming that no common shares were bought back and no funds were expended between May 1 and May 31, 2026. The board ...
Kubota to Terminate Retirement Benefit Trust, Book ¥32 Billion Extraordinary Income
May 13, 2026
Kubota will terminate a retirement benefit trust after determining that pension assets, including those in the trust, exceed its retirement benefit obligations and are expected to remain sufficient. The trust is scheduled to be unwound on May 29, ...
Kubota Leaves Share Buyback Authorization Untapped in Initial Phase
May 11, 2026
Kubota Corporation has disclosed the latest status of its share repurchase program authorized under Japan’s Companies Act, confirming that no common shares were bought back between April 22 and April 30, 2026. The company had secured board a...
Kubota Delivers Strong Q1 Profit Surge and Confirms 2026 Outlook
May 8, 2026
Kubota reported a solid start to 2026, with first-quarter revenue rising 13.7% year on year to ¥810.0 billion and operating profit jumping 59.1% to ¥98.0 billion, driving profit attributable to owners of the parent up 77.2% to ¥73.3...
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: Aug 05, 2026