Kubota (6326) AI Stock Analysis

• Market Cap: $1.88T
• Dividend Yield: 3.06%
• Average Volume (3M): 4.75M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.13
• Revenue Growth: -2.02%
• EPS Growth: -16.84%
• Country: JP
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 86
• Industry: Agricultural - Machinery
• EPS (TTM): 35.97
• Shares Outstanding: 1,150,896,900
• 10 Day Avg. Volume: 3,616,080
• 30 Day Avg. Volume: 4,746,716
• PEG Ratio: -1.46
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.23
• 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: $1,747.50
• Price Target Upside: 6.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: ¥1,786.00 ▲(9.34%Upside)

Kubota's stock is supported by a strong financial foundation with robust profit margins and effective equity utilization. The valuation is attractive with a low P/E ratio and a solid dividend yield, appealing to value investors. However, technical indicators suggest a neutral to bearish outlook, with the stock trading below key moving averages. Continued focus on revenue growth and debt management will be critical for sustaining long-term financial health.

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.

Shareholder returns

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

Negative Factors

Market conditions

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

Operating profit forecast

The initial guidance for the next fiscal year forecasts an 11% drop in operating profit, influenced by adverse foreign exchange effects.

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 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 makes money through the sale of its wide range of machinery and equipment primarily in the agricultural and construction sectors. Its main revenue streams include the sale of tractors, combine harvesters, and construction equipment like excavators and loaders. Additionally, the company generates income from the sale of engines and water technology-related products. Kubota also benefits from a global distribution network and various strategic partnerships that help expand its market reach and enhance its earnings potential. The company's focus on innovation and sustainability further contributes to its competitive edge and financial performance.

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, the company's stable leverage and strong cash generation capacity support a positive outlook.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95T	3.02T	3.02T	2.68T	2.20T	1.85T
Gross Profit	908.08B	927.98B	876.47B	696.52B	631.81B	534.85B
EBITDA	411.15B	462.40B	454.81B	322.40B	325.61B	254.91B
Net Income	198.86B	230.44B	238.46B	156.47B	174.76B	128.52B
Balance Sheet
Total Assets	5.77T	6.02T	5.36T	4.73T	3.77T	3.19T
Cash, Cash Equivalents and Short-Term Investments	210.17B	295.13B	305.14B	297.31B	309.51B	272.89B
Total Debt	2.18T	2.28T	1.99T	1.61T	1.09T	874.44B
Total Liabilities	3.12T	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	110.61B	68.09B	-189.75B	-177.33B	-33.21B	58.17B
Operating Cash Flow	285.21B	282.08B	-17.27B	-7.68B	92.51B	142.92B
Investing Cash Flow	-201.70B	-208.88B	-173.44B	-318.50B	-127.37B	-47.13B
Financing Cash Flow	-133.33B	-26.28B	178.40B	282.56B	60.59B	-68.35B

Kubota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1633.50
• 50DMA: Positive
• 100DMA: Negative
• 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 1633.5 is above the 20-day moving average (MA) of 1587.80, above the 50-day MA of 1596.59, and below the 200-day MA of 1790.05, indicating a neutral trend. The MACD of 10.16 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 82.76 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	72 Outperform	$1.88T	9.55	8.29%	3.06%	-2.02%	-16.84%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%
HTCMF		$6.27B	11.84	9.99%	0.03%	―	―
TN0		€735.24M	14.50	4.46%	3.65%	―	―
6301	79 Outperform	¥4.37T	10.00		4.52%	5.97%	13.80%
6310	51 Neutral	¥28.42B	―		2.39%	1.56%	-720.36%
6432		¥220.55B	8.37		4.32%	―	―

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.

Kubota Announces Strategic Share Repurchase Plan

Kubota Corporation has announced a share repurchase plan to enhance shareholder value by buying back up to 16 million common shares, representing 1.4% of its total shares, for a maximum of ¥20 billion. This strategic move, set to occur between April 23 and December 15, 2025, aims to increase the value per share and return profits to shareholders, potentially strengthening Kubota’s market position and investor appeal.