Kubota Corporation (JP:6326)
:6326
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Kubota
(6326)
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Rating:70Outperform
Price Target:
¥3,095.00
▲(20.38% Upside)
Action:UpgradedDate:05/10/26
The score is led by solid financial performance but tempered by inconsistent cash-flow conversion and historical volatility. Technicals are supportive with price above major moving averages and positive momentum indicators. Valuation is reasonable at ~14x earnings with a modest dividend yield.
Positive Factors
Diversified product & revenue streams
Kubota's mix of new-equipment sales, engines, aftermarket parts/services and captive financing creates multiple, recurring revenue streams. This product and channel diversity reduces dependence on any single end-market, supports customer retention, and provides steadier cash across cycles.
Negative Factors
Inconsistent cash-flow conversion
FCF conversion around 0.58x and a history of negative OCF/FCF indicate working-capital and timing volatility. Persistent conversion weakness can limit self-funded investment, increase reliance on debt in downturns, and raise execution risk for multi-quarter initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified product & revenue streams
Kubota's mix of new-equipment sales, engines, aftermarket parts/services and captive financing creates multiple, recurring revenue streams. This product and channel diversity reduces dependence on any single end-market, supports customer retention, and provides steadier cash across cycles.
Read all positive factors
Kubota (6326) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.20T
Dividend Yield2.22%
Average Volume (3M)3.80M
Price to Earnings (P/E)9.5
Beta (1Y)1.25
Revenue Growth5.51%
EPS Growth12.24%
CountryJP
Employees52,094
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)191.95
Shares Outstanding1,138,716,800
10 Day Avg. Volume4,229,420
30 Day Avg. Volume3,804,423
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)0.97
Price to Sales (P/S)0.84
P/FCF Ratio14.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,250.00Price Target Upside26.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)189.58
Revenue Forecast (FY)¥3.18T
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 &...
How the Company Makes Money
Kubota primarily makes money by selling equipment and related components through its distribution network to end customers such as farmers, contractors, landscapers, and industrial users. A major revenue stream comes from the sale of agricultural ...
Kubota Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.12T | 3.02T | 3.02T | 3.02T | 2.68T | 2.20T |
| Gross Profit | 923.09B | 884.31B | 927.98B | 876.47B | 685.68B | 631.81B |
| EBITDA | 448.27B | 408.99B | 403.39B | 399.57B | 264.38B | 286.30B |
| Net Income | 218.63B | 186.69B | 230.44B | 238.46B | 156.47B | 175.64B |
Balance Sheet | ||||||
| Total Assets | 6.27T | 6.20T | 6.02T | 5.36T | 4.77T | 3.77T |
| Cash, Cash Equivalents and Short-Term Investments | 238.40B | 276.96B | 295.13B | 222.12B | 225.80B | 258.64B |
| Total Debt | 2.28T | 2.24T | 2.34T | 2.05T | 1.66T | 1.14T |
| Total Liabilities | 3.33T | 3.33T | 3.28T | 2.94T | 2.66T | 1.99T |
| Stockholders Equity | 2.69T | 2.62T | 2.48T | 2.18T | 1.87T | 1.68T |
Cash Flow | ||||||
| Free Cash Flow | 185.01B | 174.89B | 100.91B | -167.16B | -142.25B | -4.92B |
| Operating Cash Flow | 319.81B | 327.90B | 282.08B | -17.27B | -7.68B | 92.51B |
| Investing Cash Flow | -143.75B | -163.73B | -208.88B | -173.44B | -318.50B | -127.37B |
| Financing Cash Flow | -164.72B | -184.46B | -26.28B | 178.40B | 282.56B | 60.59B |
Kubota Technical Analysis
Negative
2571.00
Price Trends
2749.34
Negative
2512.80
Positive
2160.94
Positive
Market Momentum
-6.15
Negative
45.65
Neutral
49.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6326, the sentiment is Negative. The current price of 2571 is below the 20-day moving average (MA) of 2580.00, below the 50-day MA of 2749.34, and above the 200-day MA of 2160.94, indicating a neutral trend. The MACD of -6.15 indicates Negative momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 49.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6326.
Kubota Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥348.11B | 18.05 | ― | 2.99% | 5.65% | 11.14% | |
70 Outperform | ¥3.20T | 9.53 | 7.55% | 2.22% | 5.51% | 12.24% | |
69 Neutral | ¥5.93T | 12.74 | ― | 4.06% | 0.69% | -12.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥1.21T | 16.50 | 9.16% | 3.98% | 2.49% | -10.13% | |
61 Neutral | ¥40.81B | -7.71 | ― | 1.56% | 10.30% | ― |
* Industrials Sector Average
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Kubota Corporate Events
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...
Kubota Launches ¥30 Billion Share Buyback to Boost Shareholder Returns
Apr 21, 2026
Kubota Corporation has approved a share repurchase program of up to 15 million common shares, representing about 1.3% of its outstanding stock, with a total buyback ceiling of ¥30 billion. The purchases will take place between April 22 and De...
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 publis...
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...
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...
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...
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, i...
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 t...
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 th...
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.