Kubota (6326) AI Stock Analysis

• Market Cap: $2.32T
• Dividend Yield: 2.19%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.02
• Revenue Growth: -3.22%
• EPS Growth: -29.63%
• Country: JP
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 43.50
• Shares Outstanding: 1,150,896,900
• 10 Day Avg. Volume: 4,229,420
• 30 Day Avg. Volume: 3,804,423
• PEG Ratio: -4.55
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 31.50
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 10.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,272.00 ▲(0.09% Upside)

Kubota's overall stock score is driven by strong technical momentum and a stable valuation, despite challenges in financial performance related to revenue growth and cash flow management. The stock's bullish trend is a significant positive, though investors should be cautious of potential overbought conditions.

Positive Factors

Market Position

Kubota's strong market position in agriculture and infrastructure supports its long-term growth prospects, benefiting from global trends.

Profit Margins

Stable profit margins indicate efficient operations and pricing power, which are crucial for sustaining profitability over time.

Cash Flow Growth

Growth in free cash flow enhances Kubota's ability to reinvest in its business, support dividends, and manage debt, bolstering financial health.

Negative Factors

Revenue Growth Challenges

Declining revenue growth poses a risk to future earnings potential and may impact the company's ability to expand market share.

Increasing Leverage

Rising leverage could strain financial flexibility and increase risk if not managed, potentially impacting long-term stability.

Cash Flow Management Issues

Low conversion of net income to operating cash flow suggests inefficiencies in cash management, which could affect liquidity and investment capacity.

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 generates revenue primarily through the sale of its machinery and equipment in various sectors, including agriculture and construction. The company has a diversified revenue model, with key revenue streams coming from the sale of agricultural equipment, construction machinery, and engines. Additionally, Kubota earns income from parts and service sales, which provide ongoing support to customers. The company has established significant partnerships with distributors and dealers worldwide, enhancing its market reach and customer base. Furthermore, Kubota benefits from global trends such as increasing food production demands and infrastructure development, which drive the need for its products and services.

Kubota Financial Statement Overview

Summary

Kubota demonstrates stable profitability with solid profit margins and a balanced capital structure. However, challenges in revenue growth and cash flow management, along with increasing leverage, pose 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: 2270.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2270 is above the 20-day moving average (MA) of 2112.70, above the 50-day MA of 2026.23, and above the 200-day MA of 1787.22, indicating a bullish trend. The MACD of 64.08 indicates Negative momentum. The RSI at 70.70 is Negative, neither overbought nor oversold. The STOCH value of 85.12 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
6432	81 Outperform	¥306.62B	11.36	―	2.84%	0.31%	-11.04%
6326	70 Outperform	$2.32T	13.52	7.16%	2.19%	-3.22%	-29.63%
6301	68 Neutral	¥4.69T	11.31	―	3.28%	0.40%	8.40%
6305	64 Neutral	$931.84B	10.66	10.54%	3.74%	-2.72%	29.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6395	62 Neutral	€137.17B	23.87	5.59%	2.94%	10.49%	-5.19%
6310	45 Neutral	¥43.34B	26.60	―	1.53%	10.90%	―

Kubota Corporate Events

Kubota Corporation Announces Leadership Changes for 2026

Kubota Corporation has announced a series of changes in its leadership structure, including the selection of candidates for directors and the appointment of new executive officers, effective from January 1, 2026. These changes, resolved at the recent Board of Directors meeting, are aimed at strengthening the company’s leadership team and ensuring continued growth and innovation in its operations. The appointments and retirements reflect Kubota’s strategic focus on enhancing its executive capabilities to better position itself in the competitive machinery industry.

The most recent analyst rating on (JP:6326) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Corporation Announces Leadership Change

Kubota Corporation has announced a change in its leadership, appointing Shingo Hanada as the new President and CEO, effective January 1, 2026. This change aligns with the company’s long-term vision and upcoming mid-term business plan, aiming to enhance its management structure and continue its focus on addressing social issues in the food, water, and environmental sectors.

The most recent analyst rating on (JP:6326) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Corporation Reports Decline in H1 2025 Earnings

Kubota Corporation is a leading Japanese company specializing in the manufacture of farm and industrial machinery, water and environment systems, and other industrial products. Known for its global presence, Kubota operates primarily in the machinery sector, providing innovative solutions for agriculture and infrastructure.

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.