Kubota (6326) AI Stock Analysis

• Market Cap: ¥2.70T
• Dividend Yield: 2.22%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.00
• 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: 1,138,716,800
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 76 Outperform
• Price Target: ¥2,605.00 ▲(9.87% Upside)

Kubota's overall stock score is driven by strong technical indicators and a reasonable valuation, suggesting a bullish outlook. The stable financial performance supports this view, although there are areas for improvement in profitability and cash flow efficiency. The absence of recent earnings call data and corporate events does not impact the score.

Positive Factors

Business Model Strength

Kubota's diversified revenue model across agriculture and construction sectors ensures stability and resilience against sector-specific downturns.

Cash Generation Ability

Improved free cash flow growth enhances Kubota's ability to reinvest in business operations, reduce debt, and return capital to shareholders.

Market Position

Strong global partnerships expand Kubota's market reach, supporting sustained revenue growth and competitive positioning in key sectors.

Negative Factors

Revenue Growth Trends

Sluggish revenue growth may indicate challenges in market expansion or product demand, potentially impacting long-term financial performance.

Profitability Pressure

Decreasing net profit margins suggest rising costs or pricing pressures, which could affect Kubota's ability to maintain profitability.

Efficiency in Generating Returns

Reduced return on equity indicates declining efficiency in generating shareholder returns, potentially impacting investor confidence.

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	2.94T	3.02T	3.02T	2.68T	2.20T	1.85T
Gross Profit	878.55B	927.98B	876.47B	696.52B	631.81B	534.85B
EBITDA	411.70B	462.40B	454.81B	322.40B	325.61B	254.91B
Net Income	174.48B	230.44B	238.46B	156.47B	174.76B	128.52B
Balance Sheet
Total Assets	5.83T	6.02T	5.36T	4.73T	3.77T	3.19T
Cash, Cash Equivalents and Short-Term Investments	222.13B	398.92B	305.14B	297.31B	309.51B	272.89B
Total Debt	2.16T	2.28T	2.05T	1.66T	1.14T	916.56B
Total Liabilities	3.13T	3.28T	2.94T	2.65T	1.99T	1.62T
Stockholders Equity	2.47T	2.48T	2.18T	1.88T	1.68T	1.48T
Cash Flow
Free Cash Flow	170.72B	68.09B	-189.75B	-177.33B	-33.21B	58.17B
Operating Cash Flow	342.20B	282.08B	-17.27B	-7.68B	92.51B	142.92B
Investing Cash Flow	-186.32B	-208.88B	-173.44B	-318.50B	-127.37B	-47.13B
Financing Cash Flow	-189.93B	-26.28B	178.40B	282.56B	60.59B	-68.35B

Kubota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2371.00
• 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 2371 is above the 20-day moving average (MA) of 2245.73, above the 50-day MA of 2169.31, and above the 200-day MA of 1820.81, indicating a bullish trend. The MACD of 40.47 indicates Negative momentum. The RSI at 73.33 is Negative, neither overbought nor oversold. The STOCH value of 93.50 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	¥338.57B	12.54	―	2.99%	0.31%	-11.04%
6326	76 Outperform	¥2.70T	15.56	7.16%	2.22%	-3.22%	-29.63%
6305	69 Neutral	¥1.07T	12.24	10.54%	3.98%	-2.72%	29.43%
6301	68 Neutral	¥4.68T	11.55	―	4.06%	0.40%	8.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6395	62 Neutral	¥140.21B	12.75	5.59%	2.86%	10.49%	-5.19%
6310	45 Neutral	¥42.01B	25.78	―	1.56%	10.90%	―

Kubota Corporate Events

Kubota Corporation to Retire 1.1% of Its Common Shares to Boost Shareholder Value

Kubota Corporation has announced its decision to retire 12,180,000 shares of its common stock, which constitutes 1.1% of the total shares issued. This move, planned for December 26, 2025, aims to enhance shareholder value by increasing the value per share, reflecting the company’s ongoing strategy to return profits to its shareholders.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2272.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Reports Financial Decline for Nine-Month Period Ending September 2025

Kubota Corporation reported a decline in its financial performance for the nine months ending September 30, 2025, with revenue and profits showing a decrease compared to the previous year. Despite the downturn, the company maintained its dividend forecast, indicating a commitment to shareholder returns amidst challenging market conditions.

The most recent analyst rating on (JP:6326) stock is a Buy with a Yen2272.00 price target. To see the full list of analyst forecasts on Kubota stock, see the JP:6326 Stock Forecast page.

Kubota Corporation Announces Leadership 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.