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Komatsu Ltd. (KMTUY)
OTHER OTC:KMTUY
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Komatsu
(OTC:KMTUY)
78Outperform
Komatsu (KMTUY) vs. S&P 500 (SPY)
Market Cap
$27.61B
Dividend Yield2.91%
Average Volume (3M)122.53K
Price to Earnings (P/E)10.7
Beta (1Y)0.88
Revenue Growth-1.87%
EPS Growth-6.15%
CountryUS
Employees67,755
SectorIndustrials
Sector Strength69
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)2.82
Shares Outstanding950,953,100
10 Day Avg. Volume83,898
30 Day Avg. Volume122,527
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.94
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Komatsu Business Overview & Revenue Model
Company DescriptionKomatsu Ltd. (KMTUY) is a leading global manufacturer of construction and mining equipment, utilities, forest machines, and industrial machinery. Headquartered in Tokyo, Japan, the company operates through various segments, including Construction, Mining, Utility Equipment, and Industrial Machinery. Komatsu is renowned for its innovative technologies and solutions that enhance productivity and efficiency in sectors such as construction, mining, agriculture, and forestry.
How the Company Makes MoneyKomatsu generates revenue primarily through the sale of heavy machinery and equipment used in construction, mining, and industrial applications. The company offers a diverse portfolio of products, including excavators, bulldozers, dump trucks, wheel loaders, and mining shovels, which are sold to a wide range of industries globally. In addition to equipment sales, Komatsu provides aftermarket services, spare parts, and maintenance solutions, which contribute significantly to its revenue. The company also engages in various strategic partnerships and collaborations to enhance its technological offerings and expand its market reach. These partnerships, along with continuous investment in research and development, help Komatsu maintain a competitive edge and drive its financial performance.
Komatsu Financial Statement Overview
Summary
Komatsu's financial performance is strong, characterized by healthy profitability, growth, and efficient cash flow management. The company displays a solid balance sheet with manageable leverage and robust equity returns. Continued focus on maintaining profitability margins and managing debt levels will be key to sustaining its financial health in the competitive industrial machinery sector.Income Statement
Komatsu shows strong profitability with a rising gross profit margin of 31.32% and a net profit margin of 10.18% for the latest period. The revenue growth rate of 9.08% indicates a solid upward trajectory. Both EBIT and EBITDA margins are healthy at 15.71% and 20.37% respectively. While the company demonstrates impressive revenue and profit growth, which are key strengths, maintaining these margins amid industry competition will be crucial.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.42, indicating moderate leverage. The return on equity is robust at 12.97%, and the equity ratio stands at 53.81%, showcasing strong equity financing. Although the company has a strong equity base, the moderate leverage suggests careful debt management is necessary to maintain financial stability.78
Positive
Cash Flow
Komatsu exhibits strong cash flow management with a free cash flow growth rate of 900.44%. The operating cash flow to net income ratio is 1.11, highlighting effective cash generation from operations. The free cash flow to net income ratio of 0.59 suggests a solid capacity to generate free cash flow. Despite the impressive growth in free cash flow, maintaining this trajectory will be important to support future investments and operations.80
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.92T | 3.87T | 3.54T | 2.80T | 2.19T | 2.44T | Gross Profit |
| 824.80B | 1.21T | 1.04T | 779.58B | 581.05B | 695.82B | EBIT |
| 348.83B | 607.19B | 490.69B | 317.01B | 167.33B | 250.71B | EBITDA |
| 500.52B | 787.00B | 658.49B | 473.14B | 309.67B | 379.30B | Net Income Common Stockholders |
| 264.49B | 393.43B | 326.40B | 224.93B | 106.24B | 153.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 150.59B | 403.18B | 289.98B | 316.67B | 243.13B | 249.67B | Total Assets |
| 3.51T | 5.64T | 4.88T | 4.35T | 3.78T | 3.65T | Total Debt |
| 966.25B | 1.27T | 1.12T | 1.01T | 965.85B | 1.07T | Net Debt |
| 818.04B | 867.24B | 826.58B | 692.46B | 724.04B | 818.32B | Total Liabilities |
| 1.71T | 2.44T | 2.20T | 1.99T | 1.77T | 1.80T | Stockholders Equity |
| 1.72T | 3.03T | 2.54T | 2.23T | 1.91T | 1.77T |
| Cash Flow | Free Cash Flow | ||||
| 72.67B | 231.83B | 22.94B | 138.01B | 172.58B | 110.47B | Operating Cash Flow |
| 234.03B | 434.78B | 206.47B | 300.97B | 354.13B | 295.18B | Investing Cash Flow |
| -147.35B | -204.42B | -169.52B | -143.57B | -163.06B | -190.93B | Financing Cash Flow |
| 22.85B | -122.04B | -66.61B | -93.87B | -199.67B | -3.46B |
Komatsu Technical Analysis
Neutral
29.54
Price Trends
29.27
Positive
28.07
Positive
28.15
Positive
Market Momentum
0.07
Positive
45.75
Neutral
36.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMTUY, the sentiment is Neutral. The current price of 29.54 is below the 20-day moving average (MA) of 30.46, above the 50-day MA of 29.27, and above the 200-day MA of 28.15, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KMTUY.
Komatsu Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.68B | 8.15 | 19.13% | 1.68% | -0.47% | -34.74% | |
78 Outperform | $27.61B | 10.66 | 13.15% | 2.91% | -1.87% | -6.15% | |
74 Outperform | $129.06B | 21.08 | 27.91% | 1.28% | -20.93% | -34.33% | |
68 Neutral | $6.17B | 9.23 | 17.34% | 1.98% | 11.36% | 13.78% | |
66 Neutral | $162.39B | 15.41 | 55.36% | 1.64% | -3.36% | 9.59% | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% | |
55 Neutral | $7.30B | 46.40 | -10.11% | 1.19% | -19.08% | -136.41% |
* Industrials Sector Average
Performance Comparison
KMTUY
Komatsu
29.54
1.04
3.65%
AGCO
Agco
92.18
-19.85
-17.72%
CAT
Caterpillar
333.31
-3.54
-1.05%
DE
Deere
467.09
92.50
24.69%
OSK
Oshkosh
95.02
-17.65
-15.67%
TEX
Terex
39.16
-18.42
-31.99%
Komatsu Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: -0.20% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, especially in mining and construction equipment, aided by favorable foreign exchange rates. However, the company faces challenges in demand with significant declines in key markets like China and Europe. Despite these lowlights, the overall sentiment is positive due to record-breaking profits and strategic advancements in electric vehicles.Highlights
Record-breaking Financial Performance
Net sales increased 5.6% year-on-year to JPY 972 billion, operating income increased 15.9% to JPY 156.4 billion, and net income increased 42.4% to JPY 98.7 billion, marking record highs for the third quarter.
Construction, Mining and Utility Equipment Segment Growth
Segment sales increased by 6.3% to JPY 918.2 billion, and segment profit advanced by 22.2% to JPY 149.1 billion with an improved profit ratio of 16.2%.
Positive Impacts from Foreign Exchange
Foreign exchange rates had a positive impact on both sales and profit, contributing significantly to the record highs achieved.
Mining Equipment Sales Surge
Sales increased by 20% year-on-year to JPY 448 billion in Q3, with expectations to increase by 11% year-on-year to JPY 1,575.9 billion for FY 2023.
Introduction of Electric Excavator
Komatsu introduced a 13-ton class PC138E-11 electric excavator to the domestic market, marking a step towards carbon neutrality by 2050.
Lowlights
Weak Demand in Key Markets
Full year demand is expected to decrease by 10% to 15%, with significant declines in the Chinese market (51% decrease in Q3) and Southeast Asia (11% decrease in Q3).
Industrial Machinery Segment Profit Decline
Segment profit declined 72.8% to JPY 1.3 billion, with a significant drop in high-margin maintenance revenues.
Challenges in the European Market
Demand decreased by 15% in Q3 due to high interest rates and energy prices, with a full-year decline expected between 10% to 15%.
Company Guidance
During Komatsu's third-quarter earnings call for fiscal year 2023, CFO Takeshi Horikoshi presented several metrics highlighting the company's robust financial performance. Net sales increased by 5.6% year-on-year, reaching JPY 972 billion, while operating income saw a significant rise of 15.9% to JPY 156.4 billion, resulting in an operating income to net sales ratio of 16.1%, up 1.4 percentage points. The company's net income surged by 42.4% to JPY 98.7 billion. The construction, mining, and utility equipment segment experienced a 6.3% rise in net sales to JPY 918.2 billion, with segment profit increasing by 22.2% to JPY 149.1 billion. The retail finance segment saw a revenue increase of 23.2% to JPY 27.2 billion, though segment profit decreased by 10.6% to JPY 5.7 billion. Industrial machinery and others reported a 7.7% increase in sales to JPY 46.5 billion, but a 72.8% decline in segment profit to JPY 1.3 billion. The company maintained its annual forecast, projecting a full-year demand decrease in the range of 10% to 15%, excluding China. Despite challenges, Komatsu achieved record highs in net sales and profit, buoyed by improved selling prices and favorable foreign exchange rates.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.