Komatsu Ltd. (KMTUY)
OTHER OTC:KMTUY
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Komatsu
(OTC:KMTUY)
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Rating:68Neutral
Price Target:
$43.00
â–²(30.26% Upside)
Action:DowngradedDate:02/14/26
The score is primarily supported by solid financial performance—strong profitability and a generally stable balance sheet—tempered by weaker cash-flow conversion. Technicals add some caution due to extremely overbought momentum signals despite an uptrend, while valuation is reasonable with a moderate dividend yield.
Positive Factors
Strong profitability and improving margins
Komatsu's scale and margin profile have improved over multiple years, with TTM revenue ~4.10T and consistent mid-to-high single-digit net margins. Durable operating leverage supports earnings resilience across cycles and enables reinvestment in products, aftermarket and technology initiatives.
Negative Factors
Weak cash conversion
Cash conversion lags accounting profitability: FCF only ~55% of net income and low operating cash coverage indicate working-capital swings or elevated reinvestment. This reduces financial flexibility for buybacks, dividends or opportunistic M&A during weaker cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and improving margins
Komatsu's scale and margin profile have improved over multiple years, with TTM revenue ~4.10T and consistent mid-to-high single-digit net margins. Durable operating leverage supports earnings resilience across cycles and enables reinvestment in products, aftermarket and technology initiatives.
Read all positive factors
Komatsu (KMTUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.84B
Dividend Yield4.03%
Average Volume (3M)4.95K
Price to Earnings (P/E)11.7
Beta (1Y)0.82
Revenue Growth0.99%
EPS Growth9.08%
CountryUS
Employees65,738
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.67
Shares Outstanding930,340,640
10 Day Avg. Volume0
30 Day Avg. Volume4,950
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)1.27
Price to Sales (P/S)0.99
P/FCF Ratio12.99
Enterprise Value/Market Cap202.80
Enterprise Value/Revenue1.67
Enterprise Value/Gross Profit10.94
Enterprise Value/Ebitda8.71
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.59
Revenue Forecast (FY)$25.96B
Komatsu Business Overview & Revenue Model
Company Description
Komatsu Ltd. (KMTUY) is a multinational corporation based in Japan, specializing in the manufacturing of construction, mining, and utility equipment. The company operates in several sectors, including construction machinery, mining equipment, and ...
How the Company Makes Money
Komatsu primarily makes money by selling heavy equipment used in construction, mining, and industrial applications, typically through a mix of direct sales and dealer/distributor networks. A major recurring revenue stream comes from aftermarket su...
Komatsu Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with record high net sales and income, growth in Retail Finance and Industrial Machinery & Others, and new product introductions. However, challenges included profit declines in the Construction, Mining & Utility Equipment segment, decreased demand in key markets, and higher production costs.Positive Updates
Record High Net Sales and Income
Net sales increased by 5.8% year-on-year to ¥2,957.3 billion, and net income increased by 1.9% to ¥310.1 billion, marking record highs for Q3 on a cumulative basis.
Negative Updates
Construction, Mining & Utility Equipment Profit Decline
Segment profit decreased by 1.1% to ¥425 billion, and the segment profit ratio decreased by 0.9 points to 15.5%.
Read all updates
Q3-2025 Updates
Positive
Negative
Record High Net Sales and Income
Net sales increased by 5.8% year-on-year to ¥2,957.3 billion, and net income increased by 1.9% to ¥310.1 billion, marking record highs for Q3 on a cumulative basis.
Read all positive updates
Company Guidance
In the fiscal 2024 Q3 call, Komatsu reported a 4% increase in operating income to ¥162.6 billion, with a 0.3-point rise in the operating income ratio to 16.4%. Net sales reached ¥989.2 billion, marking a 1.8% year-on-year growth, while net income surged by 9.7% to ¥108.3 billion. The Construction, Mining & Utility Equipment segment saw net sales of ¥918.2 billion, with a slight segment profit decrease of 1.4% to ¥147 billion. Retail Finance and Industrial Machinery & Others showed robust growth, with sales increases of 11.1% and 7.5%, respectively. The yen strengthened against the dollar but weakened against the euro and Australian dollar, influencing financial outcomes. The company completed a ¥100 billion treasury stock acquisition and canceled 22,857,500 shares. Looking forward, fiscal 2024 demand projections remained aligned with October forecasts, while fiscal 2024 Q3 demand for major products decreased by 2% year-on-year, with full-year demand expected to drop by 5% to 10%.Komatsu Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.10T | 4.10T | 3.87T | 3.54T | 2.80T | 2.19T |
| Gross Profit | 627.11B | 1.32T | 1.21T | 1.04T | 779.58B | 581.05B |
| EBITDA | 787.97B | 825.44B | 787.00B | 658.49B | 473.14B | 309.67B |
| Net Income | 402.41B | 439.61B | 393.43B | 326.40B | 224.93B | 106.24B |
Balance Sheet | ||||||
| Total Assets | 6.31T | 5.77T | 5.64T | 4.88T | 4.35T | 3.78T |
| Cash, Cash Equivalents and Short-Term Investments | 429.03B | 385.57B | 403.18B | 294.46B | 316.67B | 243.13B |
| Total Debt | 1.58T | 1.22T | 1.27T | 1.12T | 1.01T | 965.85B |
| Total Liabilities | 2.76T | 2.43T | 2.44T | 2.20T | 1.99T | 1.77T |
| Stockholders Equity | 3.36T | 3.17T | 3.03T | 2.54T | 2.23T | 1.91T |
Cash Flow | ||||||
| Free Cash Flow | 247.37B | 311.31B | 231.83B | 22.94B | 138.01B | 172.58B |
| Operating Cash Flow | 469.53B | 517.17B | 434.78B | 206.47B | 300.97B | 354.13B |
| Investing Cash Flow | -95.95B | -210.67B | -204.42B | -169.52B | -143.57B | -163.06B |
| Financing Cash Flow | -171.79B | -321.42B | -122.04B | -66.61B | -93.87B | -199.67B |
Komatsu Technical Analysis
Negative
33.01
Price Trends
42.71
Negative
37.78
Negative
35.81
Positive
Market Momentum
-1.25
Positive
29.29
Positive
0.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMTUY, the sentiment is Negative. The current price of 33.01 is below the 20-day moving average (MA) of 44.48, below the 50-day MA of 42.71, and below the 200-day MA of 35.81, indicating a neutral trend. The MACD of -1.25 indicates Positive momentum. The RSI at 29.29 is Positive, neither overbought nor oversold. The STOCH value of 0.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KMTUY.
Komatsu Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $326.49B | 30.12 | 45.10% | 0.98% | -1.51% | -9.69% | |
73 Outperform | $153.70B | 54.83 | 18.93% | 1.34% | -11.66% | -27.80% | |
72 Outperform | $60.12B | 24.25 | 12.57% | 3.83% | -15.29% | -42.93% | |
68 Neutral | $33.84B | 11.75 | 12.42% | 4.03% | 0.99% | 9.08% | |
66 Neutral | $8.26B | 10.68 | 17.36% | 1.10% | -20.09% | 121.28% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $12.97B | 22.56 | 6.58% | 2.67% | -18.10% | -65.24% |
* Industrials Sector Average
KMTUY
Komatsu
37.48
6.89
22.53%
AGCO
Agco
114.11
20.06
21.34%
CAT
Caterpillar
701.70
363.73
107.62%
CNH
CNH Industrial
10.45
-1.75
-14.34%
DE
Deere
569.03
94.93
20.02%
PCAR
Paccar
114.32
17.56
18.15%
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.