Komatsu (KMTUY) AI Stock Analysis

• Market Cap: $33.12B
• Dividend Yield: 4.03%
• Average Volume (3M): 4.95K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.83
• Revenue Growth: 0.99%
• EPS Growth: 9.08%
• Country: US
• Employees: 65,738
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.67
• Shares Outstanding: 930,340,640
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 4,950
• PEG Ratio: 0.67
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 12.99
• Enterprise Value/Market Cap: 191.82
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 9.98
• Enterprise Value/Ebitda: 7.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $40.00 ▲(21.18% Upside)

The score is driven primarily by improved profitability and manageable leverage, balanced against clear signs of a cyclical slowdown in the latest TTM revenue and cash flow. Valuation is supportive with a low P/E and solid dividend yield, while technical signals are mixed and slightly soft near term.

Positive Factors

Strategic Partnerships

The collaboration with Cummins on hybrid powertrains enhances Komatsu's technological edge in sustainable mining solutions, potentially boosting market competitiveness and aligning with global trends towards decarbonization.

Financial Stability

Komatsu's strong equity base and manageable debt levels indicate robust financial health, providing resilience against economic fluctuations and enabling strategic investments in growth opportunities.

Cash Flow Performance

The increase in free cash flow highlights Komatsu's effective cash management, supporting operational flexibility and potential for reinvestment in innovation and expansion initiatives.

Negative Factors

Decline in Net Sales

The decline in net sales reflects challenges in key markets, which could pressure revenue growth and profitability if not addressed through strategic adjustments or market recovery.

Challenges in Key Markets

Market challenges in Japan and Indonesia, including labor shortages and regulatory changes, could hinder Komatsu's growth prospects and require strategic responses to mitigate impacts.

Mining Equipment Sales Decline

The decline in mining equipment sales, particularly in North America, suggests potential vulnerabilities in Komatsu's market position, necessitating efforts to regain momentum in this critical segment.

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 industrial machinery, providing a wide range of products such as excavators, bulldozers, and dump trucks. Komatsu is also involved in the development of advanced technology solutions, including autonomous and electric vehicles, enhancing operational efficiency in various industries.

How the Company Makes Money

Komatsu generates revenue primarily through the sale of heavy machinery and equipment to the construction and mining sectors. Key revenue streams include the sale of new equipment, aftermarket parts and services, and rental services. The company also benefits from long-term contracts for large-scale projects, providing a steady income. Additionally, Komatsu has established partnerships with various companies and governmental agencies, allowing it to secure significant contracts and enhance its market presence. The company's investments in technological advancements, such as automation and sustainability initiatives, also contribute to its financial growth by meeting the evolving needs of customers.

Komatsu Financial Statement Overview

Summary

Profitability has improved meaningfully versus earlier years (higher gross and net margins with EBIT in the mid-teens) and leverage appears manageable with healthy ROE. However, the latest TTM shows a sharp revenue decline and weakening cash flow momentum (TTM FCF growth -30.1%), increasing cycle/downturn risk.

Income Statement

Profitability is solid and improving versus earlier years: gross margin has risen from ~26.5% (FY2021) to ~32% (FY2025 annual) and net margin improved from ~4.9% to ~10–11%, with EBIT margin now in the mid-teens. Annual revenue growth was positive from FY2022–FY2025, but the latest TTM (Trailing-Twelve-Months) shows a sharp revenue decline (-24.7%), which is a notable cyclical/volume risk even though margins remain resilient.

Balance Sheet

Leverage looks manageable for an industrial manufacturer, with debt-to-equity generally around ~0.38–0.50 (FY2025 annual ~0.38; TTM ~0.42). Equity has grown over time, and returns on equity are healthy (~13–14% in FY2024–FY2025 and ~13% TTM). The main watch-out is debt has trended higher in absolute terms and the business remains exposed to cycle-driven earnings swings, which can pressure balance-sheet flexibility in downcycles.

Cash Flow

Cash generation is positive, with free cash flow consistently positive and a reasonable share of profits converting into free cash flow (about ~53–60% in FY2024–FY2025 and ~55% TTM). However, cash flow momentum has weakened recently: TTM operating cash flow and free cash flow are down, and TTM free cash flow growth is -30.1%. Cash conversion has also been volatile historically (notably weak in FY2023), indicating working-capital and cycle sensitivity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.05T	4.10T	3.87T	3.54T	2.80T	2.19T
Gross Profit	636.51B	1.32T	1.21T	1.04T	779.58B	581.05B
EBITDA	795.76B	825.44B	787.00B	658.49B	473.14B	309.67B
Net Income	414.94B	439.61B	393.43B	326.40B	224.93B	106.24B
Balance Sheet
Total Assets	5.92T	5.77T	5.64T	4.88T	4.35T	3.78T
Cash, Cash Equivalents and Short-Term Investments	345.20B	385.57B	403.18B	294.46B	316.67B	243.13B
Total Debt	1.35T	1.22T	1.27T	1.12T	1.01T	965.85B
Total Liabilities	2.54T	2.43T	2.44T	2.20T	1.99T	1.77T
Stockholders Equity	3.22T	3.17T	3.03T	2.54T	2.23T	1.91T
Cash Flow
Free Cash Flow	224.42B	311.31B	231.83B	22.94B	138.01B	172.58B
Operating Cash Flow	430.35B	517.17B	434.78B	206.47B	300.97B	354.13B
Investing Cash Flow	-100.46B	-210.67B	-204.42B	-169.52B	-143.57B	-163.06B
Financing Cash Flow	-218.42B	-321.42B	-122.04B	-66.61B	-93.87B	-199.67B

Komatsu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.01
• 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 KMTUY, the sentiment is Positive. The current price of 33.01 is below the 20-day moving average (MA) of 34.42, below the 50-day MA of 33.16, and above the 200-day MA of 32.88, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 77.75 is Negative, neither overbought nor oversold. The STOCH value of 96.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMTUY.

Komatsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	75 Outperform	$301.04B	34.20	43.54%	0.98%	-1.51%	-9.69%
PCAR	72 Outperform	$64.63B	27.29	12.92%	3.83%	-15.29%	-42.93%
KMTUY	66 Neutral	$33.12B	12.25	13.06%	4.03%	0.99%	9.08%
DE	66 Neutral	$142.32B	28.38	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	59 Neutral	$8.41B	22.46	8.69%	1.10%	-20.09%	121.28%
CNH	55 Neutral	$13.41B	22.56	7.77%	2.67%	-18.10%	-65.24%