Komatsu Ltd. (KMTUY)
OTHER OTC:KMTUY
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Komatsu
(OTC:KMTUY)
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Rating:70Outperform
Price Target:
$45.00
â–²(36.32% Upside)
Action:UpgradedDate:04/02/26
The score is driven primarily by solid financial performance (strong profitability and manageable leverage, offset by weaker cash-flow conversion) and attractive valuation (low P/E with a healthy dividend). Technicals are a modest headwind with negative MACD and price below key short-term moving averages, though longer-term moving averages still provide support.
Positive Factors
Recurring aftermarket & services revenue
Komatsu’s sizable aftermarket and service business creates recurring revenue and customer lock-in that cushions equipment cyclical swings. Durable service streams support margin stability, predictable aftermarket cashflows, and long-term customer relationships useful for cross-selling technology and rebuilds.
Negative Factors
Mixed cash conversion and low OCF coverage
Weaker cash conversion versus earnings indicates working-capital swings or heavy reinvestment needs. This reduces near-term cash flexibility, can constrain discretionary spending or dividends, and raises risk if equipment sales soften or capex needs rise over the next few quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket & services revenue
Komatsu’s sizable aftermarket and service business creates recurring revenue and customer lock-in that cushions equipment cyclical swings. Durable service streams support margin stability, predictable aftermarket cashflows, and long-term customer relationships useful for cross-selling technology and rebuilds.
Read all positive factors
Komatsu (KMTUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.70B
Dividend Yield4.03%
Average Volume (3M)4.95K
Price to Earnings (P/E)11.7
Beta (1Y)0.77
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 Cap189.28
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit11.08
Enterprise Value/Ebitda8.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.75
Revenue Forecast (FY)$27.05B
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 28, 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
Neutral
33.01
Price Trends
43.56
Negative
38.19
Positive
36.16
Positive
Market Momentum
-1.39
Positive
43.99
Neutral
59.16
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 33.01 is below the 20-day moving average (MA) of 41.44, below the 50-day MA of 43.56, and below the 200-day MA of 36.16, indicating a neutral trend. The MACD of -1.39 indicates Positive momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 59.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $333.71B | 30.12 | 45.10% | 0.98% | -1.51% | -9.69% | |
73 Outperform | $155.50B | 54.83 | 18.93% | 1.34% | -11.66% | -27.80% | |
72 Outperform | $62.22B | 24.25 | 12.57% | 3.83% | -15.29% | -42.93% | |
70 Outperform | $36.70B | 11.75 | 12.42% | 4.03% | 0.99% | 9.08% | |
66 Neutral | $8.30B | 10.68 | 17.36% | 1.10% | -20.09% | 121.28% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $13.22B | 22.56 | 6.58% | 2.67% | -18.10% | -65.24% |
* Industrials Sector Average
KMTUY
Komatsu
39.79
15.19
61.75%
AGCO
Agco
114.59
37.13
47.92%
CAT
Caterpillar
717.22
440.96
159.62%
CNH
CNH Industrial
10.65
0.04
0.38%
DE
Deere
575.71
157.84
37.77%
PCAR
Paccar
118.32
32.38
37.69%
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.