Komatsu (KMTUY) AI Stock Analysis

• Market Cap: $29.47B
• Dividend Yield: 4.03%
• Average Volume (3M): 4.95K
• Price to Earnings (P/E): 10.6
• 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): 0.61
• Shares Outstanding: 950,953,100
• 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: 191.91
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 17.29
• Enterprise Value/Ebitda: 9.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.53
• Revenue Forecast (FY): $25.58B

• Rating: 72 Outperform
• Price Target: $37.00 ▲(12.09% Upside)

Komatsu's strong financial performance and reasonable valuation are the primary drivers of its stock score. However, the technical analysis indicates a potential bearish trend, which slightly offsets the positive financial and valuation aspects. The absence of earnings call data and corporate events means these factors do not influence the score.

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

Komatsu has demonstrated strong financial performance with consistent revenue growth and improved profit margins. The balance sheet indicates financial stability with a healthy equity ratio and manageable debt levels. Cash flow performance is robust, although there is room for improvement in cash generation relative to net income.

Income Statement

Komatsu has shown strong financial performance with consistent revenue growth, increasing from ¥2,182 billion in 2021 to ¥4,104 billion in 2025. The gross profit margin improved to 32.2% in 2025, indicating efficient cost management. The net profit margin also increased to 10.7%, reflecting strong profitability. These positive trends are supported by a robust EBIT margin of 16% and an EBITDA margin of 20.1% in 2025. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The balance sheet shows a strong equity base with stockholders' equity rising to ¥3,173 billion in 2025, leading to a healthy equity ratio of 55%. The debt-to-equity ratio is moderate at 0.38, indicating manageable leverage. Return on equity has improved to 13.8%, showcasing effective use of equity to generate profits. Overall, the balance sheet demonstrates financial stability and effective management of resources.

Cash Flow

Komatsu's cash flow performance is strong with a significant increase in free cash flow to ¥311 billion in 2025, marking a growth rate of 34.2% from the previous year. The operating cash flow to net income ratio is 1.18, indicating efficient conversion of income to cash. However, the free cash flow to net income ratio is 0.71, which, while strong, suggests potential for further improvement in cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.05T	4.10T	3.87T	3.54T	2.80T	2.19T
Gross Profit	327.04B	1.32T	1.21T	1.04T	779.58B	581.05B
EBITDA	614.33B	825.44B	787.00B	658.49B	473.14B	309.67B
Net Income	329.65B	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	177.23B	311.31B	231.83B	22.94B	138.01B	172.58B
Operating Cash Flow	329.97B	517.17B	434.78B	206.47B	300.97B	354.13B
Investing Cash Flow	-52.46B	-210.67B	-204.42B	-169.52B	-143.57B	-163.06B
Financing Cash Flow	-56.64B	-321.42B	-122.04B	-66.61B	-93.87B	-199.67B

Komatsu Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 32.38, below the 50-day MA of 33.63, and above the 200-day MA of 32.31, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 26.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KMTUY.

Komatsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	76 Outperform	$272.56B	29.89	46.30%	0.98%	-1.51%	-9.69%
PCAR	74 Outperform	$58.68B	21.87	14.15%	3.83%	-15.29%	-42.93%
KMTUY	72 Outperform	$29.47B	10.60	13.06%	4.03%	0.99%	9.08%
DE	66 Neutral	$126.08B	25.20	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	$7.88B	21.03	8.69%	1.10%	-20.09%	121.28%
CNH	55 Neutral	$11.67B	19.62	7.77%	2.67%	-18.10%	-65.24%

Komatsu Corporate Events

Komatsu Ltd. Reports Decline in First-Half Earnings

Komatsu Ltd. is a leading global manufacturer of construction, mining, and utility equipment, with a focus on innovation and sustainable practices in the industrial machinery sector.