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Komatsu Ltd. (KMTUY)
OTHER OTC:KMTUY
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Komatsu
(OTC:KMTUY)
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Rating:76Outperform
Price Target:
$38.00
â–²(5.73% Upside)
Komatsu's strong financial performance and fair valuation are partially offset by challenges highlighted in the earnings call. Technical indicators support a stable outlook, but notable sales and income declines pose risks. The stock's strengths in financial stability and strategic initiatives provide a balanced but cautious investment case.
Komatsu (KMTUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.66B
Dividend Yield3.58%
Average Volume (3M)8.10K
Price to Earnings (P/E)11.7
Beta (1Y)0.76
Revenue Growth2.66%
EPS Growth7.81%
CountryUS
Employees65,738
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.67
Shares Outstanding950,953,100
10 Day Avg. Volume12,341
30 Day Avg. Volume8,098
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 Cap1.17
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda0.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Komatsu Business Overview & Revenue Model
Company DescriptionKomatsu Ltd. manufactures and sells construction, mining, and utility equipment; and forest and industrial machinery worldwide. The company operates through three segments: Construction, Mining and Utility Equipment; Retail Finance; and Industrial Machinery and Others. It offers construction and mining equipment, including rope shovels, continuous miners, hydraulic excavators, wheel loaders, bulldozers, motor graders, dump trucks, mini excavators, utility equipment, and other mining equipment. The company also provides forklift trucks; forestry equipment, including harvesters, forwarders, and feller bunchers; demolition, waste, and recycling equipment, such as mobile crushers, hydraulic excavators, wheel loaders, and mini shovels; and tunnel-boring machines, pipe layers, towing tractors, and engines. In addition, it offers metal forging and stamping presses, including large press system; sheet-metal machines, such as fiber laser cutting machine; machine tools, which comprise transfer machines; logistics equipment; lithography light source and temperature-control equipment for semiconductor manufacturing; battery manufacturing equipment; wire saws; and thermoelectric modules. Further, the company provides retail financing for construction and mining equipment; construction machinery rental services; remanufactured products; other support services; and purchases and sells used equipment. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyKomatsu generates revenue primarily through the sale of its heavy machinery and equipment across various sectors, including construction, mining, and agriculture. The company's revenue model is diversified, comprising several key streams: direct sales of equipment, aftermarket sales, and service contracts. Direct sales involve selling machinery to contractors, mining companies, and other industrial clients. Aftermarket sales, which include parts, repairs, and maintenance services, provide a recurring revenue stream as customers require ongoing support for their machinery. Additionally, Komatsu engages in leasing and rental services, allowing customers to utilize equipment without significant upfront costs. Strategic partnerships with global distributors and technology firms also enhance Komatsu's market reach and contribute to its earnings, particularly in the area of innovative solutions for automation and remote monitoring.
Komatsu Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q3-2025)
| Next Earnings Date:Oct 29, 2025
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.Q3-2025 Updates
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.
Retail Finance Growth
Retail Finance sales increased by 23.2% year-on-year to ¥92 billion, and segment profit increased by 16.6% to ¥21.8 billion.
Industrial Machinery & Others Surge
Net sales increased by 11.6% year-on-year to ¥146.7 billion, and segment profit increased approximately 2.6 times year-on-year to ¥15.1 billion.
Introduction of New PC200i-12 Excavator
Launch of a new generation model PC200i-12 with industry-first features and improved fuel efficiency.
Positive Performance in Southeast Asia
Demand in Q3 of fiscal 2024 increased by 16% year-on-year, with strong performance in Indonesia and coal prices remaining firm.
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%.
Decreased Demand in Key Markets
Demand in Europe and Japan decreased significantly, with Europe down 20% year-on-year and Japan revising full-year demand down to 0% to minus 5%.
Higher Production Costs
Production costs increased by ¥16.2 billion due to rising steel and rubber prices and increased labor costs.
Demand Decline in North America
Full-year demand forecast for fiscal 2024 in North America revised down to minus 5% to minus 10% year-on-year.
Weak Performance in Construction Equipment
Net sales in the Construction, Mining & Utility Equipment segment saw shortfalls, particularly in Europe and Japan.
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
Komatsu shows strong financial growth with consistent revenue and profit increases, a solid equity position, and effective cash management. The income statement, balance sheet, and cash flow statements all reflect robust financial health.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.85
Very Positive
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.80
Positive
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.78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.10T | 4.10T | 3.87T | 3.54T | 2.80T | 2.19T |
| Gross Profit | 657.13B | 1.32T | 1.21T | 1.04T | 779.58B | 581.05B |
| EBITDA | 818.03B | 825.44B | 787.00B | 658.49B | 473.14B | 309.67B |
| Net Income | 439.61B | 439.61B | 393.43B | 326.40B | 224.93B | 106.24B |
Balance Sheet | ||||||
| Total Assets | 5.77T | 5.77T | 5.64T | 4.88T | 4.35T | 3.78T |
| Cash, Cash Equivalents and Short-Term Investments | 385.57B | 385.57B | 403.18B | 294.46B | 316.67B | 243.13B |
| Total Debt | 1.22T | 1.22T | 1.27T | 1.12T | 1.01T | 965.85B |
| Total Liabilities | 2.43T | 2.43T | 2.44T | 2.20T | 1.99T | 1.77T |
| Stockholders Equity | 3.17T | 3.17T | 3.03T | 2.54T | 2.23T | 1.91T |
Cash Flow | ||||||
| Free Cash Flow | 177.45B | 311.31B | 231.83B | 22.94B | 138.01B | 172.58B |
| Operating Cash Flow | 312.47B | 517.17B | 434.78B | 206.47B | 300.97B | 354.13B |
| Investing Cash Flow | -156.14B | -210.67B | -204.42B | -169.52B | -143.57B | -163.06B |
| Financing Cash Flow | -152.56B | -321.42B | -122.04B | -66.61B | -93.87B | -199.67B |
Komatsu Technical Analysis
Positive
35.94
Price Trends
34.78
Positive
33.52
Positive
31.38
Positive
Market Momentum
0.18
Negative
57.62
Neutral
95.72
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 35.94 is above the 20-day moving average (MA) of 35.24, above the 50-day MA of 34.78, and above the 200-day MA of 31.38, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 95.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMTUY.
Komatsu Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $32.66B | 11.68 | 13.64% | 3.58% | 2.66% | 7.81% | |
73 Outperform | $49.72B | 16.23 | 16.77% | 4.09% | -12.03% | -38.21% | |
66 Neutral | $246.93B | 26.80 | 52.73% | 1.10% | -4.87% | -10.47% | |
65 Neutral | $8.03B | 80.93 | 2.42% | 1.41% | -24.27% | -76.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $123.95B | 23.97 | 21.59% | 1.40% | -20.63% | -34.82% | |
56 Neutral | $13.15B | 15.89 | 10.79% | 2.38% | -21.70% | -57.68% |
* Industrials Sector Average
KMTUY
Komatsu
35.94
9.82
37.60%
AGCO
Agco
107.94
10.45
10.72%
CAT
Caterpillar
531.18
148.50
38.81%
CNH
CNH Industrial
10.51
-0.27
-2.50%
DE
Deere
462.44
61.43
15.32%
PCAR
Paccar
97.48
-3.13
-3.11%
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.