Kubota (KUBTY) AI Stock Analysis

• Market Cap: $18.57B
• Dividend Yield: 1.7%
• Average Volume (3M): 1.38K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.67
• Revenue Growth: -2.36%
• EPS Growth: -28.65%
• Country: US
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.29
• Shares Outstanding: 227,743,360
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,381
• PEG Ratio: -0.96
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 16.85
• Enterprise Value/Market Cap: 263.81
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 11.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.54
• Revenue Forecast (FY): $20.30B

• Rating: 69 Neutral
• Price Target: $93.00 ▲(16.80% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by mixed financial performance—solid revenue scale and profitability but recent margin compression, rising leverage, and uneven free-cash-flow conversion. Technicals add support due to a strong uptrend and positive momentum, though signals are overextended. Valuation is broadly fair (moderate P/E, low yield) and does not materially lift the score.

Positive Factors

Revenue Growth and Scale

Sustained revenue expansion and a 2025 re-acceleration indicate durable end-market demand and successful product penetration. Larger scale supports distribution leverage, R&D and service investment, and resilience to localized downturns across agriculture, construction and water segments.

Diversified Business Model & Aftermarket

A broad product mix plus recurring aftermarket parts and maintenance sold through dealers creates steadier, higher-frequency cash inflows. This aftermarket stream stabilizes margins and customer retention, reducing cyclicality versus reliance on new-equipment sales alone.

Operating Cash Flow Inflection & Equity Base

The recovery in operating cash flow after earlier weakness, combined with equity growth on the balance sheet, strengthens financial resilience. This improves the firm's ability to fund capex, support dealers, and absorb cyclical swings without immediate reliance on external financing.

Negative Factors

Margin Compression

A notable decline in net margin signals rising cost pressure or limited pricing power. Sustained margin erosion reduces cash generation per unit of revenue, constrains reinvestment and debt servicing capacity, and makes earnings more sensitive to commodity, supply-chain, or pricing shocks.

Rising Leverage

Higher leverage increases interest and refinancing sensitivity and reduces strategic flexibility. With debt elevated in absolute terms versus prior years, the company has less room for opportunistic investments, M&A or smoothing payout in adverse cycles without improving cash flow.

Inconsistent Free Cash Flow

Volatile and often negative free cash flow limits the firm’s ability to internally fund growth, service debt, or increase returns to shareholders. Persistent FCF shortfalls suggest working-capital or capex drains that could force external financing during downturns.

Kubota Business Overview & Revenue Model

Company Description

Kubota Corporation manufactures and markets machinery and related solutions in the food, water, and environment markets in Japan, North America, Europe, Asia, and internationally. It operates in three segments: Farm & Industrial Machinery, Water & Environment, and Other. The Farm & Industrial Machinery segment offers tractors, power tillers, combine harvesters, rice transplanters, turf equipment, utility vehicles, other agricultural machinery, implements, attachments, post-harvest machinery, vegetable production equipment, and other agricultural equipment; cooperative drying, rice seedling, and gardening facilities; rice mill plants; scales, weighing and measuring control systems, and air purifiers; engines for farming, construction, industrial machinery, and generators; and mini excavators, wheel and skid steer loaders, compact track and, and other construction machinery related products. The Water & Environment segment provides ductile iron and plastic pipes, valves, and single stack drain fittings, as well as design and construction services; reformer and cracking tubes, hearth and steel mill rolls, TXAX friction materials, and spiral welded steel pipes; air-conditioning equipment; wastewater treatment equipment and plants, pumps and plants, membrane solutions, flue gas desulfurization apparatus, membrane methane fermentation plants, and bathtubs; and water purification, night-soil treatment, waste incinerating and melting, and waste shredding and sorting plants. The Other segment offers logistics; and roofing and siding materials. The company also engages in non-life insurance underwriting, finance leasing and factoring services, building maintenance, security guarding, transportation, storage, distribution, and cargo handling businesses; and export and import of repair parts related to farm equipment, engines, and construction machinery. It serves customers through a network of dealers. The company was founded in 1890 and is headquartered in Osaka, Japan.

How the Company Makes Money

Kubota primarily makes money by manufacturing and selling equipment and related products to end users through dealers and distribution channels. A major revenue stream comes from its agricultural equipment and related machinery (e.g., tractors and harvesting/planting equipment), where sales are driven by farm mechanization needs, replacement cycles, and demand from small-to-mid sized farms, municipalities, and property maintenance users. Another significant revenue stream is construction equipment (notably compact construction machinery), where revenue is generated from machine sales tied to construction activity and infrastructure investment. In addition to initial equipment sales, Kubota earns ongoing revenue from aftermarket parts and service: replacement parts, maintenance, and repairs sold through its dealer network tend to provide recurring, higher-frequency cash flows over the life of installed equipment. The company also generates revenue from its engines and components business by supplying powertrains and related products for its own machines and, where applicable, to external OEM customers; if external OEM contribution is not disclosed in the provided context, null. Separately, Kubota’s water and environmental segment contributes revenue through the sale of water-related infrastructure products (such as pipes and associated systems) and related project-based deliveries, typically linked to municipal and industrial infrastructure spending. Kubota may also support sales through financing or leasing offerings depending on market and structure; if specific financing revenue contributions or named financing partnerships are not available here, null.

Kubota Financial Statement Overview

Summary

Revenue has grown meaningfully over 2020–2025 with a 2025 re-acceleration, but profitability has softened (net margin down from ~7.6% in 2024 to ~6.2% in 2025). Leverage has increased (debt-to-equity ~0.59 in 2020 to ~0.85 in 2025). Cash flow is the main constraint: operating cash flow recovered in 2024–2025, but free cash flow remains inconsistent and covered less than half of net income in 2025.

Income Statement

Revenue has expanded meaningfully over the cycle (2020–2025), with a re-acceleration in 2025 after a flat 2024. Profitability remains solid, but margins have softened lately: net margin fell from ~7.6% (2024) to ~6.2% (2025) and operating margin declined as well, signaling some cost/price pressure. Overall, the business shows good scale and resilience, but the recent margin compression keeps the score below top-tier.

Balance Sheet

The balance sheet is reasonably supported by equity, but leverage has trended higher versus earlier years: debt-to-equity moved from ~0.59 (2020) to ~0.85 (2025), with total debt elevated in absolute terms. Equity has grown, which helps stability, yet the higher leverage profile increases sensitivity to earnings volatility and tighter financing conditions.

Cash Flow

Cash generation has been volatile. Operating cash flow was negative in 2022–2023, then recovered in 2024–2025, which is a positive inflection. However, free cash flow is inconsistent (negative in multiple years and down ~24% in 2025), and in 2025 free cash flow covered less than half of net income—suggesting working-capital or investment needs are absorbing cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.17T	3.02T	3.02T	2.68T	2.20T
Gross Profit	927.18B	927.98B	876.47B	685.68B	631.81B
EBITDA	428.82B	462.40B	454.81B	322.40B	325.61B
Net Income	195.74B	230.44B	238.46B	156.47B	174.76B
Balance Sheet
Total Assets	6.21T	6.02T	5.36T	4.77T	3.77T
Cash, Cash Equivalents and Short-Term Investments	277.15B	398.92B	305.14B	297.31B	309.51B
Total Debt	2.24T	2.28T	1.99T	1.61T	1.09T
Total Liabilities	3.33T	3.28T	2.94T	2.66T	1.99T
Stockholders Equity	2.62T	2.48T	2.18T	1.87T	1.68T
Cash Flow
Free Cash Flow	148.89B	68.09B	-189.75B	-177.33B	-33.21B
Operating Cash Flow	343.80B	282.08B	-17.27B	-7.68B	92.51B
Investing Cash Flow	-171.66B	-208.88B	-173.44B	-318.50B	-127.37B
Financing Cash Flow	-193.40B	-26.28B	178.40B	282.56B	60.59B

Kubota Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.62
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KUBTY, the sentiment is Negative. The current price of 79.62 is below the 20-day moving average (MA) of 90.87, below the 50-day MA of 85.51, and above the 200-day MA of 68.63, indicating a neutral trend. The MACD of -1.61 indicates Positive momentum. The RSI at 39.66 is Neutral, neither overbought nor oversold. The STOCH value of 19.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KUBTY.

Kubota Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	75 Outperform	$320.42B	30.12	45.10%	0.98%	-1.51%	-9.69%
DE	73 Outperform	$153.31B	54.83	18.93%	1.34%	-11.66%	-27.80%
KUBTY	69 Neutral	$18.57B	12.82	7.55%	1.70%	-2.36%	-28.65%
AGCO	66 Neutral	$8.03B	20.15	17.36%	1.10%	-20.09%	121.28%
OSK	66 Neutral	$9.02B	12.46	14.57%	1.56%	-2.28%	-0.53%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CNH	59 Neutral	$12.51B	22.56	6.58%	2.67%	-18.10%	-65.24%