Kubota (KUBTY) AI Stock Analysis

• Market Cap: $12.97B
• Dividend Yield: 2.17%
• Average Volume (3M): 5.64K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.79
• Revenue Growth: -7.55%
• EPS Growth: -9.86%
• Country: US
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 64
• Industry: Agricultural - Machinery
• EPS (TTM): 6.50
• Shares Outstanding: 230,179,370
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 5,644
• PEG Ratio: 0.59
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.90
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kubota's overall stock score reflects strong financial performance with consistent revenue growth and solid profitability. The stock is undervalued with a low P/E ratio and offers an attractive dividend yield. However, technical analysis indicates a bearish trend, which could pose short-term challenges. Effective management of leverage and capital expenditures is crucial for sustaining long-term financial health.

Kubota Business Overview & Revenue Model

Company Description

Kubota Corporation (KUBTY) is a Japanese multinational corporation known for its innovative engineering and manufacturing of machinery and industrial products. The company operates primarily in sectors including agriculture, water, and infrastructure. Kubota's core products include tractors, agricultural machinery, construction equipment, engines, and water-related systems. The company is committed to creating solutions that support food production, water conservation, and urban development, aiming to contribute positively to society and the environment.

How the Company Makes Money

Kubota makes money through the sale of its wide range of products and services across its key operational sectors. A significant portion of its revenue is derived from the agricultural machinery segment, where it sells tractors, combine harvesters, rice transplanters, and other farm equipment to both individual farmers and agricultural enterprises. The construction machinery sector also contributes substantially to its earnings, with products like mini excavators and wheel loaders. Additionally, Kubota generates revenue from its engine business, which supplies engines for industrial machines and generators. The company's water and environment segment, which includes water purification and sewage treatment systems, also adds to its income. Kubota's global presence and strategic partnerships with local distributors and dealers enhance its market reach and facilitate sales, further supporting its revenue streams.

Kubota Financial Statement Overview

Summary

Kubota demonstrates solid performance across its financial statements with consistent revenue growth and robust profitability margins. The company's balance sheet is strong, though increasing leverage warrants attention. Cash flow management has been effective, but volatility in free cash flow highlights areas for improvement. Overall, Kubota is well-positioned in the Agricultural - Machinery industry, but careful management of debt and capital expenditures will be crucial for sustained financial health.

Income Statement

Kubota's income statement shows steady growth in revenue over the years, with a notable increase from 2020 to 2022. The gross profit margin remains strong, demonstrating effective cost management. However, the net profit margin has seen some fluctuations, indicating potential volatility in net income. The EBIT and EBITDA margins suggest consistent operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with a healthy equity ratio, indicating financial stability. However, the debt-to-equity ratio has increased over time, suggesting rising leverage that could pose risks if not managed carefully. Return on equity remains robust, showcasing effective use of shareholder equity to generate profits.

Cash Flow

Kubota's cash flow shows strong operating cash flow in recent years, although there were periods of negative free cash flow, particularly in 2023. The operating cash flow to net income ratio indicates efficient conversion of net income into cash. However, fluctuations in free cash flow suggest potential challenges in managing capital expenditures.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.08T	3.02T	3.02T	2.68T	2.20T	1.85T
	Gross Profit
929.12B	927.98B	876.47B	696.52B	631.81B	534.85B
	EBIT
366.99B	315.64B	337.85B	218.94B	246.21B	175.28B
	EBITDA
488.36B	462.40B	454.81B	322.40B	325.61B	254.91B
	Net Income Common Stockholders
260.44B	230.44B	238.46B	156.47B	174.76B	128.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
341.49B	398.92B	305.14B	297.31B	309.51B	272.89B
	Total Assets
5.75T	6.02T	5.36T	4.73T	3.77T	3.19T
	Total Debt
2.16T	2.28T	1.99T	1.61T	1.09T	874.44B
	Net Debt
1.91T	1.98T	1.77T	1.39T	835.87B	651.52B
	Total Liabilities
3.18T	3.28T	2.94T	2.65T	1.99T	1.62T
	Stockholders Equity
2.32T	2.48T	2.18T	1.88T	1.68T	1.48T
Cash Flow		Free Cash Flow
10.86B	68.09B	-189.75B	-177.33B	-33.21B	58.17B
	Operating Cash Flow
210.22B	282.08B	-17.27B	-7.68B	92.51B	142.92B
	Investing Cash Flow
-201.48B	-208.88B	-173.44B	-318.50B	-127.37B	-47.13B
	Financing Cash Flow
71.58B	-26.28B	178.40B	282.56B	60.59B	-68.35B

Kubota Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 57.78
• 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 KUBTY, the sentiment is Negative. The current price of 57.78 is above the 20-day moving average (MA) of 57.71, below the 50-day MA of 61.34, and below the 200-day MA of 64.56, indicating a neutral trend. The MACD of -1.30 indicates Negative momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 60.75 is Neutral, 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	74 Outperform	$139.16B	13.20	55.36%	1.87%	-3.36%	9.59%
PCAR	71 Outperform	$47.49B	11.45	24.93%	1.39%	-4.29%	-9.76%
KUBTY	70 Outperform	$12.97B	8.77	9.74%	2.17%	-7.55%	-9.86%
DE	70 Outperform	$123.40B	20.15	27.91%	1.35%	-20.93%	-34.33%
CNH	65 Neutral	$14.08B	11.41	16.66%	4.16%	-19.64%	-41.23%
Sector *	63 Neutral	$4.26B	11.28	5.43%	215.24%	4.12%	-8.73%
AGCO	50 Neutral	$6.10B	46.40	-10.11%	1.42%	-19.08%	-136.41%