Kubota (KUBTY) AI Stock Analysis

• Market Cap: $12.74B
• Dividend Yield: 2.21%
• Average Volume (3M): 1.41K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.74
• Revenue Growth: -7.15%
• EPS Growth: -21.34%
• Country: US
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 83
• Industry: Agricultural - Machinery
• EPS (TTM): 1.24
• Shares Outstanding: 230,179,370
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,406
• PEG Ratio: -1.44
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.03
• 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

• Rating: 70 Outperform
• Price Target: $63.00 ▲(13.39%Upside)

Kubota's overall stock score reflects solid financial performance with consistent revenue growth and profitability, though caution is warranted regarding its increasing leverage. The company's valuation is attractive, suggesting potential undervaluation, while technical analysis indicates a bearish trend. The lack of recent earnings call data and corporate events means these factors were not considered in the score.

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 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	685.68B	631.81B	534.85B
	EBIT
351.60B	315.64B	337.85B	214.39B	244.56B	175.28B
	EBITDA
485.21B	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
400.33B	398.92B	305.14B	297.31B	309.51B	272.89B
	Total Assets
6.08T	6.02T	5.36T	4.77T	3.77T	3.19T
	Total Debt
2.26T	2.28T	1.99T	1.61T	1.09T	874.44B
	Net Debt
1.97T	1.98T	1.77T	1.39T	835.87B	651.52B
	Total Liabilities
3.30T	3.28T	2.94T	2.66T	1.99T	1.62T
	Stockholders Equity
2.52T	2.48T	2.18T	1.87T	1.68T	1.48T
Cash Flow		Free Cash Flow
24.97B	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: 55.56
• 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 55.56 is below the 20-day moving average (MA) of 55.68, below the 50-day MA of 56.36, and below the 200-day MA of 62.05, indicating a bearish trend. The MACD of -0.43 indicates Negative momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 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	78 Outperform	$168.22B	17.43	55.67%	1.58%	-5.58%	-7.37%
PCAR	75 Outperform	$47.82B	13.82	19.90%	1.45%	-8.64%	-31.57%
DE	72 Outperform	$141.68B	25.31	24.07%	1.24%	-22.26%	-37.83%
KUBTY	70 Outperform	$12.74B	9.94	8.29%	2.21%	-7.15%	-21.34%
CNH	66 Neutral	$15.93B	15.35	13.26%	1.96%	-21.99%	-52.11%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%
AGCO	55 Neutral	$7.61B	46.40	-13.60%	1.13%	-23.02%	-152.78%