Kubota (KUBTY) AI Stock Analysis

• Market Cap: $17.00B
• Dividend Yield: 1.7%
• Average Volume (3M): 1.38K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.68
• Revenue Growth: -2.36%
• EPS Growth: -28.65%
• Country: US
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.42
• Shares Outstanding: 227,743,360
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,381
• PEG Ratio: -4.50
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 31.15
• Enterprise Value/Market Cap: 269.77
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 11.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $78.00 ▼(-2.03% Downside)

Kubota's overall stock score of 69 reflects a balanced view of its financial stability and technical strength. The most significant factor is the company's solid technical indicators, suggesting a positive market trend. Financial performance is stable but highlights areas for improvement, particularly in revenue growth and cash flow efficiency. Valuation is fair, providing a reasonable entry point for investors. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strong Margins

Kubota's strong gross and net profit margins indicate operational efficiency and pricing power, supporting long-term profitability.

Free Cash Flow Growth

Positive free cash flow growth suggests effective capital management, providing flexibility for investments and debt reduction.

Stable Balance Sheet

A stable balance sheet with moderate leverage enhances financial stability, allowing Kubota to withstand economic fluctuations.

Negative Factors

Declining Revenue Growth

Declining revenue growth is a concern as it may indicate weakening demand or competitive pressures, impacting future earnings potential.

Low Operating Cash Flow

Low operating cash flow suggests inefficiencies in converting sales into cash, potentially limiting reinvestment and growth opportunities.

Room for ROE Improvement

A relatively low ROE indicates that Kubota may not be maximizing shareholder value, suggesting potential inefficiencies in capital use.

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 generates revenue primarily through the sale of its agricultural machinery, construction equipment, and engines. Key revenue streams include the sale of tractors, combines, and tillers for the agricultural sector, as well as excavators, bulldozers, and other heavy machinery for construction. Additionally, Kubota earns income from parts and service offerings, which provide ongoing support to its customers. The company's global presence is bolstered by strategic partnerships with local distributors and dealers, enabling it to tap into various markets effectively. Furthermore, the expansion into related sectors, such as water management and environmental solutions, contributes to its diversified revenue base.

Kubota Financial Statement Overview

Summary

Kubota's financial performance presents a mixed picture. The income statement shows strong margins but declining revenue growth, which is a concern. The balance sheet is stable with moderate leverage, but the return on equity could be improved. The cash flow statement highlights positive free cash flow growth, but operational cash generation needs attention. Overall, Kubota demonstrates financial stability with areas for improvement in revenue growth and cash flow efficiency.

Income Statement

Kubota's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 23.97%, which is concerning. However, the company maintains a healthy gross profit margin of 29.86% and a net profit margin of 5.93%. The EBIT and EBITDA margins are also solid at 9.65% and 13.99%, respectively, indicating operational efficiency. The decline in revenue growth is a significant weakness, but the stable margins provide some strength.

Balance Sheet

Kubota's balance sheet reflects a moderate level of leverage with a debt-to-equity ratio of 0.88 in the TTM period, which is slightly improved from the previous year. The return on equity stands at 7.16%, showing profitability but with room for improvement. The equity ratio is 42.34%, indicating a reasonable level of equity financing. Overall, the balance sheet is stable, but the company should focus on improving its ROE.

Cash Flow

The cash flow statement reveals a positive free cash flow growth rate of 8.66% in the TTM period, which is a positive sign. However, the operating cash flow to net income ratio is low at 0.21, suggesting that cash generation from operations could be stronger. The free cash flow to net income ratio is 0.50, indicating that a significant portion of net income is converted into free cash flow. While there are positive aspects, the low operating cash flow ratio is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96T	3.02T	3.02T	2.68T	2.20T	1.85T
Gross Profit	882.39B	927.98B	876.47B	685.68B	631.81B	534.85B
EBITDA	388.44B	462.40B	454.81B	322.40B	325.61B	254.91B
Net Income	175.35B	230.44B	238.46B	156.47B	174.76B	128.52B
Balance Sheet
Total Assets	5.92T	6.02T	5.36T	4.77T	3.77T	3.19T
Cash, Cash Equivalents and Short-Term Investments	225.68B	398.92B	305.14B	297.31B	309.51B	272.89B
Total Debt	2.19T	2.28T	1.99T	1.61T	1.09T	874.44B
Total Liabilities	3.18T	3.28T	2.94T	2.66T	1.99T	1.62T
Stockholders Equity	2.51T	2.48T	2.18T	1.87T	1.68T	1.48T
Cash Flow
Free Cash Flow	196.10B	68.09B	-189.75B	-177.33B	-33.21B	58.17B
Operating Cash Flow	344.86B	282.08B	-17.27B	-7.68B	92.51B	142.92B
Investing Cash Flow	-158.25B	-208.88B	-173.44B	-318.50B	-127.37B	-47.13B
Financing Cash Flow	-97.68B	-26.28B	178.40B	282.56B	60.59B	-68.35B

Kubota Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KUBTY, the sentiment is Positive. The current price of 79.62 is above the 20-day moving average (MA) of 74.94, above the 50-day MA of 72.56, and above the 200-day MA of 62.97, indicating a bullish trend. The MACD of 1.08 indicates Positive momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KUBTY.

Kubota Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	75 Outperform	$301.04B	34.20	46.30%	0.98%	-1.51%	-9.69%
OSK	74 Outperform	$9.25B	14.59	14.90%	1.56%	-2.28%	-0.53%
KUBTY	69 Neutral	$17.00B	14.60	7.16%	1.70%	-2.36%	-28.65%
DE	66 Neutral	$142.32B	28.38	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	$8.41B	22.46	8.69%	1.10%	-20.09%	121.28%
CNH	55 Neutral	$13.41B	22.56	7.77%	2.67%	-18.10%	-65.24%