Kubota (KUBTY) AI Stock Analysis

• Market Cap: $12.56B
• Dividend Yield: 2.25%
• Average Volume (3M): 900.00
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.75
• Revenue Growth: -7.15%
• EPS Growth: -21.34%
• Country: US
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural - Machinery
• EPS (TTM): 1.24
• Shares Outstanding: 230,179,370
• 10 Day Avg. Volume: 760
• 30 Day Avg. Volume: 900
• PEG Ratio: -0.72
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.14
• 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: 68 Neutral
• Price Target: $59.00 ▲(9.24%Upside)

Kubota's strengths lie in its solid financial performance and appealing valuation metrics, with a low P/E ratio and reasonable dividend yield. However, technical analysis reveals a bearish trend, which suggests caution. The company's rising leverage and free cash flow volatility are potential risks.

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 primarily through the sale of its diverse range of machinery and equipment. The company's key revenue streams are from its agricultural machinery and construction equipment sectors, which include tractors, combine harvesters, rice transplanters, and mini excavators. Additionally, Kubota generates income from its engines division, which supplies engines for various applications, including industrial and marine uses. The company also benefits from its water and environment systems business, providing solutions like water treatment and pipe systems. Significant partnerships with dealers and distributors worldwide help Kubota expand its market reach and enhance its sales channels. Furthermore, Kubota invests in research and development to innovate and maintain its competitive edge, contributing to sustained revenue growth.

Kubota Financial Statement Overview

Summary

Kubota demonstrates solid performance with consistent revenue growth and robust profitability margins. The balance sheet is strong, though increasing leverage warrants attention. Cash flow management is effective, but volatility in free cash flow highlights areas for improvement.

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

Kubota Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 54.01 is below the 20-day moving average (MA) of 55.30, below the 50-day MA of 55.73, and below the 200-day MA of 60.57, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 3.78 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
PCAR	78 Outperform	$50.08B	14.27	19.90%	1.38%	-8.64%	-31.57%
CAT	70 Outperform	$190.31B	19.72	55.67%	1.37%	-5.58%	-7.37%
DE	70 Outperform	$137.51B	24.15	24.07%	1.28%	-22.26%	-37.83%
KUBTY	68 Neutral	$12.56B	9.74	8.29%	2.25%	-7.15%	-21.34%
CNH	66 Neutral	$16.39B	15.79	13.26%	1.94%	-21.99%	-52.11%
Sector *	62 Neutral	C$6.70B	7.73	3.45%	2.77%	6.50%	-23.02%
AGCO	58 Neutral	$7.99B	46.40	-13.60%	1.08%	-23.02%	-152.78%