Kubota (KUBTY) AI Stock Analysis

• Market Cap: $16.89B
• Dividend Yield: 1.69%
• Average Volume (3M): 1.38K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.70
• 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: 230,179,370
• 10 Day Avg. Volume: 4,143
• 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: 1.72
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.76
• Revenue Forecast (FY): $19.34B

• Rating: 76 Outperform
• Price Target: $76.00 ▲(7.19% Upside)

Kubota's overall stock score reflects a strong technical outlook and reasonable valuation, which are the most significant factors. The company's stable financial performance, despite challenges in revenue growth and profitability, supports a positive investment case. The absence of earnings call and corporate events data does not impact the overall score.

Positive Factors

Cash Flow Management

Strong cash flow management enhances Kubota's ability to reinvest in growth opportunities and maintain financial stability, ensuring long-term operational resilience.

Operational Efficiency

Consistent cost management and operational efficiency allow Kubota to maintain profitability despite market fluctuations, supporting sustainable business operations.

Balanced Leverage

A balanced leverage position provides Kubota with financial flexibility to navigate economic cycles and invest in strategic initiatives without excessive risk.

Negative Factors

Declining Revenue Growth

Decreasing revenue growth may indicate challenges in market expansion or product demand, potentially impacting long-term competitive positioning and profitability.

Profitability Decline

A reduction in profitability margins suggests pressures on earnings, which could limit the company's ability to invest in growth and innovation over time.

Debt Management Concerns

Rising debt levels may strain Kubota's financial resources, potentially affecting its ability to fund operations and strategic investments, impacting long-term growth prospects.

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 demonstrates a stable financial position with consistent profitability and operational efficiency. While the company faces challenges in revenue growth and declining net profit margins, it maintains a balanced leverage and strong cash flow management. The focus should be on improving revenue growth and enhancing profitability to sustain long-term growth.

Income Statement

Kubota's income statement reflects a stable gross profit margin around 30% over the years, indicating consistent cost management. However, the TTM data shows a slight decline in revenue growth rate by -2.1%, which is a concern. The net profit margin has decreased to 5.95% in TTM from 7.64% in 2024, suggesting a reduction in profitability. Despite these challenges, the company maintains a healthy EBIT and EBITDA margin, demonstrating operational efficiency.

Balance Sheet

Kubota's balance sheet shows a moderate debt-to-equity ratio of 0.87 in TTM, which is slightly improved from 0.92 in 2024, indicating a balanced leverage. The return on equity has decreased to 7.19% in TTM from 9.30% in 2024, reflecting a decline in profitability. The equity ratio remains stable, suggesting a solid capital structure. However, the increasing total debt over the years could pose a risk if not managed properly.

Cash Flow

Kubota's cash flow statement reveals a significant improvement in free cash flow growth rate at 28.29% in TTM, showing effective cash management. The operating cash flow to net income ratio is 0.19, indicating a moderate conversion of income to cash. However, the free cash flow to net income ratio is 0.44, which suggests that a substantial portion of net income is not being converted into free cash flow, potentially limiting reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.89T	3.02T	3.02T	2.68T	2.20T	1.85T
Gross Profit	885.00B	927.98B	876.47B	685.68B	631.81B	534.85B
EBITDA	371.91B	462.40B	454.81B	322.40B	325.61B	254.91B
Net Income	172.11B	230.44B	238.46B	156.47B	174.76B	128.52B
Balance Sheet
Total Assets	5.67T	6.02T	5.36T	4.77T	3.77T	3.19T
Cash, Cash Equivalents and Short-Term Investments	342.57B	398.92B	305.14B	297.31B	309.51B	272.89B
Total Debt	2.08T	2.28T	1.99T	1.61T	1.09T	874.44B
Total Liabilities	3.01T	3.28T	2.94T	2.66T	1.99T	1.62T
Stockholders Equity	2.40T	2.48T	2.18T	1.87T	1.68T	1.48T
Cash Flow
Free Cash Flow	141.90B	68.09B	-189.75B	-177.33B	-33.21B	58.17B
Operating Cash Flow	295.50B	282.08B	-17.27B	-7.68B	92.51B	142.92B
Investing Cash Flow	-133.59B	-208.88B	-173.44B	-318.50B	-127.37B	-47.13B
Financing Cash Flow	-121.94B	-26.28B	178.40B	282.56B	60.59B	-68.35B

Kubota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 70.9 is above the 20-day moving average (MA) of 70.33, above the 50-day MA of 68.01, and above the 200-day MA of 61.08, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 69.66 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	76 Outperform	$287.97B	31.58	46.30%	0.98%	-1.51%	-9.69%
KUBTY	76 Outperform	$16.89B	14.38	7.16%	1.69%	-2.36%	-28.65%
OSK	71 Outperform	$8.45B	13.02	15.42%	1.54%	-2.28%	-0.53%
DE	66 Neutral	$128.66B	25.73	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	$8.07B	21.53	8.69%	1.06%	-20.09%	121.28%
CNH	55 Neutral	$12.36B	20.80	7.77%	2.53%	-18.10%	-65.24%

Kubota Corporate Events

Kubota Corporation Reports Decline in First Half 2025 Earnings

Kubota Corporation, a leading player in the farm and industrial machinery sector, has released its financial results for the first half of 2025, showcasing its extensive operations in manufacturing equipment for agriculture, construction, and water systems.