Kubota Corp 6326

Morningstar Rating
¥2,683.00 −38.00 (1.40%)
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Company Report

Kubota's Financial Discipline and Construction Growth Support Its Midterm Outlook

Kubota continues to strengthen its premium compact farm and construction equipment offerings for small-scale agriculture, landscaping, and residential markets. In its largest market by sales, North America, the company remains a leader in subcompact tractors (under 40 horsepower), having established its first overseas distribution company there in 1972. As demand for small (sub-40 horsepower) models peaks, Kubota is shifting focus to midsize (40–100 horsepower) tractors, supported by new M5 and M6 models and a strong dealer network. In construction, it has led the global mini-excavator market for nearly two decades and holds the second-largest share in North America’s compact track loader market. In Asia, Kubota remains dominant in rice farming equipment, with leading shares in tractors and crawler combine harvesters across Japan and the Association of Southeast Asian Nations. We believe Kubota’s compact machinery expertise, brand strength, and dealer reach support its long-term growth.

Price vs Fair Value

6326 is trading within a range we consider fairly valued.
Price
¥2,683.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

We expect stable long-term top-line growth as Kubota is the small tractor market leader in North America, Southeast Asia, and Japan.

Bears

High dealer inventory of compact tractors overseas will lead to a near-term adjustment phase after the high covid-induced demand.

News

Trading Information

Previous Close Price
¥2,721.00
Day Range
¥2,671.00–2,722.00
52-Week Range
¥1,851.50–3,268.00
Bid/Ask
¥2,682.00 / ¥2,696.00
Shares Outstanding
1.13B
Market Cap
¥3.02T
Volume/Avg
4M / 4M

Key Statistics

Price/Earnings (Normalized)
11.43
Price/Sales
0.95
Dividend Yield (Trailing)
1.90%
Dividend Yield (Forward)
1.94%
Dividend Payment Schedule
Mar, Sep
Total Yield
2.92%

Company Profile

Kubota manufactures and sells small and midsize agricultural and construction equipment as well as water treatment equipment globally. Its key products in the farm and industrial machinery segment include compact/utility tractors, mini excavators, compact track loaders, engines, and rice farming equipment, such as combine harvesters, as well as rice transplanters. The company has produced over 5.6 million tractors worldwide and over 30 million engines. Its water and environment segment provides mainly pipe system products like ductile iron pipes and valves, water/waste treatment plants, pumps, as well as operation and maintenance services, including public/private partnership projects. The company is based in Osaka, Japan, and was founded in 1890.
Sector
Industrials
Industry
Farm & Heavy Construction Machinery
Stock Style Box
Large Value
Total Number of Employees
66,593

Competitors

Valuation

Metric
6326
DE
AGCO
Price/Earnings (Normalized)
11.4337.3418.98
Price/Book Value
1.106.441.92
Price/Sales
0.953.860.79
Price/Cash Flow
7.1524.3016.11
Price/Earnings
6326
DE
AGCO

Financial Strength

Metric
6326
DE
AGCO
Quick Ratio
1.201.980.45
Current Ratio
1.612.201.32
Interest Coverage
33.453.226.02
Quick Ratio
6326
DE
AGCO

Profitability

Metric
6326
DE
AGCO
Return on Assets (Normalized)
4.71%4.68%3.56%
Return on Equity (Normalized)
10.99%18.74%10.14%
Return on Invested Capital (Normalized)
5.37%7.86%6.47%
Return on Assets
6326
DE
AGCO

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