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Kubota
(6326)
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Rating:63Neutral
Price Target:
¥3,201.00
▲(14.59% Upside)
Action:Downgraded
Date:08/05/26
The score is mainly supported by improving recent profitability and a reasonable valuation (P/E ~14.3), but it is held back by cash-flow inconsistency (including prior periods of negative OCF/FCF) and weaker technical momentum with the stock trading below key moving averages.
Positive Factors
Diversified Machinery and Infrastructure Portfolio
Kubota serves several essential end markets rather than relying on one machinery category. Its agricultural, construction, engine, and water businesses provide multiple avenues for revenue, while the installed equipment base supports recurring parts, maintenance, and service income.
Negative Factors
Choppy Cash-Flow Reliability
Recent cash generation is positive, but the history of negative operating and free cash flow indicates that earnings may be vulnerable to working-capital swings or heavier cash requirements. Moderate earnings-to-cash conversion could constrain internally funded investment during weaker periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Machinery and Infrastructure Portfolio
Kubota serves several essential end markets rather than relying on one machinery category. Its agricultural, construction, engine, and water businesses provide multiple avenues for revenue, while the installed equipment base supports recurring parts, maintenance, and service income.
Read all positive factors
Kubota (6326) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.99T
Dividend Yield1.94%
Average Volume (3M)3.64M
Price to Earnings (P/E)11.2
Beta (1Y)1.36
Revenue Growth12.54%
EPS Growth57.90%
CountryJP
Employees52,503
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)235.82
Shares Outstanding1,138,716,800
10 Day Avg. Volume3,769,020
30 Day Avg. Volume3,636,600
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)0.97
Price to Sales (P/S)0.84
P/FCF Ratio14.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,013.33Price Target Upside7.87% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)253.79
Revenue Forecast (FY)¥3.31T
Kubota Business Overview & Revenue Model
Company Description
Kubota Corporation is a global enterprise that develops and markets machinery and related solutions across the food, water, and environment sectors. Its operations span Japan, North America, Europe, Asia, and other international markets. The compa...
How the Company Makes Money
Kubota makes money primarily by manufacturing and selling equipment and related products across its major business areas. A core revenue stream is the sale of agricultural machinery (e.g., tractors, harvesting equipment, implements), typically sol...
Kubota Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.25T | 3.02T | 3.02T | 3.02T | 2.68T | 2.20T |
| Gross Profit | 983.71B | 884.31B | 927.98B | 876.47B | 685.68B | 631.81B |
| EBITDA | 523.64B | 430.98B | 445.24B | 438.33B | 297.18B | 313.99B |
| Net Income | 267.89B | 186.69B | 230.44B | 238.46B | 156.47B | 175.64B |
Balance Sheet | ||||||
| Total Assets | 6.35T | 6.20T | 6.02T | 5.36T | 4.77T | 3.77T |
| Cash, Cash Equivalents and Short-Term Investments | 303.28B | 276.96B | 295.13B | 222.12B | 225.80B | 258.64B |
| Total Debt | 2.26T | 2.24T | 2.34T | 2.05T | 1.66T | 1.14T |
| Total Liabilities | 3.31T | 3.33T | 3.28T | 2.94T | 2.66T | 1.99T |
| Stockholders Equity | 2.79T | 2.62T | 2.48T | 2.18T | 1.87T | 1.68T |
Cash Flow | ||||||
| Free Cash Flow | 223.77B | 174.89B | 100.91B | -167.16B | -142.25B | -4.92B |
| Operating Cash Flow | 375.70B | 327.90B | 282.08B | -17.27B | -7.68B | 92.51B |
| Investing Cash Flow | -152.35B | -163.73B | -208.88B | -173.44B | -318.50B | -127.37B |
| Financing Cash Flow | -149.18B | -184.46B | -26.28B | 178.40B | 282.56B | 60.59B |
Kubota Technical Analysis
Negative
2793.50
Price Trends
2743.90
Negative
2748.48
Negative
2690.86
Negative
Market Momentum
-38.47
Negative
44.60
Neutral
58.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6326, the sentiment is Negative. The current price of 2793.5 is above the 20-day moving average (MA) of 2663.35, above the 50-day MA of 2743.90, and above the 200-day MA of 2690.86, indicating a bearish trend. The MACD of -38.47 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 58.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6326.
Kubota Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥6.08T | 15.98 | ― | 2.79% | 5.24% | -7.42% | |
78 Outperform | ¥365.75B | 11.97 | ― | 3.00% | 11.87% | 12.20% | |
68 Neutral | ¥1.11T | 12.30 | 10.20% | 3.63% | 5.87% | 32.02% | |
64 Neutral | ¥38.03B | 14.65 | ― | 2.38% | 4.86% | 189.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥2.99T | 11.21 | 10.13% | 1.94% | 12.54% | 57.90% |
* Industrials Sector Average
JP:6326
Kubota
2,629.50
613.42
30.43%
JP:6305
Hitachi Construction Machinery Co
5,231.00
236.64
4.74%
JP:6301
Komatsu Ltd.
6,815.00
1,416.23
26.23%
JP:6310
Iseki & Co., Ltd.
1,682.00
-364.84
-17.82%
JP:6432
Takeuchi Mfg.Co., Ltd.
7,670.00
1,505.50
24.42%
Kubota Corporate Events
Kubota Reports No Share Buybacks Yet Under ¥40 Billion Authorization
Sep 3, 2026
Kubota has reported that it did not repurchase any of its own shares between August 5 and August 31, 2026, despite having an existing board authorization to buy back up to 18 million shares for a total of up to ¥40 billion by December 18, 202...
Kubota Launches ¥40 Billion Share Buyback to Boost Shareholder Value
Aug 4, 2026
Kubota Corporation has approved a share repurchase program aimed at enhancing value per share and reinforcing its shareholder return measures as part of its capital management strategy. The decision underscores the company’s confidence in it...
Kubota Raises Interim Dividend, Signals Stronger Shareholder Returns
Aug 4, 2026
Kubota Corporation is a Japan-based manufacturer best known for agricultural machinery, construction equipment, and industrial engines, serving global markets tied to farming, infrastructure, and related capital investment. The company targets sta...
Kubota lifts full-year outlook after weaker yen and U.S. tariff refunds boost profits
Aug 4, 2026
Kubota reported that results for the six months to June 30, 2026, significantly exceeded its earlier forecast, with revenue up 5.6% to ¥1.69 trillion and operating profit surging 47.2% as a weaker yen and U.S. tariff refunds bolstered margins...
Kubota Delivers Strong First-Half Earnings and Raises Full-Year Outlook
Aug 4, 2026
Kubota reported consolidated revenue of ¥1,690.3 billion for the six months ended June 30, 2026, up 16.2% year on year, with operating profit surging 64.7% to ¥235.6 billion and profit attributable to owners of the parent rising 87.8% to...
Kubota Completes ¥30 Billion Share Buyback to Boost Shareholder Value
Jun 12, 2026
Kubota Corporation has completed a share repurchase program authorized by its board in April 2026, aiming to enhance shareholder returns and increase value per share. The company bought back 11,104,900 common shares for a total of ¥29,999,887...
Kubota Launches ¥30 Billion Share Buyback Via ToSTNeT-3
Jun 11, 2026
Kubota Corporation has set the specific terms for a share repurchase under a previously approved buyback program, opting to acquire 11,104,900 common shares for up to ¥29,999,887,350 through the Tokyo Stock Exchange’s ToSTNeT-3 off-auct...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.