Kubota (KUBTY) AI Stock Analysis

• Market Cap: $14.91B
• Dividend Yield: 1.89%
• Average Volume (3M): 1.04K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.71
• Revenue Growth: -6.33%
• EPS Growth: -32.32%
• Country: US
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.51
• Shares Outstanding: 230,179,370
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,044
• 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: 1.85
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $76.00 ▲(10.64% 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.

Kubota Business Overview & Revenue Model

Company Description

Kubota Corporation (KUBTY) is a Japanese multinational company specializing in the manufacturing of machinery and equipment for agriculture, construction, and landscaping. Founded in 1890, Kubota has established a robust presence in various sectors, producing a wide range of products including tractors, agricultural implements, construction machinery, and engines. The company operates globally, catering to both individual consumers and businesses, and is recognized for its commitment to innovation and sustainability in its product offerings.

How the Company Makes Money

Kubota generates revenue primarily through the sale of its machinery and equipment across various sectors, particularly agriculture and construction. Key revenue streams include the sale of tractors, combine harvesters, and other agricultural machinery, which are essential for modern farming operations. Additionally, Kubota earns income from its construction equipment line, including excavators and compactors, which are vital for infrastructure development. The company also offers parts and services which contribute to recurring revenue. Strategic partnerships with dealers and distributors enhance its market reach, while international operations help diversify revenue sources. Factors such as agricultural demand, construction market trends, and global economic conditions significantly impact Kubota's earnings, making its business model responsive to both domestic and international markets.

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	-162.99B	-208.88B	-173.44B	-318.50B	-127.37B	-47.13B
Financing Cash Flow	-215.96B	-26.28B	178.40B	282.56B	60.59B	-68.35B

Kubota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 68.69 is above the 20-day moving average (MA) of 66.38, above the 50-day MA of 63.70, and above the 200-day MA of 60.04, indicating a neutral trend. The MACD of 1.10 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 2.10 is Positive, 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	―	$267.31B	29.29	46.30%	1.02%	-1.51%	-9.69%
KUBTY	―	$14.91B	12.96	7.15%	1.89%	-6.33%	-32.32%
OSK	―	$7.67B	11.83	15.42%	1.59%	-2.28%	-0.53%
DE	―	$124.79B	24.13	21.59%	1.40%	-20.63%	-34.82%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	―	$7.70B	20.56	8.69%	1.42%	-20.09%	121.28%
CNH	―	$13.02B	15.84	10.79%	2.40%	-21.70%	-57.68%

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.