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6301: Dividend Increase And Share Buybacks Will Offset Currency Headwinds

Update shared on 25 Nov 2025

Fair value Increased 0.49%
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AnalystConsensusTarget's Fair Value
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1Y
21.2%
7D
0.4%

Analysts have raised their price target for Komatsu slightly, increasing it from ¥5,142.50 to ¥5,167.50. This adjustment is due to minor changes in growth and profitability estimates that reflect a more stable outlook for the company.

What's in the News

  • Komatsu revised its consolidated earnings guidance for the fiscal year ending March 31, 2026, raising projected net sales, operating income, and net income to reflect the yen’s depreciation and an updated market outlook (Key Developments).
  • The Board of Directors approved a dividend of JPY 95 per share for the fiscal year, an increase from JPY 83 per share last year. The total dividend payout is JPY 86,318 million (Key Developments).
  • The company completed share buybacks totaling 14,962,300 shares, representing 1.63% of shares outstanding, for ¥70,234.77 million under the buyback plan announced in April 2025 (Key Developments).
  • Komatsu signed a memorandum of understanding with Cummins and included Wabtec to develop hybrid powertrains for heavy mining equipment. This initiative advances decarbonization and fuel efficiency efforts (Key Developments).

Valuation Changes

  • The consensus analyst price target has risen slightly, from ¥5,142.50 to ¥5,167.50.
  • The discount rate has fallen marginally, decreasing from 7.08% to 7.05%.
  • The revenue growth estimate has edged lower, moving from 2.25% to 2.06%.
  • The net profit margin estimate has decreased slightly, from 10.28% to 10.21%.
  • The future P/E ratio has increased modestly, from 12.32x to 12.53x.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.