DB:KOM1

Stock Analysis Report

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Executive Summary

Komatsu Ltd. manufactures and sells construction, mining, and utility equipment; and forest and industrial machinery worldwide.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Komatsu's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KOM1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

KOM1

1.1%

DE Machinery

-0.6%

DE Market


1 Year Return

-12.5%

KOM1

-10.2%

DE Machinery

3.0%

DE Market

Return vs Industry: KOM1 underperformed the German Machinery industry which returned -10.2% over the past year.

Return vs Market: KOM1 underperformed the German Market which returned 3% over the past year.


Shareholder returns

KOM1IndustryMarket
7 Day1.0%1.1%-0.6%
30 Day-4.3%-2.8%-0.1%
90 Day15.7%15.7%16.4%
1 Year-8.8%-12.5%-9.3%-10.2%5.2%3.0%
3 Year-11.8%-20.5%-32.9%-36.9%1.0%-6.9%
5 Year24.9%6.6%-11.0%-20.0%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Komatsu's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Komatsu undervalued compared to its fair value and its price relative to the market?

13.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KOM1 (€18.02) is trading above our estimate of fair value (€7.79)

Significantly Below Fair Value: KOM1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KOM1 is good value based on its PE Ratio (13.3x) compared to the DE Machinery industry average (15.5x).

PE vs Market: KOM1 is good value based on its PE Ratio (13.3x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: KOM1 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: KOM1 is good value based on its PB Ratio (1.2x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is Komatsu forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOM1's forecast earnings growth (6.5% per year) is above the savings rate (0.2%).

Earnings vs Market: KOM1's earnings (6.5% per year) are forecast to grow slower than the German market (22.4% per year).

High Growth Earnings: KOM1's earnings are forecast to grow, but not significantly.

Revenue vs Market: KOM1's revenue (0.7% per year) is forecast to grow slower than the German market (6% per year).

High Growth Revenue: KOM1's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KOM1's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Komatsu performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KOM1 has high quality earnings.

Growing Profit Margin: KOM1's current net profit margins (6.3%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: KOM1's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: KOM1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KOM1 had negative earnings growth (-40.3%) over the past year, making it difficult to compare to the Machinery industry average (-22.8%).


Return on Equity

High ROE: KOM1's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Komatsu's financial position?


Financial Position Analysis

Short Term Liabilities: KOM1's short term assets (¥1,946.8B) exceed its short term liabilities (¥1,158.6B).

Long Term Liabilities: KOM1's short term assets (¥1,946.8B) exceed its long term liabilities (¥638.8B).


Debt to Equity History and Analysis

Debt Level: KOM1's debt to equity ratio (54.5%) is considered high.

Reducing Debt: KOM1's debt to equity ratio has increased from 36.9% to 54.5% over the past 5 years.

Debt Coverage: KOM1's debt is well covered by operating cash flow (29.2%).

Interest Coverage: KOM1's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Komatsu current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KOM1's dividend (4.35%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: KOM1's dividend (4.35%) is in the top 25% of dividend payers in the German market (3.85%)


Stability and Growth of Payments

Stable Dividend: KOM1's dividend payments have been volatile in the past 10 years.

Growing Dividend: KOM1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58%), KOM1's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Hiroyuki Ogawa (59yo)

1.25yrs

Tenure

JP¥160,000,000

Compensation

Mr. Hiroyuki Ogawa serves as a President and CEO since April 1, 2019 and also served as a Senior Executive Officer and Responsible for the Mid-range Management Plan at Komatsu Ltd since 2018 until April 1, ...


CEO Compensation Analysis

Compensation vs Market: Hiroyuki's total compensation ($USD1.50M) is below average for companies of similar size in the German market ($USD5.39M).

Compensation vs Earnings: Insufficient data to compare Hiroyuki's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Hiroyuki Ogawa
President1.25yrsJP¥160.00m0.0030% ¥500.2k
Kuniko Urano
Senior Executive Officer & Director2.08yrsJP¥110.00m0.0027% ¥447.8k
Takeshi Horikoshi
CFO & Executive Officerno datano datano data
Yuichi Iwamoto
Chief Technology Officer & Senior Executive Officerno datano datano data
Hiroshi Makabe
Executive Officer of Legal1.5yrsno datano data
Koichi Honda
Executive Officer & GM of Human Resources Department2.5yrsno datano data
Masayuki Moriyama
Senior Executive Officer1.08yrsno datano data
Yasuhiro Inagaki
Senior Executive Officer of Chinano datano datano data
Susumu Ueno
Senior Exec Officer and President of Japanese Domestic Mktg & Construction Equipment Mrktg Divisionno datano datano data
Masaki Nobuhara
Senior Executive Officer & President of Production Division2.5yrsno datano data

2.5yrs

Average Tenure

Experienced Management: KOM1's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hiroyuki Ogawa
President1.25yrsJP¥160.00m0.0030% ¥500.2k
Kuniko Urano
Senior Executive Officer & Director2.08yrsJP¥110.00m0.0027% ¥447.8k
Masayuki Moriyama
Senior Executive Officer1.08yrsno datano data
Kiyoshi Mizuhara
Senior Executive Officer1.08yrsno datano data
Takeshi Kunibe
Independent Outside Director0.50yrno datano data
Makoto Kigawa
Independent Outside Director4.25yrsno datano data
Tetsuji Ohashi
Chairman1.25yrsJP¥294.00m0.013% ¥2.1m
Hirohide Yamaguchi
Outside Audit & Supervisory Board Member6.08yrsno datano data
Hironobu Matsuo
Standing Audit & Supervisory Board Member3.08yrsno data0.0019% ¥321.1k
Arthur Mitchell
Independent Outside Director0.50yrno datano data

1.3yrs

Average Tenure

66yo

Average Age

Experienced Board: KOM1's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Komatsu Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Komatsu Ltd.
  • Ticker: KOM1
  • Exchange: DB
  • Founded: 1884
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: JP¥2.041t
  • Listing Market Cap: JP¥16.899b
  • Shares outstanding: 945.10m
  • Website: https://home.komatsu/en/

Number of Employees


Location

  • Komatsu Ltd.
  • 2-3-6 Akasaka
  • Minato-ku
  • Tokyo
  • 107-8414
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMTU.YOTCPK (Pink Sheets LLC)SPON ADR NEWUSUSDJan 1980
KOMADB (Deutsche Boerse AG)SPON ADR NEWDEEURJan 1980
KMTU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
6301TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
KOM1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
6301 NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1992

Biography

Komatsu Ltd. manufactures and sells construction, mining, and utility equipment; and forest and industrial machinery worldwide. The company operates through three segments: Construction, Mining and Utility Equipment; Retail Finance; and Industrial Machinery and Others. It offers construction and mining equipment, including electric rope shovels, continuous miners, hydraulic excavators, wheel loaders, bulldozers, motor graders, dump trucks, mini excavators, utility equipment, and other mining equipment. The company also provides forklift trucks; forestry equipment, including harvesters, forwarders, and feller bunchers, as well as forestry-specific machines based on construction equipment; recycling equipment, such as mobile crushers, soil recyclers, and mobile tub grinders; tunneling machines, which comprise shield and tunnel-boring machines, as well as small diameter pipe jacking machines; and diesel engines, hydraulic equipment, and iron and steel castings products. In addition, it offers metal forging and stamping presses, including large presses, and small and medium-sized presses; sheet-metal machines, such as press brakes, shears, laser cutting machines, and fine plasma cutting machines; machine tools, which comprise crankshaft millers, transfer machines, machining centers, grinding machines, and wire saws; excimer lasers for semiconductor lithography tools; thermoelectric modules and temperature-control equipment for semiconductor manufacturing; and defense-related equipment, as well as provides warehousing and packing services. Further, the company provides other specific equipment for demolition, metal recycle, and slag handling; wear parts, periodic replacement parts, attachments, and remanufacturing parts; and retail financing for construction and mining equipment. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 21:14
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.