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6326

Kubota TSE:6326 Stock Report

Last Price

JP¥2.06k

Market Cap

JP¥2.5t

7D

-1.1%

1Y

-11.1%

Updated

25 Jun, 2022

Data

Company Financials +
6326 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends3/6

6326 Stock Overview

Kubota Corporation manufactures and markets machinery and related solutions in the food, water, and environment markets in Japan, North America, Europe, Asia, and internationally.

Kubota Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Kubota
Historical stock prices
Current Share PriceJP¥2,058.50
52 Week HighJP¥2,663.00
52 Week LowJP¥1,933.50
Beta1.13
1 Month Change-10.56%
3 Month Change-11.82%
1 Year Change-11.10%
3 Year Change14.81%
5 Year Change9.06%
Change since IPO202.72%

Recent News & Updates

Shareholder Returns

6326JP MachineryJP Market
7D-1.1%-1.1%1.9%
1Y-11.1%-13.3%-6.2%

Return vs Industry: 6326 exceeded the JP Machinery industry which returned -13.3% over the past year.

Return vs Market: 6326 underperformed the JP Market which returned -6.2% over the past year.

Price Volatility

Is 6326's price volatile compared to industry and market?
6326 volatility
6326 Average Weekly Movement4.8%
Machinery Industry Average Movement4.1%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

Stable Share Price: 6326 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6326's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189043,293Ken Kitaohttps://www.kubota.co.jp

Kubota Corporation manufactures and markets machinery and related solutions in the food, water, and environment markets in Japan, North America, Europe, Asia, and internationally. It operates in three segments: Farm & Industrial Machinery, Water & Environment, and Other. The Farm & Industrial Machinery segment offers tractors, power tillers, combine harvesters, rice transplanters, turf equipment, utility vehicles, other agricultural machinery, implements, attachments, post-harvest machinery, vegetable production equipment, and other agricultural equipment; cooperative drying, rice seedling, and gardening facilities; rice mill plants; scales, weighing and measuring control systems, and air purifiers; engines for farming, construction, industrial machinery, and generators; and mini excavators, wheel and skid steer loaders, compact track and, and other construction machinery related products.

Kubota Fundamentals Summary

How do Kubota's earnings and revenue compare to its market cap?
6326 fundamental statistics
Market CapJP¥2.47t
Earnings (TTM)JP¥173.19b
Revenue (TTM)JP¥2.25t

14.3x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6326 income statement (TTM)
RevenueJP¥2.25t
Cost of RevenueJP¥1.62t
Gross ProfitJP¥633.28b
Other ExpensesJP¥460.09b
EarningsJP¥173.19b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)144.35
Gross Margin28.12%
Net Profit Margin7.69%
Debt/Equity Ratio73.1%

How did 6326 perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

29%

Payout Ratio

Does 6326 pay a reliable dividends?

See 6326 dividend history and benchmarks
When do you need to buy 6326 by to receive an upcoming dividend?
Kubota dividend dates
Ex Dividend DateJun 29 2022
Dividend Pay DateSep 01 2022
Days until Ex dividend3 days
Days until Dividend pay date67 days

Does 6326 pay a reliable dividends?

See 6326 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 6326 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6326?

Other financial metrics that can be useful for relative valuation.

6326 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA13.1x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does 6326's PE Ratio compare to its peers?

6326 PE Ratio vs Peers
The above table shows the PE ratio for 6326 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.8x

Price-To-Earnings vs Peers: 6326 is good value based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (14.8x).


Price to Earnings Ratio vs Industry

How does 6326's PE Ratio compare vs other companies in the Japanese Machinery Industry?

Price-To-Earnings vs Industry: 6326 is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the JP Machinery industry average (10.9x)


Price to Earnings Ratio vs Fair Ratio

What is 6326's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6326 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.3x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: 6326 is good value based on its Price-To-Earnings Ratio (14.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).


Share Price vs Fair Value

What is the Fair Price of 6326 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6326 (¥2058.5) is trading below our estimate of fair value (¥3362.93)

Significantly Below Fair Value: 6326 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 6326 is poor value based on its PEG Ratio (2.3x)


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Future Growth

How is Kubota forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6326's forecast earnings growth (6.1% per year) is above the savings rate (0.02%).

Earnings vs Market: 6326's earnings (6.1% per year) are forecast to grow slower than the JP market (9% per year).

High Growth Earnings: 6326's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6326's revenue (4.7% per year) is forecast to grow faster than the JP market (4.4% per year).

High Growth Revenue: 6326's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6326's Return on Equity is forecast to be low in 3 years time (10.7%).


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Past Performance

How has Kubota performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6326 has high quality earnings.

Growing Profit Margin: 6326's current net profit margins (7.7%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: 6326's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: 6326's earnings growth over the past year (8.4%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: 6326 earnings growth over the past year (8.4%) underperformed the Machinery industry 31.9%.


Return on Equity

High ROE: 6326's Return on Equity (9.9%) is considered low.


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Financial Health

How is Kubota's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6326's short term assets (¥2,118.6B) exceed its short term liabilities (¥1,494.5B).

Long Term Liabilities: 6326's short term assets (¥2,118.6B) exceed its long term liabilities (¥777.8B).


Debt to Equity History and Analysis

Debt Level: 6326's net debt to equity ratio (54%) is considered high.

Reducing Debt: 6326's debt to equity ratio has increased from 63.8% to 73.1% over the past 5 years.

Debt Coverage: 6326's debt is not well covered by operating cash flow (2.2%).

Interest Coverage: 6326 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.04%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 25 2022Ex Dividend DateJun 29 2022Dividend Pay DateSep 01 202264 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 6326's dividend (2.04%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 6326's dividend (2.04%) is low compared to the top 25% of dividend payers in the JP market (3.74%).


Stability and Growth of Payments

Stable Dividend: 6326's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6326's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.2%), 6326's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 6326 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Ken Kitao (65 yo)

2.42yrs

Tenure

JP¥213,000,000

Compensation

Mr. Yuichi Kitao, also known as Ken, has been the President at Kubota Corporation since January 1, 2020 and its Representative Director since January 01, 2019. Mr. Kitao served as General Manager of Innova...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD1.58M) is about average for companies of similar size in the JP market ($USD1.55M).

Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 6326's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: 6326's board of directors are considered experienced (4.8 years average tenure).


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

Kubota Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Kubota Corporation
  • Ticker: 6326
  • Exchange: TSE
  • Founded: 1890
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Implied Market Cap: JP¥2.470t
  • Shares outstanding: 1.20b
  • Website: https://www.kubota.co.jp

Number of Employees


Location

  • Kubota Corporation
  • 2-47, Shikitsuhigashi 1-chome
  • Naniwa-ku
  • Osaka
  • 556-8601
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.