TSE:6326

Stock Analysis Report

Executive Summary

Kubota Corporation manufactures and sells a range of machinery, and other industrial and consumer products in Japan, North America, Europe, Asia, and internationally.


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6326's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.3%

6326

13.9%

JP Machinery

10.7%

JP Market


1 Year Return

-14.8%

6326

-17.4%

JP Machinery

-10.7%

JP Market

Return vs Industry: 6326 exceeded the JP Machinery industry which returned -17.4% over the past year.

Return vs Market: 6326 underperformed the JP Market which returned -10.7% over the past year.


Shareholder returns

6326IndustryMarket
7 Day12.3%13.9%10.7%
30 Day-9.3%-9.5%-5.2%
90 Day-20.0%-23.2%-16.6%
1 Year-13.1%-14.8%-15.3%-17.4%-8.4%-10.7%
3 Year-12.8%-17.7%-12.4%-18.5%2.3%-4.8%
5 Year-23.9%-30.7%-13.3%-22.6%6.4%-5.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

11.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6326 (¥1381.5) is trading above our estimate of fair value (¥1308.88)

Significantly Below Fair Value: 6326 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6326 is poor value based on its PE Ratio (11.4x) compared to the Machinery industry average (10x).

PE vs Market: 6326 is good value based on its PE Ratio (11.4x) compared to the JP market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 6326 is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: 6326 is overvalued based on its PB Ratio (1.2x) compared to the JP Machinery industry average (0.6x).


Next Steps

Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6326's forecast earnings growth (4% per year) is above the savings rate (-0.09%).

Earnings vs Market: 6326's earnings (4% per year) are forecast to grow slower than the JP market (9.4% per year).

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

Revenue vs Market: 6326's revenue (2.4% per year) is forecast to grow slower than the JP market (3.4% per year).

High Growth Revenue: 6326's revenue (2.4% 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 (10.1%).


Next Steps

Past Performance

How has Kubota performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6326 has high quality earnings.

Growing Profit Margin: 6326's current net profit margins (7.8%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: 6326's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: 6326's earnings growth over the past year (7.6%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: 6326 earnings growth over the past year (7.6%) exceeded the Machinery industry -11.5%.


Return on Equity

High ROE: 6326's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Kubota's financial position?


Financial Position Analysis

Short Term Liabilities: 6326's short term assets (¥1,718.9B) exceed its short term liabilities (¥1,001.7B).

Long Term Liabilities: 6326's short term assets (¥1,718.9B) exceed its long term liabilities (¥600.4B).


Debt to Equity History and Analysis

Debt Level: 6326's debt to equity ratio (58.7%) is considered high.

Reducing Debt: 6326's debt to equity ratio has reduced from 67% to 58.7% over the past 5 years.

Debt Coverage: 6326's debt is not well covered by operating cash flow (9.1%).

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


Balance Sheet

Inventory Level: 6326 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6326's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

2.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6326's dividend (2.61%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 6326's dividend (2.61%) is low compared to the top 25% of dividend payers in the JP market (3.81%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.6%), 6326's dividend payments are well 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?

1.0yrs

Average management tenure


CEO

Ken Kitao (63yo)

0.17

Tenure

Mr. Yuichi Kitao, also known as Ken, serves as the President at Kubota Corporation since January 1, 2020 and as Representative Director and General Manager of Farm and Industrial Machinery Consolidated Div ...


Leadership Team

NamePositionTenureCompensationOwnership
Yuichi Kitao
President0.17yrno data0.0055% ¥92.5m
Kazuhiro Kimura
Managing Executive Officer1yrno datano data
Shigeru Kimura
no datano datano data
Kenshiro Ogawa
no datano datano data
Toshihiro Kubo
no datano datano data
Kunio Suwa
Managing Executive Officer1yrno datano data
Shinji Sasaki
Senior Managing Executive Officer2yrsno data0.0042% ¥70.4m
Toshihiko Kurosawa
Sr Managing Exec. Officer. GM of Water1yrno data0.0039% ¥66.2m
Kaoru Hamada
Managing Executive Officerno datano datano data
Yasuo Nakata
Managing Executive Officer and General Manager of Quality Assurrance Heardquatersno datano datano data

1.0yrs

Average Tenure

66yo

Average Age

Experienced Management: 6326's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yuichi Kitao
President0.17yrno data0.0055% ¥92.5m
Shinji Sasaki
Senior Managing Executive Officer2yrsno data0.0042% ¥70.4m
Toshihiko Kurosawa
Sr Managing Exec. Officer. GM of Water1yrno data0.0039% ¥66.2m
Masato Yoshikawa
Executive VP3yrsno data0.0025% ¥42.8m
Dai Watanabe
Sr. Mang. Exe. Officer1yrno data0.0040% ¥67.8m
Koichi Ina
Outside Director4.67yrsno data0.0013% ¥22.1m
Yuzuru Matsuda
Outside Director5.67yrsno data0.0012% ¥20.7m
Masatoshi Kimata
Chairman0.17yrJP¥181.00m0.0088% ¥147.8m
Yutaro Shintaku
Outside Director2yrsno data0.00033% ¥5.6m
Toshikazu Fukuyama
Audit & Supervisory Board Member5.67yrsno data0.0011% ¥19.4m

2.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 6326's board of directors are not considered experienced ( 2.5 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

Kubota Corporation's company bio, 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
  • Market Cap: JP¥1.685t
  • Shares outstanding: 1.22b
  • Website: https://www.kubota.co.jp

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KUBT.YOTCPK (Pink Sheets LLC)ADR-EACH CNV INTO 5 ORD NPVUSUSDApr 1976
KUOADB (Deutsche Boerse AG)ADR-EACH CNV INTO 5 ORD NPVDEEURApr 1976
6326TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
KUBT.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
KUO1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Kubota Corporation manufactures and sells a range of machinery, and other industrial and consumer products in Japan, North America, Europe, Asia, and internationally. Its Farm & Industrial Machinery segment provides 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; and rice mill plants. This segment also offers farming, construction, industrial machinery, and generator engines; mini excavators, wheel loaders, compact track and skid steer loaders, and other construction machinery related products; and scales, weighing and measuring control systems, air-conditioning equipment, and air purifiers. The company’s Water & Environment segment provides ductile iron and plastic pipes, pumps and plants, valves, and single stack drain fittings, as well as design and construction services; waste water treatment equipment and plants, water purification plants, membrane solutions, night-soil treatment plants, waste incinerating and melting plants, waste shredding and sorting plants, flue gas desulfurization apparatus, membrane methane fermentation plants, and bathtubs; and reformer and cracking tubes, hearth rolls, steel mill rolls, ceramics, TXAX friction materials, and spiral welded steel pipes. Its Other segment offers logistics and financing services; and roofing and siding materials. The company also engages in the non-life insurance underwriting, finance leasing, maintenance of building, security guarding, transportation, storage, and cargo handling businesses; and exports and imports repair parts related to farm equipment, engines, and construction machinery. Kubota Corporation was founded in 1890 and is headquartered in Osaka, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 16:26
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.