Kubota (KUBTY) AI Stock Analysis

• Market Cap: $13.47B
• Dividend Yield: 2.23%
• Average Volume (3M): 5.64K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.82
• Revenue Growth: -7.55%
• EPS Growth: -9.86%
• Country: US
• Employees: 52,094
• Sector: Industrials
• Sector Strength: 70
• Industry: Agricultural - Machinery
• EPS (TTM): 6.50
• Shares Outstanding: 230,179,370
• 10 Day Avg. Volume: 16,934
• 30 Day Avg. Volume: 5,644
• PEG Ratio: 0.59
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.90
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kubota's overall stock score reflects a strong financial performance and attractive valuation, counterbalanced by bearish technical indicators. The company's consistent revenue growth and robust profitability margins position it well, though the increasing leverage and volatility in free cash flow require careful management. The low P/E ratio and reasonable dividend yield enhance its investment appeal, but the technical analysis suggests caution due to the stock's current price trends.

Kubota Business Overview & Revenue Model

Company Description

Kubota Corporation (KUBTY) is a Japanese multinational corporation known for its innovative engineering and manufacturing of machinery and industrial products. The company operates primarily in sectors including agriculture, water, and infrastructure. Kubota's core products include tractors, agricultural machinery, construction equipment, engines, and water-related systems. The company is committed to creating solutions that support food production, water conservation, and urban development, aiming to contribute positively to society and the environment.

How the Company Makes Money

Kubota makes money through the sale of its wide range of products and services across its key operational sectors. A significant portion of its revenue is derived from the agricultural machinery segment, where it sells tractors, combine harvesters, rice transplanters, and other farm equipment to both individual farmers and agricultural enterprises. The construction machinery sector also contributes substantially to its earnings, with products like mini excavators and wheel loaders. Additionally, Kubota generates revenue from its engine business, which supplies engines for industrial machines and generators. The company's water and environment segment, which includes water purification and sewage treatment systems, also adds to its income. Kubota's global presence and strategic partnerships with local distributors and dealers enhance its market reach and facilitate sales, further supporting its revenue streams.

Kubota Financial Statement Overview

Summary

Kubota shows strong revenue growth and profitability with stable operational margins. However, the increased leverage and negative cash flow are concerning, as they suggest potential financial risks that need to be addressed.

Income Statement

Kubota has shown strong revenue growth with a notable increase from 2022 to 2023. The Gross Profit Margin is healthy, indicating efficient production, while the Net Profit Margin has improved, reflecting better profitability. The EBIT and EBITDA margins are stable, suggesting robust operational management.

Balance Sheet

The company's Debt-to-Equity ratio has increased, indicating higher leverage, which could pose a risk. However, the Return on Equity is strong, showcasing effective use of equity to generate profits. The Equity Ratio is stable, reflecting a balanced capital structure.

Cash Flow

Kubota's cash flow situation is concerning, with negative Free Cash Flow indicating cash outflows exceeding inflows. The Operating Cash Flow to Net Income ratio is negative, suggesting challenges in converting net income to cash. The Free Cash Flow to Net Income ratio also indicates inefficiencies.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
3.08T	3.02T	2.68T	2.20T	1.85T	1.92T
	Gross Profit
929.12B	876.47B	696.52B	631.81B	534.85B	559.93B
	EBIT
364.65B	337.85B	218.94B	246.21B	175.28B	201.65B
	EBITDA
481.33B	454.81B	322.40B	325.61B	254.91B	272.76B
	Net Income Common Stockholders
260.44B	238.46B	156.47B	174.76B	128.52B	149.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
249.16B	305.14B	297.31B	309.51B	272.89B	271.63B
	Total Assets
5.75T	5.36T	4.73T	3.77T	3.19T	3.14T
	Total Debt
2.16T	1.99T	1.61T	1.09T	874.44B	902.98B
	Net Debt
1.91T	1.77T	1.39T	835.87B	651.52B	703.32B
	Total Liabilities
3.18T	2.94T	2.65T	1.99T	1.62T	1.60T
	Stockholders Equity
2.32T	2.18T	1.88T	1.68T	1.48T	1.44T
Cash Flow		Free Cash Flow
10.86B	-189.75B	-177.33B	-33.21B	58.17B	-12.45B
	Operating Cash Flow
210.22B	-17.27B	-7.68B	92.51B	142.92B	82.41B
	Investing Cash Flow
-201.48B	-173.44B	-318.50B	-127.37B	-47.13B	-91.47B
	Financing Cash Flow
71.58B	178.40B	282.56B	60.59B	-68.35B	-21.52B

Kubota Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 55.72 is below the 20-day moving average (MA) of 60.76, below the 50-day MA of 62.05, and below the 200-day MA of 65.07, indicating a bearish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 14.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KUBTY.

Kubota Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE	74 Outperform	$120.56B	19.69	27.91%	1.39%	-20.93%	-34.33%
PCAR	70 Outperform	$46.60B	11.23	24.93%	1.39%	-4.29%	-9.76%
CAT	69 Neutral	$138.20B	13.11	55.36%	1.91%	-3.36%	9.59%
KUBTY	67 Neutral	$13.47B	8.91	9.74%	2.23%	-7.55%	-9.86%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
CNH	60 Neutral	$13.97B	11.32	16.66%	4.20%	-19.64%	-41.23%
AGCO	52 Neutral	$6.26B	46.40	-10.11%	1.38%	-19.08%	-136.41%