One-glance verdict
Within fair range
$35.22 our estimate vs market $42.51
Wall Street consensus: $37.93 (7.7% higher than our fair-value estimate)
21% above our estimate
Fundamentals snapshot
Komatsu Ltd.
KMTUY · PNK · Industrials · Farm & Heavy Construction Machinery
Current price
$42.51
52-week range
$30.65 - $52.74
Market cap
$37.67B
Balance sheet
Watch
10.71x Adequate
Net debt $7.40B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.7% last year.
- Reward Returns 11.6% on equity, ahead of 33% of its peers.
- Risk Stock trades 20559.6% above its 5-year average P/E.
- Risk Net debt grew 18.5% over 3 years.
What this company does
Komatsu Ltd.
Komatsu makes and sells big machines for building and mining, like bulldozers and excavators, and also some industrial equipment. Most of its money comes from selling these machines, which is important because it shows how much demand there is for their products in big projects. The company also has a smaller business offering finance for these machines, which helps customers buy them and can provide a steady stream of income.
How the company got here
Komatsu Ltd. began over a century ago in 1921 as a small ironworks company in Japan, initially focused on repairing mining equipment. Its founder, Meitaro Takeuchi, had a vision to contribute to Japan's industrial growth and improve the lives of the local community. By the 1930s, Komatsu was producing tractors and equipment for both agricultural and military use. After World War II, the company expanded its product line to include bulldozers and forklifts, and by the 1950s, it was exporting its machinery globally. Komatsu has since grown into one of the world's largest manufacturers of construction and mining equipment, known for its technological innovation and commitment to quality.
What it actually does
Komatsu manufactures and sells a wide range of heavy machinery used in construction, mining, forestry, and industrial applications. Think of the big yellow machines you see on construction sites or in mines – Komatsu makes many of them. Their products include excavators, bulldozers, wheel loaders, dump trucks, and more, designed to help build infrastructure, extract resources, and manage land. They also produce industrial equipment like presses and machinery for manufacturing, as well as providing financing and services related to their equipment.
Construction, Mining and Utility Equipment
This is Komatsu's largest business segment, making up the bulk of its revenue. It's where the company designs, manufactures, sells, and services the heavy-duty machines that are the backbone of construction and mining operations. This includes everything from small excavators and bulldozers to massive dump trucks and specialized mining equipment. These machines are crucial for building roads, bridges, buildings, and for extracting valuable resources from the earth. Komatsu sells these products globally, with a significant portion of sales coming from North and Latin America.
Retail Finance
This segment is much smaller than the equipment business but plays a vital supporting role. Komatsu offers financing options, such as installment payments and leases, to help customers purchase the construction and mining equipment. Essentially, it's like a specialized bank for Komatsu's customers, making it easier for them to acquire the expensive machinery they need to run their businesses. This segment helps drive sales in the main equipment business by removing a potential barrier for buyers.
Industrial Machinery and Others
This segment is diverse and includes a variety of specialized machinery. A significant part of this segment involves manufacturing presses and sheet metal machinery, often for the automotive industry, helping car companies build their vehicles. Komatsu also produces equipment for the semiconductor industry, such as excimer laser light sources used in chip manufacturing, and temperature control equipment. This segment also encompasses other smaller businesses, contributing a smaller but important slice to Komatsu's overall operations.
What management is betting on now
Komatsu's current strategy, outlined in its "Driving value with ambition" plan, focuses on navigating an increasingly complex and uncertain global environment. Management is prioritizing investments in growth areas like automation, autonomous operation, electrification, and remote control technologies for its core construction and mining equipment. They are also looking to expand in areas like underground hard rock mining and forestry machinery, and to strengthen their aftermarket and solutions businesses. This means Komatsu is investing in making its machines smarter, more efficient, and more environmentally friendly, while also expanding the services it offers around its products.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $35.22 vs current price $42.51
Wall Street consensus is the average analyst price target: $37.93 (7.7% higher than our fair-value estimate).
Our most-likely fair value is $35.22 a share — about 17.2% away from today's price of $42.51, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $7.4B. Interest coverage 10.7x.
Net debt
$7.40B
Interest coverage
10.71x
Komatsu Ltd.'s profit covers its interest bill about 10.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
KMTUY
BASELINE
Komatsu Ltd.
Total debt $11.05B Interest coverage 10.71x This is the baseline the peer rows are being compared against.
Total debt $45.15B Interest coverage 22.21x +107% vs KMTUY Carries about 2.1x more debt cushion than KMTUY.
Total debt $64.58B Interest coverage 2.65x -75% vs KMTUY Carries about 4.0x less debt cushion than KMTUY.
Total debt $26.31B Interest coverage 1.89x -82% vs KMTUY Carries about 5.7x less debt cushion than KMTUY.
Total debt $14.82B Interest coverage 10.42x -3% vs KMTUY Has roughly the same debt cushion as KMTUY.
Total debt $2.69B Interest coverage 2.68x -75% vs KMTUY Carries about 4.0x less debt cushion than KMTUY.
What you should know
The case for and against KMTUY
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.7% last year.
-
Returns 11.6% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 20559.6% above its 5-year average P/E.
-
Net debt grew 18.5% over 3 years.
-
Forward P/E (15.6x) is higher than trailing (15.5x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.46x
Forward P/E
15.63x
P/B
1.70x
P/S
0.01x
EV/EBITDA
1.86x
PEG ratio
2.73x
Profitability
How much profit each dollar creates
Gross margin
30.4%
Operating margin
14.5%
Net margin
8.9%
ROE
11.6%
ROA
5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.47x
Current ratio
1.96x
Quick ratio
0.99x
Total debt
$11.05B
Total cash
$3.65B
Growth
How the business has been compounding
Revenue TTM
$27.22B
Revenue 5Y CAGR
5.3%
EPS TTM
2.75
EPS 5Y CAGR
6.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.86B
Free CF TTM
$1.51B
FCF margin
5.5%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
44.4%
Last ex-div date
2026-03-31