One-glance verdict
Overvalued
$38.08 our estimate vs market $85.85
Wall Street consensus: $99.84 (162.2% higher than our fair-value estimate)
125% above our estimate, beyond the bull case
Fundamentals snapshot
Kubota Corporation
KUBTY · PNK · Industrials · Farm & Heavy Construction Machinery
Current price
$85.85
52-week range
$60.53 - $107.97
Market cap
$19.34B
Balance sheet
Watch
21.56x Strong cushion
Net debt $12.35B. 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 0.1% last year.
- Reward Returns 10.0% on equity, ahead of 16% of its peers.
- Risk Stock trades 13893.6% above its 5-year average P/E.
- Risk Forward P/E (13.1x) is higher than trailing (11.3x) - earnings are expected to drop.
What this company does
Kubota Corporation
Kubota is a Japanese company that builds essential heavy machinery, most famously their orange tractors for farming and excavators for construction. The company makes most of its money selling this equipment to farmers and builders across the globe. This matters because Kubota's success is often tied to worldwide demand for food production and infrastructure projects like new buildings and roads.
How the company got here
Founded in Osaka, Japan, in 1890 by Gonshiro Kubota, the company started by producing cast iron pipes for waterworks to help prevent the spread of infectious diseases. Over the next several decades, it expanded into machinery, manufacturing its first kerosene engines for agro-industrial use in 1922. A significant turning point came in 1960 when Kubota developed and sold Japan's first agricultural tractor, marking its full-scale entry into the farm equipment industry. The company later expanded into North America in 1972, finding success with its compact tractors. Today, Kubota is a global company that operates in over 120 countries, providing solutions in the areas of food, water, and the environment.
What it actually does
Kubota is a manufacturing company that makes heavy machinery and other products you might see on a farm, at a construction site, or even in your city's infrastructure. Think of their signature orange tractors for farming, excavators for construction, and even the large iron pipes that carry your drinking water. They also produce industrial engines that power not only their own machines but also those of other manufacturers. Beyond the big machines, Kubota is involved in creating systems for water purification and sewage treatment.
Farm & Industrial Machinery
This is Kubota's largest business area, making up the vast majority of its sales. It builds and sells a wide range of equipment for farming and construction, such as tractors, combine harvesters (machines that harvest grain crops), and rice transplanters. For construction, they are well-known for their compact excavators, which are smaller digging machines used in tight spaces. This segment also includes the powerful diesel and gasoline engines that are the heart of all this machinery.
Water & Environment
This part of the company focuses on products and services related to water, which is where the company first started. They manufacture things like ductile iron pipes, valves, and pumps that are essential for water supply and sewage systems. This segment also designs and constructs entire plants for water purification and wastewater treatment. A key product is their advanced membrane technology used to filter and clean water, which is sold globally for both municipal and industrial use.
Other
This smaller segment of Kubota's business includes a variety of other services and products. It provides logistics (the business of transporting and storing goods) and financial services, such as financing for customers buying their equipment. The company also manufactures building materials like roofing and siding. While not as large as their machinery or water-related businesses, these services support the company's main operations and its customers.
What management is betting on now
Kubota's leadership is focused on using technology to make farming and construction smarter and more efficient. They are investing in developing autonomous (self-driving) tractors and other robotic equipment to help solve labor shortages in agriculture. The company is also expanding its presence in large agricultural markets like North America, Europe, and India by offering bigger tractors for large-scale farming. Another key priority is what they call 'ambidextrous management,' which means improving their existing businesses while also exploring new opportunities, like using digital technology and AI to provide data-driven solutions for farmers.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $38.08 vs current price $85.85
Wall Street consensus is the average analyst price target: $99.84 (162.2% higher than our fair-value estimate).
Our most-likely fair value is $38.08 a share — about 55.6% below today's price of $85.85, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $12.3B. Interest coverage 21.6x.
Net debt
$12.35B
Interest coverage
21.56x
Kubota Corporation's profit covers its interest bill about 21.6 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
KUBTY
BASELINE
Kubota Corporation
Total debt $14.26B Interest coverage 21.56x This is the baseline the peer rows are being compared against.
Total debt $64.58B Interest coverage 2.65x -88% vs KUBTY Carries about 8.1x less debt cushion than KUBTY.
Total debt $45.15B Interest coverage 22.21x +3% vs KUBTY Has roughly the same debt cushion as KUBTY.
Total debt $26.31B Interest coverage 1.89x -91% vs KUBTY Carries about 11.4x less debt cushion than KUBTY.
Total debt $2.89B Interest coverage 5.68x -74% vs KUBTY Carries about 3.8x less debt cushion than KUBTY.
Total debt $1.08B Interest coverage 8.31x -61% vs KUBTY Carries about 2.6x less debt cushion than KUBTY.
What you should know
The case for and against KUBTY
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.1% last year.
-
Returns 10.0% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
-
Stock trades 13893.6% above its 5-year average P/E.
-
Forward P/E (13.1x) is higher than trailing (11.3x) - earnings are expected to drop.
-
Net debt grew 37.4% over 3 years.
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)
11.28x
Forward P/E
13.09x
P/B
5.46x
P/S
0.01x
EV/EBITDA
5.05x
PEG ratio
1.14x
Profitability
How much profit each dollar creates
Gross margin
30.2%
Operating margin
15.6%
Net margin
8.2%
ROE
10.0%
ROA
3.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.74x
Current ratio
1.61x
Quick ratio
1.09x
Total debt
$14.26B
Total cash
$1.92B
Growth
How the business has been compounding
Revenue TTM
$20.57B
Revenue 5Y CAGR
4.1%
EPS TTM
7.61
EPS 5Y CAGR
7.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.07B
Free CF TTM
$897.52M
FCF margin
4.4%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
20.8%
Last ex-div date
2026-06-29