Komatsu Ltd. Fundamental Analysis
Komatsu Ltd. (6301.T) shows weak financial fundamentals with a PE ratio of 15.29, profit margin of 9.10%, and ROE of 11.40%. The company generates $4129.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 6301.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6301.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent6301.T trades at attractive valuation levels.
Growth Score
Moderate6301.T shows steady but slowing expansion.
Financial Health Score
Excellent6301.T maintains a strong and stable balance sheet.
Profitability Score
Weak6301.T struggles to sustain strong margins.
Key Financial Metrics
Is 6301.T Expensive or Cheap?
P/E Ratio
6301.T trades at 15.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6301.T's PEG of -1.22 indicates potential undervaluation.
Price to Book
The market values Komatsu Ltd. at 1.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.24 times EBITDA. This is generally considered low.
How Well Does 6301.T Make Money?
Net Profit Margin
For every $100 in sales, Komatsu Ltd. keeps $9.10 as profit after all expenses.
Operating Margin
Core operations generate 13.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.40 in profit for every $100 of shareholder equity.
ROA
Komatsu Ltd. generates $5.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Komatsu Ltd. produces operating cash flow of $448.63B, showing steady but balanced cash generation.
Free Cash Flow
Komatsu Ltd. produces free cash flow of $240.85B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $267.29 in free cash annually.
FCF Yield
6301.T converts 4.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How 6301.T Stacks Against Its Sector Peers
| Metric | 6301.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.29 | 30.63 | Better (Cheaper) |
| ROE | 11.40% | 1114.00% | Weak |
| Net Margin | 9.10% | -20683.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.48 | Neutral |
| Current Ratio | 2.11 | 21.37 | Strong Liquidity |
| ROA | 5.85% | -1299426.00% (disorted) | Weak |
6301.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Komatsu Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure