ScoreWhy is Komatsu Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 13.11%
- Healthy long term growth as Net Sales has grown by an annual rate of 13.81% and Operating profit at 31.45%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.37
2
Flat results in Jun 26
- ROCE(HY) Lowest at 11.51%
- DEBT-EQUITY RATIO (HY) Highest at 32.99 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.18 times
3
With ROCE of 13.99%, it has a very attractive valuation with a 1.64 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 53.75%, its profits have risen by 0.6% ; the PEG ratio of the company is 14.4
- At the current price, the company has a high dividend yield of 0
4
Majority shareholders : FIIs
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Komatsu Ltd. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Komatsu Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Komatsu Ltd.
50.85%
802.51
39.08%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.81%
EBIT Growth (5y)
31.45%
EBIT to Interest (avg)
15.03
Debt to EBITDA (avg)
1.18
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
0.90
Tax Ratio
27.10%
Dividend Payout Ratio
45.90%
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
14.37%
ROE (avg)
11.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.84
EV to EBIT
11.74
EV to EBITDA
9.30
EV to Capital Employed
1.64
EV to Sales
1.78
PEG Ratio
14.41
Dividend Yield
NA
ROCE (Latest)
13.99%
ROE (Latest)
12.78%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 484,311 MM
CASH AND EQV(HY)
Highest at JPY 1,011,570 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 1.85 times
OPERATING PROFIT(Q)
Highest at JPY 196,870 MM
-7What is not working for the Company
ROCE(HY)
Lowest at 11.51%
DEBT-EQUITY RATIO
(HY)
Highest at 32.99 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.18 times
INTEREST(Q)
Highest at JPY 14,263 MM
Here's what is working for Komatsu Ltd.
Operating Cash Flow
Highest at JPY 484,311 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Operating Profit
Highest at JPY 196,870 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Cash and Eqv
Highest at JPY 1,011,570 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 1.85 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at JPY 46,060 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Komatsu Ltd.
Interest
Highest at JPY 14,263 MM
in the last five periods and Increased by 6.71% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 32.99 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 3.18 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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