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 10.93% and Operating profit at 21.19%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.37
2
With ROCE of 16.77%, it has a very attractive valuation with a 1.24 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 17.81%, its profits have risen by 12.1% ; the PEG ratio of the company is 0.6
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you buy?
- 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.
17.81%
650.84
32.28%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.93%
EBIT Growth (5y)
21.19%
EBIT to Interest (avg)
15.37
Debt to EBITDA (avg)
1.37
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
0.92
Tax Ratio
24.08%
Dividend Payout Ratio
40.13%
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
13.11%
ROE (avg)
11.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.30
EV to EBIT
7.40
EV to EBITDA
5.94
EV to Capital Employed
1.24
EV to Sales
1.20
PEG Ratio
0.59
Dividend Yield
0.01%
ROCE (Latest)
16.77%
ROE (Latest)
14.81%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 463,023 MM
RAW MATERIAL COST(Y)
Fallen by 0.53% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 31.52 %
-6What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.78%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.25%
NET SALES(Q)
Lowest at JPY 909,524 MM
OPERATING PROFIT(Q)
Lowest at JPY 179,218 MM
NET PROFIT(Q)
Lowest at JPY 91,194 MM
EPS(Q)
Lowest at JPY 99.15
Here's what is working for Komatsu Ltd.
Operating Cash Flow
Highest at JPY 463,023 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)
Debt-Equity Ratio
Lowest at 31.52 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 0.53% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Komatsu Ltd.
Net Sales
Lowest at JPY 909,524 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 179,218 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Net Profit
Lowest at JPY 91,194 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 99.15
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 1.78%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.25%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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