ScoreWhy is Komatsu Ltd. ?
1
High Management Efficiency with a high ROCE of 13.11%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.37
3
Healthy long term growth as Net Sales has grown by an annual rate of 13.81% and Operating profit at 31.45%
4
Flat results in Mar 26
- ROCE(HY) Lowest at 11.25%
- OPERATING PROFIT MARGIN(Q) Lowest at 15.93 %
- RAW MATERIAL COST(Y) Grown by 11.69% (YoY)
5
With ROCE of 13.99%, it has a very attractive valuation with a 1.63 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 38.28%, its profits have risen by 0.6% ; the PEG ratio of the company is 14.3
- At the current price, the company has a high dividend yield of 0
6
Majority shareholders : FIIs
7
Underperformed the market in the last 1 year
- The stock has generated a return of 38.28% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Komatsu Ltd.
38.28%
705.76
37.97%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.81%
EBIT Growth (5y)
31.45%
EBIT to Interest (avg)
15.37
Debt to EBITDA (avg)
1.37
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
0.91
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
14
Industry P/E
Price to Book Value
1.83
EV to EBIT
11.66
EV to EBITDA
9.24
EV to Capital Employed
1.63
EV to Sales
1.77
PEG Ratio
14.31
Dividend Yield
NA
ROCE (Latest)
13.99%
ROE (Latest)
12.78%
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
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
CASH AND EQV(HY)
Highest at JPY 868,436 MM
NET SALES(Q)
Highest at JPY 1,217,267 MM
-6What is not working for the Company
ROCE(HY)
Lowest at 11.25%
OPERATING PROFIT MARGIN(Q)
Lowest at 15.93 %
RAW MATERIAL COST(Y)
Grown by 11.69% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.07 times
Here's what is working for Komatsu Ltd.
Net Sales
Highest at JPY 1,217,267 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 868,436 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 42,619 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.
Operating Profit Margin
Lowest at 15.93 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 3.07 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 11.69% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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