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 10.93% and Operating profit at 21.19%
4
Flat results in Dec 25
- ROCE(HY) Lowest at 12.3%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,313.76
- RAW MATERIAL COST(Y) Grown by 8.05% (YoY)
5
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 40.32%, 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
6
Majority shareholders : FIIs
7
Market Beating performance in long term as well as near term
- Along with generating 40.32% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
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.
40.32%
701.50
38.80%
Japan Nikkei 225
38.94%
1.38
28.28%
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
0.08%
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
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-8What is not working for the Company
ROCE(HY)
Lowest at 12.3%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,313.76
RAW MATERIAL COST(Y)
Grown by 8.05% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.71 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.19 times
OPERATING PROFIT MARGIN(Q)
Lowest at 17.88 %
Here's what is not working for Komatsu Ltd.
Interest Coverage Ratio
Lowest at 1,313.76
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit Margin
Lowest at 17.88 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 1.71 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.19 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 8.05% (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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