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Komatsu

KMTUY
52
Industrial - Machinery · Industrials
Price
$38.96
-0.54 (-1.37%)
Market Cap
$35.11B
Exchange
Other OTC
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

3.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 944.4M (2022) → 908.9M (2026)

Komatsu is a Japanese company that builds large machines used in construction and mining. Its main products include bulldozers, excavators, dump trucks, and mining equipment. It is the second-largest construction and mining equipment maker in the world, behind only Caterpillar.

Komatsu makes most of its money by selling heavy machinery and replacement parts to construction companies, mining firms, and governments around the world. It operates globally, with major markets in Japan, North America, Asia, and resource-heavy regions like Australia and Latin America. The company has a strong parts and service business that provides steady recurring revenue, which helps cushion the impact of slow equipment sales. The biggest risk Komatsu faces is that its business is closely tied to commodity prices and construction activity — when mining companies cut spending or construction slows down, demand for its machines drops quickly.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-16.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

1.4%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$1.5T cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Komatsu is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
28.2%
Modest — 28.2% gross margin
Operating Margin
12.4%
Healthy — 12.4% operating margin
ROCE
3.1%
Weak — 3.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+11.3%
Steady sales growth (11.3% YoY)
EPS YoY
+12.9%
Earnings growing (12.9% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
152%
Turns 152% of profit into real cash
FCF Margin
9.1%
Modest free cash flow (9.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.39
Conservative — low debt load (0.39)
Interest Cover
15.23x
Comfortably covers interest (15.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
0.1x
Attractive valuation — P/E 0.1

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+0.0
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
2.96%
Moderate income — 2.96% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+47.7%
Dividend growing fast (47.7% YoY)

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