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Komatsu

KMTUY
46
Industrial - Machinery · Industrials
Price
$44.62
+0.55 (+1.25%)
Market Cap
$39.78B
Exchange
Other OTC
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Strong
Stability
Strong
Valuation
Mixed

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

+16.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+9.1% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

¥0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Cash Runway

5+ years

Quarterly Free Cash Flow

↑ Burn rate improving

¥1.6T cash & investments at current burn rate

Growth context

Komatsu is growing revenue at 16% 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

Profit per sale
Gross Margin
32.0%
Modest — 32.0% gross margin
Profit after running costs
Operating Margin
14.5%
Healthy — 14.5% operating margin
Return on the money invested
ROCE
11.5%
Below par — 11.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+7.0%
Steady sales growth (+7.0% YoY)
Profit growth
EPS YoY
-6.7%
Earnings shrinking (-6.7% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
129%
Turns 129% of profit into real cash
Spare cash per sale
FCF Margin
5.9%
Thin free cash flow (5.9%)

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

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Stability

What it owes vs what it owns
Debt / Equity
0.47
Conservative — low debt load (0.47)
Covers its interest
Interest Cover
10.62x
Comfortably covers interest (10.6x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
16.7x
Fair value — P/E 16.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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