# Kubota (6326.JP)

Canonical: https://gigainvestors.com/s/6326.JP

Analysis as of: 2026-10-15T07:10:54.236Z. Financial observations: FY2012–FY2025.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 2,578.00 per share; close as of 2026-10-15.

Estimated value: low JPY 2,180.38 per share, central JPY 3,035.23 per share, high JPY 3,533.02 per share. Buy at or below the central value JPY 3,035.23 per share. Valuation as of 2026-10-15T07:10:54.236Z; scenarios are not confidence intervals.

Expected annual return: 11.3% at the stated quote. About 11.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.10×

- FY2019: 0.11×

- FY2020: 0.09×

- FY2021: 0.11×

- FY2022: 0.08×

- FY2023: 0.11×

- FY2024: 0.10×

- FY2025: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.3%

- ROIC, second-lowest year: 5.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.7%

- ROIC including acquisitions, ten-year median: 4.9%

- Typical minus recent gross margin: -0.0 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 7.3%

- FY2019: 7.0%

- FY2020: 6.2%

- FY2021: 7.2%

- FY2022: 5.1%

- FY2023: 6.5%

- FY2024: 5.6%

- FY2025: 4.5%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.75×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 741B

- Net income, five-year total: JPY 987B

- Working capital / revenue, annual change: 2.0 pp

- Working capital / revenue, final three-year average: 54.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.89×

- FY2022: 0.88×

- FY2023: 0.93×

- FY2024: 0.50×

- FY2025: 0.60×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- Per-share earnings: 106.75 to 197.61 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.9%

- Ordinary dilution, 5-year annual growth: -1.2%

- Market cap gain: JPY 461B

- Diluted shares, 10-year annual growth: -0.9%

- Diluted shares, 5-year annual growth: -1.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.0%

- Per-share value change: JPY 90.86

- Per-share value, starting three-year median: JPY 106.75

- Per-share value, ending three-year median: JPY 197.61

- Buybacks concentrated in cheaper years (correlation): 0.80

- Average buyback yield: 1.3%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: JPY 1.67T

- ROIC, last three-year median: 5.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: JPY 106.75

- FY2017: JPY 108.45

- FY2018: JPY 112.44

- FY2019: JPY 121.59

- FY2020: JPY 105.85

- FY2021: JPY 144.80

- FY2022: JPY 131.06

- FY2023: JPY 201.74

- FY2024: JPY 197.61

- FY2025: JPY 163.44

### accounting: pass

- Sloan accruals: -2.3%

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.76×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.0%

- FY2017: -3.0%

- FY2018: 1.7%

- FY2019: 2.1%

- FY2020: -0.5%

- FY2021: 2.2%

- FY2022: 3.4%

- FY2023: 4.8%

- FY2024: -0.9%

- FY2025: -2.3%

## Holders

## Price story

Price needs cash profits to grow 4.3% a year for ten years · sales +0.1%

Story as of 2026-10-16T10:00:14.437Z; price observation 2026-10-15.

Price needs cash profits to grow 4.3% a year for ten years

### Sales · FY2024–2025

sales +0.1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR0M.pdf; observed 2026-03-16.

- FY2016: JPY 0 

- FY2017: JPY 1.75T 

- FY2018: JPY 1.85T 

- FY2019: JPY 1.92T 

- FY2020: JPY 1.85T 

- FY2021: JPY 2.20T 

- FY2022: JPY 2.68T 

- FY2023: JPY 3.02T 

- FY2024: JPY 3.02T 

- FY2025: JPY 3.02T 

### Gross margin · FY2025

gross margin 29.3%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR0M.pdf; observed 2026-03-16.

- FY2018: 28.5% 

- FY2019: 29.2% 

- FY2020: 28.9% 

- FY2021: 28.8% 

- FY2022: 25.6% 

- FY2023: 29.0% 

- FY2024: 30.8% 

- FY2025: 29.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 3 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR0M.pdf (filed 2026-03-16); FY2025: revenue 3018891000000; grossProfit 884314000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 29% to 30.8% during 2023–25; it earns 6.3% on its capital.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6326.T (filed 2026-03-16); FY2023: grossProfit / revenue = 29%.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6326.T (filed 2026-03-16); FY2024: grossProfit / revenue = 30.8%.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6326.T (filed 2026-03-16); FY2025: grossProfit / revenue = 29.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); 10-year return on capital observations [[2018,0.07290616289002702],[2019,0.07013494100091161],[2020,0.061545869519488004],[2021,0.07247640649006674],[2022,0.05128207437186696],[2023,0.06522811825851509],[2024,0.05551111436125833],[2025,0.04526964440435067]]; median 0.06338699388900154. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.6% of cash earnings; paid dividends in 8 of 8 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2018: growth capex 13772000000; upkeep 49624000000; owner earnings 138595000000. Growth capex / owner earnings = 0.09936866409322126.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2019: growth capex 13578474100.694809; upkeep 81280525899.30519; owner earnings 114943474100.69481. Growth capex / owner earnings = 0.11813175308064514.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2020: growth capex 0; upkeep 84753000000; owner earnings 96489000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2021: growth capex 54022000000; upkeep 71701000000; owner earnings 155669000000. Growth capex / owner earnings = 0.34703120081711836.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2022: growth capex 80402000000; upkeep 89249000000; cash acquisitions 163895000000; owner earnings 137876373813.34555. Growth capex plus acquisitions / owner earnings = 1.7718554183236985.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2023: growth capex 65210000000; upkeep 107270000000; cash acquisitions 1965000000; owner earnings 221076000000. Growth capex plus acquisitions / owner earnings = 0.3038547829705622.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2024: growth capex 0; upkeep 213997000000; cash acquisitions 2131000000; owner earnings 115233000000. Growth capex plus acquisitions / owner earnings = 0.018492966424548524.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR0M.pdf (filed 2026-03-16); FY2025: growth capex 680954277.0043945; upkeep 185217045722.9956; cash acquisitions 0; owner earnings 111515954277.0044. Growth capex plus acquisitions / owner earnings = 0.006106339504685685.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); Dividend observations: [[2018,40697000000],[2019,43065000000],[2020,43853000000],[2021,48333000000],[2022,51466000000],[2023,54483000000],[2024,57595000000],[2025,57178000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6326.T (filed 2026-03-16); FY2025: cash repurchases 20003000000 JPY.

### What the price says

The price assumes cash profits grow 4.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); Ten-year compound average after fade. Initial solved rate 0.04841460857235956. Price 2578; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 1,727.50 per share

- 2016-12: JPY 1,668.50 per share

- 2017-01: JPY 1,800.00 per share

- 2017-02: JPY 1,787.50 per share

- 2017-03: JPY 1,671.00 per share

- 2017-04: JPY 1,753.00 per share

- 2017-05: JPY 1,752.00 per share

- 2017-06: JPY 1,887.50 per share

- 2017-07: JPY 1,919.50 per share

- 2017-08: JPY 1,904.00 per share

- 2017-09: JPY 2,045.50 per share

- 2017-10: JPY 2,121.50 per share

- 2017-11: JPY 2,120.00 per share

- 2017-12: JPY 2,209.50 per share

- 2018-01: JPY 2,217.00 per share

- 2018-02: JPY 1,947.00 per share

- 2018-03: JPY 1,862.00 per share

- 2018-04: JPY 1,849.50 per share

- 2018-05: JPY 1,833.00 per share

- 2018-06: JPY 1,743.00 per share

- 2018-07: JPY 1,869.50 per share

- 2018-08: JPY 1,736.50 per share

- 2018-09: JPY 1,931.00 per share

- 2018-10: JPY 1,782.00 per share

- 2018-11: JPY 1,937.00 per share

- 2018-12: JPY 1,561.50 per share

- 2019-01: JPY 1,714.00 per share

- 2019-02: JPY 1,502.50 per share

- 2019-03: JPY 1,599.50 per share

- 2019-04: JPY 1,683.00 per share

- 2019-05: JPY 1,660.50 per share

- 2019-06: JPY 1,793.00 per share

- 2019-07: JPY 1,692.50 per share

- 2019-08: JPY 1,525.00 per share

- 2019-09: JPY 1,634.50 per share

- 2019-10: JPY 1,732.00 per share

- 2019-11: JPY 1,688.50 per share

- 2019-12: JPY 1,726.00 per share

- 2020-01: JPY 1,740.50 per share

- 2020-02: JPY 1,523.00 per share

- 2020-03: JPY 1,381.50 per share

- 2020-04: JPY 1,347.00 per share

- 2020-05: JPY 1,449.50 per share

- 2020-06: JPY 1,608.00 per share

- 2020-07: JPY 1,503.50 per share

- 2020-08: JPY 1,916.50 per share

- 2020-09: JPY 1,877.50 per share

- 2020-10: JPY 1,810.50 per share

- 2020-11: JPY 2,070.50 per share

- 2020-12: JPY 2,251.00 per share

- 2021-01: JPY 2,299.00 per share

- 2021-02: JPY 2,407.50 per share

- 2021-03: JPY 2,519.50 per share

- 2021-04: JPY 2,570.00 per share

- 2021-05: JPY 2,488.00 per share

- 2021-06: JPY 2,247.00 per share

- 2021-07: JPY 2,277.50 per share

- 2021-08: JPY 2,274.50 per share

- 2021-09: JPY 2,389.00 per share

- 2021-10: JPY 2,422.50 per share

- 2021-11: JPY 2,369.00 per share

- 2021-12: JPY 2,553.50 per share

- 2022-01: JPY 2,444.00 per share

- 2022-02: JPY 2,062.00 per share

- 2022-03: JPY 2,303.00 per share

- 2022-04: JPY 2,218.50 per share

- 2022-05: JPY 2,374.00 per share

- 2022-06: JPY 2,027.00 per share

- 2022-07: JPY 2,193.50 per share

- 2022-08: JPY 2,175.50 per share

- 2022-09: JPY 2,004.00 per share

- 2022-10: JPY 2,076.50 per share

- 2022-11: JPY 2,030.00 per share

- 2022-12: JPY 1,817.00 per share

- 2023-01: JPY 1,938.00 per share

- 2023-02: JPY 2,055.50 per share

- 2023-03: JPY 1,999.00 per share

- 2023-04: JPY 2,048.00 per share

- 2023-05: JPY 1,927.00 per share

- 2023-06: JPY 2,099.00 per share

- 2023-07: JPY 2,144.50 per share

- 2023-08: JPY 2,335.00 per share

- 2023-09: JPY 2,204.00 per share

- 2023-10: JPY 2,014.00 per share

- 2023-11: JPY 2,119.00 per share

- 2023-12: JPY 2,122.50 per share

- 2024-01: JPY 2,252.50 per share

- 2024-02: JPY 2,194.00 per share

- 2024-03: JPY 2,380.50 per share

- 2024-04: JPY 2,545.50 per share

- 2024-05: JPY 2,221.00 per share

- 2024-06: JPY 2,250.00 per share

- 2024-07: JPY 2,180.00 per share

- 2024-08: JPY 2,035.00 per share

- 2024-09: JPY 2,031.00 per share

- 2024-10: JPY 1,971.50 per share

- 2024-11: JPY 1,873.00 per share

- 2024-12: JPY 1,839.00 per share

- 2025-01: JPY 1,951.50 per share

- 2025-02: JPY 1,850.50 per share

- 2025-03: JPY 1,831.00 per share

- 2025-04: JPY 1,653.00 per share

- 2025-05: JPY 1,663.50 per share

- 2025-06: JPY 1,622.00 per share

- 2025-07: JPY 1,689.50 per share

- 2025-08: JPY 1,725.50 per share

- 2025-09: JPY 1,863.00 per share

- 2025-10: JPY 2,000.50 per share

- 2025-11: JPY 2,254.00 per share

- 2025-12: JPY 2,216.50 per share

- 2026-01: JPY 2,369.50 per share

- 2026-02: JPY 3,176.00 per share

- 2026-03: JPY 2,457.00 per share

- 2026-04: JPY 2,553.00 per share

- 2026-05: JPY 2,842.00 per share

- 2026-06: JPY 2,685.50 per share

- 2026-07: JPY 2,745.50 per share

- 2026-08: JPY 2,932.50 per share

- 2026-09: JPY 2,763.50 per share

- 2026-10: JPY 2,716.50 per share

## Annual estimated value (JPY per share)

- FY2022: low JPY 1,954.29 per share, central JPY 2,736.29 per share, high JPY 3,191.65 per share

- FY2023: low JPY 2,206.43 per share, central JPY 3,078.26 per share, high JPY 3,591.26 per share

- FY2024: low JPY 2,002.06 per share, central JPY 2,730.12 per share, high JPY 3,169.52 per share

- FY2025: low JPY 2,040.23 per share, central JPY 2,833.26 per share, high JPY 3,295.05 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T07:10:54.236Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR0M.pdf); period 2025-12-31, filed 2026-03-16.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations