Kubota Corp
6326: XTKS (JPN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥2,563.00 | Zfb | Ysskzgj |
Kubota’s 2020 Results Slightly Above Guidance; 2021 Guidance Above Our Expectations; Fairly Valued
Business Strategy and Outlook
Kubota is one of the largest agricultural machinery manufacturers in the world; it focuses on tractors and rice farming equipment. While competitors such as John Deere and CNH focus more on large farm machinery, Kubota has been emphasizing machinery below 100 horsepower, a strategy that has turned out to be successful. Through the years, it has managed to build a strong brand name and achieve significant (if not leading) market shares in North America and Asia for its compact tractors, combine harvesters, and rice transplanting machinery.