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6301:TSEKomatsu Ltd. Analysis

Data as of 2026-05-24 - not real-time

MX$725.44

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Komatsu Ltd. is trading at the identified support level with an **RSI of under 4**, signaling extreme oversold conditions and a potential short‑term rebound. The price sits below the 20‑day and 50‑day SMAs, while the 200‑day SMA is roughly aligned with current levels, suggesting the stock is near a longer‑term equilibrium. A bearish MACD histogram and decreasing volume add pressure, but the extreme momentum reading and strong dividend yield of nearly 3% provide a cushion for risk‑averse traders.
Fundamentally, the company’s **PE of 16** is well under the industry average of nearly 30, indicating an undervalued valuation. Operating margins above 12% and a payout ratio under 50% point to sustainable earnings and dividend capacity. Low computed beta and a solid cash position offset the high 30‑day volatility, making Komatsu a compelling candidate for value‑oriented investors with a medium‑term horizon.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • RSI in extreme oversold territory
  • Price at identified support level
  • Attractive dividend yield

Medium Term

1–3 years
Neutral
Model confidence: 6/10

Key Factors

  • Undervalued PE relative to peers
  • Stable operating margins and cash flow
  • Cyclical exposure in construction equipment

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Sustainable dividend payout
  • Long‑term undervaluation with solid fundamentals
  • Low market beta despite high short‑term volatility

Key Metrics & Analysis

Financial Health

Revenue Growth6.10%
Profit Margin9.11%
P/E Ratio16.1
ROE11.39%
ROA5.81%
Debt/Equity38.28
P/B Ratio1.7
Op. Cash FlowMX$449.0B
Free Cash FlowMX$13.5B
Industry P/E29.7

Technical Analysis

TrendNeutral
RSI3.9
SupportMX$725.44
ResistanceMX$847.74
MA 20MX$774.36
MA 50MX$818.39
MA 200MX$724.06
MACDBearish
VolumeDecreasing
Fear & Greed Index91.61

Valuation

GradeUndervalued
TypeBlend
Dividend Yield2.86%

Risk Assessment

Beta0.23
Volatility45.15%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskMedium
Liquidity RiskHigh

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.