Definitive Analysis
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Definitive Analysis

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Ticker

Industry

Sector

Kubota Corporation (6326.T)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$5,642.09 - $29,917.69$11,213.99
Multi-Stage$3,819.86 - $4,182.83$3,997.99
Blended Fair Value$7,605.99
Current Price$1,863.00
Upside308.27%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.99%4.38%50.0647.3644.7342.0138.1237.4335.3733.3930.2832.48
YoY Growth--5.71%5.86%6.48%10.22%1.83%5.82%5.92%10.28%-6.76%-0.37%
Dividend Yield--2.73%1.99%2.24%1.82%1.51%2.71%2.20%1.79%1.81%2.11%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)174,483.00
(-) Cash Dividends Paid (M)57,178.00
(=) Cash Retained (M)117,305.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)34,896.6021,810.3813,086.23
Cash Retained (M)117,305.00117,305.00117,305.00
(-) Cash Required (M)-34,896.60-21,810.38-13,086.23
(=) Excess Retained (M)82,408.4095,494.63104,218.78
(/) Shares Outstanding (M)1,150.501,150.501,150.50
(=) Excess Retained per Share71.6383.0090.59
LTM Dividend per Share49.7049.7049.70
(+) Excess Retained per Share71.6383.0090.59
(=) Adjusted Dividend121.33132.70140.28
WACC / Discount Rate6.88%6.88%6.88%
Growth Rate4.63%5.63%6.63%
Fair Value$5,642.09$11,213.99$29,917.69
Upside / Downside202.85%501.93%1,505.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)174,483.00184,311.45194,693.52205,660.41217,245.05229,482.24236,366.71
Payout Ratio32.77%44.22%55.66%67.11%78.55%90.00%92.50%
Projected Dividends (M)57,178.0081,495.08108,370.26138,014.55170,654.66206,534.02218,639.21

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.88%6.88%6.88%
Growth Rate4.63%5.63%6.63%
Year 1 PV (M)75,525.2676,247.0776,968.88
Year 2 PV (M)93,074.7294,862.2996,666.87
Year 3 PV (M)109,851.84113,031.67116,272.28
Year 4 PV (M)125,881.35130,763.09135,785.45
Year 5 PV (M)141,187.31148,064.30155,206.70
PV of Terminal Value (M)3,849,243.914,036,734.014,231,459.83
Equity Value (M)4,394,764.384,599,702.434,812,360.01
Shares Outstanding (M)1,150.501,150.501,150.50
Fair Value$3,819.86$3,997.99$4,182.83
Upside / Downside105.04%114.60%124.52%

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