Kubota (TSE:6326) GF Value Rank : 8 (As of Apr. 26, 2024)

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What is Kubota GF Value Rank?

Kubota has the GF Value Rank of 8.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Kubota's GF Value Rank

For the Farm & Heavy Construction Machinery subindustry, Kubota's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Kubota's GF Value Rank Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Kubota's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Kubota's GF Value Rank falls into.

Kubota GF Value Rank Related Terms

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Kubota (TSE:6326) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Kubota Corp (TSE:6326) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

KUBTY:USA KUBTF:USA KUO1:Germany

Address

2-47, Shikitsuhigashi 1-Chome, Naniwa-ku, Osaka, JPN, 556-8601

Website

http://www.kubota.co.jp

Kubota manufactures and sells small and midsize agricultural and construction equipment as well as water treatment equipment. Its key products in the farm and industrial machinery segment include compact/utility tractors, mini excavators, compact track loaders, engines, and rice farming equipment, such as combine harvesters as well as rice transplanters. The company has produced over 5.4 million units of tractors worldwide and over 30 million units of engines. Its water and environment segment provides mainly pipe system products like ductile iron pipes and valves, water/waste treatment plants, pumps, as well as operation and maintenance services, including public-private partnership projects. The company is based in Osaka, Japan, and was founded in 1890.

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