Report
Shanshan Wei, CFA
EUR 101.80 For Business Accounts Only

Kubota is reaping the benefits of agricultural mechanization.

We increase narrow-moat Kubota’s fair value estimate to JPY 2,100 from JPY 1,900 to reflect the reduction in U.S. corporate tax to 21% from 35% in effect in 2018. We estimate Kubota’s U.S.-based activities make up around 35-40% of its operating income, based on 30% contribution to sales and higher margins on its U.S. product mix which comprises largely of small tractors to the retail market. The tax reduction will result in a 5-percentage-point decline for Kubota’s effective tax rate, which tran...
Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

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Analysts
Shanshan Wei, CFA

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