There's a lot working in Kubota's (OTC:KUBTY)
favor these days. The lower value of the yen makes its products
cheaper, while rising incomes across Asia make its agricultural
equipment more attainable. Add to that a recovery in the U.S. housing
market (where the company sells a lot of lawn equipment) and a stated
goal to expand the dry land business, and there are multiple attractive
growth drivers. The problem? It's just not possible to run an attractive
valuation on a discounted cash flow basis, and I can't reconcile the
idea of paying a 40% to 100% premium (in forward EV/EBITDA terms) for Kubota compared to Cummins (NYSE:CMI), Deere (NYSE:DE), AGCO (Nasdaq:AGCO), or CNH (NYSE:CNH).
Please follow the link for more:
http://www.investopedia.com/stock-analysis/082213/easy-everything-about-kubota-except-price-kubty-de-agco-cnh.aspx
No comments:
Post a Comment