Subaru (FUJHY) AI Stock Analysis

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Subaru

(Other OTC:FUJHY)

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Rating:57Neutral

Price Target:$8.50▲(0.53% Upside)

Action:reiterated

Date:08/10/26

The score is primarily constrained by a sharp recent profitability decline and weaker free-cash-flow conversion, despite a clearly conservative balance sheet. Technicals are mildly supportive in the short-to-intermediate term (price above key shorter moving averages and positive MACD), while valuation is mixed with a decent dividend but a P/E that looks only fair given current margin and cash-flow pressure.

Positive Factors

Conservative Balance SheetLow leverage and rising equity materially reduce financial risk in an inherently cyclical auto industry. This structural strength preserves liquidity and borrowing capacity, enabling sustained capex, dividend payments, and the ability to fund product programs or weather demand shocks over the next several quarters.

Negative Factors

Compressed ProfitabilityA sharp margin rollback indicates structural pressures on pricing, mix, or cost control that erode durable earnings power. Sustained lower margins reduce internal funding for R&D, electrification investments and dividends, and make earnings highly sensitive to volume swings over the next several quarters.

Subaru (FUJHY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $11.85B
Dividend Yield: 4.37%
Average Volume (3M): 141.51K
Price to Earnings (P/E): 22.4
Beta (1Y): 0.36
Revenue Growth: -2.87%
EPS Growth: -72.67%
Country: US
Employees: 37,542
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Manufacturers

Subaru Business Overview & Revenue Model

Company Description

Subaru Corporation, an enterprise established in 1917 and headquartered in Tokyo, Japan, is a global producer and vendor of automotive and aerospace goods. Its extensive operations are compartmentalized into three principal units: the Automotive Busi...

How the Company Makes Money

Subaru primarily makes money by selling Subaru-branded vehicles through wholesale/distribution channels to regional sales companies and dealers, with revenue recognized from automotive unit sales across domestic and international markets. A significa...

Subaru Financial Statement Overview

Summary

Balance sheet strength is a major positive (low debt-to-equity and steadily building equity), helping contain financial risk in a cyclical industry. However, recent operating performance has weakened: profitability reset sharply (TTM net margin ~1.8% vs ~7–8% in FY2024–FY2025) and cash generation deteriorated (TTM FCF down sharply and low cash conversion vs net income), which pulls the score down.

Income Statement

52Neutral

Balance Sheet

78Positive

Cash Flow

46Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.86T	5.07T	4.69T	4.70T	3.77T	2.74T
Gross Profit	690.01B	762.88B	980.34B	992.43B	736.48B	503.93B
EBITDA	357.21B	416.28B	727.82B	766.38B	544.09B	334.23B
Net Income	85.98B	96.32B	338.06B	385.08B	200.43B	70.01B
Balance Sheet
Total Assets	5.38T	5.52T	5.09T	4.81T	3.94T	3.54T
Cash, Cash Equivalents and Short-Term Investments	926.23B	1.88T	1.96T	1.92T	1.37T	1.13T
Total Debt	362.09B	386.17B	399.50B	399.50B	427.12B	441.17B
Total Liabilities	2.62T	2.72T	2.37T	2.25T	1.83T	1.64T
Stockholders Equity	2.75T	2.79T	2.71T	2.56T	2.10T	1.89T
Cash Flow
Free Cash Flow	46.07B	131.33B	226.85B	467.79B	308.89B	9.41B
Operating Cash Flow	270.93B	379.83B	492.14B	767.66B	503.76B	195.65B
Investing Cash Flow	-39.63B	-121.56B	-404.08B	-703.70B	-336.81B	-179.72B
Financing Cash Flow	-255.23B	-230.95B	-187.32B	-66.47B	-122.31B	-98.50B

Subaru Technical Analysis

Technical Analysis SentimentPositive

Last Price8.46

Price Trends

50DMA8.29Positive

100DMA8.10Positive

200DMA8.38Positive

Market Momentum

MACD0.04Negative

RSI57.26Neutral

STOCH43.65Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUJHY, the sentiment is Positive. The current price of 8.46 is above the 20-day moving average (MA) of 8.23, above the 50-day MA of 8.29, and above the 200-day MA of 8.38, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 43.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FUJHY.

Subaru Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

FUJHY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	62Neutral	$230.73B	8.74	11.67%	3.21%	3.88%	4.59%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TSLA	61Neutral	$1.58T	403.85	3.76%	―	8.30%	-39.19%
HMC	57Neutral	$44.14B	-45.94	-1.40%	4.30%	0.81%	-128.78%
FUJHY	57Neutral	$12.09B	22.42	3.08%	4.37%	-2.87%	-72.67%
GM	56Neutral	$73.73B	19.77	6.32%	0.79%	-0.26%	-11.45%
F	45Neutral	$48.85B	-6.24	-21.35%	4.90%	-1.38%	-252.96%

* Consumer Cyclical Sector Average

Performance Comparison

FUJHY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FUJHY	Subaru Corporation	8.46	-2.20	-20.61%
F	Ford Motor Company	12.25	-0.18	-1.45%
GM	General Motors Company	87.40	19.76	29.22%
HMC	Honda Motors	33.96	3.39	11.09%
TSLA	Tesla, Inc.	399.81	-68.56	-14.64%
TM	Toyota Motor Corp Ltd Ord	195.71	-10.01	-4.87%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 10, 2026

Subaru AI Stock Analysis