SUBARU (7270) AI Stock Analysis

• Market Cap: ¥1.89T
• Dividend Yield: 5.18%
• Average Volume (3M): 3.66M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 1.30
• Revenue Growth: -0.37%
• EPS Growth: -9.93%
• Country: JP
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 733,057,500
• 10 Day Avg. Volume: 3,471,070
• 30 Day Avg. Volume: 3,662,136
• PEG Ratio: 0.04
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,337.13
• Price Target Upside: -9.69% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: ¥2,873.00 ▲(11.01%Upside)

Subaru's strong financial performance and attractive valuation are the main drivers of its score. Technical indicators present a mixed picture, with some bearish signals. However, the low P/E ratio and high dividend yield enhance its investment appeal.

SUBARU Business Overview & Revenue Model

Company Description

Subaru Corporation, headquartered in Tokyo, Japan, is a globally recognized automobile manufacturer known for its innovative engineering, particularly in all-wheel-drive vehicles and boxer engines. The company operates in the automotive and aerospace sectors, providing a range of products that include passenger cars, crossover SUVs, and commercial vehicles, as well as aerospace components and systems. Subaru is particularly noted for its commitment to safety, durability, and performance, which are integral to its brand identity.

How the Company Makes Money

Subaru Corporation generates revenue primarily through the design, manufacture, and sale of automobiles. The core revenue stream comes from the sale of passenger vehicles, including popular models such as the Subaru Outback, Forester, and Impreza. Subaru's unique selling propositions, such as standard all-wheel drive and advanced safety features, have contributed to its strong brand loyalty and market presence, particularly in markets like North America and Japan. In addition to vehicle sales, Subaru also earns revenue from its financial services, which include vehicle financing and leasing options, as well as parts, accessories, and maintenance services. The company's aerospace division, while smaller, also contributes to its revenue through the production and sale of aircraft components and systems for both commercial and defense applications. Strategic partnerships and joint ventures, such as those with Toyota Motor Corporation, enhance its technological capabilities and market reach, thereby supporting its revenue generation.

SUBARU Financial Statement Overview

Summary

Subaru shows strong financial performance with healthy revenue growth and solid profitability despite minor declines in net and EBIT margins. The balance sheet is robust with low leverage, and cash management is effective despite some volatility in free cash flow.

Income Statement

Subaru has demonstrated strong revenue growth over the years, with a notable increase from 2022 to 2023. The gross profit margin remains healthy, although there has been a slight decline in net profit margin and EBIT margin. Despite these minor setbacks, the company maintains solid profitability. The EBITDA margin is robust, indicating good operational efficiency.

Balance Sheet

Subaru's balance sheet reflects solid financial health, with a low debt-to-equity ratio indicating conservative leverage. The equity ratio showcases a stable financial position, supported by strong stockholders' equity. Return on Equity (ROE) remains commendable, demonstrating efficient use of shareholder funds to generate profits.

Cash Flow

The cash flow statement highlights Subaru's consistent ability to generate operating cash flow, although free cash flow has experienced volatility. The operating cash flow to net income ratio is strong, indicating effective cash management. However, the free cash flow growth rate has seen fluctuations, warranting close monitoring.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
4.69T	4.70T	3.77T	2.74T	2.83T
	Gross Profit
980.34B	992.43B	736.48B	503.93B	492.60B
	EBIT
417.16B	482.05B	267.48B	90.45B	102.47B
	EBITDA
727.81B	754.21B	511.04B	318.05B	310.41B
	Net Income Common Stockholders
338.06B	385.08B	200.43B	70.01B	76.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
941.46B	1.92T	1.37T	1.13T	1.14T
	Total Assets
5.09T	4.81T	3.94T	3.54T	3.41T
	Total Debt
399.50B	523.35B	312.60B	334.05B	333.88B
	Net Debt
-541.96B	-524.65B	-666.93B	-549.03B	-573.44B
	Total Liabilities
2.37T	2.25T	1.83T	1.64T	1.63T
	Stockholders Equity
2.71T	2.56T	2.10T	1.89T	1.78T
Cash Flow		Free Cash Flow
321.27B	467.79B	308.89B	9.41B	96.85B
	Operating Cash Flow
492.14B	767.66B	503.76B	195.65B	289.38B
	Investing Cash Flow
-404.77B	-703.70B	-336.81B	-179.72B	-272.17B
	Financing Cash Flow
-186.63B	-66.47B	-122.31B	-98.50B	13.97B

SUBARU Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2588.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7270, the sentiment is Neutral. The current price of 2588 is above the 20-day moving average (MA) of 2584.90, above the 50-day MA of 2566.53, and above the 200-day MA of 2569.37, indicating a bearish trend. The MACD of -22.00 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 71.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7270.

SUBARU Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7269	78 Outperform	¥3.39T	8.01	15.02%	2.43%	8.39%	55.79%
7203	75 Outperform	¥33.52T	7.14	13.59%	3.89%	6.52%	-1.47%
7270	72 Outperform	¥1.89T	5.65	12.64%	5.18%	-0.37%	-9.93%
7211	70 Outperform	¥603.05B	14.41	4.11%	3.63%	-0.05%	-73.27%
7272	69 Neutral	$1.04T	12.88	7.19%	4.54%	4.48%	-51.81%
Sector *	62 Neutral	$6.80B	11.08	2.79%	5.80%	2.68%	-24.86%
7201	48 Neutral	$1.25T	12.25	-12.13%	6.75%	-0.41%	-269.88%

SUBARU Corporate Events

Subaru Strengthens Ties with Toyota Amid New BEV Launch

SUBARU CORPORATION has announced its continued collaboration with Toyota Motor Corporation, which holds a 21% voting stake in Subaru. This partnership has led to the joint development of several vehicle models, including the recent unveiling of the Trailseeker BEV. Subaru emphasizes its operational independence despite this alliance, aiming for sustainable growth and enhanced corporate value.

The most recent analyst rating on (JP:7270) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.

Subaru Reports Decline in Revenue and Sales for FYE 2025 Amid Market Challenges

Subaru Corporation reported a 0.4% decline in consolidated revenue for the fiscal year ending March 31, 2025, primarily due to decreased overseas unit sales and increased sales incentives in a competitive market. Despite a 5.4% increase in unit sales in Japan, global consolidated unit sales fell by 4.1%, impacting production and profit margins. The company faces uncertainty in forecasting for the next fiscal year due to potential changes in U.S. tariff policy and ongoing construction for battery EV production.

The most recent analyst rating on (JP:7270) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.

Subaru Corporation Reports Financial Results for Fiscal Year Ending March 2025

Subaru Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in revenue by 0.4% compared to the previous year. Despite this, the company experienced a notable decline in operating profit and profit before tax by 13.4% and 15.8%, respectively. The profit for the year attributable to owners of the parent also decreased by 12.2%. The company maintained a stable financial position with a slight increase in total assets and equity. Cash dividends per share increased, reflecting a commitment to returning value to shareholders. The forecast for the next fiscal year remains undetermined due to uncertainties in the business environment, particularly concerning U.S. tariff policies.

The most recent analyst rating on (JP:7270) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.