SUBARU (7270) AI Stock Analysis

• Market Cap: $1.93T
• Dividend Yield: 4.19%
• Average Volume (3M): 4.04M
• Price to Earnings (P/E): 4.8
• Beta (1Y): 1.29
• Revenue Growth: 6.27%
• EPS Growth: 19.66%
• Country: JP
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 733,057,500
• 10 Day Avg. Volume: 2,907,830
• 30 Day Avg. Volume: 4,041,453
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $2,620.51
• Price Target Upside: 1.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

SUBARU's overall stock score is strong, driven primarily by its excellent financial performance and attractive valuation. The company shows robust revenue growth, profitability, and cash flow generation, which is complemented by a low P/E ratio and high dividend yield, making it appealing for growth and income investors. Technical analysis presents a mixed view, with potential upward momentum countered by some bearish signals, slightly dampening the overall score.

SUBARU Business Overview & Revenue Model

Company Description

Subaru Corporation manufactures and sells automobiles and aerospace products worldwide. It operates through three segments: Automotive Business Unit, Aerospace Company, and Other Businesses. The company manufactures, sells, and repairs passenger cars and their components, airplanes, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. Subaru Corporation was founded in 1917 and is headquartered in Tokyo, Japan.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.70T	3.77T	2.74T	2.83T	3.34T
	Gross Profit
992.43B	736.48B	503.93B	492.60B	615.50B
	EBIT
482.05B	267.48B	90.45B	102.47B	210.32B
	EBITDA
754.21B	511.04B	318.05B	310.41B	418.90B
	Net Income Common Stockholders
385.08B	200.43B	70.01B	76.51B	152.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.92T	1.37T	1.13T	1.14T	1.06T
	Total Assets
4.81T	3.94T	3.54T	3.41T	3.29T
	Total Debt
523.35B	312.60B	334.05B	333.88B	239.21B
	Net Debt
-524.65B	-666.93B	-549.03B	-573.44B	-619.76B
	Total Liabilities
2.25T	1.83T	1.64T	1.63T	1.57T
	Stockholders Equity
2.56T	2.10T	1.89T	1.78T	1.71T
Cash Flow		Free Cash Flow
467.79B	308.89B	9.41B	96.85B	-3.94B
	Operating Cash Flow
767.66B	503.76B	195.65B	289.38B	210.13B
	Investing Cash Flow
-703.70B	-336.81B	-179.72B	-272.17B	-25.84B
	Financing Cash Flow
-66.47B	-122.31B	-98.50B	13.97B	-15.82B

SUBARU Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2569.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 2569.5 is above the 20-day moving average (MA) of 2473.92, below the 50-day MA of 2631.83, and below the 200-day MA of 2597.95, indicating a bullish trend. The MACD of -2.21 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 72.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7270.

SUBARU Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	79 Outperform	$1.93T	4.83	15.47%	4.19%	6.27%	19.66%
Sector *	61 Neutral	$6.58B	11.81	3.06%	3.99%	2.54%	-21.54%

SUBARU Corporate Events

Subaru Increases Dividend and Revises Shareholder Return Policy

Subaru Corporation has announced a change in its shareholder return policy, increasing its focus on delivering higher dividend payments and utilizing share repurchases. The company aims to maintain a total return ratio of 40% or higher, with dividends being a significant component, reflecting a strategic move amidst global uncertainties. Additionally, Subaru has revised its year-end dividend forecast, raising it to ¥67 per share, an increase of ¥19 from previous expectations, which underscores its commitment to providing value to shareholders.

Subaru’s Financial Results Reflect Revenue Growth Amid Adjusted Overseas Sales

Subaru Corporation reported its consolidated financial results for the nine months ending December 31, 2024, noting a 1.1% increase in revenue to 3,536.3 billion yen despite a decline in global unit sales by 3.8%. While domestic sales in Japan improved, overseas sales dropped due to adjusted shipment volumes. Profit before tax rose by 2.4% to 426.0 billion yen, driven by favorable exchange rates, although operating profit saw a slight decrease. The company revised its full-year financial forecast upwards, attributing this to the impact of the weaker yen, projecting revenue at 4,760 billion yen and profit attributable to owners at 330 billion yen.

Subaru Reports Mixed Financial Results Amid Revenue Growth and Profit Challenges

Subaru Corporation reported a slight increase in revenue for the nine months ending December 31, 2024, with a total of 3.5 trillion yen, marking a 1.1% rise. Despite the revenue growth, operating profit saw a slight decline by 0.5%. The forecast for the fiscal year ending March 31, 2025, anticipates a modest revenue increase but a decrease in operating profit and overall profit, indicating potential challenges in maintaining profit margins. The company also announced revisions to its cash dividend forecast, signifying adjustments in its financial strategy.

Subaru Corporation Revamps Organizational Structure for Enhanced Competitiveness

Subaru Corporation announced significant organizational and management changes effective April 1, 2025, aimed at enhancing its operational efficiency and global competitiveness. Key changes include the establishment of new roles such as Chief Logistics Officer and Chief Human Resources Officer, and the formation of new divisions like the Logistics Division and Customer First Innovation Division. These changes reflect Subaru’s commitment to innovation and value creation in a rapidly changing business environment and are expected to strengthen its logistics, customer service, and global sales strategies.