Subaru (FUJHY) AI Stock Analysis

• Market Cap: $11.48B
• Dividend Yield: 2.85%
• Average Volume (3M): 3.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 1.73%
• EPS Growth: -31.57%
• Country: US
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.03
• Shares Outstanding: 1,434,670,500
• 10 Day Avg. Volume: 3,403
• 30 Day Avg. Volume: 3,724
• PEG Ratio: -0.58
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 8.67
• Enterprise Value/Market Cap: 120.70
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 1.89
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.64
• Revenue Forecast (FY): $30.32B

• Rating: 62 Neutral
• Price Target: $8.50 ▼(-24.44% Downside)
• Action: Downgraded Date: 02/08/26
• Date: Action: Downgraded 02/08/26

The score is driven primarily by solid financial durability from low leverage, but it is held back by a meaningful TTM downshift in profitability and free cash flow. Technicals are mildly weak with the stock below key short- and mid-term moving averages, and valuation appears fair-to-slightly expensive given current earnings pressure despite a moderate dividend yield.

Positive Factors

Conservative leverage

Low leverage and steadily growing equity provide durable financial flexibility. This reduces refinancing risk, supports capital spending and R&D through downturns, and preserves the company's ability to fund product programs, dealer support and dividends over the medium term.

Positive cash generation

Sustained positive operating cash flow and FCF, even amid volatility, indicate the business can generate internal funding for operations and upkeep. That underpins ongoing parts/service revenue capture and funds investments without relying solely on external financing.

Diversified revenue streams

A mix of wholesale vehicle sales, replacement parts and an aerospace business reduces single-market cyclicality. Aftermarket parts create recurring revenue tied to installed base, while aerospace contracts smooth automotive cycles and leverage engineering capabilities long term.

Negative Factors

Revenue momentum weakening

A reversal from prior expansion to recent revenue declines reduces operating leverage and scale advantages. If demand softness or product-mix headwinds persist, this pressures investment capacity, dealer economics and the ability to rebuild margins over the next several quarters.

Sharp margin deterioration

Material compression in net and operating margins cuts profitability resilience. Lower margin structure reduces free cash flow and available reinvestment, making it harder to absorb cost inflation or fund new product programs without structural cost or pricing recovery.

Free cash flow volatility

Large swings and weaker cash conversion undermine predictability of funding for capex, product development and shareholder distributions. Volatile FCF increases reliance on balance-sheet cushions and could constrain strategic investments if the trend persists.

Subaru Business Overview & Revenue Model

Company Description

Subaru Corporation, traded under the ticker FUJHY, is a Japanese automotive manufacturer renowned for its all-wheel-drive vehicles and innovative engineering. The company operates primarily in the automotive sector, producing a range of vehicles including sedans, SUVs, and electric vehicles. Subaru is also involved in aerospace and industrial manufacturing, but its core focus remains on the automotive market, where it emphasizes safety, reliability, and performance in its products.

How the Company Makes Money

Subaru Corporation makes most of its money by selling Subaru-branded vehicles through wholesale distribution to subsidiaries, importers, and dealer networks in its major markets (with the United States typically being a key market for Subaru brand sales). Revenue is primarily recognized from vehicle sales (cars/SUVs) and is influenced by product mix (e.g., higher-priced models and trims), sales volume, and market incentives. A second major stream comes from parts and accessories: the company sells genuine replacement parts and optional accessories into its service and dealer channels, generating ongoing revenue tied to the installed base of vehicles on the road. Subaru also earns revenue from after-sales services and other automotive-related items handled through its sales network (the specific mix can vary by market and accounting classification). Beyond automotive, the aerospace segment contributes revenue through manufacturing and engineering work such as aircraft components, assemblies, and related services for external customers; this income depends on contract/program activity and production schedules. Key factors affecting earnings include foreign-exchange movements (given global sales with Japanese yen reporting), raw material and logistics costs, capacity utilization, and demand conditions in core markets. Specific material partnerships, customer concentration details, or contract terms not publicly disclosed in general sources are null.

Subaru Financial Statement Overview

Summary

Strong balance sheet (low leverage and growing equity) supports resilience, but recent TTM profitability and cash-flow deterioration are material near-term concerns. Income statement momentum softened with margins compressing sharply in TTM, and free cash flow fell significantly with weaker cash conversion.

Income Statement

Revenue expanded sharply into 2023–2024, but momentum softened in the most recent periods, with revenue slightly down in 2025 and down in TTM (Trailing-Twelve-Months). Profitability also compressed: net margin fell from ~8.2% (2024) to ~7.2% (2025 annual) and down further to ~2.2% in TTM, with a similar step-down in operating profitability. The positive is that the company has demonstrated it can produce solid margins in stronger years, but the latest TTM profitability deterioration is a clear near-term concern.

Balance Sheet

Leverage looks conservative, with debt running at ~0.15x equity in both 2025 annual and TTM (Trailing-Twelve-Months), improving versus earlier years (~0.20–0.24x). Equity has grown steadily over the period, supporting balance-sheet resilience. The main watch item is returns cooling meaningfully in TTM (ROE ~3.8%) versus stronger levels in 2024–2025 annual (~12–15%), which aligns with the recent earnings slowdown rather than balance-sheet stress.

Cash Flow

Cash generation remains positive, with operating cash flow and free cash flow both positive in 2025 annual and TTM (Trailing-Twelve-Months). However, free cash flow volatility is a key issue: after a very strong 2024, free cash flow fell in 2025 and declined sharply in TTM (free cash flow down ~60% year over year). Cash conversion has also weakened recently, with free cash flow covering less than half of net income in TTM (~0.42x), signaling reduced cash efficiency versus prior years.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.67T	4.69T	4.70T	3.77T	2.74T	2.83T
Gross Profit	733.13B	980.34B	992.43B	736.48B	503.93B	492.60B
EBITDA	423.92B	727.82B	766.38B	544.09B	334.23B	329.79B
Net Income	103.74B	338.06B	385.08B	200.43B	70.01B	76.51B
Balance Sheet
Total Assets	5.24T	5.09T	4.81T	3.94T	3.54T	3.41T
Cash, Cash Equivalents and Short-Term Investments	857.79B	1.96T	1.92T	1.37T	1.13T	1.14T
Total Debt	413.00B	399.50B	399.50B	427.12B	441.17B	435.53B
Total Liabilities	2.49T	2.37T	2.25T	1.83T	1.64T	1.63T
Stockholders Equity	2.75T	2.71T	2.56T	2.10T	1.89T	1.78T
Cash Flow
Free Cash Flow	150.87B	226.85B	467.79B	308.89B	9.41B	96.85B
Operating Cash Flow	359.67B	492.14B	767.66B	503.76B	195.65B	289.38B
Investing Cash Flow	-287.62B	-404.08B	-703.70B	-336.81B	-179.72B	-272.17B
Financing Cash Flow	-176.77B	-187.32B	-66.47B	-122.31B	-98.50B	13.97B

Subaru Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUJHY, the sentiment is Negative. The current price of 11.25 is above the 20-day moving average (MA) of 8.69, above the 50-day MA of 9.86, and above the 200-day MA of 10.03, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 25.61 is Positive, neither overbought nor oversold. The STOCH value of 8.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FUJHY.

Subaru Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	66 Neutral	$272.15B	8.55	9.96%	2.57%	7.28%	12.41%
FUJHY	62 Neutral	$11.48B	-82.12	3.80%	2.85%	1.73%	-31.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TSLA	60 Neutral	$1.38T	432.45	4.83%	―	-2.93%	-47.22%
GM	59 Neutral	$65.82B	27.72	5.13%	0.69%	-1.29%	-49.96%
HMC	59 Neutral	$31.79B	9.64	4.09%	4.19%	0.32%	-25.51%
F	48 Neutral	$45.96B	-6.38	-18.91%	5.64%	3.75%	33.37%