Subaru (FUJHY) AI Stock Analysis

• Market Cap: $15.34B
• Dividend Yield: 2.53%
• Average Volume (3M): 9.51K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.55
• Revenue Growth: 1.62%
• EPS Growth: -20.55%
• Country: US
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Auto - Manufacturers
• EPS (TTM): 0.82
• Shares Outstanding: 1,466,115,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 9,509
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.01
• Enterprise Value/Ebitda: 0.02
• 1Y Price Target: $11.50
• Price Target Upside: 9.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $11.50 ▲(9.42% Upside)

Subaru's strong financial performance, coupled with an attractive valuation, supports a favorable stock outlook. The technical indicators suggest bullish momentum, though potential overbought conditions warrant caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Subaru's ability to maintain and expand its market presence, reflecting strong demand for its vehicles and effective sales strategies.

Balance Sheet Strength

A strong balance sheet with low leverage provides Subaru with financial stability and flexibility to invest in growth opportunities and weather economic downturns.

Cash Flow Generation

Robust cash flow generation ensures Subaru can fund operations and investments without relying heavily on external financing, supporting long-term sustainability.

Negative Factors

Operating Margin Pressure

Pressure on operating margins could indicate rising costs or competitive pricing pressures, potentially impacting profitability if not addressed.

Cash Flow Volatility

Volatility in cash flow can complicate financial planning and investment, potentially affecting Subaru's ability to fund strategic initiatives consistently.

Liability Increase

An increase in liabilities, if not managed, could strain Subaru's financial resources and limit its ability to invest in growth or respond to market changes.

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 generates revenue primarily through the sale of vehicles, including passenger cars and SUVs, which constitute the largest portion of its income. The company utilizes a direct sales model, selling vehicles through a global network of dealerships. Significant revenue streams also include financing services, warranties, and parts and accessories sales. Furthermore, Subaru benefits from strategic partnerships with other automotive suppliers and technology companies, enhancing its vehicle features and expanding its market reach. The brand's strong reputation for quality and customer loyalty contributes to repeat sales and a solid financial foundation.

Subaru Financial Statement Overview

Summary

Subaru's financial statements indicate strong revenue growth and efficient operations. The company maintains a solid balance sheet with low leverage and robust cash flow generation. However, there are pressures on operating margins and potential cash flow volatility.

Income Statement

Subaru has exhibited strong financial performance with consistent revenue growth over the past years. The gross profit margin and EBITDA margin remain healthy, indicating efficient cost management. However, there was a slight decline in EBIT and net profit margins in the latest year, reflecting some pressure on operating efficiencies.

Balance Sheet

The company's balance sheet shows a strong equity base and low leverage, with a favorable debt-to-equity ratio. The equity ratio is solid, and return on equity is robust, indicating effective use of shareholder funds. However, there is a slight increase in total liabilities over the years, which requires monitoring.

Cash Flow

Operating cash flow remains strong, supporting healthy free cash flow generation. The free cash flow to net income ratio is solid, demonstrating good cash conversion. However, fluctuations in capital expenditures and investing cash flow suggest potential volatility in future cash flow generation.

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	703.00B	473.49B	465.14B
EBITDA	727.82B	693.58B	511.04B	318.05B	310.41B
Net Income	338.06B	385.08B	200.43B	70.01B	76.51B
Balance Sheet
Total Assets	5.09T	4.81T	3.94T	3.54T	3.41T
Cash, Cash Equivalents and Short-Term Investments	1.96T	1.92T	1.37T	1.13T	1.14T
Total Debt	399.50B	399.50B	427.12B	441.17B	435.53B
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	226.85B	467.79B	308.89B	9.41B	96.85B
Operating Cash Flow	492.14B	767.66B	503.76B	195.65B	289.38B
Investing Cash Flow	-404.08B	-703.70B	-336.81B	-179.72B	-272.17B
Financing Cash Flow	-187.32B	-66.47B	-122.31B	-98.50B	13.97B

Subaru Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.51
• 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 FUJHY, the sentiment is Positive. The current price of 10.51 is above the 20-day moving average (MA) of 10.22, above the 50-day MA of 9.65, and above the 200-day MA of 9.06, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.40 is Neutral, neither overbought nor oversold. The STOCH value of 75.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FUJHY.

Subaru Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	83 Outperform	$255.18B	9.10	12.05%	2.75%	4.14%	-12.12%
FUJHY	79 Outperform	$15.34B	7.50	11.75%	2.53%	1.62%	-20.55%
HMC	77 Outperform	$45.74B	11.95	5.17%	4.13%	1.68%	-39.28%
TSLA	76 Outperform	$1.19T	213.58	8.43%	―	-2.73%	-51.64%
GM	75 Outperform	$55.90B	9.09	7.07%	0.92%	5.34%	-28.29%
F	73 Outperform	$46.80B	14.57	7.11%	6.42%	2.72%	-17.58%
Sector *	61 Neutral	$18.08B	12.82	-2.51%	3.03%	1.45%	-15.68%