Subaru (FUJHY) AI Stock Analysis

• Market Cap: $16.64B
• Dividend Yield: 2.85%
• Average Volume (3M): 3.72K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.53
• Revenue Growth: 1.73%
• EPS Growth: -31.57%
• Country: US
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 1,466,115,000
• 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: 69.40
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 1.62
• Enterprise Value/Ebitda: 2.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $13.00 ▲(15.56% Upside)

Subaru's stock is supported by strong technical indicators and an attractive valuation, which are the most significant factors in the score. The financial performance is solid but faces challenges due to declining revenue and cash flow growth. The absence of recent earnings call insights or corporate events means these factors do not influence the score.

Positive Factors

Balance Sheet Health

Subaru's low leverage and strong equity ratio indicate financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.

Profitability

High profit margins reflect efficient operations and pricing power, supporting long-term profitability and competitive positioning in the automotive industry.

Cash Generation Ability

Strong cash generation supports investment in growth initiatives and provides financial flexibility, enhancing Subaru's ability to weather industry cycles.

Negative Factors

Declining Revenue

A significant decline in revenue growth can hinder future profitability and market share expansion, challenging Subaru's competitive edge.

Free Cash Flow Decline

Declining free cash flow growth may limit Subaru's ability to invest in new projects and technologies, potentially impacting long-term strategic initiatives.

Sales Decline

A decrease in vehicle sales suggests potential challenges in market demand or competition, which could affect Subaru's market position and revenue stability.

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 generates revenue primarily through the sale of vehicles, with its core revenue stream coming from the production and sale of cars, particularly its popular models such as the Subaru Outback, Forester, and Impreza. The company benefits from a loyal customer base, bolstered by a strong reputation for durability and safety. Additional revenue sources include parts and service sales, which provide ongoing income from existing customers. Subaru also engages in strategic partnerships, such as collaborations with other automakers for technology sharing and joint ventures, which can enhance its production efficiency and expand its market reach. Economic factors, global automotive trends, and consumer preferences significantly influence Subaru's earnings, making adaptability crucial for continued financial success.

Subaru Financial Statement Overview

Summary

Subaru demonstrates strong profitability with a solid gross profit margin and net profit margin. The balance sheet is robust with low leverage and efficient use of equity. However, the significant decline in revenue and free cash flow growth poses potential risks to future financial health.

Income Statement

Subaru's income statement shows a strong gross profit margin of 20.35% and a net profit margin of 6.43% for the TTM, indicating solid profitability. However, the revenue growth rate has declined significantly by 24.25% in the TTM, which is a concern. The EBIT and EBITDA margins are healthy at 8.54% and 13.38% respectively, but the declining revenue trend could impact future profitability.

Balance Sheet

The balance sheet reflects a robust financial position with a low debt-to-equity ratio of 0.145, suggesting conservative leverage. The return on equity (ROE) is strong at 11.54%, indicating efficient use of equity capital. The equity ratio is also solid, highlighting a stable capital structure. Overall, the balance sheet is well-positioned to support future growth.

Cash Flow

Subaru's cash flow statement reveals a decline in free cash flow growth by 37.01% in the TTM, which is concerning. However, the operating cash flow to net income ratio is reasonable at 0.48, showing decent cash generation relative to earnings. The free cash flow to net income ratio is 0.66, indicating that a significant portion of earnings is converted into free cash flow, despite the recent decline.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.64T	4.69T	4.70T	3.77T	2.74T	2.83T
Gross Profit	713.29B	980.34B	992.43B	703.00B	473.49B	465.14B
EBITDA	437.29B	727.82B	693.58B	511.04B	318.05B	310.41B
Net Income	230.12B	338.06B	385.08B	200.43B	70.01B	76.51B
Balance Sheet
Total Assets	5.22T	5.09T	4.81T	3.94T	3.54T	3.41T
Cash, Cash Equivalents and Short-Term Investments	2.02T	1.96T	1.92T	1.37T	1.13T	1.14T
Total Debt	2.80B	399.50B	399.50B	427.12B	441.17B	435.53B
Total Liabilities	2.46T	2.37T	2.25T	1.83T	1.64T	1.63T
Stockholders Equity	18.67B	2.71T	2.56T	2.10T	1.89T	1.78T
Cash Flow
Free Cash Flow	247.63B	226.85B	467.79B	308.89B	9.41B	96.85B
Operating Cash Flow	403.36B	492.14B	767.66B	503.76B	195.65B	289.38B
Investing Cash Flow	-249.11B	-404.08B	-703.70B	-336.81B	-179.72B	-272.17B
Financing Cash Flow	-62.13B	-187.32B	-66.47B	-122.31B	-98.50B	13.97B

Subaru Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 11.25 is above the 20-day moving average (MA) of 11.03, above the 50-day MA of 10.87, and above the 200-day MA of 9.75, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 31.17 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	81 Outperform	$289.41B	9.27	12.51%	2.57%	7.30%	12.42%
FUJHY	79 Outperform	$16.64B	9.08	11.75%	2.85%	1.73%	-31.57%
GM	73 Outperform	$77.46B	16.63	4.44%	0.69%	2.58%	-46.27%
TSLA	73 Outperform	$1.63T	324.44	7.03%	―	-1.56%	-59.09%
F	71 Outperform	$53.63B	11.40	10.26%	5.64%	3.75%	33.37%
HMC	69 Neutral	$41.54B	9.98	5.23%	4.19%	0.34%	-25.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%