Suzuki Motor (7269) AI Stock Analysis

• Market Cap: ¥3.39T
• Dividend Yield: 2.26%
• Average Volume (3M): 7.08M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.19
• Revenue Growth: 8.39%
• EPS Growth: 55.79%
• Country: JP
• Employees: 72,372
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Manufacturers
• EPS (TTM): 52.88
• Shares Outstanding: 1,964,586,400
• 10 Day Avg. Volume: 9,005,710
• 30 Day Avg. Volume: 7,077,533
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,200.59
• Price Target Upside: 27.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: ¥1,900.00 ▲(9.95% Upside)

Suzuki Motor receives a strong overall stock score due to its impressive financial performance, marked by robust revenue growth, solid margins, and effective cash management. While technical analysis presents a mixed picture, the stock's attractive valuation, with a low P/E ratio and decent dividend yield, reinforces its investment appeal. The absence of earnings call data and corporate events slightly limits the analysis but does not detract from the company's solid fundamentals.

Positive Factors

Earnings

Suzuki Motor reported 3QFY24 PATMI of ¥94bn, an 11% above consensus estimates.

Growth Potential

Suzuki has a positive growth outlook with India forecasted to be among the fastest growing automobile countries in the world.

Market Position

Suzuki Motor retained a 50% market share in India, which is a significant strength for the company.

Negative Factors

Execution Challenges

Key risks include the challenges in executing its BEV strategy, which could affect future growth.

Foreign Exchange

Key risks for Suzuki Motor include foreign exchange fluctuations, which could impact financial performance.

Suzuki Motor Business Overview & Revenue Model

Company Description

Suzuki Motor Corporation, listed on the Tokyo Stock Exchange under the ticker 7269, is a leading Japanese multinational corporation that specializes in manufacturing automobiles, motorcycles, outboard motors, and other small internal combustion engines. The company is renowned for its compact and efficient vehicles and plays a significant role in the global automotive industry. Suzuki operates in multiple sectors, including automotive, motorcycle, and marine, offering a diverse range of products to cater to different consumer needs worldwide.

How the Company Makes Money

Suzuki Motor Corporation generates revenue primarily through the sale of automobiles, which is its largest business segment. The company produces a wide range of vehicles, including compact cars, SUVs, and commercial vehicles, which are sold both domestically in Japan and internationally in markets such as India, Europe, and Southeast Asia. In addition to automobiles, Suzuki generates income from its motorcycle segment, offering a variety of models from scooters to high-performance motorcycles. The marine segment, which includes outboard motors and related products, also contributes to the company's earnings. Suzuki's revenue model is supported by its extensive distribution network, strategic partnerships, and joint ventures, particularly in emerging markets like India, where it has a significant presence through its subsidiary, Maruti Suzuki. These partnerships and a strong focus on cost-effective production methods help the company maintain competitive pricing and profitability.

Suzuki Motor Financial Statement Overview

Summary

Suzuki Motor's financial performance is impressive, with strong revenue and profit growth, solid margins, and effective cash management. The balance sheet reflects financial stability with manageable leverage, and cash flow generation supports ongoing operations and strategic investments.

Income Statement

Suzuki Motor's income statement shows strong growth and profitability. The company achieved a gross profit margin of 26.93% and a net profit margin of 7.14% for the latest fiscal year. Revenue has seen a consistent upward trajectory, growing by approximately 8.39% year-over-year. The EBIT margin is solid at 10.72%, reflecting operational efficiency. The company also shows a healthy EBITDA margin of 17.37%, indicating strong cash generation capabilities from its core operations.

Balance Sheet

The balance sheet of Suzuki Motor demonstrates financial stability with a debt-to-equity ratio of 0.24, suggesting manageable leverage. The return on equity stands at 14.01%, indicating effective use of shareholder funds to generate profits. The equity ratio of 49.57% underscores a strong capital base. However, the total liabilities are notable, requiring careful management to maintain financial health.

Cash Flow

Suzuki Motor's cash flow statement is robust, with a notable free cash flow growth rate of 131.56% year-over-year, highlighting significant improvement in cash generation. The operating cash flow to net income ratio of 1.61 indicates healthy cash flow relative to net income. The free cash flow to net income ratio of 0.78 reflects the company's ability to generate cash after capital expenditures, supporting growth initiatives and debt repayment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.83T	5.37T	4.64T	3.57T	3.18T
Gross Profit	1.57T	1.41T	1.15T	856.43B	866.62B
EBITDA	1.01T	696.55B	527.83B	352.97B	382.54B
Net Income	416.05B	267.72B	221.11B	160.34B	146.42B
Balance Sheet
Total Assets	5.99T	5.39T	4.58T	4.16T	4.04T
Cash, Cash Equivalents and Short-Term Investments	842.71B	1.05T	1.00T	1.09T	1.23T
Total Debt	725.30B	786.18B	763.84B	674.16B	770.83B
Total Liabilities	2.31T	2.25T	2.07T	1.89T	2.00T
Stockholders Equity	2.97T	2.49T	2.08T	1.88T	1.69T
Cash Flow
Free Cash Flow	325.10B	140.35B	28.35B	30.79B	243.73B
Operating Cash Flow	669.78B	446.05B	286.63B	221.26B	415.44B
Investing Cash Flow	-475.61B	-433.86B	-302.67B	-153.51B	-232.99B
Financing Cash Flow	-185.98B	-81.22B	31.57B	-154.62B	302.63B

Suzuki Motor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1728.00
• 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:7269, the sentiment is Positive. The current price of 1728 is above the 20-day moving average (MA) of 1670.28, above the 50-day MA of 1701.50, and above the 200-day MA of 1717.75, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 70.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7269.

Suzuki Motor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7261	81 Outperform	¥593.84B	26.12	1.11%	5.96%	3.96%	-45.09%
7267	79 Outperform	¥7.46T	10.93	5.17%	4.31%	6.17%	-21.69%
7270	76 Outperform	¥2.03T	6.05	12.64%	4.09%	-0.37%	-10.12%
7203	75 Outperform	¥34.96T	7.44	13.59%	3.30%	6.52%	-1.47%
7269	74 Outperform	¥3.39T	8.26	13.92%	2.26%	8.39%	55.79%
Sector *	62 Neutral	AU$3.02B	29.09	4.95%	4.87%	2.19%	-27.19%
7201	48 Neutral	¥1.13T	12.25	-15.23%	8.23%	-3.33%	-356.10%

Suzuki Motor Corporate Events

Suzuki Motor Reports Decline in Q1 FY2025 Financial Results

Suzuki Motor Corporation reported a decline in its consolidated operating results for the first three months of FY2025, with revenue decreasing by 4.1% compared to the same period last year. The company also noted a decrease in operating profit and profit before tax, indicating a challenging financial period. Despite these declines, Suzuki maintains a stable financial position with a slight increase in total equity. The company has forecasted a modest revenue growth of 4.7% for the full fiscal year, although it anticipates a decrease in operating profit and profit before tax, reflecting ongoing market challenges.

The most recent analyst rating on (JP:7269) stock is a Buy with a Yen2350.00 price target. To see the full list of analyst forecasts on Suzuki Motor stock, see the JP:7269 Stock Forecast page.

Suzuki Motor Boosts Year-End Dividend Amid Strategic Growth Plans

Suzuki Motor Corporation announced a revision to its year-end dividend, increasing it to 21 yen per share, resulting in an annual dividend of 41 yen per share, a 34.4% increase from the previous year. This decision aligns with Suzuki’s strategy to enhance corporate value through growth investments and stable shareholder returns, reflecting its commitment to meeting rising demand in India and advancing energy-efficient technologies.

Suzuki Motor Reports Strong FY2024 Results Amidst Future Challenges

Suzuki Motor Corporation reported a significant increase in its financial performance for FY2024, with revenue rising by 8.7% and operating profit increasing by 30.2% compared to the previous fiscal year. The company also conducted a four-for-one stock split, impacting earnings per share calculations. Despite the positive results, the forecast for FY2025 indicates a decline in operating profit and profit before tax, suggesting potential challenges ahead. The cash dividends per share were adjusted following the stock split, reflecting Suzuki’s commitment to shareholder returns.