SUBARU (7270) AI Stock Analysis

• Market Cap: ¥1.81T
• Dividend Yield: 5.41%
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): 5.4
• Beta (1Y): 1.31
• Revenue Growth: -0.37%
• EPS Growth: -10.12%
• Country: JP
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 733,057,500
• 10 Day Avg. Volume: 3,048,850
• 30 Day Avg. Volume: 3,293,626
• PEG Ratio: 0.04
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.25
• 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: ¥2,380.74
• Price Target Upside: -6.01% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: ¥2,773.00 ▲(9.47%Upside)

Subaru's strongest attributes are its financial performance and valuation, with a robust balance sheet and attractive valuation metrics. Technical indicators reveal neutral momentum, which tempers the score slightly. The absence of earnings call insights and corporate events limits further evaluation.

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

Subaru shows strong financial performance with healthy revenue growth and solid profitability despite minor declines in net and EBIT margins. The balance sheet is robust with low leverage, and cash management is effective despite some volatility in free cash flow.

Income Statement

Subaru has demonstrated strong revenue growth over the years, with a notable increase from 2022 to 2023. The gross profit margin remains healthy, although there has been a slight decline in net profit margin and EBIT margin. Despite these minor setbacks, the company maintains solid profitability. The EBITDA margin is robust, indicating good operational efficiency.

Balance Sheet

Subaru's balance sheet reflects solid financial health, with a low debt-to-equity ratio indicating conservative leverage. The equity ratio showcases a stable financial position, supported by strong stockholders' equity. Return on Equity (ROE) remains commendable, demonstrating efficient use of shareholder funds to generate profits.

Cash Flow

The cash flow statement highlights Subaru's consistent ability to generate operating cash flow, although free cash flow has experienced volatility. The operating cash flow to net income ratio is strong, indicating effective cash management. However, the free cash flow growth rate has seen fluctuations, warranting close monitoring.

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	736.48B	503.93B	492.60B
EBITDA	727.81B	754.21B	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	941.46B	1.92T	1.37T	1.13T	1.14T
Total Debt	399.50B	523.35B	312.60B	334.05B	333.88B
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	321.27B	467.79B	308.89B	9.41B	96.85B
Operating Cash Flow	492.14B	767.66B	503.76B	195.65B	289.38B
Investing Cash Flow	-404.77B	-703.70B	-336.81B	-179.72B	-272.17B
Financing Cash Flow	-186.63B	-66.47B	-122.31B	-98.50B	13.97B

SUBARU Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2533.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 2533 is above the 20-day moving average (MA) of 2505.67, below the 50-day MA of 2578.91, and below the 200-day MA of 2565.99, indicating a neutral trend. The MACD of -20.09 indicates Negative momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 37.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7270.

SUBARU Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7203	75 Outperform	¥32.02T	6.82	13.59%	4.06%	6.52%	-1.47%
7272	72 Outperform	¥1.01T	12.55	7.19%	4.71%	4.48%	-51.81%
7270	71 Outperform	¥1.81T	5.41	12.64%	5.41%	-0.37%	-10.12%
7211	69 Neutral	$594.59B	14.21	4.11%	3.68%	-0.05%	-73.27%
7269	66 Neutral	$3.24T	7.68	15.02%	2.54%	8.39%	55.79%
Sector *	56 Neutral	HK$24.88B	3.87	-2.03%	6.54%	-0.32%	-67.68%
7201	45 Neutral	$1.17T	12.25	-12.13%	7.53%	-0.41%	-274.49%

SUBARU Corporate Events

Subaru Announces Disposal of Shares for Stock Compensation

Subaru Corporation announced a resolution by its Board of Directors to dispose of its own shares as part of a revised Restricted Stock Compensation Plan. This plan aims to enhance incentives for company directors and executive officers to improve corporate value and align their interests with shareholders. The disposal involves 118,338 shares of common stock, with specific conditions for transfer restrictions and performance evaluations to determine compensation.

The most recent analyst rating on (JP:7270) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.

Subaru Strengthens Ties with Toyota Amid New BEV Launch

SUBARU CORPORATION has announced its continued collaboration with Toyota Motor Corporation, which holds a 21% voting stake in Subaru. This partnership has led to the joint development of several vehicle models, including the recent unveiling of the Trailseeker BEV. Subaru emphasizes its operational independence despite this alliance, aiming for sustainable growth and enhanced corporate value.

The most recent analyst rating on (JP:7270) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.

Subaru Reports Decline in Revenue and Sales for FYE 2025 Amid Market Challenges

Subaru Corporation reported a 0.4% decline in consolidated revenue for the fiscal year ending March 31, 2025, primarily due to decreased overseas unit sales and increased sales incentives in a competitive market. Despite a 5.4% increase in unit sales in Japan, global consolidated unit sales fell by 4.1%, impacting production and profit margins. The company faces uncertainty in forecasting for the next fiscal year due to potential changes in U.S. tariff policy and ongoing construction for battery EV production.

The most recent analyst rating on (JP:7270) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.

Subaru Corporation Reports Financial Results for Fiscal Year Ending March 2025

Subaru Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in revenue by 0.4% compared to the previous year. Despite this, the company experienced a notable decline in operating profit and profit before tax by 13.4% and 15.8%, respectively. The profit for the year attributable to owners of the parent also decreased by 12.2%. The company maintained a stable financial position with a slight increase in total assets and equity. Cash dividends per share increased, reflecting a commitment to returning value to shareholders. The forecast for the next fiscal year remains undetermined due to uncertainties in the business environment, particularly concerning U.S. tariff policies.

The most recent analyst rating on (JP:7270) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.