SUBARU (7270) AI Stock Analysis

• Market Cap: $1.91T
• Dividend Yield: 4.07%
• Average Volume (3M): 3.30M
• Price to Earnings (P/E): 5.4
• Beta (1Y): 1.30
• Revenue Growth: -0.37%
• EPS Growth: -9.93%
• Country: JP
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 733,057,500
• 10 Day Avg. Volume: 3,169,540
• 30 Day Avg. Volume: 3,297,246
• PEG Ratio: 1.86
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.65
• 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: $2,558.21
• Price Target Upside: 2.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: ¥2,956.00 ▲(18.88%Upside)

Subaru's strong financial position and undervalued stock make it an attractive investment in the auto manufacturing sector. The solid revenue growth and profitability, combined with a low P/E ratio and high dividend yield, are significant positives. The technical analysis suggests a neutral trend, which is less impactful but still relevant.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.74T	4.70T	3.77T	2.74T	2.83T	3.34T
	Gross Profit
1.01T	992.43B	736.48B	503.93B	492.60B	615.50B
	EBIT
477.96B	482.05B	267.48B	90.45B	102.47B	210.32B
	EBITDA
732.88B	754.21B	511.04B	318.05B	310.41B	418.90B
	Net Income Common Stockholders
403.63B	385.08B	200.43B	70.01B	76.51B	152.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
208.89B	1.92T	1.37T	1.13T	1.14T	1.06T
	Total Assets
1.23T	4.81T	3.94T	3.54T	3.41T	3.29T
	Total Debt
367.61B	523.35B	312.60B	334.05B	333.88B	239.21B
	Net Debt
198.97B	-524.65B	-666.93B	-549.03B	-573.44B	-619.76B
	Total Liabilities
849.47B	2.25T	1.83T	1.64T	1.63T	1.57T
	Stockholders Equity
380.59B	2.56T	2.10T	1.89T	1.78T	1.71T
Cash Flow		Free Cash Flow
425.72B	467.79B	308.89B	9.41B	96.85B	-3.94B
	Operating Cash Flow
634.42B	767.66B	503.76B	195.65B	289.38B	210.13B
	Investing Cash Flow
-543.75B	-703.70B	-336.81B	-179.72B	-272.17B	-25.84B
	Financing Cash Flow
-145.05B	-66.47B	-122.31B	-98.50B	13.97B	-15.82B

SUBARU Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2486.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7270, the sentiment is Negative. The current price of 2486.5 is below the 20-day moving average (MA) of 2650.10, below the 50-day MA of 2587.69, and below the 200-day MA of 2568.66, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 16.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7270.

SUBARU Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	75 Outperform	$1.91T	5.43	12.64%	4.07%	-0.37%	-9.93%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
TYT		¥35.55T	7.58	13.59%	3.30%	―	―
MMTOF		$4.30B	17.64	4.11%	3.00%	―	―
NSANF		$8.74B	12.42	-12.13%	4.02%	―	―
SZKMF		$23.38B	8.87	15.02%	2.03%	―	―
YAMHF		$7.19B	13.75	7.19%	4.36%	―	―

SUBARU Corporate Events

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.