SUBARU CORP (JP:7270)
:7270
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SUBARU
(7270)
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Rating:58Neutral
Price Target:
¥2,464.00
▼(-2.90% Downside)
Action:ReiteratedDate:02/10/26
The score is driven primarily by weakening TTM profitability and a sharp drop in free cash flow, partially offset by a low-leverage balance sheet. Technically, the stock shows bearish trend signals (below major moving averages with negative MACD), while valuation is mixed with a strong dividend yield but a moderately high P/E.
Positive Factors
Low leverage balance sheet
A low debt-to-equity ratio around 0.15 gives Subaru durable financial flexibility. It reduces refinancing and interest-rate risks, supports capital allocation for electrification and aerospace programs, and provides a buffer in automotive cyclical downturns, sustaining long-term operational resilience.
Negative Factors
Weakened profitability
Sharp margin compression materially reduces internal financial cushions. Lower net and EBIT margins constrain funding for R&D and electrification, reduce the company's ability to absorb input-cost shocks, and indicate structural pressure on pricing, mix, or cost control that may persist absent corrective actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage balance sheet
A low debt-to-equity ratio around 0.15 gives Subaru durable financial flexibility. It reduces refinancing and interest-rate risks, supports capital allocation for electrification and aerospace programs, and provides a buffer in automotive cyclical downturns, sustaining long-term operational resilience.
Read all positive factors
SUBARU (7270) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.69T
Dividend Yield3.61%
Average Volume (3M)2.90M
Price to Earnings (P/E)―
Beta (1Y)1.30
Revenue Growth-1.57%
EPS Growth-73.96%
CountryJP
Employees37,693
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)141.91
Shares Outstanding717,335,270
10 Day Avg. Volume2,964,950
30 Day Avg. Volume2,896,690
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)0.72
Price to Sales (P/S)0.42
P/FCF Ratio6.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,821.43Price Target Upside11.19% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)306.99
Revenue Forecast (FY)¥5.04T
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 c...
How the Company Makes Money
SUBARU primarily makes money through its automotive business by selling new vehicles to distributors/dealers (and, depending on market structure, through wholesale sales to regional distributors and retail sales via dealer networks). Automotive re...
SUBARU Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.67T | 4.69T | 4.70T | 3.77T | 2.74T | 2.83T |
| Gross Profit | 733.13B | 941.49B | 956.75B | 703.00B | 473.49B | 465.14B |
| EBITDA | 420.45B | 649.70B | 699.83B | 519.87B | 321.26B | 314.89B |
| Net Income | 103.74B | 338.06B | 385.08B | 200.43B | 70.01B | 76.51B |
Balance Sheet | ||||||
| Total Assets | 5.24T | 5.09T | 4.81T | 3.94T | 3.54T | 3.41T |
| Cash, Cash Equivalents and Short-Term Investments | 857.79B | 941.46B | 1.05T | 1.37T | 1.13T | 1.14T |
| Total Debt | 413.00B | 530.34B | 523.35B | 427.12B | 441.17B | 435.53B |
| Total Liabilities | 2.49T | 2.37T | 2.25T | 1.83T | 1.64T | 1.63T |
| Stockholders Equity | 2.75T | 2.71T | 2.56T | 2.10T | 1.89T | 1.78T |
Cash Flow | ||||||
| Free Cash Flow | 150.87B | 321.27B | 579.52B | 368.76B | 94.40B | 164.65B |
| Operating Cash Flow | 359.67B | 492.14B | 767.66B | 503.76B | 195.65B | 289.38B |
| Investing Cash Flow | -287.81B | -404.77B | -709.03B | -336.81B | -179.72B | -272.17B |
| Financing Cash Flow | -176.58B | -186.63B | -61.14B | -122.31B | -98.50B | 13.97B |
SUBARU Technical Analysis
Neutral
2537.50
Price Trends
2720.95
Negative
3030.53
Negative
2951.93
Negative
Market Momentum
-44.75
Negative
44.98
Neutral
28.96
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 2537.5 is above the 20-day moving average (MA) of 2523.31, below the 50-day MA of 2720.95, and below the 200-day MA of 2951.93, indicating a neutral trend. The MACD of -44.75 indicates Negative momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 28.96 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥39.10T | 8.70 | 12.89% | 2.78% | 7.92% | -26.12% | |
66 Neutral | ¥442.37B | 26.18 | -0.65% | 3.33% | 2.23% | -95.71% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ¥1.69T | -82.83 | 9.73% | 3.61% | -1.57% | -73.96% | |
56 Neutral | ¥4.91T | 9.73 | 4.09% | 4.41% | -1.94% | -43.84% | |
55 Neutral | ¥635.22B | 6.29 | 1.72% | 4.52% | -2.42% | -93.40% | |
47 Neutral | ¥1.22T | -12.05 | -16.69% | ― | -4.66% | -1038.25% |
* Consumer Cyclical Sector Average
JP:7270
SUBARU
2,369.50
-159.21
-6.30%
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3,000.00
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-84.70
-21.82%
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SUBARU Corporate Events
Subaru Cuts Profit Outlook for FY2026 Despite Higher Revenue Forecast
Feb 6, 2026
Subaru Corporation has revised its consolidated financial forecast for the fiscal year ending March 31, 2026, projecting higher revenue of ¥4.8 trillion but significantly lower profitability than previously expected, with operating profit, pr...
Subaru Profit Plunges Despite Steady Sales as FY2026 Outlook Is Cut
Feb 6, 2026
Subaru reported nine-month revenue to December 31, 2025 of ¥3.52 trillion, essentially flat year-on-year, but saw operating profit plunge 82% to ¥66.3 billion and profit attributable to owners fall 73.8% to ¥83.1 billion, sharply co...
Subaru Overhauls Governance and Board Structure to Support Management Policy 2025
Feb 6, 2026
Subaru Corporation announced a broad reorganization of its governance structure, including organizational and management changes and a reshaping of its Board of Directors, to take effect in April and June 2026, subject to shareholder approval. As ...
Subaru to Overhaul Governance Structure with Audit and Supervisory Committee
Feb 6, 2026
Subaru Corporation has resolved to transition from a company with an Audit and Supervisory Board to a company with an Audit and Supervisory Committee, subject to shareholder approval at its June 2026 general meeting, as part of broader efforts to ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.