SUBARU (7270) AI Stock Analysis

• Market Cap: ¥2.59T
• Dividend Yield: 3.46%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.39
• Revenue Growth: 1.04%
• EPS Growth: -31.52%
• Country: JP
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 733,057,500
• 10 Day Avg. Volume: 2,964,950
• 30 Day Avg. Volume: 2,896,690
• PEG Ratio: -0.57
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 8.61
• 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: ¥2,966.40
• Price Target Upside: -16.18% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥3,669.00 ▲(3.67% Upside)

SUBARU's overall stock score is driven by strong financial performance and attractive valuation. The company's robust profitability, stable financial position, and efficient cash flow management are significant strengths. Technical analysis supports a positive outlook, although caution is advised due to potential overbought signals. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Financial Health

Strong financial health, characterized by profitability and low leverage, ensures SUBARU's resilience and ability to invest in growth opportunities.

Cash Flow Generation

Improved free cash flow growth enhances SUBARU's capacity to fund operations, reduce debt, and invest in future projects, supporting long-term stability.

Profitability

Consistent profitability with strong margins indicates efficient operations and competitive positioning, supporting sustainable growth.

Negative Factors

EPS Growth Decline

A decline in EPS growth suggests potential challenges in maintaining earnings momentum, which could impact investor confidence and future valuations.

Revenue Growth

While positive, the modest revenue growth rate may signal challenges in market expansion or competitive pressures, limiting potential upside.

Return on Equity Decline

A slight decline in return on equity could indicate reduced efficiency in generating returns from shareholder investments, potentially impacting future growth.

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 generates revenue primarily through the sale of vehicles, which includes passenger cars, SUVs, and crossovers. The company has a strong brand loyalty, particularly in markets like the United States, where it has positioned itself as a leader in all-wheel-drive technology. Key revenue streams include new vehicle sales, financing, and leasing services offered to customers, as well as parts and accessories sales. SUBARU also benefits from partnerships with other firms for technology sharing and joint ventures, enhancing its production capabilities and expanding its market reach. Additionally, the company earns income from its manufacturing operations in various global markets, optimizing production costs while meeting regional demand.

SUBARU Financial Statement Overview

Summary

SUBARU demonstrates strong financial health with robust profitability, stable leverage, and efficient cash flow management. The income statement shows strong profitability with a consistent gross profit margin and improving net profit margin. The balance sheet is stable with low leverage, and cash flow analysis reveals significant improvement in free cash flow growth.

Income Statement

SUBARU's income statement shows strong profitability with a consistent gross profit margin around 21% and a net profit margin improving to over 7% in the TTM. Revenue growth is positive at 2.6% in the TTM, indicating a recovery from previous periods of stagnation. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.15, indicating conservative leverage. Return on equity is solid at 12.7% in the TTM, though it has slightly decreased from previous years. The equity ratio remains strong, suggesting a robust financial position.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 22.4% in the TTM, indicating strong cash generation. The operating cash flow to net income ratio is stable, and the free cash flow to net income ratio is healthy at 65.3%, reflecting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.81T	4.69T	4.70T	3.77T	2.74T	2.83T
Gross Profit	978.39B	980.34B	992.43B	703.00B	473.49B	465.14B
EBITDA	643.09B	727.82B	754.21B	520.39B	334.23B	323.09B
Net Income	308.90B	338.06B	385.08B	200.43B	70.01B	76.51B
Balance Sheet
Total Assets	5.02T	5.09T	4.81T	3.94T	3.54T	3.41T
Cash, Cash Equivalents and Short-Term Investments	909.51B	1.96T	1.92T	1.37T	1.13T	1.14T
Total Debt	391.00B	399.50B	399.50B	427.12B	441.17B	435.53B
Total Liabilities	2.33T	2.37T	2.25T	1.83T	1.64T	1.63T
Stockholders Equity	2.69T	2.71T	2.56T	2.10T	1.89T	1.78T
Cash Flow
Free Cash Flow	393.13B	226.85B	467.79B	308.89B	9.41B	96.85B
Operating Cash Flow	599.39B	492.14B	767.66B	503.76B	195.65B	289.38B
Investing Cash Flow	-431.51B	-404.08B	-703.70B	-336.81B	-179.72B	-272.17B
Financing Cash Flow	-165.92B	-187.32B	-66.47B	-122.31B	-98.50B	13.97B

SUBARU Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3539.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7270, the sentiment is Positive. The current price of 3539 is above the 20-day moving average (MA) of 3411.75, above the 50-day MA of 3314.61, and above the 200-day MA of 2835.37, indicating a bullish trend. The MACD of 47.34 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 87.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7270.

SUBARU Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	80 Outperform	¥2.59T	9.74	9.73%	3.46%	1.04%	-31.52%
7203	80 Outperform	¥43.40T	9.40	12.89%	2.85%	6.44%	11.88%
7269	75 Outperform	¥4.56T	11.46	12.95%	1.85%	2.99%	9.99%
7272	69 Neutral	¥1.13T	74.55	1.38%	4.21%	-1.83%	-89.60%
7211	64 Neutral	$537.44B	-79.63	-0.65%	3.36%	-0.87%	-105.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7201	49 Neutral	¥1.41T	-1.55	-16.69%	―	-3.01%	-755.71%

SUBARU Corporate Events

Subaru Advances Share Repurchase Program

Subaru Corporation announced the progress of its share repurchase program, initially resolved by the Board of Directors in August 2025. As of November 30, 2025, the company has repurchased over 12.5 million shares, amounting to approximately 39.16 billion yen, as part of its strategy to enhance shareholder value. The repurchase is conducted through market purchases at the Tokyo Stock Exchange and is set to continue until December 23, 2025, with a target of up to 20.84 million shares or 50 billion yen.

Subaru Reports Revenue Growth Amid Profit Decline and Strategic Restructuring

Subaru Corporation reported a 5.3% increase in revenue for the six months ending September 30, 2025, despite a significant drop in operating profit by 53.8%. The company also announced the exclusion of 10 subsidiaries from its consolidation scope due to regional integration, which may impact its operational efficiency and market strategy.

Subaru Revises Q1 FYE 2026 Financial Results

Subaru Corporation announced a correction to its previously disclosed financial results for the first quarter of the fiscal year ending 2026. The correction involved a reduction in the reported profit attributable to the owners of the parent company, from 785 to 548 yen in 100 millions, highlighting the importance of accurate financial reporting for stakeholders.

Subaru Advances Share Repurchase Program

Subaru Corporation has announced the progress of its share repurchase program, initially resolved by the Board of Directors on August 7, 2025. As of October 31, 2025, the company has repurchased 4,148,500 common shares for an aggregate amount of 12,878,080,400 yen, with the purchases conducted on the Tokyo Stock Exchange. This initiative is part of a larger plan to repurchase up to 20,840,000 shares, representing approximately 2.8% of the total outstanding shares, by December 23, 2025, with a maximum budget of 50 billion yen. The repurchase strategy is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

Subaru Advances in Share Repurchase Program

Subaru Corporation announced the progress of its share repurchase program, which was resolved by the Board of Directors on August 7, 2025. As of September 30, 2025, the company has repurchased 5,570,300 shares amounting to 16,709,747,700 yen, with the purchases being made through the Tokyo Stock Exchange. This move is part of a broader strategy to repurchase up to 20,840,000 shares, representing approximately 2.8% of the total outstanding shares, with a maximum budget of 50 billion yen. The repurchase initiative is aimed at enhancing shareholder value and optimizing the capital structure.