SUBARU (7270) AI Stock Analysis

• Market Cap: $2.30T
• Dividend Yield: 3.76%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.35
• Revenue Growth: 2.01%
• EPS Growth: -19.94%
• Country: JP
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 29.22
• Shares Outstanding: 733,057,500
• 10 Day Avg. Volume: 2,964,950
• 30 Day Avg. Volume: 2,896,690
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 2.37
• 1Y Price Target: $2,699.19
• Price Target Upside: -18.08% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 80 Outperform
• Price Target: ¥3,669.00 ▲(11.35% 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.

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 company shows positive growth trends and maintains a solid financial foundation, positioning it well within the auto manufacturing industry.

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: 3295.00
• 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:7270, the sentiment is Positive. The current price of 3295 is above the 20-day moving average (MA) of 3136.45, above the 50-day MA of 3045.52, and above the 200-day MA of 2708.86, indicating a bullish trend. The MACD of 80.47 indicates Negative momentum. The RSI at 64.65 is Neutral, neither overbought nor oversold. The STOCH value of 78.34 is Neutral, 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
7203	―	¥38.23T	9.00	11.91%	3.00%	4.45%	-11.43%
7270	―	$2.30T	7.29	11.75%	3.76%	2.01%	-19.94%
7269	―	$4.39T	10.56	13.92%	1.89%	2.53%	28.32%
7211	―	$554.20B	44.59	1.30%	3.13%	-0.42%	-90.69%
7272	―	$1.05T	21.89	4.22%	4.47%	-1.23%	-71.56%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7201	―	$1.28T	―	-15.23%	―	-3.33%	-356.10%

SUBARU Corporate Events

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.

The most recent analyst rating on (JP:7270) stock is a Buy with a Yen3406.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.

Subaru Announces Significant Share Repurchase Plan

Subaru Corporation announced a share repurchase plan, having already repurchased 3,580,400 shares amounting to over 10.6 billion yen between August 8 and August 29, 2025. This move is part of a larger plan approved by the Board of Directors to repurchase up to 20,840,000 shares, representing approximately 2.8% of the total outstanding shares, with a total budget of up to 50 billion yen, scheduled to continue until December 23, 2025. The repurchase is executed through market purchases at the Tokyo Stock Exchange, potentially impacting the company’s stock value and shareholder equity.

The most recent analyst rating on (JP:7270) stock is a Buy with a Yen3406.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.

Subaru Announces Share Repurchase and Cancellation Plan

Subaru Corporation has announced a strategic decision to repurchase and subsequently cancel up to 20,840,000 of its own shares, representing approximately 2.8% of its total outstanding shares. This move, amounting to a maximum of 50 billion yen, aligns with Subaru’s commitment to maintaining a total return ratio of 40% or higher for shareholder returns. The decision follows recent US-Japan tariff negotiations and reflects Subaru’s strategy to enhance shareholder value through progressive dividend payments and share repurchases.

The most recent analyst rating on (JP:7270) stock is a Buy 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 Releases Financial Forecast Amidst Challenging Business Environment

SUBARU CORPORATION has released its financial forecast for the fiscal year ending March 31, 2026, projecting a revenue of 4,580 billion yen and an operating profit of 200 billion yen. Despite challenges such as U.S. tariffs and production constraints due to preparations for in-house BEV production, the company plans to improve its sales mix and reduce costs to mitigate the impact of lower volumes.

The most recent analyst rating on (JP:7270) stock is a Buy 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 Finalizes Share Disposal for Stock Compensation

Subaru Corporation has completed the payment procedures for the disposal of its own shares as restricted stock compensation, a move resolved by its Board of Directors. This disposal involved 118,338 shares at a price of ¥2,475 per share, totaling ¥292,886,550, and was aimed at compensating the company’s directors and executive officers, signaling a strategic step in its corporate governance and compensation policies.

The most recent analyst rating on (JP:7270) stock is a Hold with a Yen3000.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.