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SUBARU CORP (JP:7270)
:7270

SUBARU (7270) AI Stock Analysis

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JP

SUBARU

(OTC:7270)

Rating:71Outperform
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 (7270) vs. iShares MSCI Japan ETF (EWJ)

SUBARU Business Overview & Revenue Model

Company DescriptionSubaru 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 MoneySubaru 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue4.69T4.70T3.77T2.74T2.83T
Gross Profit980.34B992.43B736.48B503.93B492.60B
EBITDA727.81B754.21B511.04B318.05B310.41B
Net Income338.06B385.08B200.43B70.01B76.51B
Balance Sheet
Total Assets5.09T4.81T3.94T3.54T3.41T
Cash, Cash Equivalents and Short-Term Investments941.46B1.92T1.37T1.13T1.14T
Total Debt399.50B523.35B312.60B334.05B333.88B
Total Liabilities2.37T2.25T1.83T1.64T1.63T
Stockholders Equity2.71T2.56T2.10T1.89T1.78T
Cash Flow
Free Cash Flow321.27B467.79B308.89B9.41B96.85B
Operating Cash Flow492.14B767.66B503.76B195.65B289.38B
Investing Cash Flow-404.77B-703.70B-336.81B-179.72B-272.17B
Financing Cash Flow-186.63B-66.47B-122.31B-98.50B13.97B

SUBARU Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2533.00
Price Trends
50DMA
2578.91
Negative
100DMA
2613.10
Negative
200DMA
2565.99
Negative
Market Momentum
MACD
-20.09
Negative
RSI
50.75
Neutral
STOCH
37.91
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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥32.02T6.8213.59%4.06%6.52%-1.47%
72
Outperform
¥1.01T12.557.19%4.71%4.48%-51.81%
71
Outperform
¥1.81T5.4112.64%5.41%-0.37%-10.12%
69
Neutral
$594.59B14.214.11%3.68%-0.05%-73.27%
66
Neutral
$3.24T7.6815.02%2.54%8.39%55.79%
56
Neutral
HK$24.88B3.87-2.03%6.54%-0.32%-67.68%
45
Neutral
$1.17T12.25-12.13%7.53%-0.41%-274.49%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7270
SUBARU
2,533.00
-770.16
-23.32%
JP:7203
Toyota Motor
2,487.50
-697.90
-21.91%
JP:7272
Yamaha Motor Co
1,076.00
-435.10
-28.79%
JP:7201
Nissan Motor Co
305.50
-245.40
-44.55%
JP:7211
Mitsubishi Motors
415.20
-60.33
-12.69%
JP:7269
Suzuki Motor
1,680.00
-196.39
-10.47%

SUBARU Corporate Events

Subaru Announces Disposal of Shares for Stock Compensation
Jul 3, 2025

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
Jun 10, 2025

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
May 14, 2025

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
May 14, 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.

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.Date of analysis: Jul 01, 2025