SUBARU CORP (JP:7270)
:7270
Want to see JP:7270 full AI Analyst Report?
Top Page
SUBARU
(7270)
Select Model
Select Model
Rating:59Neutral
Price Target:
¥2,683.00
▲(5.73% Upside)
Action:Reiterated
Date:05/16/26
The score is mainly held back by the 2026 deterioration in earnings and free cash flow despite a conservative balance sheet. Technical signals are weak-to-neutral (negative MACD and price still below longer-term averages). Valuation is supported by a high dividend yield, but the negative P/E reflects earnings weakness and reduces valuation confidence.
Positive Factors
Conservative Balance Sheet
Low reported leverage (debt-to-equity in the mid-teens to low-20% range) gives Subaru durable financial flexibility. This conservatism supports steady capex funding, dividend capacity and the ability to tolerate cyclicality without immediate balance-sheet restructuring, aiding multi‑month stability.
Negative Factors
2026 Earnings & FCF Decline
The notable step-down in 2026 earnings and free cash flow signals a material weakening versus prior years, reducing predictability. Sustained profit and cash declines can constrain R&D and electrification investments, pressure dividends, and reveal structural margin or mix challenges over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low reported leverage (debt-to-equity in the mid-teens to low-20% range) gives Subaru durable financial flexibility. This conservatism supports steady capex funding, dividend capacity and the ability to tolerate cyclicality without immediate balance-sheet restructuring, aiding multi‑month stability.
Read all positive factors
SUBARU (7270) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.75T
Dividend Yield3.61%
Average Volume (3M)2.90M
Price to Earnings (P/E)18.8
Beta (1Y)1.28
Revenue Growth2.12%
EPS Growth-72.79%
CountryJP
Employees37,693
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)124.77
Shares Outstanding717,335,270
10 Day Avg. Volume2,964,950
30 Day Avg. Volume2,896,690
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)0.65
Price to Sales (P/S)0.38
P/FCF Ratio14.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,814.29Price Target Upside10.91% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)290.38
Revenue Forecast (FY)¥5.03T
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 by selling new automobiles under the Subaru brand through wholesale and retail channels supported by distributors and dealer networks. Revenue is generated from the sale of finished vehicles (including different models...
SUBARU Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.78T | 4.69T | 4.70T | 3.77T | 2.74T |
| Gross Profit | 719.49B | 941.49B | 956.75B | 703.00B | 473.49B |
| EBITDA | 447.56B | 649.70B | 699.83B | 519.87B | 321.26B |
| Net Income | 90.84B | 338.06B | 385.08B | 200.43B | 70.01B |
Balance Sheet | |||||
| Total Assets | 5.49T | 5.09T | 4.81T | 3.94T | 3.54T |
| Cash, Cash Equivalents and Short-Term Investments | 1.01T | 941.46B | 1.05T | 1.37T | 1.13T |
| Total Debt | 384.50B | 530.34B | 523.35B | 427.12B | 441.17B |
| Total Liabilities | 2.71T | 2.37T | 2.25T | 1.83T | 1.64T |
| Stockholders Equity | 2.78T | 2.71T | 2.56T | 2.10T | 1.89T |
Cash Flow | |||||
| Free Cash Flow | 123.86B | 321.27B | 579.52B | 368.76B | 94.40B |
| Operating Cash Flow | 358.23B | 492.14B | 767.66B | 503.76B | 195.65B |
| Investing Cash Flow | -114.65B | -404.77B | -709.03B | -336.81B | -179.72B |
| Financing Cash Flow | -217.82B | -186.63B | -61.14B | -122.31B | -98.50B |
SUBARU Technical Analysis
Negative
2537.50
Price Trends
2476.82
Negative
2792.50
Negative
2943.70
Negative
Market Momentum
-10.47
Negative
48.66
Neutral
50.25
Neutral
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 2537.5 is above the 20-day moving average (MA) of 2413.12, above the 50-day MA of 2476.82, and below the 200-day MA of 2943.70, indicating a neutral trend. The MACD of -10.47 indicates Negative momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 50.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥39.65T | 10.30 | 12.89% | 2.78% | 5.51% | -18.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥1.75T | 18.76 | 9.73% | 3.61% | 2.12% | -72.79% | |
56 Neutral | ¥5.65T | -13.75 | 4.09% | 4.41% | 0.50% | -159.91% | |
54 Neutral | ¥723.40B | 20.64 | 1.72% | 4.52% | -2.01% | -69.28% | |
52 Neutral | ¥541.66B | 49.64 | -0.65% | 3.33% | 3.88% | -73.08% | |
45 Neutral | ¥1.39T | -2.60 | -16.69% | ― | -4.95% | 20.69% |
* Consumer Cyclical Sector Average
JP:7270
SUBARU
2,442.00
-79.99
-3.17%
JP:7203
Toyota Motor
3,042.00
430.66
16.49%
JP:7211
Mitsubishi Motors
371.50
-45.71
-10.96%
JP:7267
Honda Motor Co
1,452.50
82.72
6.04%
JP:7261
Mazda Motor
1,148.50
309.16
36.83%
JP:7201
Nissan Motor Co
396.80
30.10
8.21%
SUBARU Corporate Events
Subaru Corrects Effective Dates on Dividend Payment Notice
May 15, 2026
Subaru Corporation has issued a correction to its previously announced notice on the distribution of dividends from surplus for the fiscal year ended March 31, 2026. The company clarified that while the dividend per share, total payout and source ...
Subaru Swings to Full-Year Loss on Tariffs, Lower Sales and BEV Costs
May 15, 2026
Subaru Corporation reported a sharp deterioration in its non-consolidated results for the fiscal year ended March 31, 2026, compared with the prior year, as net sales fell 8.5% to ¥2.50 trillion and operating income plunged 99.5% to just ...
Subaru Slightly Raises Year-End Dividend, Signals Ongoing Focus on Capital Efficiency
May 15, 2026
Subaru Corporation has announced a revision to its planned year-end dividend for the fiscal year ended March 31, 2026, slightly raising the payout to ¥58.50 per share from the earlier forecast of ¥58.00. This brings the total annual divi...
Subaru Launches ¥150 Billion Share Buyback and Cancellation Plan
May 15, 2026
Subaru Corporation’s board has approved a substantial share buyback and subsequent cancellation as part of its shareholder return policy. The company plans to repurchase up to 80 million common shares, representing about 11.2% of its outstan...
Subaru Profit Slumps Despite Higher Sales, Automaker Signals Earnings Rebound in FY2027
May 15, 2026
Subaru Corporation reported a modest 2.1% increase in revenue to ¥4.78 trillion for the fiscal year ended March 31, 2026, but saw operating profit collapse 90.1% and profit attributable to owners of the parent fall 73.1%, reflecting a sharp d...
Subaru Slashes FY2026 Profit Outlook on U.S. Slump and EV Impairment
May 11, 2026
Subaru has sharply cut its consolidated financial forecast for the fiscal year ending March 31, 2026, trimming revenue guidance slightly to ¥4.78 trillion and slashing expected operating profit by 69.2% to ¥40 billion. Profit before tax ...
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.