SUBARU (7270) AI Stock Analysis

• Market Cap: $2.27T
• Dividend Yield: 3.7%
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.36
• Revenue Growth: 2.01%
• EPS Growth: -19.94%
• Country: JP
• Employees: 37,693
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 238.94
• Shares Outstanding: 733,057,500
• 10 Day Avg. Volume: 2,474,360
• 30 Day Avg. Volume: 3,098,713
• 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: 0.67
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 2.37
• 1Y Price Target: $2,674.61
• Price Target Upside: -13.86% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: ¥3,406.00 ▲(9.69% Upside)

SUBARU's strong financial performance and attractive valuation are the primary drivers of its high stock score. The technical analysis supports a bullish outlook, further enhancing the stock's appeal. The absence of earnings call data and corporate events does not detract from the positive overall assessment.

SUBARU Business Overview & Revenue Model

Company Description

Subaru Corporation, listed on the Tokyo Stock Exchange under the ticker 7270, is a Japanese multinational corporation primarily engaged in the automotive and aerospace sectors. Subaru is renowned for its all-wheel-drive vehicles, boxer engine designs, and strong focus on safety and durability. The company's automotive division produces a range of passenger vehicles, including sedans, SUVs, crossovers, and performance-oriented models under the Subaru brand. Additionally, Subaru's aerospace division manufactures aircraft components and systems, contributing to both commercial and defense industries.

How the Company Makes Money

Subaru Corporation generates revenue primarily through the sale of automobiles, which accounts for the majority of its income. The company designs, manufactures, and distributes vehicles globally, with significant markets in Japan, North America, and other regions. Subaru's revenue model includes direct sales through dealerships, along with financing, leasing, and after-sales services, such as parts and maintenance. The aerospace division adds to Subaru's revenue by producing aircraft components and systems for commercial and defense clients. Strategic partnerships, such as collaborations with Toyota Motor Corporation in areas like technology development and manufacturing, further support Subaru's financial performance by enhancing product offerings and operational efficiencies.

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: 3105.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3105 is above the 20-day moving average (MA) of 3028.27, above the 50-day MA of 2869.33, and above the 200-day MA of 2665.31, indicating a bullish trend. The MACD of 68.50 indicates Positive momentum. The RSI at 62.50 is Neutral, neither overbought nor oversold. The STOCH value of 66.32 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
7270	79 Outperform	$2.27T	7.36	11.75%	3.70%	2.01%	-19.94%
7203	79 Outperform	38.46T	9.00	11.86%	3.05%	4.45%	-11.43%
7269	75 Outperform	4.10T	9.93	13.47%	1.86%	2.53%	28.32%
7272	65 Neutral	1.06T	22.71	4.21%	4.49%	-1.23%	-71.56%
7211	62 Neutral	609.46B	49.28	4.39%	3.59%	-0.42%	-90.69%
7201	55 Neutral	1.29T	-1.58	-13.53%	―	-3.33%	-356.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

SUBARU Corporate Events

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.

Subaru Announces Disposal of Shares for Stock Compensation

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

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

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

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.