Subaru Enterprise Co., Ltd. (9632) AI Stock Analysis

• Market Cap: ¥48.32B
• Dividend Yield: 2.58%
• Average Volume (3M): 13.06K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.75
• Revenue Growth: 0.76%
• EPS Growth: -22.12%
• Country: JP
• Employees: 705
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -30.89
• Shares Outstanding: 13,310,000
• 10 Day Avg. Volume: 9,300
• 30 Day Avg. Volume: 13,056
• PEG Ratio: -9.23
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 36.86
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥4,185.00 ▲(33.92% Upside)
• Action: Reiterated Date: 08/05/25
• Date: Action: Reiterated 08/05/25

Subaru Enterprise Co., Ltd. is a strong performer in the Specialty Business Services industry, driven by its solid financial performance and fair valuation. The stock's technical indicators show positive momentum, though caution is warranted due to overbought signals. The absence of earnings call and corporate events data did not affect the score.

Positive Factors

Strong balance sheet / low leverage

Extremely low leverage and an 87% equity ratio give the company durable financial flexibility to fund operations, pursue selective M&A, and absorb cyclical downturns without refinancing stress. This underpins long-term stability and investment capacity.

Consistent revenue growth with healthy margins

Steady revenue growth combined with double-digit operating and net margins indicates a resilient, margin-accretive services model. Recurring facility-management contracts and efficient operations support predictable cashflows and sustainable profitability over the medium term.

Improving cash conversion and growing free cash flow

Operating cash roughly tracking net income and a marked rise in free cash flow strengthen the firm's ability to self-fund capex, service dividends, and reinvest in operations. Improved cash conversion enhances financial resilience and execution optionality.

Negative Factors

Negative EPS growth

A sizable decline in EPS despite revenue growth suggests per-share profitability pressures from dilution, one-offs, or cost timing. Persistently negative EPS trends can erode shareholder returns, constrain dividend policy, and signal underlying earnings quality risks.

Free cash flow volatility

While FCF has improved recently, historical swings indicate volatility in cash generation. Unpredictable FCF complicates capital allocation, limits reliable dividend or buyback guidance, and raises execution risk for growth investments during industry or macro stress.

Limited scale of operations

A relatively small workforce for a facility-services provider may constrain the firm's ability to scale into larger national contracts, achieve broader geographic coverage, or absorb large projects. Limited scale can cap growth and reduce economies of scale over time.

Subaru Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Subaru Enterprise Co., Ltd. engages in the maintenance and cleaning of roads and road ancillary facilities in Japan. It is also involved in the construction, repair, and maintenance of roads; operation of expressways and highway shops; and operation and management of marinas, cafes, beauty shops, and restaurants. In addition, the company engages in the solar power generation business; non-life insurance business; contracting repair works; contracting of shop management operations for toll roads, etc.; installation and sales of vending machines; sale of groceries and soft drinks, as well as alcohol and disaster prevention products; drinking water sales business; and real estate leasing activities. Subaru Enterprise Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Subaru Enterprise Co., Ltd. generates revenue through multiple streams associated with the automotive industry. The primary revenue source comes from the sale of automotive parts, including components that are integral to vehicle manufacturing and aftermarket needs. The company also earns income through logistics and distribution services, facilitating the supply chain for Subaru vehicles and parts. Strategic partnerships with automobile manufacturers and suppliers enhance its operational efficiency and market reach, contributing significantly to its earnings. Additionally, the company may benefit from technological innovations and collaborations in developing advanced automotive technologies, which can open new markets and revenue opportunities.

Subaru Enterprise Co., Ltd. Financial Statement Overview

Summary

Subaru Enterprise Co., Ltd. demonstrates strong financial performance with consistent revenue growth, robust profitability, and minimal leverage. The company maintains a high equity ratio and reasonable ROE, indicating financial stability and efficient use of equity.

Income Statement

Subaru Enterprise Co., Ltd. shows strong financial performance with consistent revenue growth, evidenced by a 3.5% increase in revenue from 2024 to 2025. The company maintains robust profitability, with a gross profit margin of 23.04% and a net profit margin of 10.7% for 2025. EBIT and EBITDA margins are also healthy at 15.88% and 18.28%, respectively. Overall, the company demonstrates stable profitability and growth.

Balance Sheet

The balance sheet of Subaru Enterprise Co., Ltd. is quite strong, with a low debt-to-equity ratio of 0.02, indicating minimal leverage. The company has a high equity ratio of 87.0%, reflecting strong financial stability and a solid equity base. Return on Equity (ROE) is reasonable at 9.11%, suggesting efficient use of equity to generate profits.

Cash Flow

Subaru Enterprise Co., Ltd.'s cash flow statement indicates moderate strength. The operating cash flow to net income ratio is 1.08, showing that operating activities are well-aligned with net income. The free cash flow has grown substantially from 2024, with a significant increase, demonstrating improved cash flow management. However, past fluctuations in free cash flow growth rates suggest potential volatility.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	29.98B	30.27B	29.25B	28.91B	28.98B	27.46B
Gross Profit	7.21B	6.97B	7.03B	7.04B	6.04B	5.84B
EBITDA	5.76B	5.53B	5.55B	5.73B	5.07B	4.73B
Net Income	3.42B	3.24B	3.28B	3.52B	3.00B	2.64B
Balance Sheet
Total Assets	42.25B	40.82B	38.71B	36.25B	34.11B	31.82B
Cash, Cash Equivalents and Short-Term Investments	15.25B	12.15B	12.36B	13.59B	12.33B	10.39B
Total Debt	611.72M	6.55M	133.28M	29.10M	44.47M	75.18M
Total Liabilities	5.19B	5.20B	5.14B	5.01B	5.42B	5.28B
Stockholders Equity	36.94B	35.52B	33.46B	31.14B	28.60B	26.45B
Cash Flow
Free Cash Flow	0.00	1.18B	16.64M	2.33B	2.78B	-404.78M
Operating Cash Flow	0.00	3.50B	4.16B	3.58B	3.53B	2.92B
Investing Cash Flow	0.00	-2.33B	-4.44B	-1.31B	-697.69M	-1.96B
Financing Cash Flow	0.00	-1.34B	-1.00B	-1.02B	-891.72M	-1.02B

Subaru Enterprise Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3125.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9632, the sentiment is Positive. The current price of 3125 is below the 20-day moving average (MA) of 3481.25, below the 50-day MA of 3263.25, and below the 200-day MA of 3198.17, indicating a bullish trend. The MACD of 109.41 indicates Negative momentum. The RSI at 72.67 is Negative, neither overbought nor oversold. The STOCH value of 84.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9632.

Subaru Enterprise Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9632	79 Outperform	¥48.32B	19.98	―	2.58%	0.76%	-22.12%
7946	71 Outperform	¥2.54B	34.49	―	1.68%	3.07%	-32.45%
7914	68 Neutral	¥44.79B	13.14	―	3.71%	-0.04%	93.95%
7893	65 Neutral	¥30.10B	-60.93	―	3.97%	4.10%	-121.49%
9325	65 Neutral	¥12.77B	15.13	―	2.63%	18.27%	-4.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.78B	19.83	―	2.72%	-1.30%	―