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

• Market Cap: ¥48.72B
• Dividend Yield: 2.58%
• Average Volume (3M): 13.06K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.67
• Revenue Growth: 0.76%
• EPS Growth: -22.12%
• Country: JP
• Employees: 705
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 70.53
• Shares Outstanding: 13,310,000
• 10 Day Avg. Volume: 9,300
• 30 Day Avg. Volume: 13,056
• PEG Ratio: -0.64
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 15.62
• 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: 74 Outperform
• Price Target: ¥4,015.00 ▲(28.48% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong financial fundamentals (notably a very low-debt, steadily growing equity base and solid profitability). Technicals are supportive with the stock trading above key longer-term moving averages, though near-term momentum is neutral. Valuation is a modest drag due to the negative P/E, partly offset by a moderate dividend yield.

Positive Factors

Conservative balance sheet

Very low debt and steadily growing equity reduce financial risk and provide durable flexibility to absorb downturns, fund maintenance capex, and pursue opportunistic investments or shareholder returns. This conservative financing underpins long-term stability and credit resilience.

Stable operating cash flow

Consistent, stable operating cash flow demonstrates earnings quality and provides a reliable internal funding source for ongoing facility management operations and working capital. Over the medium term this supports predictable operations, dividend capacity, and lower reliance on external financing.

Consistent profitability & equity growth

Steady equity growth combined with consistently positive net income and healthy returns on capital indicate an established, profitable business model. This track record supports reinvestment in service capability and long-term contract maintenance, reinforcing competitive position in facilities services.

Negative Factors

Volatile free cash flow

Wide swings in free cash flow signal inconsistent conversion of operating profits into surplus cash. That volatility complicates capital allocation and forecasting, limits confidence in sustained buybacks or dividend increases, and raises funding risk if working capital or reinvestment needs rise.

Margin pressure

A multi-year margin decline and a drop in net income point to persistent cost or pricing pressure. If structural, margin erosion will reduce reinvestment capacity and lower returns on capital, making durable profit growth harder without productivity improvements or restored pricing power.

Earnings contraction (EPS)

A ~22% EPS decline reflects material earnings pressure that may stem from margin compression or revenue softness. Continued EPS contraction reduces internal funding for growth and dividends and signals potential structural challenges in competitive positioning or demand within its facilities services market.

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

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Subaru Enterprise Co., Ltd. Financial Statement Overview

Summary

Strong overall financial health led by a very conservative, low-debt balance sheet and consistently positive earnings. The main constraint is cash generation quality: free cash flow has been volatile despite stable operating cash flow, alongside some recent revenue and margin softness.

Income Statement

Revenue has been broadly stable with modest growth in 2022–2025, followed by a slight decline in 2026 (annual). Profitability remains solid, with strong operating earnings relative to sales and consistently positive net income; however, margins have trended down from 2023 to 2025 and net income stepped down in 2025, suggesting some pressure on pricing and/or costs.

Balance Sheet

The balance sheet is very conservatively financed: debt is minimal versus equity across the period, and equity has steadily grown, supporting a strong capital position. Returns on shareholder capital have been healthy (roughly high-single to low-double digits), though slightly lower in recent years versus the 2023 peak.

Cash Flow

Operating cash flow is consistently positive and generally stable, supporting the quality of earnings. Free cash flow, however, has been volatile—negative in 2021, near breakeven in 2024, and improving in 2025–2026—indicating uneven conversion of profits into surplus cash (likely driven by swings in reinvestment or working capital).

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	29.98B	29.61B	30.27B	29.25B	28.91B	28.98B
Gross Profit	7.13B	6.96B	6.82B	6.93B	6.95B	5.94B
EBITDA	5.78B	5.56B	5.53B	5.55B	5.73B	4.91B
Net Income	3.42B	2.42B	3.24B	3.28B	3.52B	3.00B
Balance Sheet
Total Assets	42.25B	43.83B	41.00B	38.86B	36.37B	34.23B
Cash, Cash Equivalents and Short-Term Investments	15.25B	13.54B	12.15B	12.36B	13.59B	12.33B
Total Debt	611.72M	3.33M	6.55M	133.28M	29.10M	44.47M
Total Liabilities	5.19B	6.78B	5.37B	5.29B	5.13B	5.54B
Stockholders Equity	36.94B	36.94B	35.52B	33.46B	31.14B	28.60B
Cash Flow
Free Cash Flow	0.00	2.49B	1.18B	16.64M	2.33B	2.78B
Operating Cash Flow	0.00	3.78B	3.50B	4.16B	3.58B	3.53B
Investing Cash Flow	0.00	-1.35B	-2.33B	-4.44B	-1.31B	-697.69M
Financing Cash Flow	0.00	-1.04B	-1.34B	-1.00B	-1.02B	-891.72M

Subaru Enterprise Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3125.00
• 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:9632, the sentiment is Positive. The current price of 3125 is below the 20-day moving average (MA) of 3618.75, below the 50-day MA of 3404.41, and below the 200-day MA of 3234.18, indicating a bullish trend. The MACD of 74.83 indicates Positive momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 52.45 is Neutral, 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
9307	78 Outperform	¥16.30B	15.74	―	1.49%	1.23%	0.12%
9632	74 Outperform	¥48.72B	16.07	―	2.58%	0.76%	-22.12%
9324	66 Neutral	¥68.24B	12.14	―	2.18%	12.03%	30.12%
9319	65 Neutral	¥35.52B	18.51	―	2.59%	4.02%	18.12%
9322	65 Neutral	¥21.50B	30.65	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9313	56 Neutral	¥6.04B	56.51	―	2.29%	0.08%	105.25%