Subaru Co., Ltd. (9778) AI Stock Analysis

• Market Cap: ¥4.33B
• Dividend Yield: 1.64%
• Average Volume (3M): 386.00
• Price to Earnings (P/E): 76.4
• Beta (1Y): 0.29
• Revenue Growth: -2.62%
• EPS Growth: 20.04%
• Country: JP
• Employees: 328
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Education & Training Services
• EPS (TTM): -112.36
• Shares Outstanding: 693,576
• 10 Day Avg. Volume: 370
• 30 Day Avg. Volume: 386
• PEG Ratio: 0.23
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -188.16
• 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: ¥7,918.00
• Price Target Upside: 8.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥7,870.00 ▲(7.37%Upside)

Subaru Co., Ltd. receives an overall score of 63.85, reflecting a mix of financial stability and challenges. The stable balance sheet and improving profitability are positive, but are offset by pressures in revenue growth and cash flow generation. Technical indicators show short-term positive momentum, yet valuation concerns remain due to a high P/E ratio. The absence of earnings call insights and corporate events means the score is primarily driven by financial performance and valuation.

Subaru Co., Ltd. Business Overview & Revenue Model

Company Description

Subaru Co., Ltd. (9778) is a Japanese company primarily engaged in the manufacturing and sale of automobiles and related products. The company is known for its all-wheel-drive vehicles, boxer engine technology, and strong emphasis on safety and performance. Subaru operates across various sectors including automotive manufacturing, retail sales, and parts and accessories distribution, serving markets globally with a strong presence in North America, Japan, and other regions.

How the Company Makes Money

Subaru Co., Ltd. generates revenue through the production and sale of its automobiles, which include passenger cars, SUVs, and electric vehicles. A significant portion of its earnings comes from the North American market, where its vehicles are popular for their reliability and all-weather capabilities. The company also makes money through the sale of automotive parts and accessories, as well as through its financial services, which provide financing and leasing options to customers. Subaru maintains partnerships with various suppliers and dealers worldwide, which help in expanding its market reach and enhancing its supply chain efficiency. Additionally, the company's focus on innovative automotive technologies and sustainable practices contributes to its competitive edge and revenue growth.

Subaru Co., Ltd. Financial Statement Overview

Summary

Subaru Co., Ltd. presents a mixed financial outlook. While profitability is recovering and the balance sheet is stable, challenges remain in revenue growth and cash flow generation. The declining gross profit margin and inconsistent revenue growth suggest competitive pressures and operational challenges. Debt levels are manageable, and return on equity is improving, reflecting financial stability.

Income Statement

Subaru Co., Ltd. shows a moderate performance in its income statement. The gross profit margin has been under pressure, declining from 25.3% in 2020 to 17.8% in 2025. However, the net profit margin has improved in recent years, reaching 1.7% in 2025 from a negative margin in 2021, indicating a recovery in profitability. Revenue growth has been inconsistent, with a recent decline of -2.3% in 2025 compared to the previous year. The EBIT margin also decreased to 2.5% in 2025 from 10.1% in 2020. These factors suggest pressure on the company's pricing power and cost management.

Balance Sheet

The balance sheet reflects a stable financial structure for Subaru Co., Ltd. The debt-to-equity ratio remains manageable at approximately 0.47 in 2025, illustrating moderate leverage. The return on equity has improved to 1.6% in 2025, up from negative performance in 2021, indicating a positive trajectory in generating returns for shareholders. The equity ratio stands at 51.5% in 2025, suggesting a solid equity base relative to total assets. These indicators reflect stability, though there is room for improvement in improving returns.

Cash Flow

Subaru Co., Ltd.'s cash flow statement demonstrates some challenges. The free cash flow growth rate experienced a significant decline of -47.5% in 2025, reflecting pressures on operational efficiency and capital expenditures. The operating cash flow to net income ratio was strong at 2.8 in 2025, indicating efficient cash generation relative to income. However, the free cash flow to net income ratio fell to 1.6 in 2025, showing reduced free cash flow relative to net income. The company needs to focus on improving cash flow generation to support further growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	961.00K	3.45B	3.53B	3.51B	3.54B	3.67B
Gross Profit	244.00K	622.62M	707.48M	831.12M	894.53M	775.82M
EBITDA	103.72M	224.08M	266.33M	465.98M	561.70M	264.37M
Net Income	67.00M	57.90M	36.02M	217.98M	136.46M	-62.95M
Balance Sheet
Total Assets	6.77B	6.93B	7.12B	6.71B	6.72B	6.84B
Cash, Cash Equivalents and Short-Term Investments	683.08M	792.38M	963.28M	472.09M	689.43M	491.22M
Total Debt	1.73B	1.69B	1.83B	1.44B	1.53B	1.72B
Total Liabilities	3.35B	3.35B	3.48B	3.11B	3.27B	3.46B
Stockholders Equity	3.41B	3.57B	3.64B	3.60B	3.45B	3.38B
Cash Flow
Free Cash Flow	0.00	92.95M	177.18M	-16.08M	344.05M	215.10M
Operating Cash Flow	0.00	161.81M	281.20M	193.48M	415.16M	287.06M
Investing Cash Flow	0.00	-117.30M	-97.62M	-225.69M	53.33M	-99.14M
Financing Cash Flow	0.00	-232.19M	304.81M	-230.35M	-217.82M	-24.15M

Subaru Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7330.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9778, the sentiment is Positive. The current price of 7330 is above the 20-day moving average (MA) of 7271.00, above the 50-day MA of 7298.00, and above the 200-day MA of 7327.34, indicating a bullish trend. The MACD of 14.27 indicates Negative momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9778.

Subaru Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2464	76 Outperform	¥4.97B	18.89		3.12%	3.01%	3.80%
2179	72 Outperform	¥4.17B	9.03		2.53%	9.04%	6.37%
7353	71 Outperform	¥4.86B	20.40		―	18.65%	60.09%
4319	69 Neutral	¥4.11B	8.61		1.80%	1.03%	―
Sector *	65 Neutral	$26.91B	15.41	-4.18%	3.21%	1.01%	1.34%
9778	64 Neutral	¥4.33B	76.43		1.64%	-2.62%	20.04%
6096	60 Neutral	¥3.40B	12.67		1.39%	-4.52%	―