Subaru Co., Ltd. (9778) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Subaru Co., Ltd.

Why is Subaru Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.28%

The company has been able to generate a Return on Capital Employed (avg) of 4.28% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -1.64% and Operating profit at -8.19% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.04% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.64% and Operating profit at -8.19% over the last 5 years

ROCE(HY) Lowest at 0.61%
RAW MATERIAL COST(Y) Grown by 6.02% (YoY)
INTEREST(Q) Highest at JPY 3.67 MM

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.57% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Subaru Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Subaru Co., Ltd.

-19.57%

-1.40

15.69%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.64%

EBIT Growth (5y)

-8.19%

EBIT to Interest (avg)

31.63

Debt to EBITDA (avg)

3.32

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.69

Tax Ratio

65.12%

Dividend Payout Ratio

174.03%

Pledged Shares

Institutional Holding

ROCE (avg)

3.82%

ROE (avg)

4.04%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.04

EV to EBIT

43.92

EV to EBITDA

17.38

EV to Capital Employed

1.03

EV to Sales

1.36

PEG Ratio

Dividend Yield

ROCE (Latest)

2.34%

ROE (Latest)

2.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 27.71 %

-23What is not working for the Company

ROCE(HY)

Lowest at 0.61%

RAW MATERIAL COST(Y)

Grown by 6.02% (YoY

INTEREST(Q)

Highest at JPY 3.67 MM

OPERATING PROFIT(Q)

Lowest at JPY -70.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -10.01 %

PRE-TAX PROFIT(Q)

Lowest at JPY -105.89 MM

NET PROFIT(Q)

Lowest at JPY -85.94 MM

EPS(Q)

Lowest at JPY -145.84

Here's what is working for Subaru Co., Ltd.

Debt-Equity Ratio

Lowest at 27.71 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Subaru Co., Ltd.

Interest

Highest at JPY 3.67 MM

in the last five periods and Increased by 5.82% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -70.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -10.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -105.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -85.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -145.84

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 6.02% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales