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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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SYS Holdings Co., Ltd. (Japan)

SANRITSU Corp.

Subaru Co., Ltd.

Karadanote, Inc.

Why is Subaru Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.02% and Operating profit at -21.29% over the last 5 years

Negative results in May 25

RAW MATERIAL COST(Y) Grown by 49.62% (YoY)
NET SALES(Q) Lowest at JPY 691.78 MM
INTEREST(Q) Highest at JPY 2.6 MM

With ROCE of 1.97%, it has a expensive valuation with a 1.33 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.41%, its profits have risen by 47% ; the PEG ratio of the company is 1.1

Below par performance in long term as well as near term

Along with generating -10.41% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

-10.41%

-0.68

19.26%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.02%

EBIT Growth (5y)

-21.29%

EBIT to Interest (avg)

39.19

Debt to EBITDA (avg)

3.20

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.69

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

122.27%

Pledged Shares

Institutional Holding

ROCE (avg)

4.28%

ROE (avg)

3.90%

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

1.41

EV to EBIT

67.78

EV to EBITDA

23.86

EV to Capital Employed

1.33

EV to Sales

1.72

PEG Ratio

1.07

Dividend Yield

ROCE (Latest)

1.97%

ROE (Latest)

2.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

4What is working for the Company

NET PROFIT(HY)

Higher at JPY 99.23 MM

-18What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 49.62% (YoY

NET SALES(Q)

Lowest at JPY 691.78 MM

INTEREST(Q)

Highest at JPY 2.6 MM

OPERATING PROFIT(Q)

Lowest at JPY -64.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.36 %

PRE-TAX PROFIT(Q)

Lowest at JPY -102.47 MM

NET PROFIT(Q)

Lowest at JPY -66.44 MM

EPS(Q)

Lowest at JPY -112.36

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

Interest

At JPY 2.6 MM has Grown at 40.55%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 691.78 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 2.6 MM

in the last five periods and Increased by 40.55% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -64.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -9.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -102.47 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 -66.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -112.36

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 49.62% (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