Subaru Corp. (7270) 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

Suzuki Motor Corp.

Isuzu Motors Ltd.

Toyota Motor Corp.

Mazda Motor Corp.

Hino Motors, Ltd.

Mitsubishi Motors Corp.

Yamaha Motor Co., Ltd.

Subaru Corp.

Shimano, Inc.

Honda Motor Co., Ltd.

Nissan Motor Co., Ltd.

Why is Subaru Corp. ?

With a fall in Net Sales of -3.27%, the company declared Very Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at JPY 359,672 MM
ROCE(HY) Lowest at 3.76%
DEBT-EQUITY RATIO (HY) Highest at -16.18 %

Below par performance in long term as well as near term

Along with generating -12.64% 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 Automobiles)

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

Is Subaru Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Subaru Corp.

-12.64%

220.46

39.95%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.98%

EBIT Growth (5y)

14.19%

EBIT to Interest (avg)

7.89

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.57

Tax Ratio

24.61%

Dividend Payout Ratio

25.11%

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

25.07%

ROE (avg)

9.00%

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

0.67

EV to EBIT

3.07

EV to EBITDA

1.97

EV to Capital Employed

0.59

EV to Sales

0.27

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

19.20%

ROE (Latest)

12.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 359,672 MM

ROCE(HY)

Lowest at 3.76%

DEBT-EQUITY RATIO (HY)

Highest at -16.18 %

RAW MATERIAL COST(Y)

Grown by 49.2% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.66 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.33 times

NET SALES(Q)

Lowest at JPY 1,133,299 MM

OPERATING PROFIT(Q)

Lowest at JPY 87,841 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.75 %

PRE-TAX PROFIT(Q)

Lowest at JPY -10,488 MM

NET PROFIT(Q)

Lowest at JPY -7,331 MM

EPS(Q)

Lowest at JPY -10.25

Here's what is working for Subaru Corp.

Depreciation

Highest at JPY 68,689 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Subaru Corp.

Pre-Tax Profit

At JPY -10,488 MM has Fallen at -111.75%

over average net sales of the previous four periods of JPY 89,248 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -7,331 MM has Fallen at -111.05%

over average net sales of the previous four periods of JPY 66,361 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 359,672 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Highest at -16.18 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at JPY 1,133,299 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 87,841 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.75 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -10,488 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 -7,331 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -10.25

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 5.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 10.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 49.2% (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