Subaru Corporation (7270.T) stock analysis

In our weekly check, Subaru Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5.

About Subaru Corporation

Subaru Corporation is a Consumer Cyclical company (Auto - Manufacturers) based in Japan, listed on JPX as 7270.T.

What our checks show for 7270.T

Red flags

• The net margin fell by 0.8 points over 5 years, to 1.8%: the company keeps less of each sale as profit.
• The gross margin fell by 3.1 points, to 14.2%: costs are rising faster than prices.
• The net margin is only 1.8%: little room if costs rise.
• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.6%.

Warning signs

• Analysts expect only about 4.3% a year of growth in revenue.
• Earnings per share fell 23.1% a year over the last 3 years.
• Net profit fell 24.8% a year over the last 3 years.
• Free cash flow is only 0.9% of revenue.
• The dividend takes 98% of profit: little cushion if profit falls.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.13x equity.
• Operating profit covers interest 20.5 times over.
• Operating cash flow is 3.13x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 42.7% a year over the next years.
• Analysts expect the net margin to improve by 2.3 points from today's 1.8%.
• A large company: market value $12.16 billion.

Next earnings report: 2026-11-10

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Questions

What grade does Subaru Corporation (7270.T) have?

In our weekly check, Subaru Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 7270.T stock?

This week's biggest flags for Subaru Corporation: Margins falling, Gross margin falling, Thin margins. In total 11 of 25 checks show a warning or a red flag.

What does Subaru Corporation do?

Subaru Corporation is a Consumer Cyclical company (Auto - Manufacturers) based in Japan, listed on JPX as 7270.T.

When does Subaru Corporation report earnings next?

The next earnings report is expected on 2026-11-10. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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