| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3296.81 | 9 |
| Intrinsic value (DCF) | 1781.36 | -41 |
| Graham-Dodd Method | 2584.70 | -14 |
| Graham Formula | 2907.73 | -4 |
Subaru Enterprise Co., Ltd. (9632.T) is a Japan-based company specializing in road maintenance, cleaning, and ancillary services, with operations spanning construction, repair, and expressway management. Founded in 1946 and headquartered in Tokyo, the company has diversified into solar power generation, non-life insurance, vending machine sales, and real estate leasing. Subaru Enterprise plays a critical role in Japan's infrastructure sector, ensuring road safety and efficiency while expanding into renewable energy and retail operations. With a market capitalization of ¥40.62 billion, the company demonstrates stability with a low beta of 0.086, reflecting resilience to market volatility. Its diversified revenue streams, including highway shops, marinas, and disaster prevention product sales, position it as a multifaceted player in Japan's industrial and service sectors. Investors may find appeal in its steady cash flow (¥3.5 billion operating cash flow) and dividend yield (¥80 per share).
Subaru Enterprise presents a stable investment opportunity with its diversified business model and strong cash flow generation. The company's low beta (0.086) suggests minimal correlation with broader market fluctuations, making it a defensive play. With ¥30.27 billion in revenue and ¥3.24 billion net income, profitability is solid, supported by a healthy operating cash flow of ¥3.5 billion. The company’s negligible debt (¥6 million) and substantial cash reserves (¥12.15 billion) provide financial flexibility. However, its niche focus on Japan’s infrastructure and ancillary services limits international growth potential. The dividend payout (¥80 per share) adds income appeal, but investors should monitor Japan’s infrastructure spending trends and regulatory changes affecting toll road operations and solar energy subsidies.
Subaru Enterprise holds a unique position in Japan’s road maintenance and expressway management sector, leveraging long-standing contracts and government partnerships. Its competitive advantage lies in vertical integration—combining road services with retail (highway shops) and renewable energy (solar power). Unlike pure-play construction firms, Subaru benefits from recurring revenue via maintenance contracts and toll road operations. However, its regional focus (Japan-only) limits scalability compared to global infrastructure players. The company’s solar power segment provides growth potential amid Japan’s renewable energy push, but it faces competition from specialized solar firms. Its non-life insurance and vending machine businesses add diversification but lack scale versus dominant insurers and retail operators. Subaru’s low debt and strong liquidity position it well for opportunistic expansions, though reliance on public infrastructure spending poses cyclical risks. Competitors include larger construction conglomerates and niche road service providers, but Subaru’s hybrid model (services + retail) differentiates it in a fragmented market.