Fuji Heavy Industries knows how to make money. Despite a relatively weak Yen, they continue to make exorbitant amounts of profit. On Tuesday, their stock closed at an all-time high of ¥5200 ($41.90) per share. Fuji Heavy is the parent company and maker of Subaru automobiles.
As the smallest out of seven Japanese automakers, they can teach a lesson to the big boys. They have the fourth largest market cap, trailing behind Toyota Motors, Honda Motors and Nissan Motors.
Where to Go When the Yen Depreciates
Fuji Heavy typically profits when the Yen depreciates. They are set up to profit by ¥10 billion for each ¥1 depreciation annually. Every time that the Yen depreciates, investors are attracted to it like moths to a flame. In other words, these investors know exactly where to go when the Yen depreciates.
Right now, stock in Fuji Heavy is being heavily traded. Many people are unloading their stock and taking the profit while they still can while others are holding onto it – hoping to profit even further.
The United States Has Contributed
Despite the notion that the United States might be in a depression, sales continue to soar for vehicles like the Subaru Forester. According to President and CEO Yasuyuki Yoshinaga, “It is taking [Subaru] two and a half months to deliver vehicles,” raking in an astonishing ¥193.2 billion for the April-September half.
Fuji Heavy Knows How to Make Money
According to industry information, Fuji knows how to make money. In fact, they’re more efficient at it then Toyota and BMW. Fuji Heavy netted a profit of ¥410,000 per vehicle. That’s 60 percent more than Toyota, who made ¥256,250. It takes a lot to beat BMW – but they did it for the first time ever. BMW trailed behind Fuji Heavy with a profit of ¥403,500.
The interesting thing is that sells cars without steep discounts. The average discount for a Subaru in the United States is $900 – they’re the only company successfully selling cars with discounts under the $1000 mark.
If you invest in stocks, take a closer look at Fuji Heavy. Their shares may be expensive right now, sitting pretty at over $40 per share, but as an investment, they may be worth it. Not only are sales continuing to climb, but when the Yen depreciates, shareholders profit.
(Of course, we never give out investment advice. What you do with your money is your own business. We’re simply pointing out how a tiny minnow like Subaru has the big boys beat.)You can skip to the end and leave a response. Pinging is currently not allowed.