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AEON Kyushu Co., Ltd. (JP:2653)
:2653
Japanese Market
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AEON Kyushu Co., Ltd. (2653) AI Stock Analysis

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JP:2653

AEON Kyushu Co., Ltd.

(2653)

Rating:60Neutral
Price Target:
¥3,060.00
▲(5.01% Upside)
AEON Kyushu shows solid financial performance with revenue and profit growth, but the negative free cash flow is a concern. Technical indicators suggest weak momentum, and the stock is trading below key moving averages. Valuation metrics indicate the stock is fairly valued, but the dividend yield is modest.

AEON Kyushu Co., Ltd. (2653) vs. iShares MSCI Japan ETF (EWJ)

AEON Kyushu Co., Ltd. Business Overview & Revenue Model

Company DescriptionAEON Kyushu Co., Ltd. (2653) is a prominent retail corporation based in Japan, primarily operating in the Kyushu region. The company is a subsidiary of the AEON Group, one of the largest retail and distribution organizations in Asia. AEON Kyushu specializes in a diverse range of retail sectors, including supermarkets, convenience stores, and shopping centers, offering a wide array of products such as groceries, apparel, and household goods. The company aims to provide quality products and services while enhancing the shopping experience for its customers.
How the Company Makes MoneyAEON Kyushu generates revenue primarily through the sale of goods in its various retail formats, including supermarkets and convenience stores. Key revenue streams include food and beverage sales, clothing, household items, and other consumer goods. The company also benefits from its membership and loyalty programs, which encourage repeat business and customer retention. Additionally, AEON Kyushu engages in strategic partnerships with suppliers and local producers to enhance its product offerings and improve supply chain efficiencies. The overall revenue model is supported by the company's strong brand presence, customer loyalty, and a focus on community engagement.

AEON Kyushu Co., Ltd. Financial Statement Overview

Summary
AEON Kyushu has demonstrated solid revenue and profit growth, alongside improved leverage and profitability metrics. The company exhibits financial stability with a strong equity base and a manageable debt load. However, the recent negative free cash flow highlights the need for cautious capital expenditure management to ensure long-term financial health.
Income Statement
75
Positive
AEON Kyushu has shown steady revenue growth, with a significant increase from 2021 to 2025. The Gross Profit Margin is stable around 28%, and the Net Profit Margin has gradually improved from 0.13% in 2020 to 1.14% in 2025. EBIT and EBITDA margins have also improved, indicating enhanced operational efficiency. However, the net profit margin remains relatively low, suggesting room for improvement in cost management.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio, improving from 2.63 in 2020 to 0.66 in 2025, reflecting better leverage management. The Return on Equity has increased from 2.09% in 2020 to 10.93% in 2025, indicating improved profitability. The Equity Ratio has strengthened, contributing to financial stability. Nevertheless, continued attention to debt management is advisable.
Cash Flow
60
Neutral
Operating cash flow remains positive, but free cash flow fluctuated, turning negative in 2025 due to high capital expenditures. The Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios indicate adequate cash generation relative to net income, but the negative free cash flow in 2025 raises concerns about capital investment sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue531.62B531.62B510.32B484.46B481.20B348.18B
Gross Profit153.03B149.43B151.81B144.21B141.41B106.85B
EBITDA15.68B15.89B12.29B13.22B9.31B6.69B
Net Income6.04B6.03B7.03B4.67B2.77B1.99B
Balance Sheet
Total Assets180.25B180.25B171.51B158.19B157.90B168.23B
Cash, Cash Equivalents and Short-Term Investments7.64B7.64B5.50B5.50B5.87B10.51B
Total Debt36.29B36.29B29.79B30.40B37.58B37.16B
Total Liabilities125.00B125.00B121.23B111.90B115.86B128.42B
Stockholders Equity55.19B55.19B50.18B46.29B42.04B39.81B
Cash Flow
Free Cash Flow0.00-2.82B2.06B7.33B-7.12B-6.49B
Operating Cash Flow0.0014.43B14.62B14.53B-777.00M8.97B
Investing Cash Flow0.00-17.35B-11.63B-7.38B-4.04B-14.88B
Financing Cash Flow0.005.06B-3.82B-7.51B172.00M2.30B

AEON Kyushu Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2914.00
Price Trends
50DMA
2922.48
Negative
100DMA
2753.61
Positive
200DMA
2674.30
Positive
Market Momentum
MACD
-10.14
Positive
RSI
43.14
Neutral
STOCH
9.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2653, the sentiment is Positive. The current price of 2914 is below the 20-day moving average (MA) of 2983.52, below the 50-day MA of 2922.48, and above the 200-day MA of 2674.30, indicating a neutral trend. The MACD of -10.14 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 9.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2653.

AEON Kyushu Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥108.96B11.63
2.14%4.99%23.63%
72
Outperform
¥70.68B37.21
0.89%9.88%-37.53%
68
Neutral
¥232.02B19.26
2.77%18.53%-36.19%
65
Neutral
¥128.77B39.62
1.73%7.54%-47.00%
61
Neutral
$17.99B12.87-3.58%2.97%1.27%-14.28%
60
Neutral
¥100.71B16.42
1.54%4.66%3.70%
60
Neutral
¥80.75B37.48
0.98%2.35%-36.99%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2653
AEON Kyushu Co., Ltd.
2,914.00
72.47
2.55%
JP:7512
Aeon Hokkaido Corporation
926.00
30.83
3.44%
JP:8237
Matsuya Co., Ltd.
1,332.00
465.78
53.77%
JP:8244
Kintetsu Department Store Co.Ltd.
2,034.00
-14.84
-0.72%
JP:8255
Axial Retailing, Inc.
1,169.00
243.93
26.37%
JP:8273
Izumi Co., Ltd.
3,246.00
-218.48
-6.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2025