AEON Kyushu Co., Ltd. (2653) AI Stock Analysis

• Market Cap: ¥101.34B
• Dividend Yield: 1.58%
• Average Volume (3M): 11.43K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.22
• Revenue Growth: 4.07%
• EPS Growth: 47.70%
• Country: JP
• Employees: 5,295
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 90.36
• Shares Outstanding: 34,833,557
• 10 Day Avg. Volume: 11,730
• 30 Day Avg. Volume: 11,430
• PEG Ratio: -1.03
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -29.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥2,945.00 ▲(2.76% Upside)

AEON Kyushu's stock score is primarily influenced by solid financial performance, despite concerns over negative free cash flow. Technical indicators suggest bearish momentum, and the valuation is moderate. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and effectively meet consumer demand, supporting long-term business sustainability.

Improved Leverage Management

Better leverage management enhances financial stability, reducing risk and increasing the company's ability to invest in growth opportunities.

Operational Efficiency

Improved operational efficiency suggests effective cost management and resource utilization, contributing to sustained profitability and competitive advantage.

Negative Factors

Negative Free Cash Flow

Negative free cash flow raises concerns about the sustainability of capital investments, potentially impacting the company's ability to fund future growth initiatives.

Low Net Profit Margin

A low net profit margin indicates limited profitability, suggesting the need for further cost management improvements to enhance overall financial performance.

Capital Expenditure Management

High capital expenditures without corresponding cash flow can strain financial resources, necessitating careful management to ensure long-term financial health.

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

Company Description

AEON 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 Money

AEON 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 shows solid revenue and profit growth, improved leverage, and profitability metrics. However, the negative free cash flow in 2025 raises concerns about capital investment sustainability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	537.19B	531.62B	510.32B	484.46B	481.20B	348.18B
Gross Profit	156.07B	149.43B	151.81B	144.21B	141.41B	106.85B
EBITDA	15.45B	15.89B	12.29B	13.22B	9.31B	6.69B
Net Income	6.01B	6.03B	7.03B	4.67B	2.77B	1.99B
Balance Sheet
Total Assets	200.83B	180.25B	171.51B	158.19B	157.90B	168.23B
Cash, Cash Equivalents and Short-Term Investments	8.45B	7.64B	5.50B	5.50B	5.87B	10.51B
Total Debt	41.97B	36.53B	29.79B	30.40B	37.58B	37.16B
Total Liabilities	146.03B	125.00B	121.23B	111.90B	115.86B	128.42B
Stockholders Equity	54.91B	55.19B	50.18B	46.29B	42.04B	39.81B
Cash Flow
Free Cash Flow	0.00	-2.82B	2.06B	7.33B	-7.12B	-6.49B
Operating Cash Flow	0.00	14.43B	14.62B	14.53B	-777.00M	8.97B
Investing Cash Flow	0.00	-17.35B	-11.63B	-7.38B	-4.04B	-14.88B
Financing Cash Flow	0.00	5.06B	-3.82B	-7.51B	172.00M	2.30B

AEON Kyushu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2866.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2653, the sentiment is Neutral. The current price of 2866 is below the 20-day moving average (MA) of 2873.15, below the 50-day MA of 2894.72, and above the 200-day MA of 2729.31, indicating a neutral trend. The MACD of -20.95 indicates Negative momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 72.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2653.

AEON Kyushu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8255	70 Outperform	¥105.51B	11.20	―	2.48%	5.57%	27.41%
8237	66 Neutral	¥89.57B	220.60	―	0.83%	1.38%	-87.76%
8244	65 Neutral	¥75.71B	13.11	―	1.06%	7.55%	89.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8273	59 Neutral	¥207.43B	17.41	―	3.04%	18.89%	-34.43%
2653	58 Neutral	¥101.34B	13.02	―	1.58%	4.07%	47.70%
7512	55 Neutral	¥125.57B	39.46	―	1.77%	8.65%	-45.94%