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

• Market Cap: ¥100.71B
• Dividend Yield: 1.55%
• Average Volume (3M): 11.43K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.23
• 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 ▲(1.55% 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., a retail company, engages in the management of various stores in Japan. The company operates supermarkets; stores that provide lifestyle products; shops that offer clothing, food, home, and leisure products; home stores that provide various products and a range of services, such as DIY goods, pet sales, and gardening sales; and bicycle specialty shops that offer bicycle parts and apparel items, as well as repair services. It also operates Food Boat Cafe that provide crepes and drinks; Yogorino Bono Cafe that offer sweets, pancakes, and pasta; and operates online stores. The company was incorporated in 1972 and is headquartered in Fukuoka City, Japan. Aeon Kyushu Co., Ltd. operates as a subsidiary of Aeon Co., Ltd.

How the Company Makes Money

AEON Kyushu generates revenue through multiple streams, primarily from the direct sales of goods in its retail outlets, which include supermarkets and general merchandise stores. The company profits by marking up prices on the products it purchases from suppliers. Additionally, AEON Kyushu benefits from its private label products, which typically have higher margins than branded items. The company also engages in promotional activities and loyalty programs that encourage repeat purchases, thereby enhancing customer retention and increasing sales. Significant partnerships with local suppliers and manufacturers allow AEON Kyushu to offer competitive pricing and exclusive products, further contributing to its earnings. Moreover, the company may engage in real estate leasing through its retail spaces, adding another layer to its revenue generation.

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	541.30B	531.62B	510.32B	484.46B	481.20B	348.18B
Gross Profit	155.16B	149.43B	151.81B	144.21B	141.41B	106.85B
EBITDA	17.89B	15.89B	12.29B	13.22B	9.31B	6.69B
Net Income	7.63B	6.03B	7.03B	4.67B	2.77B	1.99B
Balance Sheet
Total Assets	214.81B	180.25B	171.51B	158.19B	157.90B	168.23B
Cash, Cash Equivalents and Short-Term Investments	20.69B	7.64B	5.50B	5.50B	5.87B	10.51B
Total Debt	47.59B	36.53B	29.79B	30.40B	37.58B	37.16B
Total Liabilities	156.95B	125.00B	121.23B	111.90B	115.86B	128.42B
Stockholders Equity	58.08B	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: Positive
• Last Price: 2900.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2900 is above the 20-day moving average (MA) of 2857.45, above the 50-day MA of 2887.68, and above the 200-day MA of 2751.58, indicating a bullish trend. The MACD of 2.54 indicates Negative momentum. The RSI at 59.45 is Neutral, neither overbought nor oversold. The STOCH value of 96.92 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8255	73 Outperform	¥105.98B	11.25	―	2.55%	5.57%	27.41%
8237	66 Neutral	¥93.18B	229.48	―	0.85%	1.38%	-87.76%
8244	65 Neutral	¥74.17B	12.84	―	1.09%	7.55%	89.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8273	59 Neutral	¥216.22B	18.15	―	2.98%	18.89%	-34.43%
2653	58 Neutral	¥100.71B	12.94	―	1.55%	4.07%	47.70%
7512	55 Neutral	¥125.57B	39.46	―	1.77%	8.65%	-45.94%