Aeon Hokkaido Corporation (7512) AI Stock Analysis

• Market Cap: ¥121.96B
• Dividend Yield: 1.77%
• Average Volume (3M): 102.02K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.17
• Revenue Growth: 8.65%
• EPS Growth: -45.94%
• Country: JP
• Employees: 1,390
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 5.12
• Shares Outstanding: 139,420,290
• 10 Day Avg. Volume: 108,650
• 30 Day Avg. Volume: 102,023
• PEG Ratio: -0.77
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -23.54
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥945.00 ▲(6.42% Upside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

The score is primarily constrained by mixed fundamentals—thin/compressing margins and negative free cash flow despite strong revenue growth. Technicals are supportive with a modest uptrend and positive momentum signals, but valuation is a headwind due to the high P/E and only moderate dividend yield.

Positive Factors

Strong revenue growth

Sustained 156% TTM revenue growth indicates the company is expanding market share or same-store sales materially, which supports long-term scale advantages: higher bargaining power with suppliers, improved category economics, and a larger customer base to monetize via loyalty and cross-sell.

Positive operating cash flow

Positive operating cash flow (~¥16.4B TTM) shows the core retail business generates cash from daily operations, underpinning working-capital needs and reinvestment capacity. Over months, this supports stable operations, inventory management and funding of strategic store or e-commerce initiatives.

Parent/group backing and diversified formats

As an Aeon Group subsidiary with supermarkets, malls and multiple retail formats in Hokkaido, the company benefits from group buying, brand recognition, supplier access and cross-promotional channels. These structural advantages support resilience and lower unit costs over time.

Negative Factors

Thin and compressing margins

Very low EBIT and net margins limit the firm's ability to absorb cost inflation or fund investment from earnings. Even with revenue growth, weak operating leverage suggests profitability is fragile and long-term margin recovery will be essential to improve returns and cash conversion.

Negative free cash flow

Negative free cash flow (‑¥2.3B TTM) despite positive OCF implies capex or working-capital needs outpace operating cash. Persisting FCF deficits constrain debt reduction, dividends or strategic investments and increase reliance on external financing, harming financial flexibility over months.

Rising leverage and weakening ROE

An uptick in leverage and a falling ROE reduce balance-sheet resilience and increase fixed interest costs, limiting ability to pursue growth or absorb shocks. Over 2–6 months, higher leverage can pressure credit metrics and constrain strategic moves without clear cash-flow improvement.

Aeon Hokkaido Corporation Business Overview & Revenue Model

Company Description

Aeon Hokkaido Corporation (7512) is a prominent retail company based in Hokkaido, Japan, specializing in the operation of supermarkets and shopping malls. The company is a subsidiary of the Aeon Group, one of the largest retail and distribution organizations in Asia. Aeon Hokkaido operates a range of retail formats, including general merchandise stores, grocery stores, and convenience stores, catering to diverse consumer needs across the region. Its core products include food items, household goods, clothing, and various consumer products, positioning it as a key player in the local retail market.

How the Company Makes Money

Aeon Hokkaido Corporation generates revenue primarily through its retail operations, which encompass the sale of a wide array of products including groceries, clothing, and household items. The company earns money from direct sales in its supermarkets and shopping centers, benefiting from high foot traffic and a loyal customer base. Additionally, revenue is augmented through strategic partnerships with suppliers and brands, allowing for promotional events and exclusive product offerings that drive sales. The company also explores various revenue streams through loyalty programs and membership services, which enhance customer retention and spending. Furthermore, Aeon Hokkaido may benefit from real estate income derived from leasing retail space within its shopping centers to third-party businesses, thereby diversifying its income sources.

Aeon Hokkaido Corporation Financial Statement Overview

Summary

Strong TTM revenue growth (+156%) is offset by thin and compressing profitability (net margin ~0.8%, EBIT margin ~2.0%) and negative free cash flow (‑¥2.3B) despite positive operating cash flow, indicating weak cash conversion and higher reinvestment burden.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is strong (+156%), but profitability is thin: net margin is ~0.8% and EBIT margin is ~2.0%. Margins and earnings have compressed versus FY2024 (net margin ~1.7%), with net income down despite higher sales—suggesting rising costs and weaker operating leverage. Gross margin remains fairly steady in the high-20% range, providing some stability, but overall earnings quality is constrained by low bottom-line conversion.

Balance Sheet

Leverage is moderate with debt-to-equity at ~0.61 in TTM (Trailing-Twelve-Months), though up from FY2024 (~0.41) as debt increased. Equity base is solid (¥72.7B) against total assets (¥196.6B), and return on equity is ~5% in TTM—positive but down materially from FY2024 (~8.6%), consistent with weaker profitability. Overall, the balance sheet looks manageable, but the recent leverage uptick and lower returns temper the profile.

Cash Flow

Operating cash flow is positive in TTM (Trailing-Twelve-Months) (¥16.4B), but free cash flow is negative (‑¥2.3B) and has deteriorated versus prior years when free cash flow was positive (FY2023–FY2024). Free cash flow is also negative relative to net income in TTM, indicating that recent earnings are not translating into surplus cash after investment needs. The main strength is the rebound from the weak FY2022 cash generation, but current cash conversion and reinvestment burden remain key watch items.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	401.01B	377.48B	356.01B	339.66B	340.80B	338.46B
Gross Profit	110.85B	105.84B	100.95B	96.09B	94.32B	94.41B
EBITDA	15.48B	14.94B	16.73B	14.54B	12.47B	14.83B
Net Income	3.60B	3.61B	6.19B	4.71B	3.83B	5.85B
Balance Sheet
Total Assets	196.58B	188.09B	156.99B	153.66B	152.72B	144.86B
Cash, Cash Equivalents and Short-Term Investments	6.99B	4.37B	3.84B	3.90B	3.77B	6.30B
Total Debt	43.50B	46.44B	29.09B	29.63B	35.52B	19.93B
Total Liabilities	123.83B	115.02B	85.32B	86.49B	88.64B	82.98B
Stockholders Equity	72.75B	73.06B	71.67B	67.16B	64.08B	61.87B
Cash Flow
Free Cash Flow	-2.32B	-4.94B	4.18B	6.27B	-10.63B	7.07B
Operating Cash Flow	16.44B	12.87B	12.23B	14.88B	868.00M	13.68B
Investing Cash Flow	-16.61B	-34.00B	-7.86B	-8.81B	-13.53B	-7.05B
Financing Cash Flow	1.56B	21.67B	-4.43B	-5.94B	10.13B	-4.25B

Aeon Hokkaido Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 888.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7512, the sentiment is Negative. The current price of 888 is above the 20-day moving average (MA) of 884.11, below the 50-day MA of 906.56, and below the 200-day MA of 889.61, indicating a bearish trend. The MACD of -10.69 indicates Negative momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7512.

Aeon Hokkaido Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9956	79 Outperform	¥193.59B	7.25	―	2.18%	6.30%	27.88%
2659	73 Outperform	¥190.21B	20.12	7.56%	2.70%	2.28%	3.61%
8273	63 Neutral	¥216.74B	17.32	―	3.01%	18.89%	-34.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8278	61 Neutral	¥174.15B	100.03	―	1.44%	1.48%	-33.32%
7512	56 Neutral	¥121.96B	44.01	―	1.77%	8.65%	-45.94%
3222	53 Neutral	¥178.09B	-65.24	―	1.77%	30.67%	―