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AEON Co
(8267)
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Rating:49Neutral
Price Target:
¥1,407.00
▼(-17.43% Downside)
Action:Reiterated
Date:04/10/26
The score is driven primarily by improving operating performance and better recent cash generation, but is constrained by high balance-sheet leverage and thin profitability. Technical signals are weak (price below key moving averages with negative MACD), and valuation support is limited due to a negative P/E and only a modest dividend yield.
Positive Factors
Diversified retail and services ecosystem
AEON's integrated model (stores, malls, financial services, logistics) creates cross-selling, loyalty-driven repeat purchases and multiple revenue streams. This ecosystem reduces dependence on any single channel and supports durable customer frequency and monetization across economic cycles.
Negative Factors
High balance-sheet leverage
Debt several times equity constrains financial flexibility, raises interest-cost sensitivity and refinancing risk, and amplifies earnings volatility in downturns. High leverage limits capacity for opportunistic investments and increases vulnerability to rising rates or weaker cash flow periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified retail and services ecosystem
AEON's integrated model (stores, malls, financial services, logistics) creates cross-selling, loyalty-driven repeat purchases and multiple revenue streams. This ecosystem reduces dependence on any single channel and supports durable customer frequency and monetization across economic cycles.
Read all positive factors
AEON Co (8267) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.92T
Dividend Yield0.52%
Average Volume (3M)7.15M
Price to Earnings (P/E)50.9
Beta (1Y)0.05
Revenue Growth8.17%
EPS Growth408.65%
CountryJP
Employees200,000
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)27.06
Shares Outstanding2,783,529,000
10 Day Avg. Volume10,578,309
30 Day Avg. Volume7,145,926
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)4.94
Price to Sales (P/S)0.56
P/FCF Ratio10.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,540.00Price Target Upside-9.62% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering6
EPS Forecast (FY)26.91
Revenue Forecast (FY)¥11.87T
AEON Co Business Overview & Revenue Model
Company Description
Aeon Co., Ltd. is a prominent retail group conducting business both within Japan and across international territories. The company's multifaceted operations are categorized into distinct divisions: General Merchandise Stores (GMS), Supermarkets (S...
How the Company Makes Money
AEON primarily makes money through a diversified retail-and-services model built around high-frequency consumer spending and the monetization of shopping destinations.
1) Retail sales (core revenue):
- General merchandise and food retail: AEON ea...
AEON Co Earnings Call Summary
Earnings Call Date:Jan 10, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 07, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While significant progress was noted in operating revenue and retail sector growth, challenges persist in the Financial Services and International segments. Positive achievements in energy transition and sales growth were counterbalanced by profit declines in several areas.Positive Updates
Record-High Operating Revenue
The company achieved a record-high consolidated operating revenue of JPY 7,025.8 billion for the initial 9 months of the fiscal year.
Negative Updates
Financial Services Business Decline
Operating profit for the Financial Services Business declined by JPY 14.7 billion from the same period last year, affected by increased bad debt-related expenses.
Read all updates
Q3-2024 Updates
Positive
Negative
Record-High Operating Revenue
The company achieved a record-high consolidated operating revenue of JPY 7,025.8 billion for the initial 9 months of the fiscal year.
Read all positive updates
Company Guidance
During Aeon's third-quarter earnings call for fiscal year 2024, the company reported a record-high consolidated operating revenue of JPY 7,025.8 billion and an operating profit of JPY 142.8 billion for the first nine months. The Retail Business was highlighted as the primary driver, contributing significantly to the group's performance with an operating profit of JPY 64.1 billion, representing 45% of the total. Aeon's strategic initiatives, such as enhancing the product appeal of the Topvalu private brand, restructuring its profit framework, and implementing strict cost controls, resulted in improved profitability. Despite challenges in the Financial Services Business, with a decline attributed to increased bad debt allowances, operating profit for the third quarter was revised upwards to JPY 240 billion, driven by the strong performance of the GMS, Discount Store, and Supermarket sectors. The company also achieved a net income of JPY 18.3 billion, marking the first positive result in five fiscal years. Looking forward, Aeon plans to continue focusing on profit structure reforms and key initiatives outlined in the midterm business plan, aiming to surpass previous results and achieve higher operational standards by the fiscal year-end.AEON Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
44
Neutral
Cash Flow
57
Neutral
| Breakdown | Feb 2026 | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.72T | 10.13T | 9.55T | 9.12T | 8.72T |
| Gross Profit | 3.55T | 3.41T | 3.22T | 3.02T | 2.81T |
| EBITDA | 641.33B | 568.87B | 565.47B | 541.37B | 478.43B |
| Net Income | 72.68B | 28.78B | 44.69B | 21.38B | 6.50B |
Balance Sheet | |||||
| Total Assets | 15.37T | 13.96T | 13.05T | 12.42T | 11.70T |
| Cash, Cash Equivalents and Short-Term Investments | 2.64T | 2.13T | 1.84T | 1.83T | 1.79T |
| Total Debt | 4.45T | 3.84T | 3.70T | 3.47T | 3.27T |
| Total Liabilities | 13.17T | 11.84T | 10.96T | 10.45T | 9.89T |
| Stockholders Equity | 1.22T | 1.05T | 1.06T | 993.75B | 958.72B |
Cash Flow | |||||
| Free Cash Flow | 598.05B | 100.26B | -27.75B | 62.86B | -148.07B |
| Operating Cash Flow | 1.13T | 566.22B | 368.49B | 433.71B | 204.45B |
| Investing Cash Flow | -1.17T | -478.72B | -525.73B | -332.40B | -341.50B |
| Financing Cash Flow | 116.77B | 792.00M | 988.00M | -868.00M | -4.57B |
AEON Co Technical Analysis
Negative
1704.00
Price Trends
1412.36
Negative
1688.33
Negative
1975.50
Negative
Market Momentum
0.41
Negative
47.95
Neutral
67.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8267, the sentiment is Negative. The current price of 1704 is above the 20-day moving average (MA) of 1361.35, above the 50-day MA of 1412.36, and below the 200-day MA of 1975.50, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8267.
AEON Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥1.35T | 17.92 | 9.37% | 2.59% | -1.78% | 51.07% | |
76 Outperform | ¥212.66B | 12.33 | ― | 3.01% | 8.62% | 43.05% | |
62 Neutral | ¥173.99B | 10.45 | ― | 2.18% | 8.15% | 21.40% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥804.12B | 28.59 | 7.58% | 2.58% | -2.32% | -30.08% | |
58 Neutral | ¥171.46B | -32.01 | ― | 1.77% | 15.30% | -594.22% | |
49 Neutral | ¥3.92T | 50.89 | 2.27% | 0.52% | 8.17% | 408.65% |
* Consumer Cyclical Sector Average
JP:8267
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AEON Co Corporate Events
AEON Co. Details Q1 FY2027 Performance and Group Structure
Jul 10, 2026
AEON Co. released supplemental materials for its first-quarter results for the fiscal year ending February 28, 2027, outlining consolidated financial highlights, expenses, extraordinary income and loss, and the status of interest-bearing debt. The...
AEON swings back to profit on strong Q1 revenue growth, keeps full‑year outlook
Jul 10, 2026
AEON reported strong results for the three months ended May 31, 2026, with operating revenue up 14.6% year on year to ¥2.94 trillion and operating profit jumping 33.6% to ¥75.2 billion. Ordinary profit rose 32.3% to ¥63.6 billion, a...
AEON Maps FY2026 Strategy Under New Medium-Term Plan
Jul 10, 2026
AEON Co. outlined its consolidated results for the first quarter of FY2026 and detailed progress under its FY2026–FY2030 Group Medium-term Management Plan. The presentation highlighted key initiatives to create market-leading businesses, bui...
AEON Battles Weather-Driven Slowdown With Value Push and Mall Events
Jul 10, 2026
In June 2026, AEON Co. reported muted sales momentum, particularly in summer-related merchandise, as prolonged rain fronts, record rainfall from approaching typhoons and cooler temperatures dampened customer traffic and purchase volumes compared w...
AEON Sets Final Terms for 24th Executive Stock Option Plan
Jun 22, 2026
AEON has finalized the terms of its 24th stock compensation-type stock options, a stock-based incentive plan for executive officers and related personnel for fiscal 2025. The program covers 599 stock acquisition rights tied to 179,700 common share...
AEON Posts Strong May Sales as Experiential Malls and Value Pricing Drive Growth
Jun 10, 2026
AEON reported solid operating performance in May 2026, with steady demand for food and daily necessities complemented by robust seasonal and discretionary spending, particularly in summer apparel, air-conditioning appliances, and hobby-related goo...
AEON Sets FY2026 Stock Compensation Limit for Executive Stock Options
May 27, 2026
AEON Co., Ltd. has set an issuance limit for its 25th series stock compensation-type stock options for fiscal 2026, targeting 13 executive officers at the parent company and 37 presidents or equivalent roles in group companies. The plan covers up ...
AEON Unveils Five-Year Plan to Boost Profitability and Capital Efficiency
May 11, 2026
AEON Co., Ltd. has unveiled a five-year medium-term management plan for fiscal 2026–2030 that shifts the group from foundation building to a phase focused on converting its expanded portfolio, scale, and customer data into sustainable profit...
AEON Posts Steady April Sales as Golden Week, Malls and Services Drive Growth
May 11, 2026
AEON reported broadly resilient April 2026 trading across its diversified retail portfolio, with all-store and same-store sales for key formats generally tracking near or above prior-year levels despite inflationary pressures and shifting holiday ...
AEON Secures Majority Stake in TSURUHA to Drive Health & Wellness Expansion
Apr 15, 2026
AEON Co., Ltd. has completed the additional market purchase of shares in TSURUHA Holdings Inc., bringing its ownership to 50.9% of voting rights after an earlier tender offer fell short of that threshold. TSURUHA, a Prime Market-listed drugstore o...
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.