tiprankstipranks
Trending News
More News >
AEON Co Ltd (JP:8267)
:8267
Advertisement

AEON Co (8267) AI Stock Analysis

Compare
5 Followers

Top Page

JP

AEON Co

(OTC:8267)

Rating:61Neutral
Price Target:
¥4,664.00
▼(-0.19%Downside)
AEON Co's overall stock score reflects strong financial performance in revenue growth and cash management, overshadowed by high valuation concerns and heavy leverage. Technical indicators show neutral momentum, while the lack of earnings call and corporate events data limits further insights.

AEON Co (8267) vs. iShares MSCI Japan ETF (EWJ)

AEON Co Business Overview & Revenue Model

Company DescriptionAEON Co., Ltd. is a leading retail company based in Japan, operating a diverse range of businesses primarily in the retail sector. The company is engaged in general merchandise stores, supermarkets, convenience stores, specialty stores, and shopping center development. AEON is recognized for its extensive network of retail outlets and is committed to providing a wide array of products and services that cater to the various needs of consumers in Japan and other Asian markets.
How the Company Makes MoneyAEON Co., Ltd. generates revenue through multiple channels, primarily from its retail operations. The company operates a vast number of general merchandise stores and supermarkets, which contribute significantly to its income. Additionally, AEON earns money through its convenience stores and specialty stores that offer a variety of goods, including food, clothing, and household items. Another revenue stream is the development and management of shopping centers, which involve leasing space to tenants and collecting rental income. AEON also benefits from strategic partnerships and joint ventures, enhancing its product offerings and expanding its market presence. The company's earnings are further supported by its financial services segment, which includes credit card services and banking operations, providing a diversified income source.

AEON Co Earnings Call Summary

Earnings Call Date:Jul 11, 2025
(Q3-2024)
|
% Change Since: 8.17%|
Next Earnings Date:Oct 08, 2025
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.
Q3-2024 Updates
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.
Retail Business Success
Operating profit from the Retail Business expanded significantly to JPY 64.1 billion, constituting 45% of the total, showing substantial growth from JPY 14.2 billion in fiscal year 2019.
Supermarket Business Profitability
The Supermarket Business returned to profitability, with an operating profit of JPY 21.8 billion, an increase of JPY 14.4 billion from the previous year.
Discount Store Business Growth
Operating profit for the Discount Store Business reached JPY 6.0 billion, marking a JPY 4.8 billion increase from the previous year.
Topvalu Sales Growth
Topvalu sales reached JPY 740.2 billion, equivalent to 110% of the same period in the previous year, with a goal to reach JPY 1 trillion by the end of the fiscal year.
Renewable Energy Milestone
Around 55% of the electricity consumed in domestic stores transitioned to renewable energy, achieving the interim target for 2030 seven years ahead of schedule.
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.
Health and Wellness Business Profit Decrease
The operating profit in the Health and Wellness Business decreased by JPY 0.4 billion, affected by a reactionary drop in COVID-19-related demand and sluggish seasonal product growth.
Shopping Center Development Challenges
Despite some progress, the Shopping Center Development Business fell slightly behind initial expectations in terms of recovery.
International Business Profit Decline
The International Business saw a JPY 1.8 billion decrease in operating profit, with ASEAN countries facing a challenging business environment.
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
AEON Co shows revenue growth and improved cash flow management, but faces challenges with low net profit margins and high leverage, impacting financial stability.
Income Statement
78
Positive
AEON Co shows a consistent increase in total revenue over the past years, with a notable revenue growth rate of 6.05% in the latest period. While the gross profit margin remains stable, the net profit margin has seen some fluctuations, with a recent decline to 0.28%, indicating pressure on net earnings. The EBIT and EBITDA margins reflect operational efficiency but show room for improvement.
Balance Sheet
72
Positive
The balance sheet indicates a high debt-to-equity ratio of 3.65, highlighting significant leverage which could be a risk factor. However, the return on equity has shown improvement over the years, reaching 2.74%, suggesting better utilization of equity. The equity ratio of 7.59% suggests a heavy reliance on liabilities for financing.
Cash Flow
75
Positive
AEON Co's free cash flow has improved significantly from previous negative figures to 100.26 billion JPY, indicating better cash management. The operating cash flow to net income ratio is strong at 19.67, signifying solid operational cash generation relative to net earnings. However, fluctuations in free cash flow in previous years pose a potential risk.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.13T9.55T9.12T8.72T8.60T
Gross Profit3.41T3.55T3.34T3.11T3.01T
EBITDA568.87B565.47B547.62B495.82B461.70B
Net Income28.78B44.69B21.38B6.50B-71.02B
Balance Sheet
Total Assets13.83T12.94T12.34T11.63T11.48T
Cash, Cash Equivalents and Short-Term Investments2.13T1.83T1.82T1.78T1.91T
Total Debt3.83T3.76T3.52T3.32T3.17T
Total Liabilities11.71T10.85T10.37T9.82T9.73T
Stockholders Equity1.05T1.06T993.75B958.72B971.87B
Cash Flow
Free Cash Flow100.26B-27.75B62.86B-148.07B95.21B
Operating Cash Flow566.22B368.49B433.71B204.45B396.46B
Investing Cash Flow-478.72B-508.88B-335.12B-343.85B-341.81B
Financing Cash Flow881.00M-15.87B1.85B-2.21B24.29B

AEON Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4673.00
Price Trends
50DMA
4404.76
Positive
100DMA
4168.59
Positive
200DMA
3932.36
Positive
Market Momentum
MACD
48.75
Negative
RSI
63.92
Neutral
STOCH
84.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8267, the sentiment is Positive. The current price of 4673 is above the 20-day moving average (MA) of 4448.45, above the 50-day MA of 4404.76, and above the 200-day MA of 3932.36, indicating a bullish trend. The MACD of 48.75 indicates Negative momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 84.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8267.

AEON Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$530.15B12.7910.25%2.17%8.72%19.26%
73
Outperform
¥347.48B10.477.14%2.28%2.11%-4.24%
72
Outperform
¥239.76B6.6511.92%2.04%3.71%64.27%
68
Neutral
$795.14B15.298.71%2.75%3.56%-2.54%
67
Neutral
¥252.20B13.266.45%2.72%5.22%-11.89%
65
Neutral
¥221.01B18.35
2.91%18.53%-36.19%
61
Neutral
$4.26T139.162.60%0.77%6.08%-35.70%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8267
AEON Co
4,673.00
1,374.56
41.67%
JP:8273
Izumi Co., Ltd.
3,092.00
-259.22
-7.74%
JP:8242
H2O Retailing Corporation
1,965.50
-697.30
-26.19%
JP:3099
Isetan Mitsukoshi Holdings
2,178.00
-1,018.14
-31.86%
JP:8233
Takashimaya Company
1,141.00
-305.85
-21.14%
JP:3086
J FRONT RETAILING Co
2,024.50
110.55
5.78%

AEON Co Corporate Events

AEON Mall Reports Strong Q1 Results Amidst Delisting
Jul 11, 2025

AEON Co., Ltd. announced the financial results for its wholly owned subsidiary, AEON Mall Co., Ltd., for the first quarter ending May 31, 2025. The results showed a notable increase in operating revenue and net income compared to the previous year, despite the company’s delisting from the Tokyo Stock Exchange. The delisting follows a share exchange agreement with AEON Co., Ltd., making AEON Mall a wholly owned subsidiary, which impacts its financial forecasting and dividend projections.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen3500.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co. Reports Robust Sales Growth in June 2025
Jul 10, 2025

AEON Co. reported strong sales growth across its various business segments for June 2025, driven by strategic initiatives such as heatstroke prevention events, bulk rice procurement, and the launch of new products like non-alcoholic beer. The company achieved year-on-year growth in same-store sales, with notable performance in apparel, food, and health and beauty care. AEON’s proactive measures in store revitalization and pricing strategies contributed to increased customer numbers and sustained growth, positioning the company favorably in the retail market.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen3500.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co. Delays Financial Results Announcement Amid Accounting Issues
Jul 9, 2025

AEON Co., Ltd. has postponed the announcement of its first quarter financial results for the fiscal year ending February 2026 due to the discovery of inappropriate accounting practices at a subsidiary in Vietnam. The announcement, originally scheduled for July 11, 2025, has been moved to July 31, 2025, as the company assesses the impact on its business performance and formulates a new growth strategy for its Vietnam operations.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen3500.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co. Postpones Q1 Financial Results Amid Accounting Concerns
Jul 9, 2025

AEON Co., Ltd. has announced the postponement of its first quarter financial results for the fiscal year ending February 2026, initially scheduled for July 11, 2025, now rescheduled for July 31, 2025. This decision follows the discovery of inappropriate accounting practices at a Vietnamese company prior to its acquisition, necessitating further discussions and strategy formulation, potentially impacting AEON’s business performance.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen3500.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co., Ltd. Finalizes Stock Acquisition Rights for Executive Compensation
Jun 23, 2025

AEON Co., Ltd. has finalized the issue price for its 23rd series of stock acquisition rights, which are granted as stock-based compensation to executive officers and others for fiscal year 2024. This initiative reflects the company’s ongoing commitment to aligning executive interests with shareholder value, potentially enhancing its market positioning and operational efficiency.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen3500.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co. Announces Stock Split and Dividend Increase
Jun 12, 2025

AEON Co., Ltd. has announced a series of strategic financial changes, including a stock split to enhance share liquidity and broaden its shareholder base. The company will also amend its Articles of Incorporation to reflect the increased number of authorized shares and has revised its dividend forecast upwards, indicating a positive outlook for shareholders. These measures are expected to strengthen AEON’s market position and provide greater value to its stakeholders.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen3500.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co., Ltd. Reports Strong May 2025 Performance Amid Strategic Initiatives
Jun 10, 2025

AEON Co., Ltd. reported a strong performance in May 2025, with same-store sales rising year on year for multiple consecutive months across various segments. The company introduced a new rice product to address rice shortages and price hikes, while also hosting successful promotional events during the Golden Week holiday. Despite challenges in the apparel segment due to weather conditions, AEON’s strategic initiatives in food, health, and beauty care, as well as community-focused supermarket operations, contributed to its positive sales trends.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen3500.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co., Ltd. Sets Stock Option Issuance Limit for Executive Compensation
May 28, 2025

AEON Co., Ltd. has announced the issuance limit for its 24th series of stock acquisition rights as part of a compensation plan for its Executive Officers and Directors. This initiative aims to motivate these individuals to enhance business performance and corporate value. The stock options, which can be exercised from July 2026 to July 2041, are designed to align the interests of the company’s leadership with its long-term growth objectives, potentially impacting the company’s operational dynamics and stakeholder interests.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen3500.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co. Reports Strong April Sales Growth Across Segments
May 12, 2025

AEON Co. reported strong sales growth across its various business segments in April 2025, driven by strategic initiatives such as enhancing product lineups for the Golden Week holiday and offering value-for-money pricing amidst rising living costs. The company’s efforts to capture demand for outings and expand sales of its private brand, TOPVALU, have resulted in consecutive months of same-store sales growth, particularly in the General Merchandise and Supermarket businesses. The Discount Store segment also saw robust sales due to increased price appeal and bulk sales, while AEON KYUSHU CO., LTD. achieved significant growth through promotions and original products.

AEON Co. Completes Acquisition of AEON Delight Shares
Apr 25, 2025

AEON Co., Ltd. has successfully completed a tender offer to acquire common shares and stock acquisition rights of AEON Delight Co., Ltd., which is also listed on the Tokyo Stock Exchange. This strategic acquisition is expected to enhance AEON Co.’s market position and operational capabilities, potentially impacting stakeholders by consolidating its influence in the retail sector.

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: Jul 16, 2025