AEON Co (8267) AI Stock Analysis

• Market Cap: ¥5.86T
• Dividend Yield: 0.52%
• Average Volume (3M): 7.15M
• Price to Earnings (P/E): 157.7
• Beta (1Y): 0.01
• Revenue Growth: 4.92%
• EPS Growth: 1.25%
• Country: JP
• Employees: 200,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -5.60
• Shares Outstanding: 2,783,529,000
• 10 Day Avg. Volume: 10,578,309
• 30 Day Avg. Volume: 7,145,926
• PEG Ratio: -1.02
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 10.50
• 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: ¥2,100.00
• Price Target Upside: -3.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥2,269.00 ▲(3.99% Upside)

The score is driven primarily by mixed financial performance—solid revenue and cash flow improvement, but constrained by very low net profitability and high leverage. Technicals are weak with negative momentum and price below key moving averages, only partially balanced by oversold signals. Valuation further pressures the score due to an extremely high P/E and low dividend yield.

Positive Factors

Diversified Business Model

AEON's multi-channel model—supermarkets, shopping malls, specialty stores, credit cards and leasing—creates durable revenue diversification. This breadth spreads cyclical risk, enables cross-selling, and supports stable cash flow generation and customer retention over the medium term.

Improving Cash Generation

A material recovery in free cash flow and a very strong operating-cash-to-net-income ratio indicate robust operational cash conversion. Sustained cash generation enhances ability to fund capex, service debt, and invest in logistics/omnichannel capabilities, strengthening long-term resilience.

Consistent Revenue Growth

Consistent top-line growth near mid-single digits demonstrates enduring consumer demand and effective scale in Japanese and regional retail. Persistent revenue expansion supports margin recovery opportunities and investments in e-commerce and mall leasing to reinforce structural competitiveness.

Negative Factors

Very Low Net Profitability

A sub-1% net margin is a structural concern: it leaves limited buffer for cost shocks, constrains retained earnings for reinvestment, and magnifies the impact of interest or commodity cost swings. Sustained low net profit undermines long-term return generation for shareholders.

High Financial Leverage

Elevated leverage and a low equity ratio signal reliance on liabilities to finance growth. This increases interest and refinancing risk, reduces strategic flexibility for M&A or capex, and makes the company more vulnerable to macroeconomic stress over the coming months.

Low Return on Equity

Even with improvement, a ROE below 3% reflects limited efficiency in converting capital into profits. Persistently low ROE restricts shareholder value creation and suggests structural challenges in margin recovery or capital allocation, limiting long-term competitiveness.

AEON Co Business Overview & Revenue Model

Company Description

Aeon Co., Ltd. operates in the retail industry in Japan and internationally. It operates through General Merchandise Store (GMS) Business, Supermarket (SM) Business, Health & Wellness Business, Financial Services Business, Shopping Center Development Business, Services & Specialty Store Business, and International Business segments. The GMS Business segment operates general merchandise stores. The SM Business segment operates supermarkets, discount stores, convenience stores, and small-scale stores. The Health & Wellness Business segment operates drugstores and dispensing pharmacies. The Financial Services Business segment provides integrated financial services, including credit, banking, insurance, and e-money card services, as well as credit cards. The Shopping Center Development Business segment develops and operates shopping centers. The Services & Specialty Store Business segment offers various services, as well as operates specialty stores. The International Business segment operates general merchandise and discount stores, and supermarkets in China and the ASEAN countries. Aeon Co., Ltd. was founded in 1758 and is headquartered in Chiba, Japan.

How the Company Makes Money

AEON generates revenue through multiple channels, primarily from its retail operations, which include supermarkets, hypermarkets, and convenience stores. The sale of merchandise in these stores constitutes the bulk of its revenue. Additionally, AEON earns income from its financial services segment, which includes credit card processing fees, interest income from loans, and insurance products. The company also benefits from leasing and rental income within its shopping malls. Strategic partnerships with suppliers and manufacturers enhance its product offerings and pricing strategies, contributing to its overall earnings. Seasonal promotions, loyalty programs, and an expanding online shopping platform further bolster its revenue streams.

AEON Co Financial Statement Overview

Summary

Revenue is growing (latest ~6.05%) and free cash flow improved to 100.26B JPY with strong operating cash flow vs. net income (19.67x). Offsetting this, profitability is weak with a very low net margin (~0.28%) and the balance sheet is highly leveraged (debt-to-equity 3.65; equity ratio 7.59%), which raises financial risk.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.33T	10.13T	9.55T	9.12T	8.72T	8.60T
Gross Profit	3.59T	3.75T	3.55T	3.34T	3.11T	3.01T
EBITDA	607.89B	568.87B	565.47B	541.37B	478.43B	396.17B
Net Income	27.34B	28.78B	44.69B	21.38B	6.50B	-71.02B
Balance Sheet
Total Assets	14.50T	13.83T	12.94T	12.42T	11.70T	11.55T
Cash, Cash Equivalents and Short-Term Investments	2.43T	2.13T	1.83T	1.82T	1.79T	1.91T
Total Debt	3.50T	3.89T	3.76T	3.52T	3.32T	3.17T
Total Liabilities	12.48T	11.71T	10.85T	10.37T	9.82T	9.73T
Stockholders Equity	1.21T	1.05T	1.06T	993.75B	958.72B	971.87B
Cash Flow
Free Cash Flow	0.00	100.26B	-27.75B	62.86B	-148.07B	95.21B
Operating Cash Flow	0.00	566.22B	368.49B	433.71B	204.45B	396.46B
Investing Cash Flow	0.00	-478.81B	-508.88B	-332.40B	-341.50B	-341.81B
Financing Cash Flow	0.00	881.00M	-15.87B	1.85B	-4.57B	24.29B

AEON Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2182.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2182 is below the 20-day moving average (MA) of 2257.00, below the 50-day MA of 2426.48, and above the 200-day MA of 1895.03, indicating a neutral trend. The MACD of -66.97 indicates Positive momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 12.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8267.

AEON Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8242	66 Neutral	¥257.63B	17.29	4.97%	2.01%	2.00%	-68.35%
3099	65 Neutral	¥871.93B	15.54	9.37%	2.59%	-1.22%	-10.82%
8233	65 Neutral	¥587.76B	13.23	8.54%	1.84%	0.42%	20.25%
3086	63 Neutral	¥590.11B	19.31	7.58%	2.58%	6.52%	-31.67%
8273	63 Neutral	¥218.72B	19.15	―	3.01%	18.89%	-34.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8267	58 Neutral	¥5.86T	157.71	2.27%	0.52%	4.92%	1.25%

AEON Co Corporate Events

AEON Boosts Year-End Food Sales and Unveils Major Supermarket Integration in Key Urban Markets

AEON reported December 2025 monthly operating performance showing continued year-on-year sales growth across key segments, supported by sustained strength in food categories and stable customer traffic, even as winter apparel and home goods were initially hampered by warm weather and a calendar with one fewer holiday. The group capitalized on diversifying year-end consumer behavior by emphasizing at-home celebrations, expanding value-added party menus and premium festive foods, and deploying discount and coupon initiatives to ease pressure on household budgets, helping food same-store sales at AEON Retail outperform the previous year for the 40th consecutive month and supermarket same-store sales rise for the fourth straight month. Strategically, AEON moved to reinforce its urban footprint by agreeing to integrate Maxvalu Kanto, Daiei’s Kanto operations, and AEON MARKET into a single entity to be rebranded “AEON Food Style” from March 2026, while reorganizing Daiei together with KOHYO in Kansai, a structural overhaul aimed at consolidating market share and sharpening area strategies in Japan’s two largest population centers.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Moves to Take SUNDAY Co. Private via All-Share Tender Offer

AEON Co., Ltd. has launched a tender offer to acquire all remaining common shares and share options of SUNDAY Co., Ltd., a Tokyo Stock Exchange Standard Market-listed subsidiary, at ¥1,280 per share and ¥1 per share option, with the aim of making SUNDAY a wholly owned subsidiary. Already holding approximately 76.70% of SUNDAY’s voting rights, AEON will not set upper or lower limits on the number of shares to be purchased and plans, if necessary, to follow the tender with squeeze-out procedures via a share consolidation to become SUNDAY’s sole shareholder; the company emphasizes that using a tender offer with a clear per-share price is intended to make terms easier for minority shareholders to understand and to better protect their interests compared with proceeding directly to share consolidation.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Narrows Loss as Profit Climbs on Higher Revenue, Confirms Full-Year Outlook

AEON reported consolidated operating revenue of ¥7.75 trillion for the nine months ended November 30, 2025, up 3.7% year-on-year, with operating profit surging 23.1% and ordinary profit rising 24.5%, although the company still posted a net loss attributable to owners of the parent of ¥10.9 billion, an improvement from the previous year’s larger loss. Total assets increased to ¥14.69 trillion and total equity also rose, while the equity ratio excluding the Financial Services business strengthened, suggesting gradual balance sheet improvement despite thin overall capital ratios. The company maintained its dividend policy around a recent three-for-one stock split, effectively keeping ordinary and commemorative dividends at levels comparable to the prior year on a pre-split basis, and it reaffirmed its full-year forecast calling for continued top-line growth and a return to solid profitability, with projected net profit of ¥60–70 billion and sharply positive earnings per share. AEON also noted the deconsolidation of AEON Allianz Life Insurance Co., Ltd., indicating ongoing portfolio adjustments within its financial services segment.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Hits Record Revenue and Profit in 3Q FY2025 on TOPVALU and Black Friday Strength

AEON Co., Ltd. reported record-high operating revenue and operating profit for the first three quarters of FY2025, with operating revenue rising 3.7% year on year to ¥7,749.4 billion and operating profit climbing 23.1% to ¥144.7 billion, while the loss attributable to owners of the parent narrowed compared with the previous year. The strong performance was driven by robust growth in its TOPVALU private brand and the company’s largest-ever Black Friday campaign, alongside improved profitability from higher labor productivity through store-level digital transformation and structural cost optimization, underscoring AEON’s ongoing efforts to strengthen operational efficiency and competitiveness in the retail sector.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Lifts Full-Year Earnings Outlook After Consolidating Tsuruha

AEON has revised its full-year consolidated earnings forecast for the fiscal year ending February 2026 following the completion of its tender offer for TSURUHA HOLDINGS, which will become a consolidated subsidiary on January 14, 2026. The company now expects operating revenue of ¥10.7 trillion and operating profit of ¥275 billion, both up about 2% from its previous forecast, and has raised its net income outlook to ¥60–70 billion, implying a sharp year-on-year increase, partly driven by gains on step acquisitions related to Tsuruha and improved step profits. Management is simultaneously pushing structural reforms and business portfolio optimization to enhance sustainable growth and capital efficiency, including a comprehensive review of asset recoverability and business cash flows, even as it factors in specific one-off losses, signaling an effort to balance near-term extraordinary items with strengthening medium- to long-term earnings capacity.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON to Secure TSURUHA Control via Additional Market Purchases After Tender Offer Shortfall

AEON Co., Ltd. has moved to secure a controlling stake in TSURUHA HOLDINGS INC., a Prime Market-listed drugstore operator, after its previously launched tender offer failed to reach the targeted 50.9% of voting rights. Following discussions and mutual agreement with TSURUHA Holdings, AEON will additionally acquire TSURUHA shares through market purchases between January 9 and April 30, 2026, until its voting rights reach 50.9%, cementing TSURUHA as a consolidated subsidiary and reinforcing AEON’s strategic positioning in Japan’s retail and healthcare-related distribution market.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Secures Control of TSURUHA via Completed Tender Offer

AEON Co., Ltd. has completed a tender offer to acquire common shares of TSURUHA HOLDINGS INC., a drugstore operator listed on the Tokyo Stock Exchange Prime Market, with the aim of making TSURUHA a consolidated subsidiary. Conducted from December 3, 2025 to January 6, 2026 at an offer price of 2,900 yen per share, the tender offer resulted in AEON purchasing all 40,727,772 shares tendered, as this total was below the maximum planned acquisition of 43,240,590 shares. As a result, TSURUHA will become a consolidated subsidiary of AEON as of January 14, 2026, a move that is expected to deepen AEON’s footprint in the drugstore and healthcare retail segment and potentially enhance its overall retail network and group earnings through closer integration of operations and expanded scale in the Japanese consumer market.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Group to Integrate Kanto Supermarket Operations Under U.S.M.H to Bolster Tokyo Area Strategy

AEON Group companies U.S.M.H, Maxvalu Kanto, Daiei, and AEON MARKET have approved a multi-step business integration designed to strengthen AEON’s supermarket footprint in the Tokyo metropolitan area amid intensifying competition from e-commerce, discount and drugstore operators. Under the plan, Maxvalu Kanto will first take over Daiei’s Kanto-region supermarket business via an absorption-type company split, then merge with AEON MARKET through an absorption-type merger, after which U.S.M.H will acquire all shares of Maxvalu Kanto through a share exchange to make it a wholly owned subsidiary. The transaction is intended to deepen area-focused strategies, consolidate operations and brands, and enhance efficiency and customer value in a market where cost pressures and shifting consumer preferences for health, low prices and convenience are reshaping the food retail landscape.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 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 November Sales Amid Strategic Expansions

AEON Co., a major player in the retail industry, reported its November 2025 sales trends, highlighting the impact of its Black Friday Sale and strategic pricing initiatives. The company achieved significant growth in same-store sales across various segments, including general merchandise, supermarkets, and health and wellness, despite a challenging economic environment with rising prices. AEON’s strategic moves, such as the share exchange and tender offer involving TSURUHA Holdings, aim to strengthen its market position and expand its ownership in the health and wellness sector.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co. Initiates Tender Offer for TSURUHA Holdings to Form Major Drugstore Alliance

AEON Co., Ltd. has announced the commencement of a tender offer to acquire shares of TSURUHA Holdings Inc., aiming to make it a consolidated subsidiary. This move is part of a broader strategy to form the largest drugstore alliance in Japan and enhance competitiveness in Asia, following a definitive capital and business alliance agreement with TSURUHA Holdings and Welcia Holdings.

The most recent analyst rating on (JP:8267) stock is a Buy with a Yen2627.00 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 Financial Performance Amid Stock Split

AEON Co., Ltd. reported its financial results for the six months ending August 31, 2025, showing a 3.8% increase in operating revenue compared to the previous year. The company also experienced a significant rise in operating profit and ordinary profit, with increases of 19.8% and 18.5%, respectively. Despite these positive results, comprehensive income showed a substantial decline. The company conducted a three-for-one stock split effective September 1, 2025, impacting dividends and earnings per share calculations. The forecast for the fiscal year ending February 28, 2026, anticipates continued growth in operating revenue and profits, reflecting the company’s strategic positioning and market focus.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen1400.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.

AEON Co. Achieves Record Highs in H1 FY2025

AEON Co., Ltd. reported record highs in operating revenue and profit for the first half of fiscal 2025, driven by the expansion of ‘TOPVALU’ and strategic initiatives to provide heat-relief solutions during extreme summer conditions. The company’s profitability was further enhanced by a customer-aligned pricing strategy, digital transformation at the store level, and structural cost optimization.

The most recent analyst rating on (JP:8267) stock is a Sell with a Yen1400.00 price target. To see the full list of analyst forecasts on AEON Co stock, see the JP:8267 Stock Forecast page.