AEON Co Ltd (JP:8267)
:8267
Top Page
AEON Co
(8267)
Select Model
Select Model
Rating:58Neutral
Price Target:
¥1,967.00
▲(2.37% Upside)
Action:DowngradedDate:01/10/26
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 multi-segment ecosystem
AEON’s integrated model—retail anchors, mall leasing and financial services—creates cross-selling and loyalty effects that drive recurring traffic, tenant demand and card usage. This structural ecosystem supports more stable, diversified cash flows and competitive resilience over months to years.
Negative Factors
High financial leverage
Very high leverage and a low equity ratio materially reduce financial flexibility and increase vulnerability to rate rises or sales shocks. Over 2–6 months this raises refinancing and interest-cost risk, limiting AEON’s ability to invest opportunistically or sustain payouts during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified multi-segment ecosystem
AEON’s integrated model—retail anchors, mall leasing and financial services—creates cross-selling and loyalty effects that drive recurring traffic, tenant demand and card usage. This structural ecosystem supports more stable, diversified cash flows and competitive resilience over months to years.
Read all positive factors
AEON Co (8267) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.33T
Dividend Yield0.52%
Average Volume (3M)7.15M
Price to Earnings (P/E)―
Beta (1Y)0.12
Revenue Growth4.92%
EPS Growth1.25%
CountryJP
Employees200,000
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)-5.60
Shares Outstanding2,783,529,000
10 Day Avg. Volume10,578,309
30 Day Avg. Volume7,145,926
Financial Highlights & Ratios
PEG Ratio-3.07
Price to Book (P/B)3.01
Price to Sales (P/S)0.31
P/FCF Ratio31.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,038.90Price Target Upside6.11% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)31.85
Revenue Forecast (FY)¥11.64T
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 Developm...
How the Company Makes Money
AEON makes money primarily through a multi-segment model that combines retail sales, property income, and financial services income. (1) Retailing: The company and its consolidated subsidiaries generate revenue by selling consumer goods—such as fo...
AEON Co Earnings Call Summary
Earnings Call Date:Jan 10, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 09, 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
78
Positive
Balance Sheet
72
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.41T | 10.13T | 9.55T | 9.12T | 8.72T | 8.60T |
| Gross Profit | 3.81T | 3.41T | 3.22T | 3.02T | 2.81T | 2.73T |
| EBITDA | 638.35B | 600.11B | 596.27B | 547.62B | 495.82B | 461.70B |
| Net Income | 33.52B | 28.78B | 44.69B | 21.38B | 6.50B | -71.02B |
Balance Sheet | ||||||
| Total Assets | 14.69T | 13.96T | 13.05T | 12.42T | 11.70T | 11.55T |
| Cash, Cash Equivalents and Short-Term Investments | 2.33T | 2.13T | 1.84T | 1.83T | 1.79T | 1.94T |
| Total Debt | 3.68T | 3.84T | 3.70T | 3.47T | 3.27T | 3.15T |
| Total Liabilities | 12.71T | 11.84T | 10.96T | 10.45T | 9.89T | 9.79T |
| Stockholders Equity | 1.16T | 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 | -478.72B | -525.73B | -332.40B | -341.50B | -345.57B |
| Financing Cash Flow | 0.00 | 792.00M | 988.00M | -868.00M | -4.57B | 28.04B |
AEON Co Technical Analysis
Negative
1921.50
Price Trends
2160.96
Negative
2314.92
Negative
2024.75
Negative
Market Momentum
-80.45
Positive
33.29
Neutral
12.28
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 1921.5 is below the 20-day moving average (MA) of 2036.78, below the 50-day MA of 2160.96, and below the 200-day MA of 2024.75, indicating a bearish trend. The MACD of -80.45 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥194.94B | 7.25 | ― | 2.18% | 6.30% | 27.88% | |
73 Outperform | ¥1.00T | 9.13 | 9.37% | 2.59% | -1.22% | -10.82% | |
66 Neutral | ¥617.35B | 22.09 | 7.58% | 2.58% | 6.52% | -31.67% | |
63 Neutral | ¥215.88B | 17.32 | ― | 3.01% | 18.89% | -34.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ¥5.33T | -128.08 | 2.27% | 0.52% | 4.92% | 1.25% | |
46 Neutral | ¥177.06B | -65.24 | ― | 1.77% | 30.67% | ― |
* Consumer Cyclical Sector Average
JP:8267
AEON Co
1,921.50
670.04
53.54%
JP:3099
Isetan Mitsukoshi Holdings
2,848.00
612.06
27.37%
JP:3086
J FRONT RETAILING Co
2,357.50
504.98
27.26%
JP:3222
United Super Markets Holdings, Inc.
876.00
47.61
5.75%
JP:8273
Izumi Co., Ltd.
1,029.00
-30.58
-2.89%
JP:9956
Valor Holdings Co., Ltd.
3,630.00
1,262.29
53.31%
AEON Co Corporate Events
AEON Extends Same‑Store Growth Streak on Seasonal Demand and Value Strategy
Mar 9, 2026
AEON reported solid February 2026 trading across key formats despite volatile temperatures and some disruption from early‑month snowfall, supported by strong demand around seasonal events such as Setsubun and Valentine’s Day and by pro...
AEON Tightens Grip on Home Center Chain SUNDAY with Completion of Tender Offer
Mar 5, 2026
AEON Co. has completed a tender offer launched in January 2026 to acquire all remaining common shares and specified share options of home improvement retailer SUNDAY Co., Ltd., whose stock is listed on the Tokyo Stock Exchange Standard Market. The...
AEON Sets Post-Split Shareholder Perk Rules, Boosts Lounge Access for Larger Holders
Feb 16, 2026
AEON Co., Ltd. has clarified how its shareholder benefit programs will apply after its previously announced stock split takes effect on September 1, 2025, resolving earlier uncertainty for investors with smaller holdings. Following the split, shar...
Aeon Posts Broad January Sales Gains as New Year Promotions and TSURUHA Deal Bolster Retail Network
Feb 9, 2026
Aeon Co. reported that January 2026 saw solid year-on-year growth across key retail formats, driven by New Year sales campaigns, reinforced food and daily-goods assortments, and expanded limited-volume TOPVALU bonus-pack promotions aimed at suppor...
AEON Finalizes Quarterly Audit Review and Updates TSURUHA Deal Disclosure
Jan 14, 2026
AEON Co. has announced that its independent auditor has completed the quarterly review of its consolidated financial statements for the nine months ended November 30, 2025, prompting formal revisions to previously disclosed materials. The company ...
AEON Boosts Year-End Food Sales and Unveils Major Supermarket Integration in Key Urban Markets
Jan 9, 2026
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 i...
AEON Moves to Take SUNDAY Co. Private via All-Share Tender Offer
Jan 8, 2026
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 ...
AEON Narrows Loss as Profit Climbs on Higher Revenue, Confirms Full-Year Outlook
Jan 8, 2026
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 lo...
AEON Hits Record Revenue and Profit in 3Q FY2025 on TOPVALU and Black Friday Strength
Jan 8, 2026
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,...
AEON Lifts Full-Year Earnings Outlook After Consolidating Tsuruha
Jan 7, 2026
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 ...
AEON to Secure TSURUHA Control via Additional Market Purchases After Tender Offer Shortfall
Jan 7, 2026
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 mu...
AEON Secures Control of TSURUHA via Completed Tender Offer
Jan 7, 2026
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 ...
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.