AEON Co (8267) AI Stock Analysis

• Market Cap: $6.44T
• Dividend Yield: 0.45%
• Average Volume (3M): 7.15M
• Price to Earnings (P/E): 219.1
• Beta (1Y): 0.16
• Revenue Growth: 4.92%
• EPS Growth: 1.25%
• Country: JP
• Employees: 200,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 4.07
• 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: 1.01
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: 11.05
• 1Y Price Target: $1,321.28
• Price Target Upside: -53.27% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,627.00 ▼(-7.09% Downside)

AEON Co's overall stock score is driven by strong technical momentum, despite overbought signals, and a solid financial performance characterized by revenue growth and improved cash flow management. However, the high P/E ratio suggests overvaluation, and the company's high leverage poses a risk to financial stability.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing for reinvestment in growth opportunities and reducing reliance on external financing.

Operational Efficiency

Operational efficiency supports profitability and competitiveness, enabling the company to better withstand market fluctuations and invest in strategic initiatives.

Negative Factors

High Leverage

High leverage increases financial risk, potentially constraining future growth and limiting the company's ability to respond to economic downturns.

Low Net Profit Margins

Low net profit margins indicate pressure on earnings, which could hinder the company's ability to generate sufficient returns and invest in future growth.

Equity Ratio

A low equity ratio implies financial vulnerability, as the company relies heavily on debt, which could impact its ability to finance operations sustainably.

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 key streams, primarily from retail sales across its extensive network of stores. The company profits from the sale of a diverse range of products, including food and beverages, apparel, and home goods. Additionally, AEON earns revenue from its financial services segment, which includes credit card services, insurance, and loans. Significant partnerships with suppliers and local producers help AEON maintain competitive pricing and product availability, further boosting sales. The company also benefits from its loyalty programs, which enhance customer retention and encourage repeat purchases, contributing to consistent revenue growth.

AEON Co Financial Statement Overview

Summary

AEON Co demonstrates revenue growth and improved cash flow management. However, challenges include low net profit margins and high leverage, which could impact financial stability. Improving profitability and reducing debt are key to enhancing long-term financial health.

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	10.25T	10.13T	9.55T	9.12T	8.72T	8.60T
Gross Profit	3.57T	3.75T	3.55T	3.34T	3.11T	3.01T
EBITDA	590.89B	568.87B	565.47B	541.37B	478.43B	396.17B
Net Income	17.09B	28.78B	44.69B	21.38B	6.50B	-71.02B
Balance Sheet
Total Assets	14.14T	13.83T	12.94T	12.42T	11.70T	11.55T
Cash, Cash Equivalents and Short-Term Investments	2.23T	2.13T	1.83T	1.82T	1.79T	1.91T
Total Debt	3.53T	3.89T	3.76T	3.52T	3.32T	3.17T
Total Liabilities	12.15T	11.71T	10.85T	10.37T	9.82T	9.73T
Stockholders Equity	979.69B	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: Positive
• Last Price: 2827.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 2827.5 is above the 20-day moving average (MA) of 2538.10, above the 50-day MA of 2203.32, and above the 200-day MA of 1648.70, indicating a bullish trend. The MACD of 186.48 indicates Negative momentum. The RSI at 74.17 is Negative, neither overbought nor oversold. The STOCH value of 86.59 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3086	76 Outperform	¥591.16B	18.67	7.58%	2.54%	6.52%	-31.67%
8233	71 Outperform	$501.27B	12.08	8.54%	1.78%	0.42%	20.25%
8267	70 Outperform	$6.44T	219.12	2.27%	0.45%	4.92%	1.25%
8242	66 Neutral	€253.72B	17.12	4.97%	2.01%	2.00%	-68.35%
3099	65 Neutral	$844.96B	15.38	9.37%	2.28%	-1.22%	-10.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8273	59 Neutral	¥207.43B	17.41	―	3.02%	18.89%	-34.43%

AEON Co Corporate Events

AEON Co. Reports Strong Interim Financial Growth

AEON Co., Ltd. is a leading Japanese retail and financial services company, primarily operating in the general merchandise store (GMS) and supermarket sectors, known for its extensive network of stores and commitment to community-focused initiatives. In its latest earnings report for the six months ended August 31, 2025, AEON Co. reported a 3.8% increase in operating revenue, reaching 5,189,970 million yen, and a significant rise in operating profit by 19.8% to 118,129 million yen. The company achieved record highs in both operating revenue and profit for the interim period, despite challenges such as global political instability and economic uncertainties. Key financial highlights include a notable improvement in profitability across various business segments, driven by strategic initiatives such as digital transformation, supply chain enhancements, and expansion in the Asian market. AEON’s strategic focus on digital integration and community engagement has been pivotal, with initiatives like the ‘AEON COOL de ACTION 2025’ and the expansion of the ‘Green Beans’ online supermarket service. The company has also made strides in its Health & Wellness and Financial Services segments, contributing to its overall growth. Looking ahead, AEON Co. remains committed to its medium-term management plan, emphasizing digital evolution, supply chain value creation, and sustainability, aiming to enhance its competitive edge and continue its growth trajectory in both domestic and international markets.

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.

AEON Co. Reports Positive September Sales Amid Strategic Initiatives

AEON Co. reported a positive trend in its September 2025 sales, driven by strategic initiatives to adapt to unseasonably hot weather and inflationary pressures. The company enhanced its product lineup for the transitional season and launched initiatives like AEON Oktoberfest to boost sales. AEON Retail’s General Merchandise Store Business saw consistent growth in same-store sales, while the Supermarket Business strengthened its pricing strategy, leading to year-on-year growth. The introduction of WAON POINT in FUJI stores is expected to enhance customer convenience and generate synergies.

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.