AEON Co (8267) AI Stock Analysis

• Market Cap: ¥6.62T
• Dividend Yield: 0.52%
• Average Volume (3M): 7.15M
• Price to Earnings (P/E): 225.3
• Beta (1Y): 0.12
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,325.34
• Price Target Upside: -45.19% 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 ▲(8.64% Upside)

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. is a leading retail and financial services company based in Japan, primarily operating in the sectors of supermarket chains, shopping malls, and specialty stores. Founded in 1758, AEON has evolved into one of the largest retail groups in Asia, offering a diverse range of products including groceries, clothing, household goods, and electronics. The company also has a significant presence in the financial services sector, providing credit card and insurance services, as well as operating logistics and distribution networks to support its retail operations.

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

AEON Co demonstrates a positive growth trajectory with increasing revenues and improving cash flow management. Despite strong operational cash flow, the company faces challenges with low net profit margins and high leverage, which could impact financial stability. Continued focus on improving profitability and reducing debt levels could enhance 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	10.33T	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: Positive
• Last Price: 2418.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2418 is below the 20-day moving average (MA) of 2576.53, above the 50-day MA of 2387.54, and above the 200-day MA of 1735.84, indicating a neutral trend. The MACD of -23.33 indicates Positive momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 39.77 is Neutral, 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
8233	71 Outperform	¥501.12B	12.08	8.54%	1.82%	0.42%	20.25%
8267	70 Outperform	¥6.62T	225.30	2.27%	0.52%	4.92%	1.25%
8242	66 Neutral	€252.38B	17.03	4.97%	2.02%	2.00%	-68.35%
3099	65 Neutral	¥832.99B	15.16	9.37%	2.54%	-1.22%	-10.82%
3086	64 Neutral	¥578.33B	18.26	7.58%	2.59%	6.52%	-31.67%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8273	59 Neutral	¥212.50B	17.84	―	3.01%	18.89%	-34.43%

AEON Co Corporate Events

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.

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.

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.

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.