AEON Financial Service Co (8570) AI Stock Analysis

• Market Cap: ¥379.22B
• Dividend Yield: 3.04%
• Average Volume (3M): 507.78K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.63
• Revenue Growth: 10.31%
• EPS Growth: -40.64%
• Country: JP
• Employees: 19,313
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 26.41
• Shares Outstanding: 216,010,130
• 10 Day Avg. Volume: 523,320
• 30 Day Avg. Volume: 507,783
• PEG Ratio: -2.04
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 6.37
• 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: ¥1,431.74
• Price Target Upside: -18.51% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,908.00 ▲(8.59% Upside)

AEON Financial Service Co's stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and improved cash flow management. Technical analysis indicates strong momentum, though caution is advised due to overbought signals. The valuation suggests the stock is relatively expensive, but the dividend yield offers some compensation. Overall, the stock presents a balanced risk-reward profile.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial stability and competitiveness.

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing for strategic investments and debt reduction, strengthening long-term business health.

Operational Efficiency

Improved operational efficiency through higher margins suggests effective cost management and scalability, boosting long-term profitability.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting the ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Profit Margin Pressure

Declining profit margins can erode profitability, indicating challenges in cost control or pricing power, impacting long-term earnings potential.

Equity Ratio Concerns

A low equity ratio indicates limited financial buffer, increasing risk during economic stress and potentially affecting creditworthiness.

AEON Financial Service Co Business Overview & Revenue Model

Company Description

AEON Financial Service Co., Ltd., through its subsidiaries, provides various financial services in Japan. The company operates through five segments: Retail, Solutions, China Area, Mekong Area, and Malay Area. It engages in processing, banking, short-term insurance, bank agency, ATM, credit guarantee, acquiring, Internet, housing and other loans, credit management, property leases, installment sales, life and non-life insurance agency, life insurance sales, loan purchases, credit card purchase contracts, collection and payment agency, guarantee, credit card, and electronic money businesses. The company is also involved in the management, collection, and purchase of specified monetary claims, and backup servicing business. AEON Financial Service Co., Ltd. was founded in 1981 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AEON Financial Service Co generates revenue through multiple streams, primarily from interest income on personal loans and credit card balances. The company charges interest on the loans it provides, which can include personal loans, auto loans, and other consumer financing products. Additionally, AEON Financial earns fees from credit card transactions and annual membership fees from cardholders. The company also generates income from insurance premiums collected for various insurance products it offers, such as life and non-life insurance. Significant partnerships with retailers and service providers enhance its ability to attract customers and drive transaction volumes. Moreover, AEON's strong brand presence and customer loyalty within the AEON Group ecosystem contribute to its steady revenue growth.

AEON Financial Service Co Financial Statement Overview

Summary

AEON Financial Service Co exhibits strong revenue growth and improved operational efficiency, though it faces challenges with high leverage. The company has improved its cash flow position significantly, signaling better cash management. While profitability margins have faced slight pressure, the overall financial health remains stable, with potential risks associated with high debt levels.

Income Statement

AEON Financial Service Co has demonstrated robust revenue growth with a 22.5% increase over the past year, driven by strong gross profit margins of 90.3%. However, net profit margins have decreased slightly to 3.8% from the previous year's 5.0%. EBIT and EBITDA margins have improved significantly to 18.2% and 24.4%, respectively, indicating better operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 13.95, reflecting significant leverage, which is a potential risk. However, the return on equity is stable at 4.2%, and the equity ratio of 6.0% suggests a moderate level of financial stability.

Cash Flow

The company has turned around its cash flow situation with a positive free cash flow of 40.96 billion yen, a significant improvement from the negative free cash flow in the previous period. The operating cash flow to net income ratio of 2.23 indicates a strong cash generation ability relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	252.38B	491.19B	448.00B	412.63B	419.61B	415.47B
Gross Profit	230.34B	451.76B	418.92B	389.07B	398.18B	392.44B
EBITDA	54.67B	80.99B	81.64B	91.90B	92.18B	70.75B
Net Income	10.15B	19.53B	20.90B	30.68B	30.21B	17.69B
Balance Sheet
Total Assets	8.22T	7.76T	6.95T	6.66T	6.28T	6.12T
Cash, Cash Equivalents and Short-Term Investments	1.92T	1.79T	1.43T	842.62B	738.78B	705.74B
Total Debt	6.80T	6.49T	5.85T	1.18T	5.27T	5.06T
Total Liabilities	7.64T	7.17T	6.37T	6.12T	5.77T	5.65T
Stockholders Equity	453.79B	465.02B	458.40B	434.81B	424.25B	401.50B
Cash Flow
Free Cash Flow	0.00	40.96B	-15.34B	71.27B	47.23B	26.38B
Operating Cash Flow	0.00	43.58B	-10.71B	105.14B	76.29B	62.28B
Investing Cash Flow	0.00	-158.48B	-113.70B	11.80B	-33.56B	-94.56B
Financing Cash Flow	0.00	666.13B	122.98B	-14.56B	-13.51B	-14.35B

AEON Financial Service Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1757.00
• 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:8570, the sentiment is Positive. The current price of 1757 is above the 20-day moving average (MA) of 1745.22, above the 50-day MA of 1624.96, and above the 200-day MA of 1413.92, indicating a bullish trend. The MACD of 35.60 indicates Positive momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 54.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8570.

AEON Financial Service Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8425	72 Outperform	¥413.56B	9.06	―	3.65%	21.22%	-2.77%
8572	69 Neutral	€839.55B	15.77	7.91%	3.48%	6.65%	-4.35%
8253	68 Neutral	$688.80B	10.14	9.13%	2.79%	20.96%	22.58%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8584	67 Neutral	¥196.11B	9.06	―	4.42%	2.13%	-25.62%
8570	66 Neutral	¥379.22B	23.23	3.05%	3.04%	10.31%	-40.64%
8515	60 Neutral	¥285.87B	10.11	13.08%	1.25%	15.37%	26.00%

AEON Financial Service Co Corporate Events

AEON Financial Service Posts Higher Nine-Month Profit and Confirms Dividend Outlook

AEON Financial Service reported consolidated operating income of ¥421.6 billion for the nine months ended November 30, 2025, up 8.4% year on year, with operating profit rising 10.0% to ¥41.7 billion and profit attributable to owners of parent increasing 5.0% to ¥14.4 billion, while net income per share improved to ¥66.92. Total assets expanded to ¥8.34 trillion and net assets to ¥607.9 billion, though the equity ratio edged down to 5.6%, and the company maintained its dividend plan with an unchanged annual forecast of ¥53 per share for fiscal 2025; during the period it also removed AEON Allianz Life Insurance Co., Ltd. from the scope of consolidation and adopted a new accounting standard, signaling a modestly growing but still highly leveraged balance sheet for stakeholders.

The most recent analyst rating on (JP:8570) stock is a Hold with a Yen1908.00 price target. To see the full list of analyst forecasts on AEON Financial Service Co stock, see the JP:8570 Stock Forecast page.

AEON Financial Service Cancels Planned Simplified Share Exchange for Subsidiary

AEON Financial Service has cancelled its previously announced plan to make its consolidated subsidiary, A･C･S Credit Management Co., Ltd., a wholly owned subsidiary through a simplified share exchange, following a resolution by its Board of Directors. The decision comes as the company reassesses its overall business portfolio and the scheme of the share exchange to better allocate management resources within the group and support strategic investments in its core payment operations and overseas growth areas, and the company expects no impact on its consolidated financial results from this cancellation.

The most recent analyst rating on (JP:8570) stock is a Hold with a Yen1908.00 price target. To see the full list of analyst forecasts on AEON Financial Service Co stock, see the JP:8570 Stock Forecast page.

AEON Financial Service to Absorb Subsidiary’s Data Analysis Business

AEON Financial Service Co., Ltd. has announced a strategic move to absorb the data analysis consulting business of its subsidiary, A･C･S Credit Management Co., Ltd., through an absorption-type company split effective March 1, 2026. This decision is part of AEON’s broader strategy to optimize its business portfolio, ensuring better allocation of resources and supporting its growth objectives in the payment services sector.

The most recent analyst rating on (JP:8570) stock is a Sell with a Yen1250.00 price target. To see the full list of analyst forecasts on AEON Financial Service Co stock, see the JP:8570 Stock Forecast page.

AEON Financial Service to Fully Acquire Subsidiary Through Share Exchange

AEON Financial Service Co., Ltd. announced its decision to make its consolidated subsidiary, A･C･S Credit Management Co., Ltd., a wholly owned subsidiary through a simplified share exchange. This move is part of AEON’s strategy to optimize management resources and support its growth objectives in the financial services sector, potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (JP:8570) stock is a Sell with a Yen1250.00 price target. To see the full list of analyst forecasts on AEON Financial Service Co stock, see the JP:8570 Stock Forecast page.

AEON Financial Service Announces Absorption-Type Merger with Subsidiary

AEON Financial Service Co., Ltd. announced its decision to absorb its wholly-owned subsidiary, AFS Corporation Co., Ltd., through an absorption-type merger effective March 1, 2026. This strategic move aims to streamline the organizational structure and improve governance while maintaining the independence of AEON Bank, Ltd. The merger is part of AEON’s broader strategy to optimize its business portfolio, ensuring safe, secure, and cost-effective services for customers, and is expected to enhance the company’s operational efficiency and market positioning.

The most recent analyst rating on (JP:8570) stock is a Hold with a Yen1557.00 price target. To see the full list of analyst forecasts on AEON Financial Service Co stock, see the JP:8570 Stock Forecast page.