AEON Financial Service Co (8570) AI Stock Analysis

• Market Cap: $327.10B
• Dividend Yield: 3.5%
• Average Volume (3M): 507.78K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.68
• Revenue Growth: 10.31%
• EPS Growth: -40.64%
• Country: JP
• Employees: 19,313
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 20.32
• 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): 0.51
• P/FCF Ratio: 6.37
• Enterprise Value/Market Cap: 16.28
• Enterprise Value/Revenue: 19.61
• Enterprise Value/Gross Profit: 23.73
• Enterprise Value/Ebitda: 99.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥1,557.00 ▲(2.94% Upside)

AEON Financial Service Co's overall stock score is driven by strong financial performance, particularly in revenue growth and cash flow management, despite high leverage risks. Technical analysis indicates bearish momentum, while valuation metrics suggest the stock may be overvalued, though the dividend yield offers some compensation.

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 primarily through interest income from its credit card and loan services, which are widely used across Japan and other Asian countries. The company also earns fees from its insurance products and various financial services, including transaction fees from credit card usage, late payment fees, and commissions from insurance policies. Additionally, AEON Financial Service benefits from its strategic partnerships with retail and commercial entities within the AEON Group, enhancing its customer base and providing cross-selling opportunities. The company's banking operations further contribute to its revenue through deposit-related income and other traditional banking services.

AEON Financial Service Co Financial Statement Overview

Summary

AEON Financial Service Co shows strong revenue growth and improved operational efficiency, although it faces challenges with high leverage. Improved cash flow signals better cash management, but high debt levels pose a risk.

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	271.48B	513.33B	469.81B	412.63B	459.16B	477.86B
Gross Profit	224.38B	463.71B	421.06B	389.07B	410.43B	430.65B
EBITDA	53.66B	125.10B	106.73B	109.90B	108.25B	89.87B
Net Income	10.12B	19.53B	20.90B	30.68B	30.21B	17.69B
Balance Sheet
Total Assets	7.89T	7.76T	6.95T	6.66T	6.28T	6.12T
Cash, Cash Equivalents and Short-Term Investments	1.71T	1.79T	1.43T	842.62B	738.78B	705.74B
Total Debt	6.48T	6.49T	5.85T	1.18T	5.27T	5.06T
Total Liabilities	7.31T	7.17T	6.37T	6.12T	5.77T	5.65T
Stockholders Equity	445.55B	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: 1512.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1512.5 is above the 20-day moving average (MA) of 1482.77, above the 50-day MA of 1496.25, and above the 200-day MA of 1318.89, indicating a bullish trend. The MACD of 8.56 indicates Negative momentum. The RSI at 55.86 is Neutral, neither overbought nor oversold. The STOCH value of 48.73 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	¥347.86B	7.29	―	4.12%	21.22%	-2.77%
8572	69 Neutral	¥706.54B	13.43	8.40%	3.79%	7.25%	-0.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8584	67 Neutral	¥179.15B	8.19	―	4.76%	2.13%	-25.62%
8253	67 Neutral	$591.42B	8.76	9.55%	3.17%	14.32%	-3.45%
8570	63 Neutral	$327.10B	23.08	3.05%	3.50%	10.31%	-40.64%
8515	55 Neutral	€220.08B	9.56	11.42%	1.54%	15.95%	2.03%

AEON Financial Service Co Corporate Events

AEON Financial Service Reports Mixed Financial Results for H1 2025

AEON Financial Service Co., Ltd. reported its financial results for the six months ending August 31, 2025, showing an increase in operating revenue by 8.7% to 278,160 million yen, while the profit attributable to owners of the parent decreased by 14.4% to 8,745 million yen. The company also announced a dividend per share of 25.00 yen for the interim period, with no amendments to the most recently published dividend forecast, indicating a stable dividend policy despite fluctuations in profit metrics.

The most recent analyst rating on (JP:8570) stock is a Buy with a Yen1574.00 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 Reports Extraordinary Loss from Share Transfer

AEON Financial Service Co., Ltd. has announced an extraordinary loss due to the transfer of a significant portion of shares in its subsidiary, AEON Allianz Life Insurance Co., Ltd., to Meiji Yasuda Life Insurance Company. This transaction, which resulted in a loss of ¥10,095 million on a non-consolidated basis and ¥9,539 million on a consolidated basis, has been recorded for the second quarter of the fiscal year ending February 2026. Despite this loss, the company has confirmed that its earnings forecast for the fiscal year remains unchanged, as the impact of the share transfer had already been accounted for in previous forecasts.

The most recent analyst rating on (JP:8570) stock is a Buy with a Yen1574.00 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 Co., Ltd. Announces Strategic Merger with ACS Lease Co., Ltd.

AEON Financial Service Co., Ltd. announced a merger with its wholly-owned subsidiary, ACS Lease Co., Ltd., effective February 1, 2026. This strategic move is part of AEON’s efforts to optimize its business portfolio and allocate resources more effectively, enhancing its core payment services and supporting overseas expansion. The merger, being a simplified and short-form process, will not affect the company’s operational structure or require shareholder approval, minimizing disruption while positioning AEON for future growth.

The most recent analyst rating on (JP:8570) stock is a Buy with a Yen1574.00 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 Adjusts Share Transfer Price for Subsidiary

AEON Financial Service Co., Ltd. announced a change in the transfer price for the majority shares of its subsidiary, AEON Allianz Life Insurance Co., Ltd., to Meiji Yasuda Life Insurance Company. The transfer price was adjusted from 49.4 billion yen to 48.5 billion yen due to factors in the share transfer agreement. This adjustment is expected to have a minor impact on the company’s consolidated financial results for the fiscal year ending February 2026, with no changes to the previously released financial forecasts.

The most recent analyst rating on (JP:8570) stock is a Buy with a Yen1574.00 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 Resolves PTF Loan-Loss Discrepancies with SeABank

AEON Financial Service Co., Ltd. has resolved discrepancies related to loan-loss provisions at Post and Telecommunication Finance Company Limited (PTF) through a cooperative agreement with SeABank, the former shareholder of PTF. Both parties have committed to supporting PTF’s business growth, with AEON reaffirming its long-term commitment to Vietnam’s economic development and withdrawing its reconsideration of the transaction. This resolution allows AEON to focus on sustainable management and development of PTF, leveraging its ownership to contribute positively to Vietnam’s economy.

The most recent analyst rating on (JP:8570) stock is a Sell with a Yen1150.00 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 Revises Financial Statements Post PTF Acquisition

AEON Financial Service Co., Ltd. announced the submission of an amended securities report and corrections to its financial statements for the past fiscal year, following the acquisition of an equity interest in Post and Telecommunication Finance Company Limited (PTF) from SeABank. The amendments were necessary due to the discovery of understated allowances for doubtful accounts and the need to reevaluate PTF’s assets, resulting in a retroactive revision of the financial statements. The impact of these corrections is confined to the previous fiscal year, with no expected effects on the current fiscal year’s performance or future outlook.

The most recent analyst rating on (JP:8570) stock is a Sell with a Yen1150.00 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 Amends Financial Reports Following Internal Control Deficiencies

AEON Financial Service Co., Ltd. has submitted amended reports for the previous fiscal year’s securities and financial statements due to identified deficiencies in internal control over financial reporting. The company discovered inappropriate accounting practices at its newly acquired subsidiary, Post and Telecommunication Finance Company Limited (PTF), which necessitated a reevaluation of PTF’s assets and a retroactive revision of related accounting practices. AEON Financial Service is taking steps to strengthen its internal controls and prevent future occurrences by enhancing risk evaluation processes and improving financial reporting procedures.

The most recent analyst rating on (JP:8570) stock is a Hold with a Yen1100.00 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 Corrections to Fiscal Year 2025 Financial Results

AEON Financial Service Co., Ltd. announced corrections to its financial results for the fiscal year ended February 2025, initially disclosed in April 2025. The adjustments involve numerical data corrections and are detailed in an amended securities report. These corrections may impact stakeholders’ understanding of the company’s financial performance and its market positioning.

The most recent analyst rating on (JP:8570) stock is a Sell with a Yen1150.00 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 Co. Reports Decline in Profit Amid Rising Income

AEON Financial Service Co., Ltd. reported a decrease in profit for the three months ended May 31, 2025, with operating income rising by 6.7% but operating profit and ordinary profit declining by 14.8% and 13.3%, respectively. The company’s financial position showed a slight decrease in net assets and total equity ratio compared to the previous fiscal year, indicating challenges in maintaining profitability despite increased operating income.

The most recent analyst rating on (JP:8570) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on AEON Financial Service Co stock, see the JP:8570 Stock Forecast page.