AEON Financial Service Co (8570) AI Stock Analysis

• Market Cap: $310.15B
• Dividend Yield: 3.68%
• Average Volume (3M): 816.25K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.62
• Revenue Growth: 8.94%
• EPS Growth: -40.48%
• Country: JP
• Employees: 19,313
• Sector: Financial
• Sector Strength: 69
• Industry: Financial - Credit Services
• EPS (TTM): 20.19
• Shares Outstanding: 216,010,130
• 10 Day Avg. Volume: 788,190
• 30 Day Avg. Volume: 816,253
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 16.71
• Enterprise Value/Revenue: 11.39
• Enterprise Value/Gross Profit: 13.57
• Enterprise Value/Ebitda: 58.12
• 1Y Price Target: $1,147.28
• Price Target Upside: -20.16% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,574.00 ▲(9.53% Upside)

AEON Financial Service Co's stock score is bolstered by strong technical indicators and robust financial performance. However, high leverage and a high P/E ratio temper the overall valuation. The stock shows positive momentum, but potential risks related to debt levels remain.

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 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	513.33B	418.92B	389.08B	398.20B	392.45B
Gross Profit	463.71B	418.92B	341.03B	349.47B	345.24B
EBITDA	125.10B	106.73B	0.00	0.00	0.00
Net Income	19.53B	20.90B	30.68B	30.21B	17.69B
Balance Sheet
Total Assets	7.76T	6.95T	6.66T	6.28T	6.12T
Cash, Cash Equivalents and Short-Term Investments	1.79T	1.43T	804.69B	697.63B	666.74B
Total Debt	6.49T	5.85T	1.18T	1.06T	1.01T
Total Liabilities	7.17T	6.37T	6.12T	5.77T	5.65T
Stockholders Equity	465.02B	458.40B	434.81B	424.25B	401.50B
Cash Flow
Free Cash Flow	40.96B	-55.77B	71.27B	47.23B	26.38B
Operating Cash Flow	43.58B	-50.78B	105.14B	76.29B	62.28B
Investing Cash Flow	-537.28B	-113.70B	11.80B	-33.56B	-94.56B
Financing Cash Flow	651.76B	-18.19B	-14.56B	-13.51B	-14.35B

AEON Financial Service Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1437.00
• 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:8570, the sentiment is Positive. The current price of 1437 is above the 20-day moving average (MA) of 1343.77, above the 50-day MA of 1318.36, and above the 200-day MA of 1252.24, indicating a bullish trend. The MACD of 29.41 indicates Negative momentum. The RSI at 71.91 is Negative, neither overbought nor oversold. The STOCH value of 83.84 is Negative, 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
8570	72 Outperform	$310.15B	22.29	3.09%	3.68%	8.94%	-40.48%
Sector *	62 Neutral	C$15.22B	6.65	19.04%	5.62%	32.98%	-40.14%
AK5	―	€4.21B	12.93	8.40%	―	―	―
CSASF	―	$4.36B	7.10	9.28%	5.00%	―	―
AAU	―	€1.34B	9.27	11.42%	―	―	―
8584	75 Outperform	¥144.62B	8.52		4.31%	3.24%	-21.75%
8425	72 Outperform	¥338.88B	7.11		3.93%	19.11%	8.89%

AEON Financial Service Co Corporate Events

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.

AEON Financial Service Delays Q1 Financial Results Announcement

AEON Financial Service Co., Ltd. has postponed the announcement of its first quarter financial results for the fiscal year ending February 2026, originally scheduled for July 10, 2025. This delay is due to ongoing discussions regarding inappropriate accounting transactions discovered prior to acquiring equity in Post and Telecommunication Finance Company Limited in Vietnam. The company is also considering new business plans in Vietnam, which are expected to take time. The new announcement date is set for July 31, 2025, and the company is assessing the impact on its business performance.

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 Transfers Majority Shares of AEON Allianz Life to Meiji Yasuda

AEON Financial Service Co., Ltd. has completed the transfer of 85.1% of its shares in AEON Allianz Life Insurance Co., Ltd. to Meiji Yasuda Life Insurance Company. This strategic move is part of AEON’s effort to refocus its business portfolio and enhance corporate value by concentrating resources in core growth areas and fostering partnerships with Meiji Yasuda and AEON Co., Ltd. The transfer aims to leverage the strengths of the involved companies to promote health and regional revitalization, marking a significant shift in AEON’s life insurance business strategy.

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 Challenges Equity Transfer Agreement Due to Accounting Irregularities

AEON Financial Service Co., Ltd. has discovered inappropriate accounting transactions related to its acquisition of Post and Telecommunication Finance Company Limited (PTF) in Vietnam, leading to the assertion that the equity transfer agreement with SeABank is invalid. The company is seeking legal recourse to invalidate the agreement, recover expenses, and pursue compensation, while continuing its commitment to improving customer lives in Vietnam.

The most recent analyst rating on (JP:8570) stock is a Hold with a Yen1290.00 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 Sets Price for 18th Stock Options

AEON Financial Service Co., Ltd. has announced the issuance price for its 18th stock options, set at 96,900 yen per option, as part of stock-linked compensation for its directors. This move is aimed at incentivizing directors by aligning their compensation with the company’s stock performance, potentially impacting the company’s governance and stakeholder interests.

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. Strengthens Ties with Parent Company AEON Co.

AEON Financial Service Co., Ltd. announced its relationship with its parent company, AEON Co., Ltd., emphasizing its role in the AEON Group’s financial services sector. The company maintains independent management while collaborating closely with AEON, which holds a significant portion of its voting rights. The announcement highlights the company’s commitment to sustainable growth and protecting minority shareholders through independent governance structures and advisory committees.

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 Announces Stock-Linked Compensation Plan

AEON Financial Service Co., Ltd. has resolved to issue stock options as part of a stock-linked compensation plan for its directors, aiming to enhance motivation and corporate value over the medium to long term. The issuance will involve up to 234 stock options, with specific details to be announced later, and is designed to align directors’ interests with the company’s performance.

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.