AEON Financial Service Co (8570) AI Stock Analysis

• Market Cap: $276.70B
• Dividend Yield: 4.37%
• Average Volume (3M): 759.38K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.63
• Revenue Growth: 9.27%
• EPS Growth: -6.56%
• Country: JP
• Employees: 19,313
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Credit Services
• EPS (TTM): 26.70
• Shares Outstanding: 216,010,130
• 10 Day Avg. Volume: 544,120
• 30 Day Avg. Volume: 759,376
• PEG Ratio: 5.95
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.92
• 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: $1,124.74
• Price Target Upside: -12.27% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ¥1,404.00 ▲(9.52%Upside)

AEON Financial Service Co demonstrates strong financial performance, with notable revenue growth and improved cash management, but faces challenges due to high leverage. The technical indicators suggest short-term upward momentum, though caution is warranted due to overbought signals. The stock's valuation is attractive, offering a good P/E ratio and a strong dividend yield, enhancing its appeal to investors seeking value and income.

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. makes money through a diverse range of financial products and services. The company's primary revenue streams include interest income from credit card loans, personal loans, and installment sales. Additionally, the company earns fees and commissions from its credit card operations, insurance products, and other financial services. AEON Financial Service Co. also benefits from its partnerships with retailers and other businesses within the AEON Group, allowing it to cross-sell financial products and services to a larger customer base. The company's extensive network of branches and digital platforms further enhances its revenue potential by reaching a wide audience and providing seamless financial solutions.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
455.01B	513.33B	418.92B	389.08B	398.20B	392.45B
	Gross Profit
382.02B	463.71B	418.92B	341.03B	349.47B	345.24B
	EBIT
41.24B	93.38B	34.79B	14.76B	16.48B	30.89B
	EBITDA
89.17B	125.10B	106.73B	0.00	0.00	0.00
	Net Income Common Stockholders
23.38B	19.53B	20.90B	30.68B	30.21B	17.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.23T	1.79T	1.43T	804.69B	697.63B	666.74B
	Total Assets
7.00T	7.76T	6.95T	6.66T	6.28T	6.12T
	Total Debt
5.85T	6.49T	5.85T	1.18T	1.06T	1.01T
	Net Debt
5.31T	5.57T	-665.56B	339.48B	317.10B	300.65B
	Total Liabilities
6.42T	7.17T	6.37T	6.12T	5.77T	5.65T
	Stockholders Equity
457.60B	465.02B	458.40B	434.81B	424.25B	401.50B
Cash Flow		Free Cash Flow
33.02B	40.96B	-55.77B	71.27B	47.23B	26.38B
	Operating Cash Flow
33.02B	43.58B	-50.78B	105.14B	76.29B	62.28B
	Investing Cash Flow
0.00	-537.28B	-113.70B	11.80B	-33.56B	-94.56B
	Financing Cash Flow
0.00	651.76B	-18.19B	-14.56B	-13.51B	-14.35B

AEON Financial Service Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1282.00
• 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 1282 is above the 20-day moving average (MA) of 1281.85, above the 50-day MA of 1232.52, and above the 200-day MA of 1238.24, indicating a bullish trend. The MACD of 8.71 indicates Positive momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 67.79 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
8570	73 Outperform	$276.70B	14.17	4.16%	4.37%	9.27%	-6.56%
Sector *	65 Neutral	$12.76B	9.91	7.89%	78.91%	12.06%	-7.95%
AK5		€3.92B	19.79	4.89%	3.48%	―	―
CSASF		$4.29B	7.10	9.28%	0.03%	―	―
AAU		€1.18B	8.44	10.80%	0.26%	―	―
8425	75 Outperform	¥302.38B	6.97		5.01%	5.99%	6.60%
8584	75 Outperform	¥134.75B	7.26		4.63%	3.24%	-21.76%

AEON Financial Service Co Corporate Events

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.

AEON Financial Service Issues 18th Stock Options for Director Compensation

AEON Financial Service Co., Ltd. announced the issuance of its 18th stock options for stock-linked compensation aimed at aligning directors’ compensation with the company’s performance and stock value. This initiative is designed to motivate directors by sharing the benefits and risks of stock price fluctuations, thus enhancing corporate value over the medium to long term.

AEON Financial Service Announces Consistent Dividend Payout

AEON Financial Service Co., Ltd. has announced a resolution to pay dividends of surplus with a record date of February 28, 2025. The dividend per share is set at 28 yen, maintaining consistency with the previous fiscal year, and the total amount of dividends is 6,044 million yen. This decision underscores the company’s policy of returning profits to shareholders and supporting business growth.

AEON Financial Service Announces Corrections to Financial Results

AEON Financial Service Co., Ltd. announced corrections to its financial results for the fiscal year ending February 28, 2025. The revisions pertain to the consolidated balance sheet, specifically involving transfers between items in the liabilities section, which do not affect other financial statements. These adjustments reflect the company’s commitment to transparency and accuracy in its financial reporting, ensuring stakeholders are informed of any changes.

AEON Financial Service Announces Leadership Change

AEON Financial Service Co., Ltd. announced a change in its leadership, with Tomoharu Fukayama set to become the new President and CEO, effective May 23, 2025. This strategic leadership change is expected to enhance the company’s governance and strengthen its business operations, particularly in Vietnam, where Fukayama has been actively involved in business promotion.

AEON Financial Service Co. Reports Fiscal Year 2025 Results and Strategic Subsidiary Changes

AEON Financial Service Co., Ltd. reported its financial results for the fiscal year ended February 28, 2025, showing a 9.8% increase in operating revenue and a 22.8% rise in operating profit compared to the previous year. Despite these gains, the profit attributable to owners of the parent decreased by 6.6%. The company also announced changes in its subsidiaries, with the inclusion of Post and Telecommunication Finance Co., Ltd. and the exclusion of AEON Product Finance Co., Ltd., indicating a strategic shift in its business operations.