AEON Kyushu Co., Ltd. (2653) AI Stock Analysis

AEON Kyushu Co., Ltd.

(TSE/TYO:2653)

Select Model

Rating:52Neutral

Price Target:JPY 2,814.00▲(3.38% Upside)

Action:reiterated

Date:04/10/26

AEON Kyushu's strong balance sheet and consistent profitability are positive fundamentals, but the stock's high valuation and bearish technical indicators weigh on the score. The company's financial stability provides a floor, yet investors should monitor cash flow generation and valuation multiples.

Positive Factors

Revenue growth and scale expansionSustained multi-year revenue growth increases purchasing scale and sourcing leverage within AEON Group, supporting procurement savings and fixed-cost absorption. Larger sales volume strengthens the company’s ability to invest in store productivity and long-term initiatives, making retail operations more resilient.

Negative Factors

Thin and uneven profitabilityPersistently low net margins leave limited buffer against cost inflation, supplier disruptions, or price competition. Thin, uneven profitability constrains the company’s ability to build retained earnings, limits discretionary investment, and makes long-term returns sensitive to small adverse cost or sales shocks.

AEON Kyushu Co., Ltd. (2653) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 93.19B
Dividend Yield: 2.02%
Average Volume (3M): 23.50K
Price to Earnings (P/E): 32.7
Beta (1Y): 0.24
Revenue Growth: 3.06%
EPS Growth: -62.84%
Country: Japan
Employees: 5,431
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Department Stores

AEON Kyushu Co., Ltd. Business Overview & Revenue Model

Company Description

Aeon Kyushu Co., Ltd. is a leading Japanese retailer, managing a diverse portfolio of retail outlets across the nation. Its extensive operations include grocery supermarkets, lifestyle product stores, and department stores featuring clothing, food, h...

How the Company Makes Money

AEON Kyushu makes money primarily through retail sales to consumers in its physical stores, generating revenue from the sale of groceries (including fresh foods), packaged foods, and everyday household items. Earnings are driven by (1) merchandise sa...

AEON Kyushu Co., Ltd. Financial Statement Overview

Summary

AEON Kyushu's balance sheet is a strength with low debt (D/E 0.18) and growing equity, providing financial flexibility. However, profitability is modest (net margin ~1%) and free cash flow is negative due to high capex. Overall financial health is solid but with room for improvement.

Income Statement

62Positive

Balance Sheet

85Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	557.87B	547.14B	531.62B	510.32B	484.46B	481.20B
Gross Profit	154.26B	152.41B	149.43B	145.28B	137.59B	134.73B
EBITDA	17.30B	18.22B	17.51B	16.91B	14.95B	12.34B
Net Income	2.85B	5.97B	6.03B	7.03B	4.67B	2.77B
Balance Sheet
Total Assets	223.58B	206.43B	181.23B	172.13B	158.61B	158.25B
Cash, Cash Equivalents and Short-Term Investments	8.94B	12.56B	7.64B	5.50B	5.50B	5.87B
Total Debt	60.21B	47.60B	36.53B	29.79B	30.40B	37.58B
Total Liabilities	163.68B	145.86B	125.98B	121.84B	112.32B	116.20B
Stockholders Equity	60.02B	60.43B	55.19B	50.18B	46.29B	42.04B
Cash Flow
Free Cash Flow	0	-3.75B	-2.82B	2.06B	7.33B	-7.12B
Operating Cash Flow	0	23.70B	14.43B	14.62B	14.53B	-777.00M
Investing Cash Flow	0	-28.76B	-17.35B	-11.63B	-7.38B	-4.04B
Financing Cash Flow	0	9.98B	5.06B	-3.82B	-7.51B	172.00M

AEON Kyushu Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price2722.00

Price Trends

50DMA2761.07Negative

100DMA2778.76Negative

200DMA2794.05Negative

Market Momentum

MACD-24.01Negative

RSI50.82Neutral

STOCH67.71Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2653, the sentiment is Neutral. The current price of 2722.00 is above the 20-day moving average (MA) of 2704.80, below the 50-day MA of 2761.07, and below the 200-day MA of 2794.05, indicating a neutral trend. The MACD of -24.01 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 67.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2653.

AEON Kyushu Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:2653 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2659	77Outperform	JPY 201.21B	17.36	7.39%	3.91%	6.09%	-0.75%
JP:9956	68Neutral	JPY 199.29B	9.45	―	3.50%	8.92%	33.42%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:8278	54Neutral	JPY 172.94B	20.12	―	1.50%	-1.47%	119.37%
JP:7512	52Neutral	JPY 111.81B	42.81	―	1.99%	3.06%	-17.63%
JP:2653	52Neutral	JPY 93.73B	32.67	―	2.02%	3.06%	-62.84%
JP:3222	49Neutral	JPY 155.08B	-23.31	―	2.11%	10.71%	-523.13%

* Consumer Cyclical Sector Average

Performance Comparison

JP:2653 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2653	AEON Kyushu Co., Ltd.	2722.00	-140.63	-4.91%
JP:2659	SAN-A CO	3180.00	582.04	22.40%
JP:3222	United Super Markets Holdings, Inc.	758.00	-42.75	-5.34%
JP:7512	Aeon Hokkaido Corporation	807.00	-47.25	-5.53%
JP:8278	Fuji Co., Ltd.	2006.00	43.83	2.23%
JP:9956	Valor Holdings Co., Ltd.	1701.00	316.85	22.89%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026

AEON Kyushu Co., Ltd. AI Stock Analysis