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

0 Followers

AEON Kyushu Co., Ltd.

(TSE/TYO:2653)

Select Model

Rating:61Neutral

Price Target:JPY 2,856.00▲(4.12% Upside)

Action:downgraded

Date:11/05/26

AEON Kyushu's overall score of 61 is anchored by its excellent financial stability, specifically its drastically reduced debt and consistent revenue growth. However, a premium valuation multiple and bearish technical momentum limit near-term upside. While operating cash generation is exceptional, ongoing negative free cash flow warrants continued monitoring.

Positive Factors

Revenue GrowthSustained multi-year revenue growth shows that AEON Kyushu has expanded its sales base and operating scale. A larger revenue platform can improve purchasing leverage, support broader customer reach, and provide a foundation for future productivity gains if profitability is maintained.

Negative Factors

Thin ProfitabilityVery thin profitability leaves limited room to absorb higher costs, weaker demand, or pricing pressure without affecting earnings. Even with substantial revenue scale, the modest net income base means small changes in gross margin or expenses could have an outsized effect on financial performance.

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

Market Cap: JPY 93.91B
Dividend Yield: 2.01%
Average Volume (3M): 23.81K
Price to Earnings (P/E): 32.9
Beta (1Y): 0.22
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 by purchasing products from manufacturers, wholesalers, and group-affiliated suppliers and selling those goods to consumers through its retail stores, earning a gross margin on the difference between procurement cost...

AEON Kyushu Co., Ltd. Financial Statement Overview

Summary

AEON Kyushu features a significantly strengthened balance sheet with aggressive deleveraging and robust operating cash flows. However, thin net margins typical of the retail sector and negative free cash flow resulting from heavy capital expenditures temper its overall financial strength.

Income Statement

68Positive

Balance Sheet

88Very Positive

Cash Flow

72Positive

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 Price2743.00

Price Trends

50DMA2749.86Negative

100DMA2774.31Negative

200DMA2788.64Negative

Market Momentum

MACD-1.56Negative

RSI53.33Neutral

STOCH64.93Neutral

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 2743.00 is above the 20-day moving average (MA) of 2706.75, below the 50-day MA of 2749.86, and below the 200-day MA of 2788.64, indicating a neutral trend. The MACD of -1.56 indicates Negative momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 64.93 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	79Outperform	JPY 213.47B	18.54	7.39%	3.68%	6.09%	-0.75%
JP:9956	70Outperform	JPY 192.78B	9.90	―	2.43%	9.04%	14.45%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:2653	61Neutral	JPY 95.26B	32.92	―	2.01%	3.06%	-62.84%
JP:8278	58Neutral	JPY 179.18B	20.73	―	1.45%	-1.47%	119.37%
JP:7512	52Neutral	JPY 115.14B	43.92	―	1.93%	3.06%	-17.63%
JP:3222	50Neutral	JPY 163.58B	-24.26	―	2.03%	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.	2743.00	-12.70	-0.46%
JP:2659	SAN-A CO	3395.00	685.68	25.31%
JP:3222	United Super Markets Holdings, Inc.	789.00	-54.00	-6.41%
JP:7512	Aeon Hokkaido Corporation	828.00	-44.93	-5.15%
JP:8278	Fuji Co., Ltd.	2067.00	82.15	4.14%
JP:9956	Valor Holdings Co., Ltd.	1627.00	116.22	7.69%

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: Nov 05, 2026

AEON Kyushu Co., Ltd. AI Stock Analysis