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AEON Co
(8267)
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Rating:50Neutral
Price Target:
¥1,181.00
▼(-15.37% Downside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by high leverage and a weak technical setup (trading below major moving averages with negative momentum). Improving revenue/profit recovery and better recent cash generation provide some support, but a high P/E with only a modest dividend yield limits valuation appeal.
Positive Factors
Revenue and earnings recovery
Steady revenue growth indicates expanding scale and improving demand across AEON’s retail operations. The recovery from a 2021 loss to positive earnings also suggests the business has regained operating traction, supporting continued improvement over the next several quarters.
Negative Factors
Heavy leverage
Debt several times equity materially limits financial flexibility and can amplify earnings volatility when operating conditions weaken. Elevated leverage may also constrain investment and increase the importance of consistent cash generation, making the balance sheet a durable risk over the next two to six months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings recovery
Steady revenue growth indicates expanding scale and improving demand across AEON’s retail operations. The recovery from a 2021 loss to positive earnings also suggests the business has regained operating traction, supporting continued improvement over the next several quarters.
Read all positive factors
AEON Co (8267) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.32T
Dividend Yield1.13%
Average Volume (3M)12.01M
Price to Earnings (P/E)39.0
Beta (1Y)0.15
Revenue Growth10.69%
EPS Growth179.63%
CountryJP
Employees179,230
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)34.59
Shares Outstanding2,783,529,000
10 Day Avg. Volume16,491,240
30 Day Avg. Volume12,010,726
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)4.94
Price to Sales (P/S)0.56
P/FCF Ratio10.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,315.00Price Target Upside-5.77% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)24.61
Revenue Forecast (FY)¥11.90T
AEON Co Business Overview & Revenue Model
Company Description
Aeon Co., Ltd. is a prominent retail group conducting business both within Japan and across international territories. The company's multifaceted operations are categorized into distinct divisions: General Merchandise Stores (GMS), Supermarkets (S...
How the Company Makes Money
AEON makes money primarily by selling consumer goods through its retail formats and by earning income from operating and managing shopping centers and related services. Key revenue streams include: (1) Retail merchandise sales: The largest and mos...
AEON Co Earnings Call Summary
Earnings Call Date:Jan 10, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jan 08, 2027
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While significant progress was noted in operating revenue and retail sector growth, challenges persist in the Financial Services and International segments. Positive achievements in energy transition and sales growth were counterbalanced by profit declines in several areas.Positive Updates
Record-High Operating Revenue
The company achieved a record-high consolidated operating revenue of JPY 7,025.8 billion for the initial 9 months of the fiscal year.
Negative Updates
Financial Services Business Decline
Operating profit for the Financial Services Business declined by JPY 14.7 billion from the same period last year, affected by increased bad debt-related expenses.
Read all updates
Q3-2024 Updates
Positive
Negative
Record-High Operating Revenue
The company achieved a record-high consolidated operating revenue of JPY 7,025.8 billion for the initial 9 months of the fiscal year.
Read all positive updates
Company Guidance
During Aeon's third-quarter earnings call for fiscal year 2024, the company reported a record-high consolidated operating revenue of JPY 7,025.8 billion and an operating profit of JPY 142.8 billion for the first nine months. The Retail Business was highlighted as the primary driver, contributing significantly to the group's performance with an operating profit of JPY 64.1 billion, representing 45% of the total. Aeon's strategic initiatives, such as enhancing the product appeal of the Topvalu private brand, restructuring its profit framework, and implementing strict cost controls, resulted in improved profitability. Despite challenges in the Financial Services Business, with a decline attributed to increased bad debt allowances, operating profit for the third quarter was revised upwards to JPY 240 billion, driven by the strong performance of the GMS, Discount Store, and Supermarket sectors. The company also achieved a net income of JPY 18.3 billion, marking the first positive result in five fiscal years. Looking forward, Aeon plans to continue focusing on profit structure reforms and key initiatives outlined in the midterm business plan, aiming to surpass previous results and achieve higher operational standards by the fiscal year-end.AEON Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
44
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Feb 2026 | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.09T | 10.72T | 10.13T | 9.55T | 9.12T | 8.72T |
| Gross Profit | 4.01T | 3.55T | 3.41T | 3.22T | 3.02T | 2.81T |
| EBITDA | 674.46B | 641.33B | 568.87B | 565.47B | 541.37B | 478.43B |
| Net Income | 93.06B | 72.68B | 28.78B | 44.69B | 21.38B | 6.50B |
Balance Sheet | ||||||
| Total Assets | 15.59T | 15.37T | 13.96T | 13.05T | 12.42T | 11.70T |
| Cash, Cash Equivalents and Short-Term Investments | 2.49T | 2.64T | 2.13T | 1.84T | 1.83T | 1.79T |
| Total Debt | 4.06T | 4.45T | 3.84T | 3.70T | 3.47T | 3.27T |
| Total Liabilities | 13.41T | 13.17T | 11.84T | 10.96T | 10.45T | 9.89T |
| Stockholders Equity | 1.21T | 1.22T | 1.05T | 1.06T | 993.75B | 958.72B |
Cash Flow | ||||||
| Free Cash Flow | 598.05B | 598.05B | 100.26B | -27.75B | 62.86B | -148.07B |
| Operating Cash Flow | 1.13T | 1.13T | 566.22B | 368.49B | 433.71B | 204.45B |
| Investing Cash Flow | -1.17T | -1.17T | -478.72B | -525.73B | -332.40B | -341.50B |
| Financing Cash Flow | 116.77B | 116.77B | 792.00M | 988.00M | -868.00M | -4.57B |
AEON Co Technical Analysis
Negative
1395.50
Price Trends
1298.88
Negative
1330.06
Negative
1644.43
Negative
Market Momentum
-47.31
Negative
42.40
Neutral
37.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8267, the sentiment is Negative. The current price of 1395.5 is above the 20-day moving average (MA) of 1200.60, above the 50-day MA of 1298.88, and below the 200-day MA of 1644.43, indicating a bearish trend. The MACD of -47.31 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 37.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8267.
AEON Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥1.29T | 15.77 | 13.31% | 2.28% | 0.06% | 43.97% | |
68 Neutral | ¥201.07B | 9.30 | ― | 3.59% | 8.92% | 33.42% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | ¥700.40B | 25.51 | 6.63% | 2.03% | -2.97% | -8.55% | |
57 Neutral | ¥200.20B | 11.36 | ― | 3.26% | 0.92% | 46.70% | |
50 Neutral | ¥3.32T | 38.97 | 6.82% | 1.28% | 10.69% | 179.63% | |
49 Neutral | ¥161.92B | -23.68 | ― | 2.09% | 10.71% | -523.13% |
* Consumer Cyclical Sector Average
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AEON Co Corporate Events
AEON Posts Resilient September Sales as Events and Private Brands Offset Weather Drag
Oct 13, 2026
AEON reported solid operating trends for September 2026 across its major consolidated companies, despite prolonged rainfall and cooler temperatures that pressured vegetable supply and customer traffic in some regions. The group responded by adjust...
AEON Streamlines Group Ownership with Targeted Treasury Share Acquisition
Oct 13, 2026
AEON Co., Ltd. has moved to acquire 1,343,016 of its own common shares currently held by subsidiaries AEON Delight and AEON Pet, in line with Japanese corporate law requiring subsidiaries to dispose of parent company stock within a reasonable peri...
AEON Details Q2 FY2027 Performance, Segment Data and Investment Trends
Oct 13, 2026
AEON Co. released supplementary materials for its second-quarter results for the fiscal year ending February 28, 2027, detailing consolidated financial highlights, expense breakdowns, extraordinary income and losses, and interest-bearing debt. The...
AEON Posts Strong Half-Year Results and Confirms Dividend, Full-Year Outlook
Oct 13, 2026
AEON Co., Ltd. reported strong results for the six months ended August 31, 2026, with operating revenue rising 13.8% year on year to ¥5.9 trillion and operating profit up 10.7% to ¥130.7 billion. Profit attributable to owners of the pare...
AEON Maps Out Interim Results and Food Retail Turnaround Plan
Oct 13, 2026
AEON Co., Ltd., a leading Japanese retailer with a strong focus on food and general merchandise, is working to strengthen its core supermarket and related retail operations. The group continues to pursue structural reforms to support long-term pro...
AEON Posts Solid August Sales, Steps Up Safety and Experiential Retail Push
Sep 10, 2026
AEON reported solid August performance across its major consolidated companies despite stark regional weather differences, with extreme heat in western Japan and cooler conditions in the east shaping demand patterns. The group strengthened initiat...
AEON Balances Disaster Impact With Summer-Driven Sales and Asia Expansion in July
Aug 10, 2026
AEON reported mixed July sales trends across its major consolidated businesses, with same-store performance generally holding above year-earlier levels despite disruptions from the 2026 Kumamoto Earthquake and serious accidents at AEON Mall Kumamo...
AEON Suspends Kumamoto Mall Operations After Earthquake and Deadly Explosion
Jul 30, 2026
AEON Co., Ltd., a major Japanese retail group that operates AEON Mall Kumamoto and hundreds of specialty stores, has suspended operations at the Kumamoto mall following a severe earthquake and subsequent explosion. The company’s role as a co...
AEON Assesses Financial Impact After Kumamoto Earthquake and Mall Explosion
Jul 30, 2026
AEON Co., Ltd. has reported that the 2026 Kumamoto Earthquake, which struck on July 28, was followed by an explosion at AEON Mall Kumamoto, resulting in fatalities, injuries, and damage to some AEON Group stores and facilities. The company has ext...
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.