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AEON Financial Service Co
(8570)
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Rating:64Neutral
Price Target:
¥1,652.00
▲(4.56% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily constrained by financial risk factors: structurally high leverage, modest ROE, and inconsistent cash generation despite strong 2026 revenue acceleration and solid operating profitability. Technical indicators are neutral-to-mixed with the stock below its 200-day average, while valuation is a positive offset due to a moderate P/E and a solid dividend yield.
Positive Factors
AEON Group distribution
AEON Financial benefits from captive customer traffic and distribution through the AEON Group retail network. This structural channel lowers customer acquisition costs, sustains transaction volumes and cross-sell opportunities, supporting steady loan originations and merchant fees over time.
Negative Factors
High leverage
Markedly elevated debt-to-equity (around 12x in some years) creates structural funding and interest-rate sensitivity. High leverage constrains financial flexibility, amplifies downside in credit cycles, and forces reliance on stable funding markets to maintain lending and dividend policies over months to years.
Read all positive and negative factors
Positive Factors
Negative Factors
AEON Group distribution
AEON Financial benefits from captive customer traffic and distribution through the AEON Group retail network. This structural channel lowers customer acquisition costs, sustains transaction volumes and cross-sell opportunities, supporting steady loan originations and merchant fees over time.
Read all positive factors
AEON Financial Service Co (8570) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥352.78B
Dividend Yield3.24%
Average Volume (3M)507.78K
Price to Earnings (P/E)13.7
Beta (1Y)0.70
Revenue Growth8.42%
EPS Growth44.38%
CountryJP
Employees14,942
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)97.71
Shares Outstanding216,010,130
10 Day Avg. Volume523,320
30 Day Avg. Volume507,783
Financial Highlights & Ratios
PEG Ratio2.25
Price to Book (P/B)0.80
Price to Sales (P/S)0.69
P/FCF Ratio1.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,422.00Price Target Upside-10.00% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)89.57
Revenue Forecast (FY)¥615.56B
AEON Financial Service Co Business Overview & Revenue Model
Company Description
AEON Financial Service Co., Ltd., through its subsidiaries, provides various financial services in Japan. It operates in five segments: Retail, Solutions, China Area, Mekong Area, and Malaysia Area. The company engages in banking and insurance bus...
How the Company Makes Money
AEON Financial Service makes money mainly by providing consumer credit and payment-related services. Key revenue streams include: (1) finance income from lending—interest and fees earned on revolving credit card balances, card loans/cash advances,...
AEON Financial Service Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 549.95B | 513.33B | 469.81B | 435.65B | 459.16B |
| Gross Profit | 484.91B | 428.44B | 388.31B | 355.50B | 377.99B |
| EBITDA | 90.81B | 105.42B | 105.27B | 110.85B | 108.78B |
| Net Income | 21.09B | 15.64B | 20.90B | 30.68B | 30.21B |
Balance Sheet | |||||
| Total Assets | 8.31T | 7.76T | 6.95T | 6.66T | 6.28T |
| Cash, Cash Equivalents and Short-Term Investments | 2.04T | 1.79T | 1.43T | 842.62B | 738.78B |
| Total Debt | 6.89T | 1.28T | 1.29T | 1.20T | 5.05T |
| Total Liabilities | 7.69T | 7.17T | 6.37T | 6.12T | 5.77T |
| Stockholders Equity | 476.84B | 465.02B | 458.40B | 434.81B | 424.25B |
Cash Flow | |||||
| Free Cash Flow | 346.55B | 40.96B | 0.00 | 71.27B | 47.23B |
| Operating Cash Flow | 350.95B | 43.58B | 0.00 | 105.14B | 76.29B |
| Investing Cash Flow | -718.88B | -158.48B | -113.70B | 11.80B | -33.56B |
| Financing Cash Flow | 218.11B | 666.13B | 122.98B | -14.56B | -13.51B |
AEON Financial Service Co Technical Analysis
Positive
1580.00
Price Trends
1526.62
Positive
1543.19
Positive
1578.30
Positive
Market Momentum
27.38
Negative
66.14
Neutral
88.89
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 1580 is above the 20-day moving average (MA) of 1578.90, above the 50-day MA of 1526.62, and above the 200-day MA of 1578.30, indicating a bullish trend. The MACD of 27.38 indicates Negative momentum. The RSI at 66.14 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥757.61B | 11.72 | 11.50% | 3.48% | 6.57% | 22.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | ¥352.78B | 13.73 | 5.51% | 3.35% | 8.42% | 44.38% | |
64 Neutral | ¥686.54B | 9.95 | 8.64% | 2.83% | 10.50% | 8.52% | |
62 Neutral | ¥532.74B | 18.02 | 11.68% | 4.38% | 7.53% | 6.62% | |
56 Neutral | ¥169.12B | 10.46 | ― | 4.42% | 1.92% | -26.04% |
* Financial Sector Average
JP:8570
AEON Financial Service Co
1,634.50
209.93
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38.47
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-5.06%
JP:8584
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3,790.00
-211.54
-5.29%
AEON Financial Service Co Corporate Events
AEON Financial Service Doubles Quarterly Profit but Warns of Full-Year Earnings Decline
Jul 9, 2026
AEON Financial Service reported strong results for the three months ended May 31, 2026, with operating revenues rising 12.7% year on year to ¥153.9 billion and operating profit climbing 34.5% to ¥17.5 billion. Profit attributable to owne...
AEON Financial Service Sets Terms for 19th Stock-Linked Director Compensation Plan
Jun 1, 2026
AEON Financial Service has set the issuance price for its 19th stock options, a stock-linked compensation plan for internal directors, at 110,200 yen per option, with no cash payment required by recipients. The options, covering 7,800 common share...
AEON Financial Service Wins Approval for Digital Lending Push and Governance Shift
May 29, 2026
AEON Financial Service has secured shareholder approval to partially amend its Articles of Incorporation, paving the way for registration as a money lending business operator and the launch of a digital lending business. The revisions also update ...
AEON Financial Service Outlines Governance and Independence Under AEON Group Control
May 29, 2026
AEON Financial Service detailed its relationship with controlling shareholder AEON Co., Ltd., which holds 49.99% of its voting rights and positions the company as the group’s core financial services platform across credit, lending, and banki...
AEON Financial Service Approves 20th Stock-Linked Compensation Plan for Directors
May 22, 2026
AEON Financial Service has approved the issuance of its 20th series of stock options as stock-linked compensation for directors, designed to align management incentives with medium- to long-term performance and corporate value growth. Up to 174 st...
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.