DB:JUS1

Stock Analysis Report

Executive Summary

Aeon Co., Ltd. operates in the retail industry in Japan and internationally.

Rewards

Earnings are forecast to grow 14.43% per year

Risk Analysis

Has a high level of debt

Dividend of 1.56% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.2%) are lower than last year (0.3%)



Snowflake Analysis

Second-rate dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Aeon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JUS1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

JUS1

1.4%

DE Consumer Retailing

1.7%

DE Market


1 Year Return

6.7%

JUS1

1.3%

DE Consumer Retailing

15.0%

DE Market

Return vs Industry: JUS1 exceeded the German Consumer Retailing industry which returned 1.3% over the past year.

Return vs Market: JUS1 underperformed the German Market which returned 15% over the past year.


Shareholder returns

JUS1IndustryMarket
7 Day0%1.4%1.7%
30 Day2.1%1.5%0.8%
90 Day3.2%0.7%3.7%
1 Year8.6%6.7%5.3%1.3%18.5%15.0%
3 Year49.1%41.7%5.5%-5.0%17.1%6.9%
5 Year119.6%100.6%9.4%-7.3%24.3%7.3%

Price Volatility Vs. Market

How volatile is Aeon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Aeon undervalued compared to its fair value and its price relative to the market?

116.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JUS1 (€19.3) is trading above our estimate of fair value (€4.72)

Significantly Below Fair Value: JUS1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JUS1 is poor value based on its PE Ratio (116.9x) compared to the Consumer Retailing industry average (21x).

PE vs Market: JUS1 is poor value based on its PE Ratio (116.9x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: JUS1 is poor value based on its PEG Ratio (8.1x)


Price to Book Ratio

PB vs Industry: JUS1 is overvalued based on its PB Ratio (1.9x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Aeon forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JUS1's forecast earnings growth (14.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: JUS1's earnings (14.4% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: JUS1's earnings are forecast to grow, but not significantly.

Revenue vs Market: JUS1's revenue (2.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: JUS1's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JUS1's Return on Equity is forecast to be low in 3 years time (3.4%).


Next Steps

Past Performance

How has Aeon performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JUS1 has a large one-off loss of ¥51.3B impacting its November 30 2019 financial results.

Growing Profit Margin: JUS1's current net profit margins (0.2%) are lower than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: JUS1's earnings have declined by -9.8% per year over the past 5 years.

Accelerating Growth: JUS1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JUS1 had negative earnings growth (-43.6%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-0.7%).


Return on Equity

High ROE: JUS1's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aeon's financial position?


Financial Position Analysis

Short Term Liabilities: JUS1's short term assets (¥6,610.7B) do not cover its short term liabilities (¥6,722.9B).

Long Term Liabilities: JUS1's short term assets (¥6,610.7B) exceed its long term liabilities (¥2,518.8B).


Debt to Equity History and Analysis

Debt Level: JUS1's debt to equity ratio (145.1%) is considered high.

Reducing Debt: JUS1's debt to equity ratio has increased from 110.4% to 145.1% over the past 5 years.

Debt Coverage: JUS1's debt is well covered by operating cash flow (23.3%).

Interest Coverage: JUS1's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet

Inventory Level: JUS1 has a high level of physical assets or inventory.

Debt Coverage by Assets: JUS1's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is Aeon's current dividend yield, its reliability and sustainability?

1.56%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Aeon before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.6%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: JUS1's dividend (1.56%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: JUS1's dividend (1.56%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: JUS1's dividends per share have been stable in the past 10 years.

Growing Dividend: JUS1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (176.8%), JUS1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Motoya Okada (68yo)

7.9yrs

Tenure

0

Mr. Motoya Okada has been the Chief Executive Officer and the President of Kasumi Co., Ltd. since May 2003 and its Advisor since May 2004. Mr. Okada joined Kasumi Co., Ltd. in March 1976. Mr. Okada has bee ...


Leadership Team

NamePositionTenureCompensationOwnership
Motoya Okada
Group CEO7.9yrsno data0.30% ¥48.7m
Hiroyuki Watanabe
Chief Officer of Human Resources1.4yrsno data0.00012% ¥19.6k
Kahori Miyake
Chief Officer CSR & Communication and Executive Officer0yrsno data0.00024% ¥39.3k
Akinori Yamashita
Executive VP3.9yrsno data0.0024% ¥389.4k
Soichi Okazaki
EVP, Representative Executive Officer and Chief Officer of GMS Business & International Business6.9yrsno data0.0023% ¥369.8k
Manabu Oshima
Chief In-Charge of Group Personnel8.9yrsno datano data
Eiji Shibata
Chief Officer of Merchandising & Logistics and Executive Officer5.9yrsno data0.0015% ¥252.0k
Yuki Habu
Chief Officer of China Business & Executive Officer0yrsno data0.00095% ¥155.4k
Shinya Wako
Executive VP5.8yrsno data0.0014% ¥234.0k
Akio Yoshida
Executive VP3.9yrsno data0.0011% ¥175.1k

5.8yrs

Average Tenure

61yo

Average Age

Experienced Management: JUS1's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Motoya Okada
Group CEO7.9yrsno data0.30% ¥48.7m
Akinori Yamashita
Executive VP3.9yrsno data0.0024% ¥389.4k
Toru Nagashima
Outside Director3.8yrsno datano data
Takashi Tsukamoto
Outside Director2.8yrsno datano data
Yukako Uchinaga
Outside Director6.8yrsno datano data
Hiroshi Yokoo
Chairman of the Board5.8yrsno data0.0020% ¥330.5k
Kotaro Ohno
Outside Director2.8yrsno datano data
Peter Child
Outside Director1.8yrsno datano data

3.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: JUS1's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aeon Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aeon Co., Ltd.
  • Ticker: JUS1
  • Exchange: DB
  • Founded: 1758
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: JP¥1.947t
  • Listing Market Cap: JP¥16.361b
  • Shares outstanding: 841.75m
  • Website: https://www.aeon.info

Number of Employees


Location

  • Aeon Co., Ltd.
  • 1-5-1 Nakase
  • Mihama-ku
  • Chiba
  • Chiba
  • 261-8515
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AONN.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 1990
8267TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
AONN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
JUS1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Aeon Co., Ltd. operates in the retail industry in Japan and internationally. It operates through GMS, SM, Health & Wellness, Financial Services, Shopping Center Development, Services & Specialty Store, and International segments. The GMS segment operates general merchandise stores, as well as specialty stores, which sell packaged lunches and household dishes. The SM segment operates supermarkets, discount stores, convenience stores, and small-scale supermarkets. The Health & Wellness segment operates drugstores, pharmacies, etc. The Financial Services segment provides credit card and banking services. The Shopping Center Development segment develops and leases shopping centers. The Services & Specialty Store segment offers facility management, amusement, and food services; and operates specialty stores selling family casual apparel, women’s apparel, footwear, etc. The International segment operates retail stores in the ASEAN region and China. Aeon Co., Ltd. was founded in 1758 and is headquartered in Chiba, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:43
End of Day Share Price2020/02/14 00:00
Earnings2019/11/30
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.