AEON Financial Service (TSE:8570) - Share price, News & Analysis

8570 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	4/6
Dividends	4/6

8570 Stock Overview

AEON Financial Service Co., Ltd., through its subsidiaries, provides various financial services in Japan, Thailand, Malaysia, and other Asian countries.

Rewards

Trading at 55.3% below our estimate of its fair value

Earnings are forecast to grow 7.01% per year

Earnings grew by 70.8% over the past year

Risk Analysis

Unstable dividend track record

AEON Financial Service Competitors

Amazon.com

NasdaqGS:AMZN

US$1.2t

Rakuten Group

TSE:4755

JP¥1.3t

Chiba Bank

TSE:8331

JP¥512.3b

Price History & Performance

Summary of all time highs, changes and price drops for AEON Financial Service
Historical stock prices
Current Share Price	JP¥1,172.00
52 Week High	JP¥1,583.00
52 Week Low	JP¥1,055.00
Beta	0.96
1 Month Change	-1.18%
3 Month Change	-8.72%
1 Year Change	-10.12%
3 Year Change	-33.71%
5 Year Change	-49.00%
Change since IPO	219.02%

Shareholder Returns

	8570	JP Consumer Finance	JP Market
7D	-2.7%	-2.0%	-0.02%
1Y	-10.1%	-9.8%	-3.6%

Return vs Industry: 8570 underperformed the JP Consumer Finance industry which returned -5.2% over the past year.

Return vs Market: 8570 underperformed the JP Market which returned -2.5% over the past year.

Price Volatility

Is 8570's price volatile compared to industry and market?
8570 volatility
8570 Average Weekly Movement	4.7%
Consumer Finance Industry Average Movement	5.2%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.1%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 8570 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 8570's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	n/a	Kenji Fujita	https://www.aeonfinancial.co.jp

AEON Financial Service Co., Ltd., through its subsidiaries, provides various financial services in Japan, Thailand, Malaysia, and other Asian countries. It operates through five segments: Retail, Solutions, China Area, Mekong Area, Malay Area. The company engages in processing, banking, short-term insurance, bank agency, ATM, credit guarantee, acquiring, Internet, housing and other loans, credit management, property leases, installment sales, hire purchase contracts, life and non-life insurance agency, life insurance sales, loan purchases, credit card purchase contracts, collection and payment agency, guarantee, credit card, and electronic money businesses.

AEON Financial Service Fundamentals Summary

How do AEON Financial Service's earnings and revenue compare to its market cap?
8570 fundamental statistics
Market Cap	JP¥252.96b
Earnings (TTM)	JP¥30.21b
Revenue (TTM)	JP¥452.33b

8.4x

P/E Ratio

0.6x

P/S Ratio

Is 8570 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
8570 income statement (TTM)
Revenue	JP¥452.33b
Cost of Revenue	JP¥0
Gross Profit	JP¥452.33b
Other Expenses	JP¥422.11b
Earnings	JP¥30.21b

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	139.98
Gross Margin	100.00%
Net Profit Margin	6.68%
Debt/Equity Ratio	207.4%

How did 8570 perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

33%

Payout Ratio

Valuation

Is AEON Financial Service undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8570 (¥1172) is trading below our estimate of fair value (¥2621.38)

Significantly Below Fair Value: 8570 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 8570 is good value based on its PE Ratio (8.4x) compared to the JP Consumer Finance industry average (11.2x).

PE vs Market: 8570 is good value based on its PE Ratio (8.4x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: 8570 is poor value based on its PEG Ratio (1.2x)

Price to Book Ratio

PB vs Industry: 8570 is good value based on its PB Ratio (0.6x) compared to the JP Consumer Finance industry average (1.1x).

Future Growth

How is AEON Financial Service forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8570's forecast earnings growth (7% per year) is above the savings rate (0.02%).

Earnings vs Market: 8570's earnings (7% per year) are forecast to grow slower than the JP market (8.8% per year).

High Growth Earnings: 8570's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8570's revenue (4.4% per year) is forecast to grow faster than the JP market (4.2% per year).

High Growth Revenue: 8570's revenue (4.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 8570's Return on Equity is forecast to be low in 3 years time (7.8%).

Past Performance

How has AEON Financial Service performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-7.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8570 has high quality earnings.

Growing Profit Margin: 8570's current net profit margins (6.7%) are higher than last year (3.8%).

Past Earnings Growth Analysis

Earnings Trend: 8570's earnings have declined by 7.7% per year over the past 5 years.

Accelerating Growth: 8570's earnings growth over the past year (70.8%) exceeds its 5-year average (-7.7% per year).

Earnings vs Industry: 8570 earnings growth over the past year (70.8%) exceeded the Consumer Finance industry 3.6%.

Return on Equity

High ROE: 8570's Return on Equity (8.1%) is considered low.

Financial Health

How is AEON Financial Service's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

4/6

Financial Health Score 4/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: 8570's Assets to Equity ratio (12.3x) is moderate.

Allowance for Bad Loans: Insufficient data to determine if 8570 has a sufficient allowance for bad loans.

Low Risk Liabilities: 72% of 8570's liabilities are made up of primarily low risk sources of funding.

Loan Level: 8570 has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: 8570's Loans to Deposits ratio (104%) is appropriate.

Level of Bad Loans: Insufficient data to determine if 8570 has an appropriate level of bad loans.

Dividend

What is AEON Financial Service current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.27%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8570's dividend (4.27%) is higher than the bottom 25% of dividend payers in the JP market (1.61%).

High Dividend: 8570's dividend (4.27%) is in the top 25% of dividend payers in the JP market (3.61%)

Stability and Growth of Payments

Stable Dividend: 8570's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8570's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.9%), 8570's dividend payments are well covered by earnings.

Future Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

1.3yrs

Average management tenure

CEO

Kenji Fujita (52 yo)

2yrs

Tenure

Mr. Kenji Fujita serves as President, Chief Executive Officer and Director at AEON Financial Service Co., Ltd. since May 2020. He had been the Managing Director of AEON Thana Sinsap (Thailand) Public Compa...

Leadership Team

Experienced Management: 8570's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: 8570's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/02/28
Annual Earnings	2022/02/28