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AEON

AEON Credit Service (M) BerhadKLSE:AEONCR Stock Report

Market Cap

RM3.6b

7D

1.9%

1Y

47.9%

Updated

27 Oct, 2021

Data

Company Financials +
AEONCR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health3/6
Dividends4/6

AEONCR Overview

AEON Credit Service (M) Berhad engages in the consumer finance business in Malaysia.

Price History & Performance

Summary of all time highs, changes and price drops for AEON Credit Service (M) Berhad
Historical stock prices
Current Share PriceRM13.98
52 Week HighRM9.00
52 Week LowRM14.20
Beta0.83
1 Month Change16.50%
3 Month Change16.89%
1 Year Change47.94%
3 Year Change-7.42%
5 Year Change42.85%
Change since IPO653.41%

Recent News & Updates

Sep 30
AEON Credit Service (M) Berhad (KLSE:AEONCR) Is Increasing Its Dividend To RM0.28

AEON Credit Service (M) Berhad (KLSE:AEONCR) Is Increasing Its Dividend To RM0.28

The board of AEON Credit Service (M) Berhad ( KLSE:AEONCR ) has announced that it will be increasing its dividend by...

Shareholder Returns

AEONCRMY Consumer FinanceMY Market
7D1.9%0.9%-1.0%
1Y47.9%60.5%10.0%

Return vs Industry: AEONCR underperformed the MY Consumer Finance industry which returned 60.5% over the past year.

Return vs Market: AEONCR exceeded the MY Market which returned 10% over the past year.

Price Volatility

Is AEONCR's price volatile compared to industry and market?
AEONCR volatility
AEONCR Beta0.83
Industry Beta1.07
Market Beta1

Stable Share Price: AEONCR is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AEONCR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19963,216Daisuke Maedahttps://www.aeoncredit.com.my

AEON Credit Service (M) Berhad engages in the consumer finance business in Malaysia. It provides easy payment schemes and personal financing schemes based on Islamic principles; and issues payment cards under the Visa and MasterCard brand names. The company also offers prepaid cards and AEON Wallet products, such as AEON Member Plus Visa Card, AEON Member Plus Card (XPRESS+), and AEON Prepaid MasterCard, as well as credit cards.

AEON Credit Service (M) Berhad Fundamentals Summary

How do AEON Credit Service (M) Berhad's earnings and revenue compare to its market cap?
AEONCR fundamental statistics
Market CapRM3.57b
Earnings (TTM)RM384.34m
Revenue (TTM)RM1.10b

9.3x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEONCR income statement (TTM)
RevenueRM1.10b
Cost of RevenueRM495.77m
Gross ProfitRM602.22m
ExpensesRM217.89m
EarningsRM384.34m

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.51
Gross Margin54.85%
Net Profit Margin35.00%
Debt/Equity Ratio383.7%

How did AEONCR perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is AEON Credit Service (M) Berhad undervalued compared to its fair value and its price relative to the market?

9.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AEONCR (MYR13.98) is trading above our estimate of fair value (MYR10.89)

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


Price To Earnings Ratio

PE vs Industry: AEONCR is good value based on its PE Ratio (9.3x) compared to the Asian Consumer Finance industry average (14x).

PE vs Market: AEONCR is good value based on its PE Ratio (9.3x) compared to the MY market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: AEONCR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: AEONCR is overvalued based on its PB Ratio (1.7x) compared to the XA Consumer Finance industry average (1x).


Future Growth

How is AEON Credit Service (M) Berhad forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEONCR's forecast earnings growth (7.2% per year) is above the savings rate (3.6%).

Earnings vs Market: AEONCR's earnings (7.2% per year) are forecast to grow slower than the MY market (10.1% per year).

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

Revenue vs Market: AEONCR's revenue (10% per year) is forecast to grow faster than the MY market (6.3% per year).

High Growth Revenue: AEONCR's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEONCR's Return on Equity is forecast to be low in 3 years time (16.5%).


Past Performance

How has AEON Credit Service (M) Berhad performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEONCR has high quality earnings.

Growing Profit Margin: AEONCR's current net profit margins (35%) are higher than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: AEONCR's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: AEONCR's earnings growth over the past year (72.3%) exceeds its 5-year average (2% per year).

Earnings vs Industry: AEONCR earnings growth over the past year (72.3%) exceeded the Consumer Finance industry 14.5%.


Return on Equity

High ROE: AEONCR's Return on Equity (18.8%) is considered low.


Financial Health

How is AEON Credit Service (M) Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: AEONCR's short term assets (MYR10.0B) exceed its short term liabilities (MYR1.6B).

Long Term Liabilities: AEONCR's short term assets (MYR10.0B) exceed its long term liabilities (MYR6.8B).


Debt to Equity History and Analysis

Debt Level: AEONCR's debt to equity ratio (383.7%) is considered high.

Reducing Debt: AEONCR's debt to equity ratio has reduced from 463.2% to 383.7% over the past 5 years.

Debt Coverage: AEONCR's debt is not well covered by operating cash flow (17.9%).

Interest Coverage: Insufficient data to determine if AEONCR's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is AEON Credit Service (M) Berhad current dividend yield, its reliability and sustainability?

3.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEONCR's dividend (3.47%) is higher than the bottom 25% of dividend payers in the MY market (1.52%).

High Dividend: AEONCR's dividend (3.47%) is low compared to the top 25% of dividend payers in the MY market (4.17%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), AEONCR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEONCR's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Daisuke Maeda (45 yo)

0.33

Tenure

Mr. Daisuke Maeda serves as Managing Director and Executive Director at AEON Credit Service (M) Berhad since June 23, 2021. He served as Vice President of Marketing Department of AEON Thana Sinsap Thailand...


Leadership Team

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


Board Members

Experienced Board: AEONCR's board of directors are considered experienced (3 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 Credit Service (M) Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: AEON Credit Service (M) Berhad
  • Ticker: AEONCR
  • Exchange: KLSE
  • Founded: 1996
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: RM3.569b
  • Shares outstanding: 255.31m
  • Website: https://www.aeoncredit.com.my

Number of Employees


Location

  • AEON Credit Service (M) Berhad
  • UOA Corporate Tower Avenue 10
  • Level 18
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 59200
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 15:50
End of Day Share Price2021/10/27 00:00
Earnings2021/08/31
Annual Earnings2021/02/28


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.