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AEON

Aeon (M) BhdKLSE:AEON Stock Report

Market Cap

RM2.0b

7D

-2.1%

1Y

66.9%

Updated

27 Nov, 2021

Data

Company Financials +
AEON fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health2/6
Dividends2/6

AEON Stock Overview

Aeon Co. (M) Bhd. operates a chain of departmental stores and supermarkets in Malaysia.

Price History & Performance

Summary of all time highs, changes and price drops for Aeon (M) Bhd
Historical stock prices
Current Share PriceRM1.41
52 Week HighRM1.57
52 Week LowRM0.85
Beta0.43
1 Month Change-6.00%
3 Month Change-1.40%
1 Year Change66.86%
3 Year Change-14.55%
5 Year Change-46.39%
Change since IPO424.66%

Recent News & Updates

Jun 04
Is Aeon Co. (M) Bhd. (KLSE:AEON) Trading At A 46% Discount?

Is Aeon Co. (M) Bhd. (KLSE:AEON) Trading At A 46% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Aeon Co. (M) Bhd...

Shareholder Returns

AEONMY Multiline RetailMY Market
7D-2.1%-2.4%-1.6%
1Y66.9%-4.0%-2.6%

Return vs Industry: AEON exceeded the MY Multiline Retail industry which returned -4% over the past year.

Return vs Market: AEON exceeded the MY Market which returned -2.6% over the past year.

Price Volatility

Is AEON's price volatile compared to industry and market?
AEON volatility
AEON Average Weekly Movement3.1%
Multiline Retail Industry Average Movement4.4%
Market Average Movement5.6%
10% most volatile stocks in MY Market12.1%
10% least volatile stocks in MY Market2.6%

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

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

About the Company

FoundedEmployeesCEOWebsite
19848,814Shafie Bin Shamsuddinhttps://www.aeonretail.com.my

Aeon Co. (M) Bhd. operates a chain of departmental stores and supermarkets in Malaysia. The company sells clothing, food, and household products, as well as other merchandise. It also operates shopping centers, pharmacies, shopping malls, and flat price shops.

Aeon (M) Bhd Fundamentals Summary

How do Aeon (M) Bhd's earnings and revenue compare to its market cap?
AEON fundamental statistics
Market CapRM1.98b
Earnings (TTM)RM41.46m
Revenue (TTM)RM3.55b

47.8x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEON income statement (TTM)
RevenueRM3.55b
Cost of RevenueRM2.04b
Gross ProfitRM1.51b
ExpensesRM1.47b
EarningsRM41.46m

Dividends

1.1%

Current Dividend Yield

51%

Payout Ratio

Valuation

Is Aeon (M) Bhd undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AEON (MYR1.41) is trading below our estimate of fair value (MYR3.44)

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


Price To Earnings Ratio

PE vs Industry: AEON is poor value based on its PE Ratio (47.8x) compared to the Asian Multiline Retail industry average (19.1x).

PE vs Market: AEON is poor value based on its PE Ratio (47.8x) compared to the MY market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: AEON is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: AEON is good value based on its PB Ratio (1.2x) compared to the XA Multiline Retail industry average (1.4x).


Future Growth

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

47.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEON's forecast earnings growth (47.1% per year) is above the savings rate (3.6%).

Earnings vs Market: AEON's earnings (47.1% per year) are forecast to grow faster than the MY market (10.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AEON's revenue (7.7% per year) is forecast to grow faster than the MY market (6.8% per year).

High Growth Revenue: AEON's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEON's Return on Equity is forecast to be low in 3 years time (6.3%).


Past Performance

How has Aeon (M) Bhd performed over the past 5 years?

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEON has high quality earnings.

Growing Profit Margin: AEON's current net profit margins (1.2%) are lower than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: AEON's earnings have declined by 8.5% per year over the past 5 years.

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

Earnings vs Industry: AEON had negative earnings growth (-35.4%) over the past year, making it difficult to compare to the Multiline Retail industry average (14.5%).


Return on Equity

High ROE: AEON's Return on Equity (2.5%) is considered low.


Financial Health

How is Aeon (M) Bhd's financial position?


Financial Position Analysis

Short Term Liabilities: AEON's short term assets (MYR790.1M) do not cover its short term liabilities (MYR2.0B).

Long Term Liabilities: AEON's short term assets (MYR790.1M) do not cover its long term liabilities (MYR2.1B).


Debt to Equity History and Analysis

Debt Level: AEON's net debt to equity ratio (52.2%) is considered high.

Reducing Debt: AEON's debt to equity ratio has reduced from 67.4% to 54% over the past 5 years.

Debt Coverage: AEON's debt is well covered by operating cash flow (39.8%).

Interest Coverage: AEON's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is Aeon (M) Bhd current dividend yield, its reliability and sustainability?

1.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEON's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.61%).

High Dividend: AEON's dividend (1.06%) is low compared to the top 25% of dividend payers in the MY market (4.57%).


Stability and Growth of Payments

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

Growing Dividend: AEON's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.8%), AEON's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEON's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Shafie Bin Shamsuddin (52 yo)

1.83yrs

Tenure

RM3,003,305

Compensation

Encik Shafie Bin Shamsuddin serves as Managing Director and Director at AEON CO. (M) BHD since January 1, 2020. Mr. Shamsuddin serves as Managing Director at AEON BiG (M) Sdn Bhd.since July 7, 2020. He se...


CEO Compensation Analysis

Compensation vs Market: Shafie's total compensation ($USD707.41K) is above average for companies of similar size in the MY market ($USD211.73K).

Compensation vs Earnings: Insufficient data to compare Shafie's compensation with company performance.


Leadership Team

Experienced Management: AEON's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: AEON's board of directors are considered experienced (3.3 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 Co. (M) Bhd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Aeon Co. (M) Bhd.
  • Ticker: AEON
  • Exchange: KLSE
  • Founded: 1984
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: RM1.980b
  • Shares outstanding: 1.40b
  • Website: https://www.aeonretail.com.my

Number of Employees


Location

  • Aeon Co. (M) Bhd.
  • AEON Taman Maluri Shopping Centre
  • 3rd Floor
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 55100
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 11:01
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.