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AEON

Aeon (M) BhdKLSE:AEON Stock Report

Market Cap

RM2.1b

7D

0%

1Y

109.9%

Updated

17 Oct, 2021

Data

Company Financials +
AEON fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health2/6
Dividends2/6

AEON 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 PriceRM1.49
52 Week HighRM0.67
52 Week LowRM1.57
Beta0.43
1 Month Change-0.67%
3 Month Change14.62%
1 Year Change109.86%
3 Year Change-13.87%
5 Year Change-47.54%
Change since IPO454.43%

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
7D0%1.0%2.1%
1Y109.9%1.2%8.9%

Return vs Industry: AEON exceeded the MY Multiline Retail industry which returned 1.2% over the past year.

Return vs Market: AEON exceeded the MY Market which returned 8.9% over the past year.

Price Volatility

Is AEON's price volatile compared to industry and market?
AEON volatility
AEON Beta0.43
Industry Beta0.67
Market Beta1

Stable Share Price: AEON is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AEON's weekly volatility (4%) 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 CapRM2.09b
Earnings (TTM)RM76.49m
Revenue (TTM)RM3.79b

27.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEON income statement (TTM)
RevenueRM3.79b
Cost of RevenueRM2.20b
Gross ProfitRM1.60b
ExpensesRM1.52b
EarningsRM76.49m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.054
Gross Margin42.07%
Net Profit Margin2.02%
Debt/Equity Ratio40.7%

How did AEON perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

28%

Payout Ratio

Valuation

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

40.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AEON (MYR1.49) is trading below our estimate of fair value (MYR2.5)

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 (27.4x) compared to the Asian Multiline Retail industry average (19x).

PE vs Market: AEON is poor value based on its PE Ratio (27.4x) compared to the MY market (16.4x).


Price to Earnings Growth Ratio

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


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 6 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEON's forecast earnings growth (21.3% per year) is above the savings rate (3.6%).

Earnings vs Market: AEON's earnings (21.3% per year) are forecast to grow faster than the MY market (11.1% per year).

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

Revenue vs Market: AEON's revenue (5.6% per year) is forecast to grow slower than the MY market (6.5% per year).

High Growth Revenue: AEON's revenue (5.6% 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 (6.6%).


Past Performance

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

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEON has high quality earnings.

Growing Profit Margin: AEON's current net profit margins (2%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: AEON's earnings have declined by 7.2% per year over the past 5 years.

Accelerating Growth: AEON's earnings growth over the past year (38.8%) exceeds its 5-year average (-7.2% per year).

Earnings vs Industry: AEON earnings growth over the past year (38.8%) exceeded the Multiline Retail industry 13.7%.


Return on Equity

High ROE: AEON's Return on Equity (4.5%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: AEON's short term assets (MYR766.8M) do not cover its short term liabilities (MYR2.1B).

Long Term Liabilities: AEON's short term assets (MYR766.8M) do not cover its long term liabilities (MYR2.1B).


Debt to Equity History and Analysis

Debt Level: AEON's debt to equity ratio (40.7%) is considered high.

Reducing Debt: AEON's debt to equity ratio has reduced from 45.7% to 40.7% over the past 5 years.

Debt Coverage: AEON's debt is well covered by operating cash flow (104.2%).

Interest Coverage: AEON's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Dividend

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

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEON's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.51%).

High Dividend: AEON's dividend (1.01%) is low compared to the top 25% of dividend payers in the MY market (4.12%).


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 reasonably low payout ratio (27.5%), AEON's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEON's dividends in 3 years are forecast to be well covered by earnings (48.3% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Shafie Bin Shamsuddin (52 yo)

1.75yrs

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 ($USD722.21K) is above average for companies of similar size in the MY market ($USD303.16K).

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 ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: AEON's board of directors are considered experienced (3.2 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: RM2.092b
  • 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 Analysis2021/10/17 11:01
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
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.