- Aeon’s first-quarter operating income reached 56.28 billion yen, surpassing the estimated 53.33 billion yen.
- The General Merchandise Store (GMS) business experienced an operational loss of 1.79 billion yen, contrary to the estimated profit of 175 million yen.
- The Health & Wellness sector reported an operating profit of 8.45 billion yen, exceeding the forecasted 6 billion yen.
- Financial Services achieved an operating profit of 13.41 billion yen, slightly above the estimated 13.25 billion yen.
- Shopping Center Development posted an operational profit of 17.18 billion yen, beating the forecast of 16.75 billion yen.
- Services & Specialty Stores recorded an operating profit of 6.96 billion yen, over the expected 6.53 billion yen.
- Aeon faced a net loss of 6.57 billion yen despite net sales reaching 2.57 trillion yen, higher than the 2.52 trillion yen estimate.
- The 2026 forecast remains at a net income of 40.00 billion yen, below the projection of 50.5 billion yen, with operating income projected at 270.00 billion yen, exceeding the expected 262.64 billion yen.
- Net sales are forecasted to stay at 10.50 trillion yen, matching the estimate.
- Analyst ratings include 0 buys, 7 holds, and 3 sells.
Aeon Co Ltd on Smartkarma
Analysts on Smartkarma have differing views on Aeon Co Ltd. Manishi Raychaudhuri, in the research report titled “Asian Equities: Overvalued, Over-Leveraged, Low Growth – a Different Look,” takes a bearish stance on the company. Raychaudhuri highlights concerns about overvaluation, over-leverage, and low growth based on parameters like EPS growth, ROE, and leverage. By focusing on EBITDA growth and EV as valuation parameters, Raychaudhuri identifies Aeon Co Ltd as one of the stocks to avoid in the current market landscape.
In contrast, Michael Causton presents a bullish perspective in his research report titled “Aeon’s Plans to Absorb Aeon Mall and Aeon Delight Will Help Margin Growth.” Causton discusses Aeon Co Ltd‘s strategic move to absorb Aeon Mall and Aeon Delight, indicating a shift towards revitalizing its shopping building business with innovative concepts and international tenant scouting. This strategic reorganization aims to drive margin growth for Aeon Co Ltd and leverage Aeon Mall’s international network to attract promising tenants for its malls and stores, signaling a positive outlook for the company’s future performance.
A look at Aeon Co Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Aeon Co Ltd has a promising long-term outlook. With high scores in Growth and Momentum, the company shows strong potential for future expansion and positive market performance. Furthermore, its moderate scores in Value, Dividend, and Resilience indicate a balanced approach to financial management. Aeon Co Ltd‘s diversified business operations, including general merchandise stores, supermarkets, and clothing stores, position it well for continued growth and resilience in the market.
Summary: Aeon Co Ltd, an established company in Japan, operates a variety of retail businesses, including general merchandise stores and supermarkets. Additionally, it is involved in the clothing retail and commercial property development sectors. With a strategic focus on growth and momentum, Aeon Co Ltd exhibits a solid foundation for long-term success in the competitive market landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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