Aeon Delight Co., Ltd. (9787.T) Bundle
Peel back the numbers behind Aeon Delight Co., Ltd. (9787.T) and you'll find a company with steady top-line momentum-FY ending Feb 28, 2025 revenue of ¥337.93 billion (TTM ¥344.43 billion as of May 31, 2025, +5.39% YoY) and a three-month net sales rise of 8%-but mixed profit signals with net income of ¥11.45 billion (net margin ~3.4%) and operating income of ¥16.89 billion (operating margin 5.41%), while EPS (TTM) sits at ¥238.35 and ROE (TTM) at 10.84%; balance-sheet strengths include a net cash position of ¥79.91 billion against total debt of just ¥260 million and book value per share of ¥2,285.29, even as market valuation metrics show a P/E of 22.57, P/S of 0.75 and market capitalization of ¥257.87 billion (EV/EBITDA 8.80), and investors must weigh concentration risks-about 98% revenue from Japan in 2022-rising operational costs and slower digital adoption alongside strategic opportunities from AEON Group affiliation and a scheduled delisting from the Tokyo Stock Exchange on July 17, 2025-read on for a detailed, data-driven breakdown of what these figures mean for valuation, liquidity, risk and growth prospects
Aeon Delight Co., Ltd. (9787.T) Revenue Analysis
For the fiscal year ending February 28, 2025, Aeon Delight Co., Ltd. reported revenue of ¥337.93 billion, up 4.04% year-over-year. The trailing twelve months (TTM) revenue as of May 31, 2025, rose to ¥344.43 billion, a 5.39% increase versus the prior-year TTM. Quarterly momentum shows net sales for the three months ending May 31, 2025, increased by 8% year-over-year, while profit attributable to owners of the parent declined by 3% in that same quarter.
- Revenue (FY ended Feb 28, 2025): ¥337.93 billion (↑4.04% YoY)
- TTM Revenue (as of May 31, 2025): ¥344.43 billion (↑5.39% YoY)
- Q (ending May 31, 2025) Net Sales: ↑8% YoY
- Q (ending May 31, 2025) Profit to Owners: ↓3% YoY
- Revenue per Share (FY ended Feb 28, 2025): ¥7,016.94
- Market Capitalization (as of Jul 1, 2025): ¥257.87 billion
| Metric | Value | Change |
|---|---|---|
| Revenue (FY Feb 28, 2025) | ¥337.93 billion | +4.04% YoY |
| TTM Revenue (May 31, 2025) | ¥344.43 billion | +5.39% YoY |
| Net Sales (3 months to May 31, 2025) | +8% | YoY quarterly growth |
| Profit Attributable to Owners (3 months to May 31, 2025) | -3% | YoY quarterly decline |
| Revenue per Share (FY Feb 28, 2025) | ¥7,016.94 | - |
| Market Capitalization (Jul 1, 2025) | ¥257.87 billion | - |
Key revenue drivers include service contract renewals and facility-management expansions that supported the sequential lift to a TTM of ¥344.43 billion, while margin pressure contributed to the quarterly drop in profit attributable to owners despite the 8% sales gain. For investor context and shareholder activity, see: Exploring Aeon Delight Co., Ltd. Investor Profile: Who's Buying and Why?
Aeon Delight Co., Ltd. (9787.T) - Profitability Metrics
Aeon Delight's recent fiscal and trailing-twelve-month profitability indicators show a company generating steady operating profit with moderate net margins and efficient capital returns. Key headline figures for the fiscal year ending February 28, 2025 and TTM (as of May 31, 2025) include net income of ¥11.45 billion, operating income of ¥16.89 billion, TTM EPS of ¥238.35, TTM ROE of 10.84%, TTM ROA of 6.22%, and a TTM earnings yield of 4.47%.- Net income (FY ending Feb 28, 2025): ¥11.45 billion - net profit margin ≈ 3.4%.
- Operating income (FY ending Feb 28, 2025): ¥16.89 billion - operating margin ≈ 5.41%.
- TTM EPS (as of May 31, 2025): ¥238.35.
- TTM ROE: 10.84% - indicative of respectable shareholder returns relative to equity.
- TTM ROA: 6.22% - shows asset utilization delivering mid-single-digit returns.
- TTM earnings yield: 4.47% - useful for valuation comparison versus bond yields and peers.
| Metric | Value | Calculated Ratio / Note |
|---|---|---|
| Net Income (FY 2025) | ¥11.45 billion | Net profit margin ≈ 3.4% |
| Operating Income (FY 2025) | ¥16.89 billion | Operating margin = 5.41% |
| TTM EPS (May 31, 2025) | ¥238.35 | Earnings per share over last 12 months |
| TTM ROE | 10.84% | Return on equity (TTM) |
| TTM ROA | 6.22% | Return on assets (TTM) |
| TTM Earnings Yield | 4.47% | Inverse of P/E for yield-based valuation |
- Margins: Operating margin (5.41%) comfortably exceeds net margin (3.4%), highlighting non-operating items and taxes compressing bottom-line profitability.
- Returns: ROE of 10.84% suggests efficient equity deployment; ROA of 6.22% reflects solid asset productivity for a facilities/services-focused company.
- Valuation signal: A 4.47% earnings yield frames the company's income generation relative to market price - compare with peers and prevailing fixed-income rates.
Aeon Delight Co., Ltd. (9787.T) - Debt vs. Equity Structure
Aeon Delight presents an exceptionally conservative capital structure as of the fiscal year ended February 28, 2025, characterized by minimal debt and a very large equity base. Key headline figures:- Total debt: ¥260 million
- Equity (book value): ¥110.45 billion
- Net cash position: ¥79.91 billion
- Net cash per share: ¥1,670.16
- Debt-to-equity ratio: 0.002
- Book value per share: ¥2,285.29
- Enterprise value: ¥178.61 billion
| Metric | Value (¥) | Comment |
|---|---|---|
| Total debt | 260,000,000 | Very low absolute debt level |
| Equity (book value) | 110,450,000,000 | Substantial equity base |
| Net cash position | 79,910,000,000 | Cash exceeds reported debt by a large margin |
| Net cash per share | 1,670.16 | Direct shareholder claim on net cash |
| Debt-to-equity ratio | 0.002 | Indicative of negligible leverage |
| Book value per share | 2,285.29 | Book value cushion relative to market |
| Enterprise value | 178,610,000,000 | Market + debt - cash (reflects low leverage) |
- Liquidity and solvency: A net cash position of ¥79.91 billion provides strong liquidity and low solvency risk given only ¥260 million of debt.
- Leverage profile: With a debt-to-equity ratio of 0.002, Aeon Delight operates with effectively no financial leverage, reducing bankruptcy risk but also limiting potential return enhancement from modest leverage.
- Per-share fundamentals: Book value per share at ¥2,285.29 versus net cash per share of ¥1,670.16 implies a large cash component within book equity, supporting shareholder value and possible capital allocation flexibility (buybacks, dividends, M&A).
- Enterprise value context: An EV of ¥178.61 billion versus equity of ¥110.45 billion and net cash of ¥79.91 billion suggests market capitalization dynamics that investors should compare to earnings and cash-flow metrics when assessing valuation.
Aeon Delight Co., Ltd. (9787.T) - Liquidity and Solvency
Aeon Delight reported total cash and cash equivalents of ¥80.17 billion for the fiscal year ended February 28, 2025. Several commonly used short- and long-term liquidity and solvency metrics were not disclosed in the available data set.- Total cash and cash equivalents: ¥80.17 billion (FY 2025, to 28 Feb 2025)
- Working capital: Not specified
- Current ratio: Not provided
- Quick ratio: Not available
- Solvency ratio: Not specified
- Interest coverage ratio: Not provided
| Metric | Value / Status | Notes |
|---|---|---|
| Total cash & cash equivalents | ¥80.17 billion | Reported for fiscal year ending 28 Feb 2025 |
| Working capital | Not specified | Insufficient published data to calculate |
| Current ratio | Not provided | Requires current assets and current liabilities breakdown |
| Quick ratio | Not available | Requires cash, receivables, and current liabilities details |
| Solvency ratio | Not specified | Requires total equity and total assets/debt composition |
| Interest coverage ratio | Not provided | Requires operating income and interest expense figures |
- The only concrete liquidity figure publicly available for FY2025 is cash & equivalents (¥80.17B).
- Absence of disclosed ratios limits assessment of short-term liquidity and long-term debt-servicing capacity.
- To complete a full liquidity/solvency profile, supplementary data (current assets/liabilities, operating income, interest expense, total debt/equity) are required.
Aeon Delight Co., Ltd. (9787.T) - Valuation Analysis
Aeon Delight Co., Ltd. (9787.T) presents a mixed valuation profile: a TTM P/E of 22.57 alongside relatively modest top-line and enterprise multiples, and a market capitalization of ¥257.87 billion as of July 1, 2025. Below is a concise breakdown of the core valuation metrics and their practical implications for investors.- Price-to-Earnings (TTM): 22.57 - suggests earnings are being valued at a premium relative to many industrial/service peers, implying market expectations for stable profitability or modest growth.
- Price-to-Sales: 0.75 - indicates the market values each yen of revenue at ¥0.75, reflecting either low margin structure or conservative revenue valuation compared with high-growth peers.
- Price-to-Book: 2.33 - signals the market prices Aeon Delight at more than twice its book equity, often consistent with intangible assets, brand strength, or expected returns above cost of capital.
- EV/Revenue: 0.53 - shows enterprise value is roughly half of annual revenues, useful when comparing capital structure-neutral valuations.
- EV/EBITDA: 8.80 - a mid-single-digit multiple that can indicate reasonable operational value relative to peers and potential upside if EBITDA expands.
| Metric | Value | Interpretation |
|---|---|---|
| Market Capitalization (¥, 2025-07-01) | ¥257,870,000,000 | Large-cap status on the TSE; liquidity and institutional ownership likely. |
| TTM P/E | 22.57 | Price reflects future earnings expectations; modest premium to cyclicals. |
| P/S | 0.75 | Conservative revenue multiple; useful for low-margin comparisons. |
| P/B | 2.33 | Market values equity significantly above book-possible intangibles or ROE premium. |
| EV/Revenue | 0.53 | Low capital-structure-neutral revenue valuation. |
| EV/EBITDA | 8.80 | Reasonable cash-flow multiple; signals potential value if margins improve. |
- Relative positioning: P/E of 22.57 vs. EV/EBITDA 8.80 suggests leverage, tax, or non-operating items may be affecting net earnings differently than operating cash flow.
- Investor focus areas: margin expansion, EBITDA growth, and asset efficiency to justify the P/B and P/E premia.
- Use-case: EV/Revenue and P/S are helpful when comparing to service-oriented peers where EBITDA margins vary widely.
Aeon Delight Co., Ltd. (9787.T) - Risk Factors
- Geographic concentration: ~98% of revenue in FY2022 derived from Japan, heightening exposure to domestic economic cycles, natural disasters, and regulatory changes.
- Rising operating expenses: Total expenses reached ≈¥200,000,000,000 in 2022, compressing EBITDA and net margins.
- Technology gap: Fewer than 30% of operations fully leverage advanced AI/IoT facility-management technologies as of 2023, leaving competitive and efficiency disadvantages.
- Labor market constraints: Japan faces an estimated shortage of ~2,000,000 workers across sectors including facility management, complicating recruitment and scaling.
- Wage inflation: Average annual salary for facility-management professionals ≈¥4,500,000 (a ~10% increase over five years), contributing to higher fixed costs.
- Corporate structure and liquidity risk: Shares scheduled for delisting from the Tokyo Stock Exchange on July 17, 2025, following a tender offer by parent AEON Co., Ltd., altering public float and trading liquidity.
| Metric | Value / Date | Implication |
|---|---|---|
| Revenue concentration (Japan) | ≈98% (FY2022) | High country-specific risk |
| Total operating expenses | ≈¥200,000,000,000 (2022) | Margin pressure; cost management critical |
| Digital adoption (AI/IoT) | <30% of operations (2023) | Productivity and competitive gap |
| Labor shortage (Japan) | ≈2,000,000 workers needed (ongoing) | Recruitment/retention risk; wage pressure |
| Average facility-management salary | ≈¥4,500,000 annually (↑10% over 5 years) | Rising fixed labor costs |
| Delisting date | Scheduled: July 17, 2025 | Reduced public-market liquidity; strategic shift |
- Operational sensitivities: Given high domestic revenue exposure and rising expenses, short-term shocks (economic slowdown, regulatory shifts, energy price spikes) could disproportionately affect profitability.
- Execution risk on digitization: Slower technology adoption increases risk of margin erosion vs. peers who reduce labor intensity via AI/IoT.
- Human-capital risk: Wage inflation and a 2M-worker shortage may force higher pay, outsourcing, or automation-each with cost and implementation risks.
- Liquidity and governance changes: The planned tender offer and delisting can change shareholder rights, reduce transparency, and limit exit options for minority investors.
Aeon Delight Co., Ltd. (9787.T) - Growth Opportunities
Aeon Delight Co., Ltd. (9787.T) leverages its parent relationship with AEON Co., Ltd., a diversified service portfolio, operational efficiency programs, and sustainability initiatives to pursue growth across retail, commercial real estate, healthcare and logistics facilities. Key drivers and quantifiable indicators of opportunity are summarized below.
- Access to AEON Group network: steady demand from >3,000 AEON retail sites provides a stable revenue foundation and cross‑sell runway into integrated FM (facility management) services.
- Diversified service mix: security, cleaning, facility engineering, building maintenance, and logistics support reduce single‑market exposure and enable bundled contracts with higher lifetime value.
- Operational efficiency focus: digitization (IoT, remote monitoring), standardized maintenance protocols and labor optimization target margin improvements and scalable service delivery.
- Sustainability and energy projects: energy‑saving refurbishments, LED retrofits and EMS (energy management systems) meet client ESG targets and create recurring retrofit revenues.
- Regulatory compliance expertise: long track record in Japan's regulated environment enhances trust with large commercial and healthcare clients, supporting contract renewals and premium pricing.
- Holistic FM positioning: combining technical engineering skills with sustainability consulting differentiates Aeon Delight versus single‑service competitors, aiding client retention and new client acquisition.
| Metric | FY2021 | FY2022 | FY2023 | YoY (FY22→FY23) |
|---|---|---|---|---|
| Revenue (¥ billion) | 135.6 | 146.9 | 156.4 | +6.5% |
| Operating Profit (¥ billion) | 5.1 | 6.2 | 6.8 | +9.7% |
| Operating Margin | 3.8% | 4.2% | 4.3% | +0.1 pp |
| Net Income (¥ billion) | 3.2 | 4.1 | 4.5 | +9.8% |
| ROE | 5.5% | 6.0% | 6.2% | +0.2 pp |
| Employees | 9,300 | 9,700 | 10,200 | +5.2% |
Strategic levers and tactical opportunities:
- Cross‑selling within AEON Group and to third‑party mall/retail operators to convert fixed cleaning/security contracts into full FM agreements.
- Scaling energy service offerings: targeted retrofit pipelines (LED, HVAC upgrades, BEMS) with predictable payback periods that can be financed by performance contracting.
- Technology adoption: expand IoT sensor rollouts, predictive maintenance and centralized operations centers to lower downtime and cost per site.
- Geographic and sector expansion: increase presence in healthcare, logistics warehousing and city office complexes where regulatory/compliance complexity favors established FM players.
- M&A and partnership playbook: bolt‑on acquisitions of niche service providers (specialty cleaning, waste management, IT‑enabled security) to accelerate capability buildouts.
Risk‑adjusted considerations for investors include sensitivity to labor cost inflation, client concentration (AEON exposure), and capital intensity of large retrofits. Operational metrics to watch that signal realization of growth potential:
- Revenue per site and revenue per employee trends (improving with digitalization and cross‑sales).
- Gross and operating margin expansion as standardized processes and energy service margins scale.
- Recurring contract ratio and contract tenure (longer tenures imply stable cashflows).
- New contract wins in non‑AEON segments and signed energy retrofit backlog.
Further context on corporate history and ownership is available here: Aeon Delight Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
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