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Seven & I Holdings (SVNDY)
OTHER OTC:SVNDY
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Seven & I Holdings
(OTC:SVNDY)
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Rating:67Neutral
Price Target:
$14.50
▲(7.41% Upside)
Seven & I Holdings' overall score reflects a stable financial performance with operational efficiency but challenges in revenue and cash flow growth. Technical indicators show moderate strength, while valuation metrics suggest fair pricing. The earnings call provides a cautiously optimistic outlook, balancing strong revenue growth with significant income declines and special losses.
Positive Factors
Operational Efficiency
Stable profit margins indicate effective cost management and operational efficiency, which can support profitability even amid revenue challenges.
Balance Sheet Health
A balanced leverage position with a solid equity base suggests financial stability, providing a cushion against economic fluctuations and supporting long-term growth.
Cash Generation Ability
Adequate cash generation relative to net income indicates the company's ability to fund operations and investments, supporting long-term sustainability.
Negative Factors
Declining Revenue Growth
A declining revenue growth trend can hinder future profitability and market expansion, challenging the company's ability to maintain its competitive position.
Free Cash Flow Challenges
Negative growth in free cash flow may limit the company's ability to invest in new opportunities or weather economic downturns, impacting long-term financial health.
Leverage Concerns
Moderate ROE suggests that while the company is generating returns, there is potential to optimize leverage and improve shareholder value over time.
Seven & I Holdings (SVNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.11B
Dividend Yield1.15%
Average Volume (3M)9.04K
Price to Earnings (P/E)21.4
Beta (1Y)0.42
Revenue Growth-2.16%
EPS Growth92.96%
CountryUS
Employees62,012
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)N/A
Shares Outstanding2,604,556,000
10 Day Avg. Volume9,144
30 Day Avg. Volume9,042
Financial Highlights & Ratios
PEG Ratio-1.50
Price to Book (P/B)1.39
Price to Sales (P/S)0.47
P/FCF Ratio16.56
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Seven & I Holdings Business Overview & Revenue Model
Company DescriptionSeven & i Holdings Co., Ltd. engages in retail, food, financial, and IT businesses in Japan, North America, and internationally. It operates through seven segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department Store Operations, Financial Services, Specialty Stores Operations, and Others. The company's Domestic Convenience Store Operations segment operates convenience stores comprising directly managed corporate stores and franchised stores. Its Overseas Convenience Store Operations segment engages in convenience store operation and gasoline retail businesses. The company's Superstore Operations segment operates retail business that provide daily life necessities, such as food and other daily necessities. Its Department Store Operations operates department stores that provide various merchandise products. The company's Financial Services segment offers banking, leasing, and credit card services. Its Specialty Store Operations segment operates specialty retail stores. The company's others segment engages in real estate and other businesses. It operates approximately 22,500 stores in Japan and 71,800 stores internationally. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySeven & I Holdings generates revenue through multiple streams, primarily from its retail operations. The core revenue comes from the sales of food, beverages, and household items at its convenience stores, with 7-Eleven being a flagship brand. The company also earns money from its supermarket and department store divisions, which sell groceries, clothing, and other consumer goods. Franchise fees from 7-Eleven stores, along with royalties from franchisees, contribute significantly to its income. Additionally, the company engages in real estate operations and logistics services, enhancing its revenue base. Strategic partnerships with suppliers and vendors allow Seven & I to optimize its supply chain and maintain competitive pricing, further driving profitability.
Seven & I Holdings Earnings Call Summary
Earnings Call Date:Jan 09, 2025
(Q3-2025)
| Next Earnings Date:Jan 08, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong revenue growth and positive future outlooks in several areas, such as proprietary products and global expansion. However, significant declines in operating income, special losses, and challenges in the domestic market present considerable setbacks. The balance between these factors suggests a cautious optimism moving forward.Q3-2025 Updates
Positive Updates
Record Revenue Growth
Revenues from operations reached JPY 9,069.5 billion, which is 105.7% year-on-year, indicating strong growth in revenue.
Positive Outlook for Future Growth
The company is optimistic about building a solid management foundation for strong profit growth in the future, with strategic streamlining of business and assets.
Successful Proprietary Product Strategy
7-Eleven's proprietary products, including fresh foods and beverages, have driven improvements in sales and customer traffic, with a margin of 40.5% compared to the overall system margin of 33.3%.
7NOW Delivery Growth
The 7NOW delivery network is growing at a 24% rate on a same-store basis, aiming to reach $1 billion in sales by 2025.
Global Expansion Success
7-Eleven International's revenues from operations grew significantly, with strategic investments in Australia and Vietnam contributing to profit growth.
Enhancement of Freshly Baked Products
7-Eleven Japan is expanding its freshly baked products to approximately 10,000 stores, contributing to profits and increasing customer numbers.
Negative Updates
Decline in Operating Income
Operating income decreased by JPY 94.6 billion from the previous term, showing a decline of 76.9% year-on-year.
Significant Special Losses
The company recorded JPY 133.4 billion in special losses due to store closures and system integration, expecting JPY 149.6 billion for the full year.
Challenges in Domestic Market
7-Eleven Japan struggled with a perception of high prices among consumers, impacting the number of customers and sales.
Underperformance in Superstore Operations
The superstore operations fell short of EBITDA targets, impacted by rising costs and a slump in demand for seasonal clothing.
CrowdStrike Outage Impact
7-Eleven's Q3 results were negatively impacted by a CrowdStrike outage, disrupting point-of-sale systems in Speedway stores.
Company Guidance
In the Q3 2025 earnings call for Seven & i Holdings, the company provided guidance on various metrics and strategic initiatives aimed at enhancing enterprise and shareholder value. For the third quarter of 2024, revenues from operations reached JPY 9,069.5 billion, representing a 105.7% year-on-year increase, while operating income was JPY 315.4 billion, marking a decrease of 76.9% year-on-year. Net profit stood at JPY 63.6 billion, a significant decline from the previous term. The company emphasized its strategic focus on streamlining low-profit businesses and assets, with anticipated completion within the fiscal year to drive profit growth in 2025 and beyond. The call highlighted the impact of special losses, totaling JPY 178.9 billion for the first nine months, with a full-year forecast of JPY 149.6 billion in special losses. The company aims to achieve a cumulative EBITDA target of over JPY 55 billion and a ROIC of more than 4% for fiscal 2025, with a focus on maximizing corporate value through structural optimization, strategic investments, and an IPO consideration for the superstore business.Seven & I Holdings Financial Statement Overview
Summary
Seven & I Holdings demonstrates strong financial health with consistent revenue and cash flow growth. Effective cost control has maintained profitability, although recent income statement fluctuations warrant attention. The balance sheet displays sound financial management, though rising debt levels should be monitored. The company's cash flow generation is a significant strength, supporting its strategic initiatives and financial stability.Income Statement
Seven & I Holdings has demonstrated a robust revenue growth trajectory, with total revenue expanding from 2020 to 2025. The company maintains healthy gross and net profit margins, indicating effective cost management. However, recent fluctuations in EBIT and EBITDA margins suggest some volatility in operational efficiency. The slight decline in net income from 2024 to 2025 is a concern, though overall profitability remains strong.65
Positive
Balance Sheet
The balance sheet shows a balanced growth in assets and equity, with a stable debt-to-equity ratio. The company's equity ratio indicates a healthy level of financing through shareholder equity. However, the increase in total debt over the years, while manageable, poses potential risks if not carefully monitored. The return on equity has decreased slightly, reflecting a need for improved profitability relative to equity.70
Positive
Cash Flow
The cash flow statements reveal strong operational cash flow generation, supporting a positive free cash flow trend. The company has successfully increased its free cash flow year-over-year, indicating effective capital expenditure management. The operating cash flow to net income ratio is robust, suggesting efficient conversion of profits into cash.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.80T | 11.97T | 11.47T | 11.81T | 8.75T | 5.77T |
| Gross Profit | 2.29T | 3.49T | 3.41T | 2.94T | 2.45T | 2.07T |
| EBITDA | 948.98B | 905.53B | 840.83B | 995.32B | 751.49B | 626.87B |
| Net Income | 200.69B | 173.07B | 224.62B | 280.98B | 210.77B | 179.26B |
Balance Sheet | ||||||
| Total Assets | 11.14T | 11.39T | 10.59T | 10.55T | 8.74T | 6.95T |
| Cash, Cash Equivalents and Short-Term Investments | 1.47T | 1.37T | 1.56T | 1.67T | 1.42T | 2.20T |
| Total Debt | 4.03T | 4.10T | 3.84T | 4.04T | 2.96T | 1.76T |
| Total Liabilities | 7.18T | 7.17T | 6.69T | 6.90T | 5.59T | 4.12T |
| Stockholders Equity | 3.78T | 4.03T | 3.72T | 3.47T | 2.98T | 2.67T |
Cash Flow | ||||||
| Free Cash Flow | 422.69B | 337.44B | 215.37B | 430.59B | 312.05B | 210.16B |
| Operating Cash Flow | 875.67B | 876.46B | 673.01B | 841.48B | 736.48B | 560.00B |
| Investing Cash Flow | -477.20B | -732.36B | -431.81B | -413.23B | -2.51T | -393.94B |
| Financing Cash Flow | -319.05B | -392.65B | -377.06B | -270.37B | 937.08B | 690.54B |
Seven & I Holdings Technical Analysis
Neutral
13.50
Price Trends
13.21
Positive
13.32
Positive
14.11
Negative
Market Momentum
0.18
Negative
52.25
Neutral
47.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVNDY, the sentiment is Neutral. The current price of 13.5 is above the 20-day moving average (MA) of 13.43, above the 50-day MA of 13.21, and below the 200-day MA of 14.11, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 47.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SVNDY.
Seven & I Holdings Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $8.33B | 16.57 | 36.96% | ― | 16.60% | 49.76% | |
69 Neutral | $41.56B | 57.61 | 7.76% | 2.14% | -1.77% | -70.80% | |
67 Neutral | $1.64B | 17.47 | 7.22% | 2.05% | 3.11% | 6.54% | |
67 Neutral | $35.11B | 21.41 | 6.22% | 1.15% | -2.16% | 92.96% | |
64 Neutral | $9.46B | 10.19 | 32.04% | 3.48% | 2.08% | -1.63% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
51 Neutral | $1.11B | ― | -0.37% | ― | 7.22% | -108.99% |
* Consumer Defensive Sector Average
SVNDY
Seven & I Holdings
13.50
-3.40
-20.12%
KR
Kroger Company
62.71
6.09
10.76%
WMK
Weis Markets
66.27
-3.01
-4.34%
SFM
Sprouts Farmers
85.54
-58.67
-40.68%
GO
Grocery Outlet Holding
11.34
-8.01
-41.40%
ACI
Albertsons Companies
17.22
-1.17
-6.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.