Seven & I Holdings (SVNDY) AI Stock Analysis

• Market Cap: $36.93B
• Dividend Yield: 1.08%
• Average Volume (3M): 9.04K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.43
• Revenue Growth: -2.16%
• EPS Growth: 92.96%
• Country: US
• Employees: 62,012
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.03
• Shares Outstanding: 2,604,556,000
• 10 Day Avg. Volume: 9,144
• 30 Day Avg. Volume: 9,042
• PEG Ratio: -1.50
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 16.56
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $15.00 ▲(5.04% Upside)

The score is held back primarily by mid-range financial performance with thin margins and recent TTM revenue/FCF deterioration, plus a mixed earnings-call picture with large special losses and a sharp operating-income decline. Offsetting these are mildly positive technical signals and a broadly reasonable valuation, though the dividend yield is modest.

Positive Factors

High-margin proprietary products

Proprietary product lines delivering materially higher margins provide a durable competitive advantage: they drive customer frequency, improve per-store profitability, and give control over assortment and pricing. Scalable across stores, this supports structural margin uplift versus peers over time.

Expanding delivery channel (7NOW)

Rapid growth in 7NOW reflects structural shifts toward omnichannel convenience and last-mile fulfillment. Building a large delivery footprint creates recurring, higher-frequency sales, leverages existing store density, and diversifies revenue sources away from pure in-store transactions long-term.

International expansion driving profitability

Successful expansion in select international markets diversifies revenue and reduces reliance on domestic trends. Profitable growth in Australia and Vietnam demonstrates scalable franchising/operating models and offers exposure to higher-growth retail markets, supporting sustainable top-line and earnings growth.

Negative Factors

Thin net margins persist

Persistently low net margins limit the firm's ability to absorb cost shocks, invest, and generate shareholder returns. With margins around 1–2%, operational setbacks or inflation materially compress profits, constraining free cash flow and long-term reinvestment capacity.

TTM revenue and free cash flow deterioration

Recent declines in trailing-twelve-month revenue and free cash flow indicate weakening operational momentum and less reliable cash generation. Volatile cash conversion undermines funding for capex, dividends, and strategic investments, reducing financial flexibility over the medium term.

Large special losses and sharp operating decline

Substantial special losses tied to closures and system integration signal structural remediation costs and lower-quality earnings. These write-downs and a sharply lower operating income indicate execution risk and drag retained earnings, hampering near-term recovery and ROI on strategic initiatives.

Seven & I Holdings Business Overview & Revenue Model

Company Description

Seven & 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 Money

Seven & 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 Financial Statement Overview

Summary

Mid-range fundamentals: steady but thin profitability (net margin ~1–2%) with no clear margin expansion, and notable near-term weakness as TTM revenue and free-cash-flow declined. Leverage appears moderate (~1.0x debt/equity), but limited cushion if profitability weakens.

Income Statement

Profitability is steady but low for the sector: gross margin has held near ~28–30% in recent annual periods, while net margin remains thin (~1–2%) and has compressed versus 2022–2023. Growth has been volatile—strong expansion in 2022–2023, modest growth in 2025 (annual), and a sharp revenue decline in TTM (Trailing-Twelve-Months), which is a key near-term concern. Operating profitability remains positive, but margins are not expanding and earnings power looks pressured in the latest period.

Balance Sheet

Leverage is meaningful but generally controlled: debt is around ~1.0x equity across recent annual reports, indicating a fairly balanced capital structure rather than an over-levered one. Returns on equity are positive but not consistently strong (roughly mid-single digits to ~8%), suggesting decent—but not exceptional—efficiency in turning equity into profits. Overall balance sheet risk looks moderate; the main watch item is limited cushion if profitability weakens given only modest returns.

Cash Flow

Cash generation is positive, with free cash flow consistently positive across periods, but it has been choppy: strong improvement in 2023 and 2025 (annual) followed by a large decline in TTM (Trailing-Twelve-Months). Free cash flow has covered a meaningful portion of reported earnings (roughly ~32–54% depending on the year/TTM), but cash conversion is not consistently strong. Overall, the business generates cash, yet the recent trajectory points to weakening momentum and variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.97T	11.47T	11.81T	8.75T	5.77T
Gross Profit	3.49T	3.41T	3.31T	2.73T	2.29T
EBITDA	905.53B	840.83B	995.32B	751.49B	529.90B
Net Income	173.07B	224.62B	280.98B	210.77B	179.26B
Balance Sheet
Total Assets	11.39T	10.59T	10.55T	8.74T	6.95T
Cash, Cash Equivalents and Short-Term Investments	1.37T	1.56T	1.67T	1.42T	2.20T
Total Debt	4.10T	3.84T	4.04T	2.96T	1.76T
Total Liabilities	7.17T	6.69T	6.90T	5.59T	4.12T
Stockholders Equity	4.03T	3.72T	3.47T	2.98T	2.67T
Cash Flow
Free Cash Flow	337.44B	215.37B	623.26B	312.05B	242.14B
Operating Cash Flow	876.46B	673.01B	928.48B	736.48B	540.00B
Investing Cash Flow	-732.36B	-431.81B	-413.23B	-2.51T	-393.94B
Financing Cash Flow	-392.65B	-377.06B	-270.37B	937.08B	690.54B

Seven & I Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 14.28 is below the 20-day moving average (MA) of 14.30, above the 50-day MA of 13.79, and above the 200-day MA of 14.04, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 42.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFM	69 Neutral	$7.94B	15.22	36.96%	―	16.60%	49.76%
WMK	67 Neutral	$1.70B	18.12	7.22%	2.06%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SVNDY	58 Neutral	$36.93B	17.56	6.22%	1.08%	-2.16%	92.96%
KR	56 Neutral	$39.55B	57.24	7.75%	2.15%	-1.77%	-70.83%
ACI	54 Neutral	$8.93B	11.19	29.65%	3.49%	2.08%	-1.63%
GO	52 Neutral	$956.84M	-201.47	-0.37%	―	7.22%	-108.99%