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Seven & I Holdings (SVNDY)
OTHER OTC:SVNDY
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Seven & I Holdings
(OTC:SVNDY)
Rating:62Neutral
Price Target:―
Seven & I Holdings (SVNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.88B
Dividend Yield1.14%
Average Volume (3M)2.67K
Price to Earnings (P/E)34.8
Beta (1Y)0.40
Revenue Growth-4.16%
EPS Growth33.19%
CountryUS
Employees62,012
SectorConsumer Defensive
Sector Strength70
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.43
Shares Outstanding2,604,556,000
10 Day Avg. Volume0
30 Day Avg. Volume2,675
Financial Highlights & Ratios
PEG Ratio-8.67
Price to Book (P/B)1.35
Price to Sales (P/S)0.00
P/FCF Ratio12.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 MoneyThe company generates revenue primarily through its extensive network of convenience stores, particularly under the 7-Eleven brand, which operates thousands of locations worldwide. These stores offer a wide range of products including food, beverages, and everyday convenience items. In addition to retail sales, Seven & I Holdings earns money through franchise fees from its franchisees. The company's superstore chain, Ito-Yokado, contributes to revenue by providing a comprehensive selection of groceries, clothing, and household goods. Furthermore, Seven & I Holdings has diversified its income streams by engaging in financial services, offering services such as ATM operations and banking. Strategic partnerships and joint ventures, particularly in markets outside of Japan, also play a crucial role in expanding its global footprint and enhancing its revenue potential.
Seven & I Holdings Earnings Call Summary
Earnings Call Date:Apr 03, 2025
(Q3-2025)
| % Change Since: 4.96%|
Next Earnings Date:Jul 10, 2025
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 significant revenue growth and effective cost management leading to solid gross margins. The balance sheet is well-structured but shows a cautionary increase in leverage. Cash flows are robust, supporting operational and investment needs, though maintaining this trajectory will require careful management of profit margins and debt levels.Income Statement
Seven & I Holdings shows a robust revenue growth trajectory with consistent increases in total revenue, reaching 11.96 trillion JPY in TTM. The gross profit margin stands strong, reflecting the company's effective cost management. However, there is a slight decline in net profit margin in TTM compared to the previous year, indicating some pressure on profitability.85
Very Positive
Balance Sheet
The balance sheet reveals a stable financial position with a debt-to-equity ratio of approximately 1.08 in TTM, signaling a balanced capital structure. The equity ratio is healthy, indicating a solid asset base supported by shareholder equity. However, the increase in total debt over the periods suggests a rising leverage which could pose risks if not managed carefully.80
Positive
Cash Flow
The cash flow statement indicates a positive trend in operating cash flow, growing significantly in TTM. Free cash flow growth is also notable, reflecting good cash generation capabilities. However, the free cash flow to net income ratio suggests that while cash generation is strong, there is moderate reliance on net income growth for sustaining free cash flow levels.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 11.96T | 11.47T | 11.81T | 8.75T | 5.77T | 6.64T | Gross Profit |
| 3.16T | 3.41T | 2.94T | 2.45T | 2.07T | 2.19T | EBIT |
| 480.13B | 534.25B | 506.52B | 387.65B | 366.33B | 424.26B | EBITDA |
| 972.93B | 840.83B | 995.32B | 751.49B | 626.87B | 674.31B | Net Income Common Stockholders |
| 196.64B | 224.62B | 280.98B | 210.77B | 179.26B | 218.19B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 694.38B | 1.56T | 1.67T | 1.42T | 2.20T | 1.36T | Total Assets |
| 3.67T | 10.59T | 10.55T | 8.74T | 6.95T | 6.00T | Total Debt |
| 740.66B | 3.84T | 4.04T | 2.96T | 1.79T | 1.02T | Net Debt |
| 183.31B | 2.24T | 2.39T | 1.55T | -390.48B | -328.43B | Total Liabilities |
| 1.91T | 6.69T | 6.90T | 5.59T | 4.12T | 3.24T | Stockholders Equity |
| 1.69T | 3.72T | 3.47T | 2.98T | 2.67T | 2.60T |
| Cash Flow | Free Cash Flow | ||||
| 446.25B | 215.37B | 430.59B | 312.05B | 210.16B | 237.33B | Operating Cash Flow |
| 987.44B | 673.01B | 841.48B | 736.48B | 560.00B | 576.67B | Investing Cash Flow |
| -808.43B | -431.81B | -410.86B | -2.51T | -393.94B | -316.56B | Financing Cash Flow |
| -219.33B | -377.06B | -270.37B | 937.08B | 690.54B | -213.20B |
Seven & I Holdings Technical Analysis
Neutral
15.03
Price Trends
14.82
Positive
14.98
Positive
15.23
Negative
Market Momentum
0.05
Positive
45.48
Neutral
7.75
Positive
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 15.03 is below the 20-day moving average (MA) of 15.29, above the 50-day MA of 14.82, and below the 200-day MA of 15.23, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 45.48 is Neutral, neither overbought nor oversold. The STOCH value of 7.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SVNDY.
Seven & I Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $15.84B | 36.00 | 35.74% | ― | 15.51% | 53.77% | |
69 Neutral | $43.03B | 17.59 | 26.59% | 1.97% | -1.94% | 23.94% | |
65 Neutral | $8.89B | 14.91 | 4.67% | 6.16% | 3.60% | -2.89% | |
64 Neutral | $2.00B | 18.69 | 7.54% | 1.85% | 1.76% | 6.01% | |
62 Neutral | $12.25B | 12.95 | 31.26% | 2.82% | 1.46% | -26.54% | |
62 Neutral | $39.88B | 34.78 | 4.37% | 1.14% | -4.16% | 33.19% | |
60 Neutral | $1.29B | 80.94 | 1.43% | ― | 10.37% | -73.84% |
* Consumer Defensive Sector Average
Performance Comparison
SVNDY
Seven & I Holdings
15.03
2.38
18.81%
KR
Kroger Company
65.56
15.58
31.17%
WMK
Weis Markets
73.87
12.87
21.10%
SFM
Sprouts Farmers
157.92
80.17
103.11%
GO
Grocery Outlet Holding
13.63
-7.28
-34.82%
ACI
Albertsons Companies
21.22
1.68
8.60%
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.