Seven & I Holdings (SVNDY) AI Stock Analysis

• Market Cap: $33.87B
• Dividend Yield: 1.08%
• Average Volume (3M): 9.04K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.41
• Revenue Growth: -2.16%
• EPS Growth: 92.96%
• Country: US
• Employees: 62,012
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.20
• 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: 234.27
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: 8.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.68
• Revenue Forecast (FY): $63.26B

• Rating: 53 Neutral
• Price Target: $13.00 ▼(-8.96% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is held back primarily by weakening recent fundamentals (TTM revenue and free-cash-flow decline) and a negative technical trend (below key moving averages with a negative MACD). These risks are partly offset by a generally sound balance sheet and a moderate valuation (P/E ~16.6) with a modest dividend yield.

Positive Factors

Scale and diversified retail model (7‑Eleven core)

Seven & i’s dominant 7‑Eleven franchise network and multi-format retailing create durable, high-frequency revenue streams and procurement scale. That structural footprint supports steady sales, supplier negotiating power, and logistics efficiencies that sustain margins and resilience across economic cycles.

Historically positive free cash flow generation

Consistent historical free cash flow provides a foundation for reinvestment, franchise support and shareholder returns. Even though FCF has varied, the ability to generate positive cash across cycles indicates operational cash conversion that underpins long‑term investment and deleveraging capacity.

Controlled leverage and balanced capital structure

Moderate leverage (about 1x equity) signals a balanced capital structure that supports funding for expansion and working capital without excessive strain. This controlled indebtedness gives management flexibility to invest and absorb shocks while avoiding over‑reliance on external financing.

Negative Factors

Recent TTM revenue and free-cash-flow decline

A sharp trailing‑12‑month drop in revenue and FCF reduces internal funding and erodes optionality for capex, franchise support and marketing. If sustained, it can force tighter cost controls, slower investment in store networks and pressure on long‑term growth initiatives.

Thin and compressing net margins

Low single‑digit net margins leave little buffer against cost inflation or sales volatility. Margin compression reduces retained earnings and weakens return on equity, making the business more sensitive to input cost shocks or competitive pricing, limiting durable profitability upside.

Choppy cash conversion and variability in FCF

Inconsistent cash conversion complicates multi‑year planning and raises execution risk. Variability in FCF hinders predictable dividend funding, debt reduction and reinvestment. Persistent swings reduce investor confidence in sustainable internal funding for 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 primarily generates revenue and profits through retail sales and related fees across its operating segments, led by its convenience store business. (1) Convenience stores (7-Eleven): The largest earnings driver is the 7-Eleven convenience store network, which sells food, beverages, daily necessities, and other merchandise. Revenue is generated from direct retail sales at company-operated stores and, where applicable, from franchise arrangements in which franchisees operate stores while paying franchise fees/royalties and sharing gross profit with the franchisor according to contract terms; the group also earns from supplying merchandise and operating support services tied to the franchise system. (2) Other retail formats: The company has also earned revenue from supermarkets/food retail and other store formats by selling groceries and general merchandise, with profitability influenced by store traffic, merchandising, and private-label offerings where present. (3) Financial services: Through its financial services operations, the group has generated income from banking and related products (e.g., transaction fees such as ATM usage and service fees, and net interest-type earnings from certain financial activities where applicable). (4) Additional contributors: Across the portfolio, earnings are supported by scale in procurement and distribution, logistics and inventory management capabilities, and high-frequency customer visits typical of convenience retail; however, specific partnership terms, segment profit mix, or up-to-date restructuring impacts are not provided here (null).

Seven & I Holdings Financial Statement Overview

Summary

Mid-range fundamentals: profitability is steady but thin (net margin ~1–2%) with no recent margin expansion. Near-term weakness stands out with sharp TTM revenue and free-cash-flow declines, despite historically positive operating profit and free cash flow. Leverage appears moderate (debt ~1.0x equity), but returns are only modest, leaving limited cushion if profitability continues to weaken.

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	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	9.80T	11.97T	11.47T	11.81T	8.75T	5.77T
Gross Profit	2.08T	3.49T	3.41T	3.31T	2.73T	2.29T
EBITDA	976.90B	905.53B	840.83B	995.32B	751.49B	529.90B
Net Income	310.27B	173.07B	224.62B	280.98B	210.77B	179.26B
Balance Sheet
Total Assets	8.91T	11.39T	10.59T	10.55T	8.74T	6.95T
Cash, Cash Equivalents and Short-Term Investments	678.04B	1.37T	1.56T	1.67T	1.42T	2.20T
Total Debt	3.68T	4.10T	3.84T	4.04T	2.96T	1.76T
Total Liabilities	5.38T	7.17T	6.69T	6.90T	5.59T	4.12T
Stockholders Equity	3.50T	4.03T	3.72T	3.47T	2.98T	2.67T
Cash Flow
Free Cash Flow	403.72B	337.44B	215.37B	623.26B	312.05B	242.14B
Operating Cash Flow	732.67B	876.46B	673.01B	928.48B	736.48B	540.00B
Investing Cash Flow	-335.97B	-732.36B	-431.81B	-413.23B	-2.51T	-393.94B
Financing Cash Flow	-1.06T	-392.65B	-377.06B	-270.37B	937.08B	690.54B

Seven & I Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.28
• 50DMA: Negative
• 100DMA: Negative
• 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 above the 20-day moving average (MA) of 13.42, above the 50-day MA of 14.08, and above the 200-day MA of 13.91, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 55.51 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	65 Neutral	$7.98B	15.05	38.21%	―	16.60%	49.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KR	62 Neutral	$46.68B	40.33	13.04%	2.15%	-1.77%	-70.83%
ACI	61 Neutral	$8.91B	8.31	28.54%	3.49%	2.08%	-1.63%
WMK	58 Neutral	$1.64B	17.84	6.83%	2.06%	3.11%	6.54%
SVNDY	53 Neutral	$33.87B	16.57	8.27%	1.08%	-2.16%	92.96%
GO	45 Neutral	$572.23M	-4.43	-19.78%	―	7.22%	-108.99%