Seven & I Holdings (SVNDY) AI Stock Analysis

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Seven & I Holdings

(OTC:SVNDY)

62Neutral

Seven & I Holdings shows strong financial performance with robust revenue growth and effective cost management. Despite these strengths, technical indicators suggest mixed momentum, and the valuation appears stretched with a high P/E ratio. Earnings call highlights a cautious optimism with strategic initiatives to drive future growth, but current challenges in profitability and special losses pose risks.

Seven & I Holdings (SVNDY) vs. S&P 500 (SPY)

Market Cap

$37.14B

Dividend Yield1.19%

Average Volume (3M)21.94K

Price to Earnings (P/E)32.7

Beta (1Y)0.35

Revenue Growth-4.16%

EPS Growth33.19%

CountryUS

Employees47,814

SectorConsumer Defensive

Sector Strength96

IndustryGrocery Stores

Share Statistics

EPS (TTM)0.43

Shares Outstanding2,604,556,000

10 Day Avg. Volume65,829

30 Day Avg. Volume21,943

Financial Highlights & Ratios

PEG Ratio0.53

Price to Book (P/B)N/A

Price to Sales (P/S)0.46

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

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. is a diversified retail and service company headquartered in Tokyo, Japan. Operating in multiple sectors, the company is best known for its global convenience store chain, 7-Eleven, and its superstore chain, Ito-Yokado. Seven & I Holdings also has interests in various other retail operations, financial services, and food services, making it a significant player in the retail and consumer service markets.

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 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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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
1.30T	1.56T	1.67T	1.42T	2.20T	1.36T
	Total Assets
5.96T	10.59T	10.55T	8.74T	6.95T	6.00T
	Total Debt
1.02T	3.84T	4.04T	2.96T	1.79T	1.02T
	Net Debt
-280.26B	2.24T	2.39T	1.55T	-390.48B	-328.43B
	Total Liabilities
3.28T	6.69T	6.90T	5.59T	4.12T	3.24T
	Stockholders Equity
2.54T	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

Technical Analysis Sentiment

Positive

Last Price14.60

Price Trends

50DMA

14.61

Negative

100DMA

15.34

Negative

200DMA

14.64

Negative

Market Momentum

MACD

-0.17

Negative

RSI

55.36

Neutral

STOCH

95.24

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVNDY, the sentiment is Positive. The current price of 14.6 is above the 20-day moving average (MA) of 14.03, below the 50-day MA of 14.61, and below the 200-day MA of 14.64, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 55.36 is Neutral, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SVNDY.

Seven & I Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMT	79 Outperform	$747.33B	38.76	22.23%	0.92%	5.07%	25.86%
COST	78 Outperform	$424.95B	55.91	32.89%	0.47%	6.13%	12.14%
SFM	77 Outperform	$15.56B	42.22	30.81%	―	12.90%	50.20%
KR	73 Outperform	$47.79B	19.68	26.59%	1.73%	-1.94%	23.94%
Sector *	63 Neutral	$9.39B	14.85	4.11%	187.30%	3.96%	6.50%
SVNDY	62 Neutral	$37.14B	32.75	4.37%	1.19%	-4.16%	33.19%
TGT	60 Neutral	$42.42B	10.51	29.12%	4.79%	-0.79%	-0.90%

* Consumer Defensive Sector Average

Performance Comparison

SVNDY

Seven & I Holdings

14.60

1.47

11.20%

COST

Costco

979.23

260.48

36.24%

Kroger Company

72.98

18.54

34.06%

TGT

Target

94.10

-67.43

-41.74%

WMT

Walmart

94.85

36.42

62.33%

SFM

Sprouts Farmers

163.30

97.81

149.35%

Seven & I Holdings Earnings Call Summary

Earnings Call Date: Apr 3, 2025 | % Change Since: 1.96% | 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.

Highlights

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.

Lowlights

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.