One-glance verdict
Within fair range
$10.64 our estimate vs market $13.01
22% above our estimate
Fundamentals snapshot
Seven & i Holdings Co., Ltd.
SVNDY · PNK · Consumer Defensive · Grocery Stores
Current price
$13.01
52-week range
$11.21 - $15.65
Market cap
$29.49B
Balance sheet
Watch
8.55x Adequate
Net debt $20.67B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 8.0% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 10297.9% above its 5-year average P/E.
- Risk Net debt grew 49.9% over 3 years.
What this company does
Seven & i Holdings Co., Ltd.
Seven & i Holdings is the parent company of the 7-Eleven convenience store chain, which is where it makes most of its money. The company operates thousands of these stores in Japan and North America, selling everyday items like snacks, drinks, and gas. Because people visit these stores regularly for small purchases, the business tends to be stable and predictable.
How the company got here
Seven & i Holdings was officially formed in 2005, but its roots go back much further. It started with a Japanese company called Ito-Yokado, which brought the American 7-Eleven convenience store concept to Japan in the 1970s. The Japanese 7-Eleven stores became incredibly successful, eventually turning the tables and acquiring the original U.S. 7-Eleven company. The current holding company was created to bring together these convenience stores with other businesses like supermarkets and financial services under one roof. A major recent move was the purchase of the Speedway gas station and convenience store chain in the U.S. in 2021, significantly expanding its North American presence.
What it actually does
You most likely know Seven & i Holdings through its main business: the 7-Eleven convenience stores. These are the small neighborhood shops open long hours, selling everyday items like drinks, snacks, coffee, and prepared foods. Beyond the familiar convenience stores, the company also operates larger supermarkets, offers financial services like banking and credit cards, and has other retail and food businesses. Essentially, the company's goal is to provide a wide range of daily necessities and services in convenient locations for millions of customers every day.
Overseas Convenience Store Business
This is the company's largest and most profitable segment, centered on the 7-Eleven stores you see outside of Japan, especially in North America. Customers pay for snacks, drinks, gasoline, and other everyday items. This part of the business grew significantly with the acquisition of Speedway, which added thousands of locations in the United States. This segment generates the majority of the company's total revenue (the total amount of money generated from sales).
Domestic Convenience Store Business
This segment includes all the 7-Eleven stores within Japan, where the brand is the market leader. Japanese customers visit these stores for a wide variety of goods, including high-quality fresh and prepared foods, which are a major focus. The company makes money from sales in the stores it owns directly and by collecting franchise fees (a percentage of sales) from stores owned by independent operators. While smaller than the overseas business in terms of revenue, it is a core and historically significant part of the company.
Superstore Business
This part of the company operates larger retail stores like supermarkets and general merchandise stores, primarily in Japan. Think of a regular grocery store where you would do your weekly shopping for food and other household items; that's what this segment does. Shoppers pay for groceries, clothing, and other daily necessities. The company has been restructuring this segment, including selling some of its department store businesses, to focus more on its core convenience store operations.
Financial Services
This is a less visible but important part of the company that provides banking and other financial products. Its main business is Seven Bank, which operates ATMs in 7-Eleven stores and other locations, earning fees from transactions. It also offers services like credit cards and insurance. This segment makes money from the fees customers and other banks pay to use its ATMs and from interest and fees on its other financial products.
What management is betting on now
Management is heavily focused on growing its core convenience store business, especially in North America and other international markets. A key part of this strategy is the plan to publicly list its North American 7-Eleven business on a U.S. stock exchange, a move called an IPO (Initial Public Offering), to raise money and fund further growth. The company is also concentrating on expanding its food offerings, seeing high-quality, fresh food as a way to attract more customers. At the same time, they are selling off or reducing their ownership in businesses that are not central to their main convenience store strategy, like their superstore and financial services segments, to become more focused.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $10.64 vs current price $13.01
Our most-likely fair value is $10.64 a share — about 18.2% away from today's price of $13.01, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $20.7B. Interest coverage 8.5x.
Net debt
$20.67B
Interest coverage
8.55x
Seven & i Holdings Co., Ltd.'s profit covers its interest bill about 8.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
SVNDY
BASELINE
Seven & i Holdings Co., Ltd.
Total debt $24.92B Interest coverage 8.55x This is the baseline the peer rows are being compared against.
Total debt $24.16B Interest coverage 2.96x -65% vs SVNDY Carries about 2.9x less debt cushion than SVNDY.
Total debt $2.89B Interest coverage 10.70x +25% vs SVNDY Carries about 1.3x more debt cushion than SVNDY.
Total debt $15.70B Interest coverage 1.46x -83% vs SVNDY Carries about 5.8x less debt cushion than SVNDY.
Total debt $2.76B Interest coverage 6.67x -22% vs SVNDY Carries about 1.3x less debt cushion than SVNDY.
What you should know
The case for and against SVNDY
3 Rewards
3 Risks
Rewards
-
Returns 8.0% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 16.9x P/E vs peer median 30.9x (45.4% cheaper).
Risks
-
Stock trades 10297.9% above its 5-year average P/E.
-
Net debt grew 49.9% over 3 years.
-
Insider ownership is only 0.0% (peer median: 4.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.90x
Forward P/E
—
P/B
1.29x
P/S
0.00x
EV/EBITDA
3.38x
PEG ratio
16.46x
Profitability
How much profit each dollar creates
Gross margin
16.4%
Operating margin
5.2%
Net margin
3.6%
ROE
8.0%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.04x
Current ratio
0.94x
Quick ratio
0.54x
Total debt
$24.92B
Total cash
$4.25B
Growth
How the business has been compounding
Revenue TTM
$54.90B
Revenue 5Y CAGR
-4.1%
EPS TTM
0.77
EPS 5Y CAGR
3.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.28B
Free CF TTM
$1.69B
FCF margin
3.1%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
40.7%
Last ex-div date
2026-02-27