DB:S6M

Stock Analysis Report

Executive Summary

Seven & i Holdings Co., Ltd. engages in retail, food, financial, and IT businesses.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Seven & i Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: S6M has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-11.7%

S6M

-2.1%

DE Consumer Retailing

-4.7%

DE Market


1 Year Return

-17.8%

S6M

0.8%

DE Consumer Retailing

8.3%

DE Market

Return vs Industry: S6M underperformed the German Consumer Retailing industry which returned 0.8% over the past year.

Return vs Market: S6M underperformed the German Market which returned 8.3% over the past year.


Shareholder returns

S6MIndustryMarket
7 Day-11.7%-2.1%-4.7%
30 Day-8.7%-0.2%-4.0%
90 Day-8.7%0.1%-1.4%
1 Year-16.8%-17.8%4.8%0.8%11.7%8.3%
3 Year-8.7%-13.5%6.8%-3.8%11.4%1.6%
5 Year4.3%-4.9%6.9%-9.4%15.1%-0.7%

Price Volatility Vs. Market

How volatile is Seven & i Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Seven & i Holdings undervalued compared to its fair value and its price relative to the market?

19.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S6M (€31.6) is trading below our estimate of fair value (€38.94)

Significantly Below Fair Value: S6M is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: S6M is good value based on its PE Ratio (16.1x) compared to the Consumer Retailing industry average (20.5x).

PE vs Market: S6M is good value based on its PE Ratio (16.1x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: S6M is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: S6M is good value based on its PB Ratio (1.4x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Seven & i Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S6M's forecast earnings growth (4% per year) is above the savings rate (-0.4%).

Earnings vs Market: S6M's earnings (4% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: S6M's earnings are forecast to grow, but not significantly.

Revenue vs Market: S6M's revenue (1% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: S6M's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S6M's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Seven & i Holdings performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S6M has high quality earnings.

Growing Profit Margin: S6M's current net profit margins (3.2%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: S6M's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: S6M's earnings growth over the past year (15.2%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: S6M earnings growth over the past year (15.2%) exceeded the Consumer Retailing industry 2%.


Return on Equity

High ROE: S6M's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Seven & i Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: S6M's short term assets (¥2,483.7B) exceed its short term liabilities (¥2,211.5B).

Long Term Liabilities: S6M's short term assets (¥2,483.7B) exceed its long term liabilities (¥1,065.1B).


Debt to Equity History and Analysis

Debt Level: S6M's debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: S6M's debt to equity ratio has reduced from 40.2% to 38.1% over the past 5 years.

Debt Coverage: S6M's debt is well covered by operating cash flow (59.4%).

Interest Coverage: S6M's interest payments on its debt are well covered by EBIT (76.8x coverage).


Balance Sheet

Inventory Level: S6M has a high level of physical assets or inventory.

Debt Coverage by Assets: S6M's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Seven & i Holdings's current dividend yield, its reliability and sustainability?

2.44%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Seven & i Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: S6M's dividend (2.41%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: S6M's dividend (2.41%) is low compared to the top 25% of dividend payers in the German market (3.73%).


Stability and Growth of Payments

Stable Dividend: S6M's dividend payments have been volatile in the past 10 years.

Growing Dividend: S6M's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.8%), S6M's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Ryuichi Isaka (62yo)

3.7yrs

Tenure

JP¥117,000,000

Compensation

Mr. Ryuichi Isaka has been the President at Seven & I Holdings Co., Ltd. since May 2016. Mr. Isaka served as the Chief Operating Officer of Seven-Eleven Japan Co. Ltd. and was its Managing Executive Office ...


CEO Compensation Analysis

Compensation vs Market: Ryuichi's total compensation ($USD1.06M) is below average for companies of similar size in the German market ($USD4.41M).

Compensation vs Earnings: Ryuichi's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ryuichi Isaka
President & Representative Director3.7yrsJP¥117.00m0.0017% ¥487.2k
Hisataka Noguchi
Executive Officer and Senior Officer of Legal Affairs Department0yrsno datano data
Kimiyoshi Yamaguchi
Executive Officer2.6yrsno data0.00011% ¥31.5k
Katsuhiro Goto
VP & Representative Director0yrsno data0.0016% ¥455.7k
Junro Ito
Managing Executive Officer & Director0yrsno data0.36% ¥103.0m
Tsuneo Okubo
Managing Executive Officer0yrsno datano data
Takuji Hayashi
Executive Managing Officer0yrsno datano data
Shigeki Kimura
Executive Officer & Director0.8yrsno data0.00057% ¥163.4k
Tomihiro Saegusa
Executive Managing Officer2.1yrsno datano data
Osamu Yonetani
Executive Officer0.08yrsno datano data

2.1yrs

Average Tenure

62yo

Average Age

Experienced Management: S6M's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ryuichi Isaka
President & Representative Director3.7yrsJP¥117.00m0.0017% ¥487.2k
Kimiyoshi Yamaguchi
Executive Officer2.6yrsno data0.00011% ¥31.5k
Katsuhiro Goto
VP & Representative Director0yrsno data0.0016% ¥455.7k
Junro Ito
Managing Executive Officer & Director0yrsno data0.36% ¥103.0m
Shigeki Kimura
Executive Officer & Director0.8yrsno data0.00057% ¥163.4k
Joseph DePinto
Director0yrsJP¥2.91b0.00068% ¥194.9k
Kunio Ito
Outside Director0yrsno datano data
Toshiro Yonemura
Outside Director5.8yrsno datano data
Yoshio Tsukio
Outside Director0yrsno datano data
Kazuko Rudy
Outside Director0.8yrsno datano data

2.6yrs

Average Tenure

67yo

Average Age

Experienced Board: S6M's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Seven & i Holdings Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seven & i Holdings Co., Ltd.
  • Ticker: S6M
  • Exchange: DB
  • Founded: 2005
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: JP¥3.433t
  • Listing Market Cap: JP¥28.661b
  • Shares outstanding: 882.84m
  • Website: https://www.7andi.com

Number of Employees


Location

  • Seven & i Holdings Co., Ltd.
  • 8-8, Nibancho
  • Chiyoda-ku
  • Tokyo
  • 102-8452
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3382TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYSep 2005
SVND.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 2005
S6MDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2005
SVND.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.5 ORDUSUSDOct 2008
S6MADB (Deutsche Boerse AG)UNSP ADR EACH REPR 0.5 ORDDEEUROct 2008

Biography

Seven & i Holdings Co., Ltd. engages in retail, food, financial, and IT businesses. The company’s Domestic Convenience Store Operations segment operates convenience stores. As of May 31, 2018, it operated 19,943 franchised stores and 442 directly operated stores in Japan; and a number of 7-Eleven convenience stores in China and Hawaii. Its Overseas Convenience Store Operations segment engages in convenience store and gasoline retail businesses. As of March 31, 2018, it operated 7,166 franchised stores and 2,530 directly operated stores in the United States and Canada; and 35,548 7-Eleven licensed convenience stores. The company’s Superstore Operations segment operates Ito-Yokado superstores, which offers food items, apparel, and household goods, as well as York-Benimaru, York Mart, and The Garden Jiyugaoka supermarkets in Japan. As of May 31, 2018, it operated Ito-Yokado stores in 164 locations. Its Department Store Operations operates department stores that provide apparel, luxury goods, cosmetics, specialty products, and food items. As of May 31, 2018, it operated 15 department stores under the Sogo and Seibu brands in Japan. The company’s Financial Services segment offers banking, ATM, leasing, insurance, credit card, and e-money services. As of May 31, 2018, the Seven Bank operated 24,481 ATM locations in Japan; and March 31, 2018, it operated 13,413 ATMs in North America. Its Specialty Store Operations segment operates specialty retail stores; an online retailer under the Nissen name; and in restaurant, fast food, and contract businesses. As of May 31, 2018, it primarily operated 112 Akachan Honpo stores; 96 directly operated and 17 franchised stores under the THE LOFT name; and 12 Barneys New York branded stores, as well as February 28, 2018, it operated 488 restaurant and fast food locations. The company’s others segment engages in real estate, publishing, and cultural education businesses. The company was founded in 2005 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:59
End of Day Share Price2020/02/25 00:00
Earnings2019/11/30
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.