DB:S6MA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.


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: S6MA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

S6MA

0%

DE Consumer Retailing

0%

DE Market


1 Year Return

-20.9%

S6MA

0%

DE Consumer Retailing

0%

DE Market

Return vs Industry: S6MA underperformed the German Consumer Retailing industry which returned 0.5% over the past year.

Return vs Market: S6MA underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

S6MAIndustryMarket
7 Day-1.4%0%0%
30 Day2.3%0%0%
90 Day-2.9%0%0%
1 Year-20.9%-20.9%0%0%0%0%
3 Year-21.0%-21.0%0%0%0%0%
5 Yearn/a0%0%0%0%

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?

17.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S6MA (€13.6) is trading above our estimate of fair value (€6.83)

Significantly Below Fair Value: S6MA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: S6MA is good value based on its PE Ratio (17.3x) compared to the XE Consumer Retailing industry average (21x).

PE vs Market: S6MA is good value based on its PE Ratio (17.3x) compared to the German market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: S6MA is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: S6MA is good value based on its PB Ratio (1.2x) compared to the XE Consumer Retailing industry average (1.7x).


Next Steps

Future Growth

How is Seven & i Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S6MA's forecast earnings growth (13.8% per year) is above the savings rate (0.2%).

Earnings vs Market: S6MA's earnings (13.8% per year) are forecast to grow slower than the German market (26.9% per year).

High Growth Earnings: S6MA's earnings are forecast to grow, but not significantly.

Revenue vs Market: S6MA's revenue (7.4% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: S6MA's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S6MA's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

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

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S6MA has a large one-off loss of ¥101.6B impacting its August 31 2020 financial results.

Growing Profit Margin: S6MA's current net profit margins (2.9%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: S6MA's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: S6MA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: S6MA had negative earnings growth (-15.2%) over the past year, making it difficult to compare to the Consumer Retailing industry average (2.1%).


Return on Equity

High ROE: S6MA's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Seven & i Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: S6MA's short term assets (¥2,622.4B) exceed its short term liabilities (¥2,303.0B).

Long Term Liabilities: S6MA's short term assets (¥2,622.4B) exceed its long term liabilities (¥1,108.5B).


Debt to Equity History and Analysis

Debt Level: S6MA's debt to equity ratio (42.1%) is considered high.

Reducing Debt: S6MA's debt to equity ratio has increased from 41.3% to 42.1% over the past 5 years.

Debt Coverage: S6MA's debt is well covered by operating cash flow (46.6%).

Interest Coverage: S6MA's interest payments on its debt are well covered by EBIT (72.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S6MA's dividend (2.79%) is higher than the bottom 25% of dividend payers in the German market (1.18%).

High Dividend: S6MA's dividend (2.79%) is low compared to the top 25% of dividend payers in the German market (3.71%).


Stability and Growth of Payments

Stable Dividend: S6MA's dividend payments have been volatile in the past 10 years.

Growing Dividend: S6MA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.3%), S6MA'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?

2.6yrs

Average management tenure


CEO

Ryuichi Isaka (63 yo)

4.33yrs

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 ($USD0.00) is below average for companies of similar size in the German market ($USD5.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ryuichi Isaka
President & Representative Director4.33yrsJP¥117.00m0.0017%
¥ 425.9k
Yoshimichi Maruyama
Executive Officer0.42yrno datano data
Hisataka Noguchi
Executive Officer and Senior Officer of Legal Affairs Departmentno datano datano data
Kimiyoshi Yamaguchi
Executive Officer3.25yrsno data0.00011%
¥ 27.6k
Katsuhiro Goto
VP & Representative Directorno datano data0.0016%
¥ 398.4k
Junro Ito
Managing Executive Officer & Directorno datano data0.36%
¥ 90.0m
Tsuneo Okubo
Managing Executive Officerno datano datano data
Takuji Hayashi
Executive Managing Officerno datano datano data
Nobutomo Teshima
Executive Officer2.58yrsno datano data
Tomihiro Saegusa
Executive Managing Officer2.75yrsno datano data
Osamu Yonetani
Executive Officer0.75yrno datano data
Nobuyuki Miyaji
Executive Officer0.75yrno datano data

2.6yrs

Average Tenure

63yo

Average Age

Experienced Management: S6MA's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ryuichi Isaka
President & Representative Director4.33yrsJP¥117.00m0.0017%
¥ 425.9k
Yoshimichi Maruyama
Executive Officer0.42yrno datano data
Kimiyoshi Yamaguchi
Executive Officer3.25yrsno data0.00011%
¥ 27.6k
Katsuhiro Goto
VP & Representative Directorno datano data0.0016%
¥ 398.4k
Junro Ito
Managing Executive Officer & Directorno datano data0.36%
¥ 90.0m
Joseph DePinto
Directorno dataJP¥2.47b0.00068%
¥ 170.4k
Kunio Ito
Independent Outside Directorno datano datano data
Toshiro Yonemura
Independent Outside Director6.42yrsno datano data
Fumihiko Nagamatsu
Director2.75yrsno data0.0016%
¥ 398.4k
Yoshio Tsukio
Independent Outside Directorno datano datano data
Kazuko Rudy
Independent Outside Director1.42yrsno datano data
Shigeki Kimura
Director1.42yrsno data0.00057%
¥ 142.8k

2.8yrs

Average Tenure

67yo

Average Age

Experienced Board: S6MA's board of directors are not considered experienced ( 2.8 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: S6MA
  • Exchange: DB
  • Founded: 2005
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: JP¥3.112t
  • Listing Market Cap: JP¥25.054b
  • Shares outstanding: 882.96m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 22:27
End of Day Share Price2020/10/19 00:00
Earnings2020/08/31
Annual Earnings2020/02/29


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.