• Seven & I forecasted an operating income of 545.00 billion yen, which missed the estimated 550.86 billion yen
• The company sees net income at 293.00 billion yen, falling short of the expected 313.12 billion yen
• Their net sales prediction is 11.25 trillion yen, compared to the estimate of 11.4 trillion yen
• Seen dividend is 40.00 yen, less than the estimated 41.20 yen
• For the fourth quarter results, net income was 42.46 billion yen, a decrease of 8.2% y/y, and less than the estimated 50.66 billion yen
• Fourth quarter net sales reached 5.92 trillion yen, an impressive y/y increase of 98%, although it exceeded the estimate of 2.85 trillion yen.
• Dividend in Q4 was 56.50 yen, down when compared to 63.50 yen from the previous year
• In the year’s results, an operating income of 534.25 billion yen was seen, a 5.5% increase from the previous year, beating the estimate of 525.27 billion yen
• Seven & I received 11 buys, 7 holds, and 1 sell ratings from analysts
• All comparisons are based on values reported by the company’s original disclosures.
Seven & I Holdings on Smartkarma
Analyst coverage on Seven & I Holdings by smartKarma reveals a mix of sentiments and insights from independent analyst Oshadhi Kumarasiri. In the bullish analysis titled “Seven & I Spends Another $950mn on Acquisitions, A Possible Defense Against Investor Activism,” Seven & I Holdings announced a significant acquisition of 204 convenience stores in the US for $950m. The move is seen as a strategy to retain overseas investors and deter potential investor activism through aggressive expansion.
On the other hand, in a bearish report titled “Seven & I: Unimpressive Results & Potential Investor Exodus Amidst Superstore Transformation,” concerns arise despite FQ2 operating profit beating expectations. Lowered revenue guidance for FH2 led to a 5% drop in shares as investors express worries about US growth and the company veering away from activist proposals. The potential departure of overseas investors supporting ValueAct’s proposals could pose downside risks for Seven & I Holdings in the short term.
A look at Seven & I Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Seven & I Holdings Co., Ltd. is positioned for a promising long-term outlook based on Smartkarma Smart Scores. With a high Momentum score of 5, the company shows strong potential for consistent growth and positive market performance. Additionally, scoring 3 in Value, Dividend, and Growth, Seven & I Holdings demonstrates a balanced approach to creating value for investors while maintaining a steady dividend payout. However, the company’s Resilience score of 2 indicates some potential vulnerabilities to economic fluctuations, which may require careful monitoring.
As a conglomerate of reputable retail brands like Seven Eleven Japan and Ito-Yokado, Seven & I Holdings manages a diverse portfolio of convenience stores, supermarkets, and department stores. This strategic merger has allowed the company to establish a strong presence in the retail industry, paving the way for continued growth and market leadership in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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