3382 JP

Seven & i Holdings Co., Ltd.

Consumer


Presented:10/19/2015
Price:¥5,418.00
Cap:$40.05B
Current Price:¥2,287.50
Cap:$49.59B

Presented

Date10/19/2015
Price¥5,418.00
Market Cap$40.05B
Ent Value$38.45B
P/E Ratio27.59x
Book Value¥2,677.42
Div Yield0%
Shares O/S884.83M
Ave Daily Vol2,658,166
Short IntN/A

Current

Price¥2,287.50
Market Cap$49.59B
Seven & I Holdings Co., Ltd. engages in the planning, management, and operation of its group companies. It operates through the following segments: Convenience Store Operations, Superstore Operations, Department Store Operations, Food Services, Financial Services, Mail Order Services, and Others. The Convenience Store Operations segment deals with corporate and franchised stores under the name of 7-Eleven. The Superstore Operations segment manages supermarkets, specialty shops, and others. The Department Store Operations segment includes department store business, which mainly consists of Sogo & Seibu Co. Ltd. The Food Services segment manages restaurant operations, meal provision service business, and fast food operations. The Financial Services segment deals with bank, credit card, lease, and other businesses. The Mail Order Services segment covers mail order business of gift merchandises and wholesaling. The Others segment includes information technology business and other services. The company was founded on September 1, 2005 and is headquartered in Tokyo, Japan.

Publicly traded companies mentioned herein: Seven & i Holdings Co Ltd (3382 JP)

Highlights

The presenter is long shares of the leading Japanese convenience stores operator Seven & i Holdings and thinks the recent pullback to ~5,400 JPY represents an attractive entry point. He sees several positive market dynamics working in investors’ favor in Japan, including an aging population and tight labor market with women entering the workforce. With ~18,000 stores and just over 40% market share in Japan, Seven & i’s brands are ideally situated to benefit. In addition, its ~9,000 7-Eleven stores in the US are enjoying consumer spending tailwinds and the management team is intelligently looking at “structural reform” across the business that should create value over time.

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Idea Discussion

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