What smart money is saying about Seven & i Holdings Co., Ltd.

Position history

Between Q2 2026 and Q3 2026, 2 fund letters reported a position in Seven & i Holdings Co., Ltd., with no move described.

Fund activity · 2 positions

• HoldsHennessy Japan Fund

  September 2026

  “A prime example in our portfolio is Seven & i Holdings.”

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  Seven & i Holdings Co., Ltd.
• HoldsHennessy Japan Fund

  April 2026

  “Seven & i Holdings The company held its Investor Relations (IR) Day on April 23, where it outlined its medium‑term management strategy and specific action plans. Despite this, the stock price has remained sluggish. However, we continue to take a more constructive view than the broader market and maintain a positive outlook. We believe the stock is undervalued and represents an attractive investment opportunity for the following reasons: 1. Significant growth potential: The convenience store business remains a growing industry globally. The company has substantial room for expansion in the U.S. market, alongside further opportunities for new store openings in many untapped geographies. 2. Recovery signs: There are emerging signs of a sales recovery in domestic existing stores, while a full‑scale turnaround effort is now underway in the U.S. business. 3. Heightened management urgency: Driven in part by activist pressure in recent years, the current management team displays a significantly higher level of urgency compared to the Isaka era (the previous CEO). 4. Strong cash generation: Even during the past three years of stagnant operating performance, the company has generated approximately 500bn yen ($3.1bn) in free cash flow (FCF). On current market capitalization, this equates to a free cash flow yield of around 10%, which is exceptionally attractive. 5. Compelling valuation: The stock is significantly undervalued based on forward P/E projections of only 11.5x (we believe it is appropriate to base our calculations on the company’s forecast EPS of 162.56 yen ($1.02), adjusted for goodwill amortization, which we regard as a more appropriate measure of the company's underlying cash earnings power). Hennessy Japan Fund (HJPNX/HJPIX) 6. Enhanced shareholder focus: Since the Alimentation Couche‑Tard acquisition proposal fell through, management has pivoted towards a more shareholder‑centric approach and has been actively executing share buybacks. This not only boosts EPS but also provides a strong floor for the stock price through improved supply‑demand dynamics. 7. M&A potential: Although Couche‑Tard has withdrawn, the possibility of a new suitor emerging remains. Given the current depressed valuation, the company may be considered attractive to financial buyers. While the turnaround is taking longer than we initially anticipated, we believe the company is steadily moving in the right direction. In particular, the new executive compensation scheme announced on April 16 represents a meaningful improvement, better aligning management incentives with shareholder outcomes. For these reasons, we will maintain our current position.”

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  Seven & i Holdings Co., Ltd.