7-Eleven Malaysia Holdings Bhd

7-Eleven Malaysia Holdings Bhd maintains a capital structure with a debt-to-equity ratio of 3.51, indicating a high reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.66, suggesting limited short-term liquidity to cover current liabilities. Free cash flow is reported at 8.96 million MYR, a modest amount relative to operating cash flow of 79.2 million MYR.

Profitability metrics show a return on equity of 5.64% and a return on assets of 0.87%, both below the typical thresholds for strong performance in the food retail sector. The company's operating income of 48.61 million MYR and net income of 20.50 million MYR reflect a relatively low margin, with gross profit at 237.24 million MYR. These figures suggest the company is operating in a competitive environment with limited pricing power.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification beyond Malaysia. This lack of diversification increases exposure to local economic conditions and regulatory changes. The company's revenue of 751.797 million MYR is derived from convenience store operations and related services.

Looking ahead, the company's growth trajectory is uncertain, with no specific revenue growth targets provided in the outlook. The capital expenditure of -106.29 million MYR indicates a reduction in investment, which may signal a strategic shift or financial constraints. Analysts have provided a mean price target of 1.30 MYR, with a median of 1.40 MYR, suggesting a cautious outlook.

Risk factors include a medium liquidity risk and a negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution expected in the near term. The company's risk assessment highlights the need for careful monitoring of liquidity and debt management.

Recent events include the publication of the latest financial data, which provides a comprehensive view of the company's financial health. No significant new filings or transcripts have been disclosed that would alter the current assessment.

Net margin of 2.7% outperforms the 1.9% cohort median, demonstrating strong bottom-line efficiency relative to peers.

Revenue grew 8.6% year-over-year to MYR 3.18 billion, showing robust top-line expansion in FY2026.

Cash conversion ratio of 3.86 is best-in-class compared to the 1.09 cohort median.

Debt-to-equity ratio of 3.51 is in the bottom quartile versus the 0.51 cohort median, signaling high leverage.

The company faces high credit risk and medium liquidity risk according to internal risk flag assessments.

Revenue MYR 3.18B, +8,6% YoY; Operating income −26,6% YoY.

• ▍Revenue MYR 3.18B, +8,6% YoY
• ▍Operating income −26,6% YoY
• ▍Net income −25,9% YoY
• ▍Free cash flow −226,3% YoY
• ▍Net margin 1.0%

Revenue MYR 2.93B, +5,1% YoY; Operating income +51,8% YoY.

• ▍Revenue MYR 2.93B, +5,1% YoY
• ▍Operating income +51,8% YoY
• ▍Net income −84,1% YoY
• ▍Free cash flow +85,4% YoY
• ▍Net margin 1.4%

Revenue MYR 2.78B, +12,0% YoY; Operating income −31,6% YoY.

• ▍Revenue MYR 2.78B, +12,0% YoY
• ▍Operating income −31,6% YoY
• ▍Net income +291,4% YoY
• ▍Free cash flow −279,4% YoY
• ▍Net margin 9.4%

Revenue MYR 2.48B, −11,5% YoY; Operating income −10,9% YoY.

• ▍Revenue MYR 2.48B, −11,5% YoY
• ▍Operating income −10,9% YoY
• ▍Net income +50,8% YoY
• ▍Free cash flow −69,9% YoY
• ▍Net margin 2.7%

Revenue MYR 2.81B; Operating income MYR 153.9M.

• ▍Revenue MYR 2.81B
• ▍Operating income MYR 153.9M
• ▍Net margin 1.6%