Strong Balance SheetWatanabe Sato's low leverage and healthy equity ratio provide a durable financial buffer that lowers solvency risk and preserves strategic optionality. Over the next 2–6 months this balance sheet strength supports capital spending, dividends or absorbent of shocks without urgent refinancing.

Positive ROEA sustained positive ROE signals the company is generating returns from invested capital, indicating disciplined capital allocation. This durable operating characteristic supports long-term shareholder value and makes it easier to justify reinvestment or distributions even if top-line growth is uneven.

Stable Gross MarginsRelatively stable gross margins point to resilient core operating economics and some pricing or cost-control advantage in projects. Over months this stability helps protect underlying profitability and provides a base from which management can improve operating leverage or cut overhead to restore net margins.

Bears Say

Revenue DeclineA roughly 6% decline in revenue indicates persistent top-line weakness that reduces scale and raises fixed-cost absorption. Over the medium term declining revenue pressures margins, limits reinvestment capability, and raises execution risk unless the company secures new contracts or demand recovers.

Weak Free Cash FlowNegative free cash flow and volatile operating cash flow show difficulty converting profits into spendable cash. Persisting FCF weakness constrains capex, dividends and M&A funding, and forces reliance on the balance sheet or external financing, weakening long-term financial flexibility.

Compressing MarginsDeclining net and operating margins suggest rising costs or diminishing pricing power. If this trend persists, it will erode returns on capital and limit the company's ability to self-fund growth or maintain payouts, undermining the benefits of a strong balance sheet over time.

1807 FAQ

What was Watanabe Sato Co., Ltd.’s price range in the past 12 months?

Watanabe Sato Co., Ltd. lowest stock price was ¥1400.00 and its highest was ¥2093.00 in the past 12 months.

What is Watanabe Sato Co., Ltd.’s market cap?

Watanabe Sato Co., Ltd.’s market cap is ¥11.70B.

When is Watanabe Sato Co., Ltd.’s upcoming earnings report date?

Watanabe Sato Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 81 days.

How were Watanabe Sato Co., Ltd.’s earnings last quarter?

Watanabe Sato Co., Ltd. released its earnings results on Feb 09, 2026. The company reported ¥56.76 earnings per share for the quarter, beating the consensus estimate of N/A by ¥56.76.

Is Watanabe Sato Co., Ltd. overvalued?

According to Wall Street analysts Watanabe Sato Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Watanabe Sato Co., Ltd. pay dividends?

Watanabe Sato Co., Ltd. pays a Semiannually dividend of ¥40 which represents an annual dividend yield of 4.39%. See more information on Watanabe Sato Co., Ltd. dividends here

What is Watanabe Sato Co., Ltd.’s EPS estimate?

Watanabe Sato Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Watanabe Sato Co., Ltd. have?

Watanabe Sato Co., Ltd. has 6,391,400 shares outstanding.

What happened to Watanabe Sato Co., Ltd.’s price movement after its last earnings report?

Watanabe Sato Co., Ltd. reported an EPS of ¥56.76 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.662%.

Which hedge fund is a major shareholder of Watanabe Sato Co., Ltd.?

Currently, no hedge funds are holding shares in JP:1807

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Watanabe Sato Co., Ltd.

Watanabe Sato Co., Ltd. engages in the contracting and investigation, research, planning, designing, supervision, technical guidance, and consultation of civil engineering construction activities. It offers porous concrete and asphalt pavement systems, asphalt mixture, block systems, resin pavement, turf, vegetation blocks, sports courts, paving materials and construction methods, rainwater storage infiltration and runoff control methods, multi-natural bank protection methods, disaster prevention/emergency maintenance measures countermeasure construction methods, repair/maintenance methods, chipping/surface treatments, and top coat/coating films. The company also manufactures and sells construction materials. In addition, it engages in the design, manufacture, leasing, and sale of construction equipment for construction work; industrial waste processing business; and purchase, lease, brokerage, sale, and management of real estate properties. The company was founded in 1923 and is headquartered in Tokyo, Japan.