Watami Co., Ltd. (JP:7522)
:7522
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Watami Co., Ltd.
(7522)
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Rating:63Neutral
Price Target:
¥966.00
▲(5.00% Upside)
Action:Reiterated
Date:05/15/26
The score is driven mainly by improving fundamentals (revenue growth, profitability recovery, and better leverage) and an attractive P/E, partially offset by weak technicals with the stock trading below key moving averages and negative momentum.
Positive Factors
Revenue & Profit Recovery
Consistent multi-year revenue growth and a return to sustained profits indicate a credible operational turnaround. This durable recovery improves fixed-cost absorption and supports reinvestment in formats and service quality, strengthening competitive position over the medium term.
Negative Factors
Low Net Margin
A net margin around 4.4% leaves limited buffer against cost inflation or demand shocks in the restaurant industry. Despite solid gross margins, modest bottom-line profitability heightens sensitivity to labor, food costs and traffic volatility, constraining durable cash flow upside.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profit Recovery
Consistent multi-year revenue growth and a return to sustained profits indicate a credible operational turnaround. This durable recovery improves fixed-cost absorption and supports reinvestment in formats and service quality, strengthening competitive position over the medium term.
Read all positive factors
Watami Co., Ltd. (7522) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥37.62B
Dividend Yield1.04%
Average Volume (3M)79.94K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth5.13%
EPS Growth16.50%
CountryJP
Employees1,621
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)102.42
Shares Outstanding42,684,880
10 Day Avg. Volume62,400
30 Day Avg. Volume79,936
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)1.28
Price to Sales (P/S)0.41
P/FCF Ratio8.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Watami Co., Ltd. Business Overview & Revenue Model
Company Description
Watami Co., Ltd. engages in the food, home food, and agriculture services business in Japan and internationally. The company operates restaurants. It also engages in organic farming, livestock, and dairy businesses; and development, construction, ...
How the Company Makes Money
Watami makes money mainly by selling food and beverages through its restaurant operations. Revenue is generated at the point of sale from customer visits (dine-in and, where offered, takeout/delivery), with average ticket size driven by menu prici...
Watami Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
61
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 93.27B | 88.71B | 82.30B | 77.92B | 64.36B |
| Gross Profit | 51.99B | 48.36B | 46.63B | 42.18B | 32.96B |
| EBITDA | 7.29B | 7.03B | 5.55B | 3.29B | -1.37B |
| Net Income | 4.11B | 3.52B | 4.19B | 1.67B | -1.84B |
Balance Sheet | |||||
| Total Assets | 74.56B | 71.49B | 64.23B | 57.05B | 52.22B |
| Cash, Cash Equivalents and Short-Term Investments | 45.95B | 46.13B | 40.64B | 35.71B | 30.83B |
| Total Debt | 29.00B | 29.08B | 26.76B | 24.68B | 25.02B |
| Total Liabilities | 44.06B | 44.35B | 42.06B | 39.24B | 37.59B |
| Stockholders Equity | 30.16B | 26.80B | 21.89B | 17.68B | 14.47B |
Cash Flow | |||||
| Free Cash Flow | 4.62B | 5.52B | 2.80B | 5.10B | -692.00M |
| Operating Cash Flow | 7.57B | 6.89B | 4.74B | 6.68B | 1.02B |
| Investing Cash Flow | -4.92B | -6.56B | -3.06B | -4.99B | -15.37B |
| Financing Cash Flow | -1.90B | -13.00M | 59.00M | -1.54B | 10.10B |
Watami Co., Ltd. Technical Analysis
Negative
920.00
Price Trends
958.59
Negative
955.37
Negative
957.15
Negative
Market Momentum
-14.01
Positive
43.41
Neutral
49.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7522, the sentiment is Negative. The current price of 920 is below the 20-day moving average (MA) of 941.85, below the 50-day MA of 958.59, and below the 200-day MA of 957.15, indicating a bearish trend. The MACD of -14.01 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 49.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7522.
Watami Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥125.13B | 17.55 | ― | 2.09% | 6.94% | 8.74% | |
63 Neutral | ¥37.62B | -171.27 | ― | 1.04% | 5.13% | 16.50% | |
62 Neutral | ¥167.24B | 21.94 | ― | 1.65% | 5.23% | -1.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥643.94B | 35.05 | 9.53% | 0.55% | 12.02% | 20.18% | |
61 Neutral | ¥209.07B | 37.97 | ― | 0.69% | 10.09% | 22.64% | |
50 Neutral | ¥338.81B | -15.10 | ― | 0.24% | 3.91% | 37.05% |
* Consumer Cyclical Sector Average
JP:7522
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Watami Co., Ltd. Corporate Events
Watami Boosts Earnings but Withholds Outlook Amid Global Uncertainty
May 13, 2026
Watami reported consolidated net sales of ¥93.3 billion for the year ended March 31, 2026, up 5.1% year on year, with operating profit rising 5.9% to ¥4.8 billion and profit attributable to owners of parent climbing 16.6% to ¥4.1 bi...
Watami Books ¥908 Million in Foreign Exchange Gains for FY2026
May 13, 2026
Watami Co., Ltd. reported that it recorded 908 million yen in foreign exchange gains as non-operating income for the fiscal year ended March 31, 2026, reflecting favorable currency movements. These gains stem from the settlement and year-end reval...
Watami Books Major Impairment Charges on Southeast Asia Hub and Restaurant Assets
May 13, 2026
Watami has recorded significant extraordinary impairment losses for the fiscal year ended March 31, 2026, mainly tied to its LEADER FOOD Group subsidiaries in Southeast Asia. These units had been positioned as strategic production and logistics hu...
Watami Confirms Year-End Dividends on Common and Preferred Shares for FY2025
May 13, 2026
Watami Co., Ltd. has approved a proposal to pay a year-end dividend of ¥10 per common share for the fiscal year ended March 31, 2026, matching the prior year and previous forecasts, for a total of ¥400 million, with an effective payment ...
Watami Reshapes Executive Lineup to Support Multi-Brand and Overseas Expansion
Mar 30, 2026
Watami Co., Ltd. announced a series of executive officer appointments effective April 1, 2026, including Tomohisa Aso as Executive Officer and SUBWAY FC Business Director, who will also serve as president of Watami Fast Casual Management, and new ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.