Watami Co., Ltd. (7522) AI Stock Analysis

• Market Cap: ¥41.36B
• Dividend Yield: 1.04%
• Average Volume (3M): 79.94K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.45
• Revenue Growth: 5.47%
• EPS Growth: 61.89%
• Country: JP
• Employees: 1,621
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 57.95
• Shares Outstanding: 42,684,880
• 10 Day Avg. Volume: 62,400
• 30 Day Avg. Volume: 79,936
• PEG Ratio: -0.66
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 7.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,043.00 ▲(13.37% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by improving financial performance (return to profitability, better leverage, positive cash flow), tempered by still-thin margins and a recent decline in free cash flow. Technicals are only moderately supportive (above shorter-term averages but below the 200-day), while valuation is relatively reasonable due to the low P/E but with a modest dividend yield.

Positive Factors

Profitability recovery

Watami has moved from loss-making to sustained profitability, with positive EBIT and net margins and modest revenue growth. This recovery boosts operational resilience, supports reinvestment in stores and brands, and establishes a firmer earnings base for multi-quarter cash generation and planning.

Negative Factors

Thin and pressured margins

Despite recovery, margins remain narrow and have slipped from prior-year peaks. Thin margins limit the buffer against input cost inflation or volume shocks, constrain reinvestment capacity, and mean earnings are sensitive to small changes in traffic or commodity/labor costs over the medium term.

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, ...

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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 Co., Ltd. generates revenue primarily through its restaurant operations, which include a wide range of izakaya and other dining establishments across Japan. The company capitalizes on the growing demand for dining out and socializing, attra...

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Watami Co., Ltd. generates revenue primarily through its restaurant operations, which include a wide range of izakaya and other dining establishments across Japan. The company capitalizes on the growing demand for dining out and socializing, attra...

Watami Co., Ltd. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	91.94B	88.71B	82.30B	77.92B	64.36B	60.85B
Gross Profit	51.30B	48.36B	46.63B	42.18B	32.96B	29.58B
EBITDA	7.22B	7.03B	5.55B	3.29B	-1.37B	-7.29B
Net Income	3.70B	3.52B	4.19B	1.67B	-1.84B	-11.56B
Balance Sheet
Total Assets	70.47B	71.49B	64.23B	57.05B	52.22B	44.89B
Cash, Cash Equivalents and Short-Term Investments	38.78B	46.13B	40.64B	35.71B	30.83B	20.40B
Total Debt	23.78B	29.08B	26.76B	24.68B	25.02B	26.60B
Total Liabilities	41.11B	44.35B	42.06B	39.24B	37.59B	41.49B
Stockholders Equity	29.02B	26.80B	21.89B	17.68B	14.47B	3.24B
Cash Flow
Free Cash Flow	3.95B	5.52B	2.80B	5.10B	-692.00M	-6.85B
Operating Cash Flow	6.50B	6.89B	4.74B	6.68B	1.02B	-4.32B
Investing Cash Flow	-3.40B	-6.56B	-3.06B	-4.99B	-15.37B	-3.41B
Financing Cash Flow	-1.06B	-13.00M	59.00M	-1.54B	10.10B	11.64B

Watami Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 920.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7522, the sentiment is Positive. The current price of 920 is below the 20-day moving average (MA) of 957.26, below the 50-day MA of 953.27, and below the 200-day MA of 963.46, indicating a bullish trend. The MACD of 13.73 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 75.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7522.

Watami Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3087	73 Outperform	¥134.20B	14.74	―	2.09%	5.78%	10.26%
9936	66 Neutral	¥185.28B	27.13	―	1.65%	9.59%	8.08%
7522	65 Neutral	¥41.36B	3.96	―	1.04%	5.47%	61.89%
3197	63 Neutral	¥750.98B	45.71	9.53%	0.55%	15.58%	60.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9861	61 Neutral	¥217.02B	72.52	―	0.69%	10.75%	-14.28%
3397	53 Neutral	¥383.63B	34.66	―	0.24%	9.19%	43.90%

Watami Co., Ltd. Corporate Events