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Watami Co., Ltd.
(7522)
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Rating:67Neutral
Price Target:
¥1,085.00
▲(17.93% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving fundamentals versus 2022 (profitability and better leverage), but tempered by still-meaningful debt and uneven free-cash-flow performance. Technicals are supportive with price above major moving averages and positive MACD, though elevated RSI suggests near-term overheating risk. Valuation is a positive factor given the low P/E and modest dividend yield.
Positive Factors
Profitability Turnaround and Revenue Growth
The shift from losses in 2022 to sustained profitability, alongside strong TTM revenue growth, indicates improved operating execution and customer demand. This provides a more durable earnings base, although growth consistency still matters.
Negative Factors
Sizable Remaining Debt Burden
Despite improvement, TTM debt of about 27.2B remains close to equity of about 29.8B. That sizable obligation can constrain financial flexibility and increase sensitivity to weaker restaurant demand, higher costs, or a prolonged operating slowdown.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround and Revenue Growth
The shift from losses in 2022 to sustained profitability, alongside strong TTM revenue growth, indicates improved operating execution and customer demand. This provides a more durable earnings base, although growth consistency still matters.
Read all positive factors
Watami Co., Ltd. (7522) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥39.25B
Dividend Yield1.04%
Average Volume (3M)79.94K
Price to Earnings (P/E)7.4
Beta (1Y)0.39
Revenue Growth6.60%
EPS Growth124.61%
CountryJP
Employees1,624
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)130.28
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. is a diverse enterprise with operations spanning food service, home meal delivery, and agricultural sectors, both within Japan and internationally. The company's portfolio includes managing a chain of restaurants, as well as invol...
How the Company Makes Money
Watami makes money mainly by selling food and beverages through its restaurant operations, generating revenue from customer spending (dine-in sales and, where applicable, takeout/delivery sales) across its branded restaurant formats. A second majo...
Watami Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
61
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 95.31B | 93.27B | 88.71B | 82.30B | 77.92B | 64.36B |
| Gross Profit | 52.75B | 51.99B | 48.36B | 46.63B | 42.18B | 32.96B |
| EBITDA | 8.49B | 8.16B | 7.40B | 6.55B | 4.27B | 935.00M |
| Net Income | 5.22B | 4.11B | 3.52B | 4.19B | 1.67B | -1.84B |
Balance Sheet | ||||||
| Total Assets | 73.29B | 74.56B | 71.49B | 64.23B | 57.05B | 52.22B |
| Cash, Cash Equivalents and Short-Term Investments | 44.74B | 45.95B | 46.13B | 40.64B | 35.71B | 30.83B |
| Total Debt | 27.24B | 29.00B | 29.08B | 26.76B | 24.68B | 25.02B |
| Total Liabilities | 42.94B | 44.06B | 44.35B | 42.06B | 39.24B | 37.59B |
| Stockholders Equity | 29.84B | 30.16B | 26.80B | 21.89B | 17.68B | 14.47B |
Cash Flow | ||||||
| Free Cash Flow | 4.08B | 4.62B | 5.52B | 2.80B | 5.10B | -692.00M |
| Operating Cash Flow | 7.55B | 7.57B | 6.89B | 4.74B | 6.68B | 1.02B |
| Investing Cash Flow | -6.79B | -4.92B | -6.56B | -3.06B | -4.99B | -15.37B |
| Financing Cash Flow | -2.13B | -1.90B | -13.00M | 59.00M | -1.54B | 10.10B |
Watami Co., Ltd. Technical Analysis
Positive
920.00
Price Trends
944.44
Positive
947.82
Positive
945.78
Positive
Market Momentum
8.36
Negative
54.01
Neutral
32.25
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 958.90, below the 50-day MA of 944.44, and below the 200-day MA of 945.78, indicating a bullish trend. The MACD of 8.36 indicates Negative momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 32.25 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥150.12B | 18.17 | ― | 1.75% | 7.36% | 24.66% | |
68 Neutral | ¥179.13B | 24.83 | ― | 1.65% | 0.97% | -20.65% | |
67 Neutral | ¥39.25B | 7.40 | ― | 1.04% | 6.60% | 124.61% | |
64 Neutral | ¥244.77B | 43.18 | ― | 0.61% | 10.76% | 48.44% | |
63 Neutral | ¥760.54B | 40.48 | 9.69% | 0.78% | 11.29% | 22.50% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | ¥380.08B | 436.56 | ― | 0.24% | 3.28% | -79.18% |
* Consumer Cyclical Sector Average
JP:7522
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Watami Co., Ltd. Corporate Events
Watami Delivers Strong Q1 Profit Rebound but Withholds Full-Year Outlook Amid Global Uncertainty
Aug 14, 2026
Watami reported consolidated net sales of ¥24.2 billion for the three months ended June 30, 2026, up 9.3% year on year, with profit attributable to owners of parent surging to ¥1.62 billion and basic earnings per share rising to ¥37...
Watami Completes Restricted Stock Compensation Disposal of Treasury Shares
Jul 28, 2026
Watami Co., Ltd. has completed the payment procedures for a disposal of treasury stock intended as restricted stock compensation, following a resolution by its Board of Directors on June 29, 2026. The transaction reflects the company’s conti...
Watami to Grant Restricted Treasury Shares to Directors Under Performance-Linked Plan
Jun 29, 2026
Watami’s board has approved the disposal of 10,839 shares of treasury stock on July 28, 2026, at ¥918 per share, to be used as restricted stock compensation for three directors under its existing equity incentive plan. The move fits wit...
Watami Clarifies Relationship With Major Shareholder Keniten and Safeguards Minority Interests
Jun 29, 2026
Watami Co., Ltd. disclosed that Keniten Co., Ltd. is classified as an other affiliated company, holding 24.39% of Watami’s voting rights as of March 31, 2026. Despite this substantial stake, Keniten’s shares are not listed on a financi...
Watami Discloses FY2026 Financials of Key Asset Management Affiliate Keniten
Jun 29, 2026
Watami disclosed the financial results of Keniten Co., Ltd., classified as an other affiliated company and asset management firm, for the fiscal year ended March 31, 2026, reflecting its role as a controlling shareholder under financial statement ...
Watami Buys Majority Stake in Onigilly to Bolster U.S. Food Business and Circular Model
May 25, 2026
Watami has moved to deepen its U.S. presence by having its wholly owned subsidiary Watami US Corp agree to acquire 51% of San Francisco-based Onigilly, Inc., along with its franchise and IP units, in a share transfer approved by Watami’s boa...
Watami Maintains Leadership and Governance Lineup Ahead of 39th Shareholders Meeting
May 25, 2026
Watami Co., Ltd. has announced its slate of director candidates to be submitted for approval at the 39th Annual General Meeting of Shareholders on June 29, 2025, opting for continuity in its top management. Representative Director, Chairman, Presi...
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.