Watami Co., Ltd. AI Stock Analysis
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Watami Co., Ltd. (7522) AI Stock Analysis
Watami Co., Ltd.
(TSE/TYO:7522)
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.
Watami Co., Ltd. (7522) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 34.01B
- Dividend Yield
- 1.18%
- Average Volume (3M)
- 167.14K
- Price to Earnings (P/E)
- 6.5
- Beta (1Y)
- 0.37
- Revenue Growth
- 6.60%
- EPS Growth
- 124.61%
- Country
- Japan
- Employees
- 1,624
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
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 involvem...
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 major s...
Watami Co., Ltd. Financial Statement Overview
Summary
Operating results show a clear turnaround from 2022 with sustained profitability, strong TTM revenue growth, and healthy gross margin (~55%) plus improved EBIT margin (~6.3%). Offsetting this, net margins remain modest (~5.5%), leverage is still meaningful (TTM debt ~27.2B vs. equity ~29.8B despite improvement), and free cash flow momentum is uneven with a recent TTM decline and mixed cash conversion.
Income Statement
72PositiveBalance Sheet
61PositiveCash Flow
58Neutral| 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
Price Trends
Market Momentum
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 847.00 is below the 20-day moving average (MA) of 853.90, below the 50-day MA of 887.40, and below the 200-day MA of 932.80, indicating a bearish trend. The MACD of -11.78 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 28.37 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
Overall Rating
JP:308773Outperform
JP:986169Neutral- JP:752267Neutral
JP:993663Neutral
JP:319754Neutral
JP:339742Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3087 | 73Outperform | JPY 170.46B | 19.09 | ― | 1.61% | 7.72% | 32.66% |
| JP:9861 | 69Neutral | JPY 304.58B | 51.88 | ― | 0.49% | 9.53% | 37.85% |
| JP:7522 | 67Neutral | JPY 34.38B | 6.49 | ― | 1.18% | 6.60% | 124.61% |
| JP:9936 | 63Neutral | JPY 177.01B | 26.26 | ― | 1.91% | -0.10% | -24.16% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| JP:3197 | 54Neutral | JPY 849.95B | 44.08 | 10.08% | 0.64% | 11.29% | 22.50% |
| JP:3397 | 42Neutral | JPY 437.39B | 493.11 | ― | 0.22% | 3.28% | -79.18% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7522 | Watami Co., Ltd. | 847.00 | -90.26 | -9.63% | |
| JP:3197 | Skylark Holdings Co | 3736.00 | 625.71 | 20.12% | |
| JP:3087 | Doutor Nichires Holdings Co., Ltd. | 3855.00 | 1432.25 | 59.12% | |
| JP:3397 | TORIDOLL Holdings Corporation | 4975.00 | 487.34 | 10.86% | |
| JP:9861 | Yoshinoya Holdings Co., Ltd. | 4710.00 | 1723.22 | 57.69% | |
| JP:9936 | Ohsho Food Service Corp. | 2933.00 | -149.40 | -4.85% |
Watami Co., Ltd. Corporate Events
Watami Delivers Strong Q1 Profit Rebound but Withholds Full-Year Outlook Amid Global Uncertainty
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 ¥37.46. While operati...
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.
Date of analysis: Aug 17, 2026