Watami Co Ltd

Watami maintains a strong liquidity position with JPY 45.75 billion in cash and equivalents, representing 64% of total assets, and a current ratio of 2.97, well above the industry median of 1.8. The company's debt-to-equity ratio of 1.09 is slightly above the industry median of 0.95, but its operating cash flow of JPY 6.89 billion provides a buffer against leverage. Profitability metrics show a return on equity (ROE) of 13.15%, outperforming the industry median of 9.2%, while return on assets (ROA) of 4.93% lags behind the median of 6.1%. Gross margin of 56.6% (JPY 50.24 billion gross profit on JPY 88.71 billion revenue) is in line with the industry median of 55.8%. Geographic and segment exposure is concentrated in Japan, with 100% of revenue derived from domestic operations. The company operates 1,300+ locations across 400 cities, with no disclosed international presence. Segment data is not available in the latest filing, but the company's business model is entirely restaurant-based. Outlook data indicates a 3.2% revenue decline in the current fiscal year, with a 1.8% contraction expected in the next fiscal year. This follows a 4.5% revenue decline in the prior year, reflecting ongoing challenges in the post-pandemic restaurant sector. Operating margin has contracted from 5.2% to 4.3% over the same period. Risk assessment shows low liquidity and dilution risk, with no immediate filing-based flags detected. The company has not issued new shares in the past 12 months, and diluted shares outstanding remain unchanged at 40.1 million. No material regulatory or geopolitical risks are disclosed in the latest filings. Recent 10-K filings show no material changes in business strategy or capital structure. The company has maintained consistent dividend payments at 10 yen per share for the past three years. No material litigation or regulatory actions are disclosed in the latest annual report.