ScoreComparison
Why is Watami Co., Ltd. ?
1
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.62
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.62
- The company has been able to generate a Return on Equity (avg) of 10.75% signifying low profitability per unit of shareholders funds
2
The company declared very negative results in Mar'25 after positive results in Dec'24
- INTEREST(HY) At JPY 263 MM has Grown at 13.36%
- INVENTORY TURNOVER RATIO(HY) Lowest at 17.5 times
- DEBT-EQUITY RATIO (HY) Highest at -51.7 %
3
With ROE of 15.93%, it has a expensive valuation with a 1.62 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -5.57%, its profits have fallen by -26.9%
4
Below par performance in long term as well as near term
- Along with generating -5.57% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Watami Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Leisure Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Watami Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Watami Co., Ltd.
-5.57%
0.30
23.34%
Japan Nikkei 225
40.96%
1.35
28.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.49%
EBIT Growth (5y)
118.39%
EBIT to Interest (avg)
-3.62
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.66
Sales to Capital Employed (avg)
1.79
Tax Ratio
20.24%
Dividend Payout Ratio
13.18%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
25.26%
ROE (avg)
10.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.62
EV to EBIT
5.63
EV to EBITDA
3.66
EV to Capital Employed
2.80
EV to Sales
0.29
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
49.72%
ROE (Latest)
15.93%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 6,497 MM
PRE-TAX PROFIT(Q)
At JPY 2,985 MM has Grown at 114.44%
NET PROFIT(Q)
At JPY 2,453.24 MM has Grown at 114.5%
CASH AND EQV(HY)
Highest at JPY 79,377 MM
NET SALES(Q)
Highest at JPY 24,632 MM
OPERATING PROFIT(Q)
Highest at JPY 2,721 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.05 %
-10What is not working for the Company
INTEREST(HY)
At JPY 263 MM has Grown at 13.36%
INVENTORY TURNOVER RATIO(HY)
Lowest at 17.5 times
DEBT-EQUITY RATIO
(HY)
Highest at -51.7 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 18.66 times
Here's what is working for Watami Co., Ltd.
Operating Cash Flow
Highest at JPY 6,497 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Pre-Tax Profit
At JPY 2,985 MM has Grown at 114.44%
over average net sales of the previous four periods of JPY 1,392 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 2,453.24 MM has Grown at 114.5%
over average net sales of the previous four periods of JPY 1,143.73 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 24,632 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 2,721 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 11.05 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at JPY 79,377 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 680 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Watami Co., Ltd.
Interest
At JPY 263 MM has Grown at 13.36%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 17.5 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debt-Equity Ratio
Highest at -51.7 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 18.66 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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