Watami CoTSE:7522 -0.54%76 Current Ratio is 3.01 as of Mar. 2026, which is 51% above its 10-year median of 1.99. GuruFocus rates TSE:7522 with a GF Score™ of 76/100 and a GF Value™ of 円1,079.96 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 362 Restaurants companies, Watami Co ranks better than 93.65% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Watami Co's current ratio for the quarter that ended in Mar. 2026 was 3.01.
Watami Co has a current ratio of 3.01. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Watami Co's Current Ratio or its related term are showing as below:
TSE:7522'
s Current Ratio Range Over the Past 10 Years
Min: 1.26 Med: 1.99 Max: 3.01
Current: 3.01
During the past 13 years, Watami Co's highest Current Ratio was 3.01. The lowest was 1.26. And the median was 1.99.
TSE:7522's Current Ratio is ranked better than 93.65% of 362
companies
in the Restaurants industry
Industry Median: 0.99
vs TSE:7522: 3.01
Watami Co (TSE:7522) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Watami Co Current Ratio Related Terms
Watami Co Current Ratio Historical Data
* Premium members only.
The historical data trend for Watami Co's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSE:7522 vs MCD, SBUX, YUM: Current Ratio Comparison
For the Restaurants subindustry, Watami Co's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Watami Co Current Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Watami Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Watami Co's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Watami Co (TSE:7522) has a Current Ratio of 3.01 as of Mar. 2026. This is 51% above median its historical median of 1.99. Over the past decade, Watami Co's Current Ratio has ranged from 1.26 to 3.01. According to the industry distribution chart, Watami Co ranks #23 out of 362 companies in the Restaurants industry, placing it in the top 6.4%.
Is Watami Co's Current Ratio too high?
Watami Co's current Current Ratio of 3.01 is 51% above median its 10-year median of 1.99. Over the past 10 years, this metric has ranged from a low of 1.26 to a high of 3.01. The Restaurants industry median Current Ratio is 0.99. Watami Co's value of 3.01 is 204% above this industry median. Based on the distribution chart, Watami Co ranks #23 out of 362 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Watami Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Watami Co's Current Ratio compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Watami Co ranks #23 out of 362 companies for Current Ratio. This places Watami Co in the top 6% of its industry — outperforming the majority of peers. The industry median Current Ratio is 0.99. Watami Co's value of 3.01 is 204% above this benchmark. Historically, Watami Co's own Current Ratio has ranged from 1.26 to 3.01 over the past decade. While the company's 10-year median is 1.99 vs. the industry median of 0.99, Watami Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Restaurants company?
The median Current Ratio among Restaurants companies is 0.99, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watami Co's current Current Ratio of 3.01 is 204% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median Current Ratio is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watami Co's current Current Ratio is 3.01, which is 51% above median its own 10-year median of 1.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watami Co stock overvalued right now?
Based on GuruFocus' analysis, Watami Co (TSE:7522) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,079.96, compared to a current price of 円927.00 — trading 14.2% below its estimated fair value. The current Current Ratio is 3.01, which is 51% above median its 10-year median of 1.99 and 204% above the Restaurants industry median of 0.99. Watami Co's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Watami Co (TSE:7522), the current Current Ratio is 3.01 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Watami Co (TSE:7522) Overvalued in 2026?
Based on GuruFocus' analysis, Watami Co stock appears to be undervalued.
The current stock price of 円927.00 is trading 14.2% below its estimated GF Value™ of 円1,079.96.
GuruFocus considers Watami Co to be Modestly Undervalued.
Key valuation signals for TSE:7522:
Current Ratio: 3.01 (51% above median its 10-year median of 1.99)
GF Value™: 円1,079.96 vs. price of 円927.00 (14.2% below fair value)
Industry Position: 204% above the Restaurants median (#23 of 362)
No single metric tells the full story. See the TSE:7522 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watami Co Ltd is engaged in the management and operation of restaurants. It is also involved in the production and sale of agricultural products; and home visit nursing, in-home nursing care support, and institutional care businesses. The company conducts organic farming, animal husbandry and dairy farming from Hokkaido to Kyushu.
76GF Score
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