Watami Co (TSE:7522) ROCE %: 1.61% (As of Mar. 2026)


TSE:7522 Watami Co Ltd TSE:7522
75 GF Score
Price 円918.00
GF Value 円953.21
Valuation Fairly Valued
! 3 Warning Signs
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What is Watami Co ROCE %?

Watami Co TSE:7522 -0.22% 75 ROCE % is 1.61% as of Mar. 2026. GuruFocus rates TSE:7522 with a GF Score™ of 75/100 and a GF Value™ of 円953.21 (Fairly Valued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Watami Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 1.61%.

Watami Co  (TSE:7522) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Watami Co ROCE % Related Terms

Watami Co ROCE % Historical Data

* Premium members only.

The historical data trend for Watami Co's ROCE % 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.

Watami Co ROCE % Chart

Watami Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.91 6.39 11.07 9.99 10.53

Watami Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.19 6.22 13.15 25.28 1.61
TSE:7522
75GF Score
Watami Co Ltd TSE:7522
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Watami Co ROCE % Calculation

Watami Co's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=5708/( ( (71491 - 18964) + (74556 - 18651) )/ 2 )
=5708/( (52527+55905)/ 2 )
=5708/54216
=10.53 %

Watami Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=852/( ( (70472 - 20348) + (74556 - 18651) )/ 2 )
=852/( ( 50124 + 55905 )/ 2 )
=852/53014.5
=1.61 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 1.61% mean?
Watami Co (TSE:7522) has a ROCE % of 1.61% as of Mar. 2026.
Is Watami Co's ROCE % too high?
Watami Co's current ROCE % is 1.61%. The Restaurants industry median ROCE % is 6.05. Watami Co's value of 1.61% is 73.4% below this industry median. Overall, Watami Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Watami Co's ROCE % compare to MCD and SBUX?
Watami Co's ROCE % of 1.61% can be compared against companies in the Restaurants industry. The industry median ROCE % is 6.05. Watami Co's value of 1.61% is 73.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Restaurants company?
The median ROCE % among Restaurants companies is 6.05, based on 352 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watami Co's current ROCE % of 1.61% is 73.4% below 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median ROCE % is 6.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watami Co's current ROCE % is 1.61%. 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 Fairly Valued. The stock's GF Value™ is 円953.21, compared to a current price of 円918.00 — trading 3.7% below its estimated fair value. The current ROCE % is 1.61% and 73.4% below the Restaurants industry median of 6.05. Watami Co's overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Watami Co (TSE:7522), the current ROCE % is 1.61% 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918.00 is trading 3.7% below its estimated GF Value™ of 円953.21. GuruFocus considers Watami Co to be Fairly Valued.

Key valuation signals for TSE:7522:

  • ROCE %: 1.61%
  • GF Value™: 円953.21 vs. price of 円918.00 (3.7% below fair value)
  • GF Score™: 75/100 with 3 warning signs
  • Industry Position: 73.4% below the Restaurants median

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 Business Description

Address 1-1-3 Haneda, Ota-ku, Tokyo, JPN, 144-0043
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.
75GF Score

Get the complete analysis for TSE:7522

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円918.00
Price
円953.21
GF Value