ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Watami Co's annualized net income for the quarter that ended in Mar. 2026 was 円-220 Mil. Watami Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円29,585 Mil. Therefore, Watami Co's annualized ROE % for the quarter that ended in Mar. 2026 was -0.74%.
The historical rank and industry rank for Watami Co's ROE % or its related term are showing as below:
TSE:7522'
s ROE % Range Over the Past 10 Years
Min: -131.54 Med: 4.53 Max: 21.18
Current: 14.99
During the past 13 years, Watami Co's highest ROE % was 21.18%. The lowest was -131.54%. And the median was 4.53%.
TSE:7522's ROE % is ranked better than 71.3% of 345
companies
in the Restaurants industry
Industry Median: 6.42
vs TSE:7522: 14.99
Watami Co (TSE:7522) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Watami Co ROE % Related Terms
Watami Co ROE % Historical Data
* Premium members only.
The historical data trend for Watami Co's ROE % 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.
For the Restaurants subindustry, Watami Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Watami Co's ROE % distribution charts can be found below:
* The bar in red indicates where Watami Co's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Watami Co (TSE:7522) has a ROE % of -0.74% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Watami Co and its competitors. According to the industry distribution chart, Watami Co ranks #99 out of 345 companies in the Restaurants industry, placing it in the top 28.7%.
Is Watami Co's ROE % too high?
Watami Co's current ROE % is -0.74%. Based on the distribution chart, Watami Co ranks #99 out of 345 companies in the Restaurants industry, which is above the industry midpoint. 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 ROE % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Watami Co ranks #99 out of 345 companies for ROE %. This puts Watami Co in the upper half of its industry. The industry median ROE % is 6.42. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.42, based on 345 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Watami Co and its competitors. For the Restaurants industry, the median ROE % is 6.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watami Co's current ROE % is -0.74%. 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 ROE % is -0.74%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Watami Co (TSE:7522), the current ROE % is -0.74% 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:
ROE %: -0.74%
GF Value™: 円953.21 vs. price of 円918.00 (3.7% below fair value)
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.
75GF Score
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