# WATANABE SATO CO., LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第95期(2025/04/01－2026/03/31) (S100YJEE)
> Page: https://vizora.meequs.com/en/company/watanabe-sato
> Retrieved: 2026-09-30T20:26:29.952Z

## Company

Watanabe Sato, founded in 1938, is a company in General Contractors listed on TSE Standard. It has 537 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | WATANABE SATO CO., LTD. |
| Ticker | 1807 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/1807.T) |
| Listing | TSE Standard |
| Head office | 東京都港区南麻布一丁目18番4号 |
| Representative (per filing) | 代表取締役社長 鎌田修治 |
| Founded | Dec 1938 |
| Share capital | ¥1.75B |
| Employees (consolidated) | 537 |
| Average salary (parent only) | ¥7.1M |
| Fiscal year end | March |
| Website | watanabesato.co.jp (https://watanabesato.co.jp/) |
| Corporate number | 5010401031200 |
| EDINET | E00167 |
| Industries (Vizora) | General Contractors |

> Profile source: annual securities report (S100YJEE, filed 2026-06-24). As of filing

## Five-axis industry profile

Primary industry: General Contractors (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 1.8 | 84 |
| Profitability | 10.3 | 92 |
| Cash conversion | 98.4 | 91 |
| Efficiency | 47.3 | 92 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- Watanabe Sato brought in ¥33.7B in revenue.
- Out of every ¥100 of sales, about ¥3 is left as operating profit.
- Revenue changed -16.6% from the prior year, operating profit -9.1%.

## Company structure

- Segment revenue mix: Segment revenue breakdown is not disclosed
- Revenue → net income: ¥33704761000 → ¥901904000
- Net income → operating cash flow: ¥901904000 → ¥5095744000（difference ¥4193840000）
- Main uses of operating cash flow: CapEx ¥310583000 / dividends ¥498437000 / buybacks —
- Change in cash: ¥1363616000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥33.7B |  |
| Operating income | ¥1.07B | Margin 3.2% |
| Net income | ¥883.5M | Margin 2.6% |
| Free cash flow | ¥4.79B |  |
| Employees (consolidated) | 537 |  |
| EPS | ¥87.85 |  |
| Book value per share | ¥3304.04 |  |
| Equity ratio | 69.8% |  |
| Shares outstanding | 6,391,400 |  |
| Treasury shares | 147,400 |  |
| Shareholders | 1,319 |  |
| Average salary (parent only) | ¥7.1M | Filing company only |
| Cash ratio | 19.6% | Cash ÷ revenue 19.0% |
| Vs. industry median margin | -3.7 pp | General Contractors |
| ROE | 4.7% | Derived from disclosed figures |
| ROA | 2.6% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 5.8× net income

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥39918978000 | ¥33704761000 | -15.6% |
| Operating income | ¥2694809000 | ¥1070455000 | -60.3% |
| Operating margin | 6.8% | 3.2% | -3.6 pp |
| Employees | 513 people | 537 people | +4.7% |
| Cash and equivalents | ¥4194669000 | ¥6394125000 | +52.4% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 33,705 | 100.0% | S100YJEE |
| Cost of revenue | 30,175 | 89.5% | S100YJEE |
| Gross profit | 3,530 | 10.5% | S100YJEE |
| SG&A | 2,460 | 7.3% | S100YJEE |
| Operating income | 1,070 | 3.2% | S100YJEE |
| Ordinary income | 1,370 | 4.1% | S100YJEE |
| Pretax income | 1,358 | 4.0% | S100YJEE |
| Income tax | 456 | 1.4% | S100YJEE |
| Net income | 902 | 2.7% | S100YJEE |
| Net income attributable to owners | 883 | 2.6% | S100YJEE |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 90 |
| SG&A | 7 |
| Operating income | 3 |
| (Ref.) Net income | 3 |

### Margin funnel

Gross margin 10.5% → Operating margin 3.2% → Net margin 2.6%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -16.6%; Core profit growth: -9.1%
Operating leverage (core profit growth ÷ revenue growth): 0.55×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 40,423 | 33,705 | -6,718 | -16.6% |
| Gross profit | 3,539 | 3,530 | -9 | -0.2% |
| Operating income | 1,177 | 1,070 | -107 | -9.1% |
| Net income attributable to owners | 892 | 883 | -8 | -0.9% |
| Operating cash flow | -3,964 | 5,096 | 9,060 | — |
| Free cash flow | -4,498 | 4,785 | 9,283 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 36,861 | 1,434 | 3.9% | 1,045 | 2,433 | 1,910 | S100LT5X |
| FY ending Mar 2021 | 39,919 | 2,695 | 6.8% | 1,845 | 2,059 | 1,755 | S100OFLL |
| FY ending Mar 2022 | 37,452 | 2,490 | 6.6% | 1,728 | 3,285 | 2,617 | S100RMIW |
| FY ending Mar 2023 | 34,657 | 616 | 1.8% | 447 | 188 | -269 | S100U9KR |
| FY ending Mar 2024 | 38,400 | 1,651 | 4.3% | 1,203 | 3,484 | 3,034 | S100W538 |
| FY ending Mar 2025 | 40,423 | 1,177 | 2.9% | 892 | -3,964 | -4,498 | S100YJEE |
| FY ending Mar 2026 | 33,705 | 1,070 | 3.2% | 883 | 5,096 | 4,785 | S100YJEE |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥62.8M |
| Operating income per employee (consolidated) | ¥2M |
| Net income per employee (consolidated) | ¥1.6M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 516 | 563 | 552 | 531 | 537 |
| Average salary (parent company) | ¥6.8M | ¥6.8M | ¥6.7M | ¥6.8M | ¥7.1M |
| Average age (parent company) | 45.3 years | 45.4 years | 44.8 years | 43.9 years | 44.2 years |
| Average tenure (parent company) | 20.9 years | 21.0 years | 20.2 years | 19.1 years | 19.3 years |

Year over year: Employees (consolidated) +1.1% · Revenue (consolidated) -16.6%

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 5,096 | 15.1% | S100YJEE |
| Capital expenditure | 311 | 0.9% | S100YJEE |
| Free cash flow | 4,785 | 14.2% | 算出 |
| Investing cash flow | -394 | -1.2% | S100YJEE |
| Financing cash flow | -3,338 | -9.9% | S100YJEE |
| Dividends paid | 498 | 1.5% | S100YJEE |
| Change in cash | 1,364 | 4.0% | S100YJEE |
| Cash and equivalents | 6,394 | 19.0% | S100YJEE |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 6,000 | 4,802 | 7,623 | 5,031 | 6,394 | S100U9KR, S100W538, S100YJEE |
| Total assets | 32,633 | 32,277 | 35,132 | 35,432 | 32,673 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Net assets | 19,107 | 19,354 | 21,141 | 21,427 | 22,920 | S100U9KR, S100W538, S100YJEE |
| Share capital | 1,752 | 1,752 | 1,752 | 1,752 | 1,752 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Property, plant and equipment | 9,980 | 10,029 | 9,796 | 9,812 | 9,508 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Intangible assets excluding goodwill | 83 | 431 | 347 | 272 | 188 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Goodwill | — | 192 | 154 | 115 | 77 | S100U9KR, S100W538, S100YJEE |
| Investment securities | 2,355 | 2,688 | 3,466 | 3,895 | 5,072 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Current assets | 19,310 | 18,253 | 20,937 | 21,050 | 17,808 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Current liabilities | 10,023 | 9,150 | 10,593 | 10,739 | 6,990 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Short-term borrowings | — | — | — | 2,800 | — | S100YJEE |
| Long-term borrowings | 90 | 41 | — | — | — | S100RMIW, S100U9KR |
| Total liabilities | 13,525 | 12,923 | 13,992 | 14,006 | 9,752 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Non-controlling interests | 77 | 79 | 80 | 84 | 102 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Equity attributable to owners of parent | 17,159 | 17,268 | 18,357 | 18,558 | 18,969 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Retained earnings | 14,923 | 15,005 | 15,940 | 16,116 | 16,501 | S100RMIW, S100U9KR, S100W538, S100YJEE |
| Treasury stock | -456 | -424 | -249 | -229 | -207 | S100RMIW, S100U9KR, S100W538, S100YJEE |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 20% | S100YJEE |
| Property, plant and equipment | 29% | S100YJEE |
| Intangibles and goodwill | 1% | S100YJEE |
| Investment securities | 15% | S100YJEE |
| Other assets | 35% | S100YJEE |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 30% | S100YJEE |
| Equity | 70% | S100YJEE |
| Other liabilities | 0% | S100YJEE |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 32,633 | 32,277 | 35,132 | 35,432 | 32,673 |
| Equity | 19,107 | 19,354 | 21,141 | 21,427 | 22,920 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 6,000 | 4,802 | 7,623 | 5,031 | 6,394 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 28.2% | S100YJEE |
| Fixed assets ÷ total assets | 29.1% | S100YJEE |
| Goodwill ÷ parent equity | 0.4% | S100YJEE |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 19.6% |
| Cash ÷ revenue | 19.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 476.0% |
| Cash vs. profit gap | 4,212 JPY mn (of net income 476.8%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 56.4% |
| Shareholder payments — dividends / FCF | 10.4% |
| CapEx intensity (capex ÷ revenue) | 0.9% |
| Investing CF relative to operating CF | 7.7% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 4.6% | 1.15× | 5.3% | 1.90× | 10.1% | S100RMIW |
| 2023 | 1.3% | 1.07× | 1.4% | 1.89× | 2.6% | S100U9KR |
| 2024 | 3.1% | 1.14× | 3.6% | 1.89× | 6.8% | S100W538 |
| 2025 | 2.2% | 1.15× | 2.5% | 1.91× | 4.8% | S100YJEE |
| 2026 | 2.6% | 0.99× | 2.6% | 1.81× | 4.7% | S100YJEE |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 佐藤工業株式会社 | Major shareholder | 20.8% | 2026-03-31 |
| 有限会社創翔 | Major shareholder | 10.6% | 2026-03-31 |
| 東亜道路工業株式会社 | Major shareholder | 7.7% | 2026-03-31 |
| 株式会社アスカ | Major shareholder | 6.3% | 2026-03-31 |
| ＵＢＥ三菱セメント株式会社 | Major shareholder | 5.2% | 2026-03-31 |
| 佐藤渡辺従業員持株会 | Major shareholder | 3.9% | 2026-03-31 |
| 常盤工業株式会社 | Major shareholder | 3.4% | 2026-03-31 |
| 内藤征吾 | Major shareholder | 3.0% | 2026-03-31 |
| 東亜建設工業株式会社 | Major shareholder | 2.0% | 2026-03-31 |
| 佐藤鉄工株式会社 | Major shareholder | 1.8% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第95期(2025/04/01－2026/03/31) | S100YJEE | 2026-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YJEE,, |
| 有価証券報告書－第94期(2024/04/01－2025/03/31) | S100W538 | 2025-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W538,, |
| 訂正有価証券報告書－第93期(2023/04/01－2024/03/31) | S100U9KR | 2024-08-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100U9KR,, |
| 訂正有価証券報告書－第92期(2022/04/01－2023/03/31) | S100RMIW | 2023-08-10 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100RMIW,, |
| 有価証券報告書－第91期(令和3年4月1日－令和4年3月31日) | S100OFLL | 2022-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OFLL,, |
| 有価証券報告書－第90期(令和2年4月1日－令和3年3月31日) | S100LT5X | 2021-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LT5X,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).