WASHHOUSE Co., Ltd. (6537) AI Stock Analysis

• Market Cap: ¥2.80B
• Dividend Yield: N/A
• Average Volume (3M): 66.93K
• Price to Earnings (P/E): 64.6
• Beta (1Y): -0.04
• Revenue Growth: 15.96%
• EPS Growth: N/A
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Personal Products & Services
• EPS (TTM): 0.88
• Shares Outstanding: 6,925,400
• 10 Day Avg. Volume: 39,150
• 30 Day Avg. Volume: 66,933
• PEG Ratio: 1.75
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Neutral
• Price Target: ¥481.00 ▲(19.95%Upside)

The stock is buoyed by strong financial performance and positive technical indicators. However, its high P/E ratio suggests overvaluation, posing a risk. The lack of dividend yield further impacts its attractiveness.

WASHHOUSE Co., Ltd. Business Overview & Revenue Model

Company Description

WASHHOUSE Co., Ltd. (6537) is a Japanese company specializing in the operation and management of self-service laundromats. The company provides a convenient and efficient laundry solution by offering automated, user-friendly facilities equipped with modern washing and drying machines. WASHHOUSE Co., Ltd. focuses on enhancing the customer experience by ensuring clean, accessible, and technologically advanced laundromat services across various locations.

How the Company Makes Money

WASHHOUSE Co., Ltd. generates revenue primarily through the operation and management of its self-service laundromat facilities. The company earns money by charging customers for the use of washing and drying machines at its locations. Customers pay per use, typically through automated payment systems that accept cash or electronic payments. Additionally, WASHHOUSE may also derive income from the sale of detergent and other laundry-related products available at its facilities. The company may engage in strategic partnerships with property owners for site locations, though specific financial arrangements or partnerships are not publicly detailed. Factors contributing to its earnings include the strategic placement of laundromats in high-demand areas, utilization of energy-efficient machines to reduce operational costs, and maintaining a strong brand reputation for cleanliness and reliability.

WASHHOUSE Co., Ltd. Financial Statement Overview

Summary

WASHHOUSE Co., Ltd. has demonstrated a solid recovery trajectory in 2024, with improvements in revenue, profitability, and cash flow. While the income statement shows a promising turnaround, and cash flow metrics are robust, the balance sheet suggests a need for stronger earnings to solidify its financial stability. Continued focus on operational efficiency and maintaining cash flow strength will be crucial for sustaining growth.

Income Statement

The company has shown a positive revenue growth rate of 8.84% from 2023 to 2024, indicating a recovery trend. The gross profit margin improved to 38.46% in 2024, reflecting better cost management. Net profit margin turned positive to 1.49%, a significant improvement from previous losses. EBIT and EBITDA margins also improved to 1.06% and 8.83% respectively, highlighting an upward trend in operational efficiency. However, historical volatility in earnings remains a concern.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.45, suggesting moderate leverage. The return on equity is 1.79%, which is low but a positive turn from previous losses. The equity ratio stands at 42.32%, indicating a stable capital structure. Despite improvements, the balance sheet indicates a need for more robust earnings to enhance overall financial health.

Cash Flow

Free cash flow has shown substantial growth, turning positive in 2024 to JPY 123 million, a significant improvement from negative figures. The operating cash flow to net income ratio is robust at 7.55, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 3.97, reflecting effective cash management. Despite past volatility, current cash flow metrics are solid.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.08B	1.91B	1.92B	2.13B	2.18B
Gross Profit	741.00M	732.00M	668.00M	626.00M	697.41M
EBITDA	184.00M	147.00M	108.00M	5.17M	-12.49M
Net Income	30.00M	-33.00M	11.00M	-176.00M	-128.43M
Balance Sheet
Total Assets	4.08B	4.13B	4.28B	3.96B	4.10B
Cash, Cash Equivalents and Short-Term Investments	999.00M	1.01B	1.10B	932.00M	1.21B
Total Debt	778.00M	854.00M	896.00M	661.00M	726.45M
Total Liabilities	2.27B	2.37B	2.50B	2.24B	2.23B
Stockholders Equity	1.73B	1.69B	1.71B	1.64B	1.81B
Cash Flow
Free Cash Flow	123.00M	-13.00M	-88.00M	-222.00M	-800.03M
Operating Cash Flow	234.00M	95.00M	-10.00M	-30.00M	-113.18M
Investing Cash Flow	-167.00M	-131.00M	-29.00M	-198.00M	-632.42M
Financing Cash Flow	-98.00M	-56.00M	194.00M	-70.00M	697.59M

WASHHOUSE Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 401.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6537, the sentiment is Neutral. The current price of 401 is below the 20-day moving average (MA) of 419.65, above the 50-day MA of 397.38, and above the 200-day MA of 376.80, indicating a neutral trend. The MACD of 2.93 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 1.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6537.

WASHHOUSE Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	75 Outperform	€46.56B	42.08	13.92%	7.46%	18.39%	17.85%
9731	72 Outperform	¥12.21B	5.23		1.86%	0.61%	13.84%
6537	70 Neutral	¥2.80B	64.58		―	15.96%	―
2300	63 Neutral	¥2.67B	32.18		2.17%	6.08%	-30.22%
6186	56 Neutral	¥2.18B	7.99		3.54%	-2.43%	-115.41%
7578	54 Neutral	¥2.10B	―		―	-24.95%	-140.34%
4679	38 Underperform	¥1.44B	―		―	-6.77%	60.70%