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

• Market Cap: ¥2.62B
• Dividend Yield: N/A
• Average Volume (3M): 26.19K
• Price to Earnings (P/E): 61.0
• Beta (1Y): -0.02
• Revenue Growth: 27.27%
• EPS Growth: N/A
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -1.98
• Shares Outstanding: 6,925,400
• 10 Day Avg. Volume: 18,180
• 30 Day Avg. Volume: 26,186
• PEG Ratio: -0.41
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 19.59
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥363.00 ▲(12.73% Upside)

The overall stock score of 55 reflects a mixed outlook. The company's financial performance shows a recovery, but technical indicators suggest bearish momentum. The high P/E ratio indicates potential overvaluation, and the lack of dividend yield further impacts the valuation score. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a recovery trend and suggests that the company is successfully expanding its market reach and customer base.

Cash Flow Improvement

Improved cash flow demonstrates effective cash management and enhances the company's ability to invest in growth opportunities and manage debt.

Operational Efficiency

Improved margins highlight enhanced operational efficiency, which can lead to better profitability and competitive positioning over time.

Negative Factors

Low Return on Equity

Low ROE indicates limited profitability from shareholder equity, which may hinder the company's ability to attract investment and grow shareholder value.

Earnings Volatility

Earnings volatility can create uncertainty and risk, potentially impacting investor confidence and the company's ability to plan long-term strategies.

Need for Stronger Earnings

Stronger earnings are necessary to enhance financial stability, support growth initiatives, and improve the company's overall financial health.

WASHHOUSE Co., Ltd. Business Overview & Revenue Model

Company Description

WASHHOUSE Co., Ltd. (6537) is a leading provider of laundry solutions in Japan, specializing in self-service coin laundry services and laundromat operations. The company focuses on delivering high-quality washing and drying services to both residential and commercial customers, utilizing advanced technology and eco-friendly practices to enhance the customer experience. WASHHOUSE operates a network of modern laundromats equipped with state-of-the-art machines that are designed for efficiency and convenience, catering to the needs of busy individuals and families.

How the Company Makes Money

WASHHOUSE Co., Ltd. generates revenue primarily through its self-service laundromat operations, where customers pay per wash and dry cycle. The company charges fees for the use of its washing machines and dryers, which are typically coin-operated or accessed via a mobile payment system. In addition to laundry services, WASHHOUSE may offer ancillary products such as detergents and fabric softeners, further contributing to its revenue. The company also explores partnerships with property owners and real estate developers to establish laundromat facilities in residential complexes, thereby creating additional income streams through lease agreements. Seasonal promotions and loyalty programs may also play a role in attracting and retaining customers, enhancing overall profitability.

WASHHOUSE Co., Ltd. Financial Statement Overview

Summary

WASHHOUSE Co., Ltd. has shown a solid recovery in 2024 with improvements in revenue, profitability, and cash flow. The income statement indicates a promising turnaround, and cash flow metrics are robust. However, the balance sheet suggests a need for stronger earnings to enhance financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.36B	2.08B	1.91B	1.92B	2.13B	2.18B
Gross Profit	836.00M	741.00M	732.00M	668.00M	626.00M	697.41M
EBITDA	229.75M	184.00M	147.00M	198.00M	5.00M	-12.49M
Net Income	44.00M	30.00M	-33.00M	11.00M	-176.00M	-128.43M
Balance Sheet
Total Assets	4.30B	4.08B	4.13B	4.28B	3.96B	4.10B
Cash, Cash Equivalents and Short-Term Investments	916.00M	999.00M	1.01B	1.10B	932.00M	1.21B
Total Debt	924.00M	778.00M	854.00M	896.00M	661.00M	726.45M
Total Liabilities	2.48B	2.27B	2.37B	2.50B	2.24B	2.23B
Stockholders Equity	1.74B	1.73B	1.69B	1.71B	1.64B	1.81B
Cash Flow
Free Cash Flow	0.00	123.00M	-13.00M	-88.00M	-222.00M	-800.03M
Operating Cash Flow	0.00	234.00M	95.00M	-10.00M	-30.00M	-113.18M
Investing Cash Flow	0.00	-162.00M	-131.00M	-29.00M	-198.00M	-632.42M
Financing Cash Flow	0.00	-103.00M	-56.00M	194.00M	-70.00M	697.59M

WASHHOUSE Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 322.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6537, the sentiment is Negative. The current price of 322 is below the 20-day moving average (MA) of 353.05, below the 50-day MA of 384.96, and below the 200-day MA of 404.94, indicating a bearish trend. The MACD of -18.25 indicates Positive momentum. The RSI at 26.02 is Positive, neither overbought nor oversold. The STOCH value of 8.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6537.

WASHHOUSE Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9731	67 Neutral	¥12.08B	5.93	―	1.75%	0.71%	-14.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2300	61 Neutral	¥2.73B	75.78	―	2.12%	0.33%	-80.32%
6537	55 Neutral	¥2.62B	61.04	―	―	27.27%	―
6186	54 Neutral	¥2.10B	-7.58	―	3.69%	-2.06%	-109.18%
4679	45 Neutral	¥1.42B	-1,175.59	―	―	-6.45%	99.39%
7578	44 Neutral	¥2.14B	4.27	―	―	-15.38%	―