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

• Market Cap: ¥3.34B
• Dividend Yield: N/A
• Average Volume (3M): 214.85K
• Price to Earnings (P/E): 75.5
• Beta (1Y): 0.04
• Revenue Growth: 15.96%
• EPS Growth: N/A
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Personal Products & Services
• EPS (TTM): 0.88
• Shares Outstanding: 6,925,400
• 10 Day Avg. Volume: 576,890
• 30 Day Avg. Volume: 214,853
• PEG Ratio: 1.78
• Price to Book (P/B): 1.64
• 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: ¥481.00
• Price Target Upside: -0.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥512.00 ▲(6.00%Upside)

WASHHOUSE Co., Ltd. presents a mixed investment case. The company's financial performance shows a promising recovery with improvements in revenue and cash flow. However, technical analysis indicates overbought conditions and potential for a pullback. The high P/E ratio suggests overvaluation, which, combined with the absence of a dividend yield, poses a risk to investors seeking value.

WASHHOUSE Co., Ltd. Business Overview & Revenue Model

Company Description

WASHHOUSE Co., Ltd. (6537) operates in the laundry service industry, primarily focusing on providing self-service laundromat facilities. The company is known for its innovative and customer-friendly laundromats, which are equipped with modern machines and technology to offer convenient and efficient laundry services. WASHHOUSE aims to enhance the customer experience by providing clean, safe, and accessible locations for individuals and families to do their laundry.

How the Company Makes Money

WASHHOUSE Co., Ltd. generates revenue through the operation of its self-service laundromats. The primary revenue stream comes from customers who pay to use the washers and dryers at the company's locations. Additional revenue may be generated through the sale of laundry-related products such as detergents and fabric softeners, available for purchase at the laundromats. The company might also have partnerships or collaborations with property owners to operate facilities in strategic locations, contributing to its earnings by expanding its market presence. Any franchising or licensing of its brand and operational model could further enhance revenue, although specific details on such activities are not available.

WASHHOUSE Co., Ltd. Financial Statement Overview

Summary

The company has shown a positive recovery with revenue growth and improved margins. Cash flow metrics are robust, but the balance sheet indicates a need for stronger earnings to ensure 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	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: Positive
• Last Price: 483.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6537, the sentiment is Positive. The current price of 483 is above the 20-day moving average (MA) of 420.40, above the 50-day MA of 412.22, and above the 200-day MA of 380.68, indicating a bullish trend. The MACD of 10.51 indicates Negative momentum. The RSI at 68.36 is Neutral, neither overbought nor oversold. The STOCH value of 71.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	¥13.78B	5.86		1.52%	0.61%	13.84%
2300	66 Neutral	¥2.61B	117.62		2.21%	0.21%	-89.09%
Sector *	63 Neutral	$17.10B	10.62	-8.48%	2.94%	1.62%	-25.72%
6537	62 Neutral	¥3.34B	75.53		―	15.96%	―
6186	61 Neutral	¥2.18B	7.99		3.54%	-2.43%	-115.41%
7578	47 Neutral	¥2.14B	―		―	-21.38%	-195.77%
4679	45 Neutral	¥1.45B	―		―	-6.77%	60.70%