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

• Market Cap: ¥2.65B
• Dividend Yield: N/A
• Average Volume (3M): 26.19K
• Price to Earnings (P/E): 73.5
• Beta (1Y): 0.25
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥408.00 ▲(32.04% Upside)

The score is driven primarily by improving financial performance, including a return to profitability and strong cash flow generation. Technicals add modest support via positive momentum and strength above shorter-term averages, but the stock is still below longer-term trend lines. A very high P/E meaningfully offsets these positives and limits the overall score.

Positive Factors

Free Cash Flow Strength

Positive free cash flow (JPY 123M in 2024) materially improves financial flexibility, enabling funding of maintenance, modest rollouts, or lease commitments without reliance on new debt. Sustained FCF reduces refinancing risk and supports durable reinvestment and operational resilience.

Revenue and Margin Recovery

Revenue growth with rising gross (38.46%) and a return to net profitability (1.49%) signals structural operational improvement and better cost control. If maintained, improved margins support reinvestment in stores and equipment, underpinning more sustainable earnings over coming quarters.

Moderate Leverage / Stable Capital Structure

A D/E of 0.45 and equity ratio above 40% indicate a conservative capital structure that lowers solvency risk. This balance sheet stability gives management room to pursue property partnerships or upgrade machines, supporting steady operations through industry cycles.

Negative Factors

Low Return on Equity

An ROE of 1.79% reflects limited ability to generate returns from shareholder capital. Persistently low ROE constrains internal funding for expansion, weakens competitiveness for capital, and requires meaningful margin expansion or scale gains to deliver durable shareholder value.

Earnings Volatility

Prior volatility and inconsistent profitability hinder reliable cash flow forecasting and capital allocation. This variability increases funding costs, complicates longer-term investments in locations or technology, and raises the risk profile for partnership deals and lenders.

Concentrated Business Model

Heavy reliance on self-service laundromats and ancillary in-store sales concentrates exposure to local foot traffic, demographic shifts, and property vacancies. Limited diversification increases structural sensitivity to secular changes in housing, remote work, or new local competitors.

WASHHOUSE Co., Ltd. Business Overview & Revenue Model

Company Description

Washhouse Co.,Ltd. plans, develops, and operates remotely managed coin-operated laundry stores in Japan. As of December 31, 2022, the company operated 614 stores. The company was incorporated in 2001 and is headquartered in Miyazaki, Japan.

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: Positive
• Last Price: 309.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 309 is below the 20-day moving average (MA) of 340.25, below the 50-day MA of 346.84, and below the 200-day MA of 395.91, indicating a neutral trend. The MACD of 11.39 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 48.85 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	67 Neutral	¥12.11B	6.23	―	1.70%	0.71%	-14.82%
6537	63 Neutral	¥2.65B	73.49	―	―	27.27%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2300	61 Neutral	¥2.81B	78.28	―	2.11%	0.33%	-80.32%
6186	54 Neutral	¥2.11B	-54.13	―	3.76%	-2.06%	-109.18%
4679	45 Neutral	¥1.59B	-1,271.82	―	―	-6.45%	99.39%
7578	44 Neutral	¥2.10B	4.20	―	―	-15.38%	―