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

• Market Cap: ¥2.54B
• Dividend Yield: N/A
• Average Volume (3M): 26.19K
• Price to Earnings (P/E): 247.2
• Beta (1Y): 0.45
• Revenue Growth: 27.27%
• EPS Growth: N/A
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.70
• Shares Outstanding: 6,925,400
• 10 Day Avg. Volume: 18,180
• 30 Day Avg. Volume: 26,186
• PEG Ratio: -3.64
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -19.47
• 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: 54 Neutral
• Price Target: ¥374.00 ▲(21.04% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily constrained by weak and volatile cash flow and very thin operating margins, despite improving revenue and a reasonably supported balance sheet. Technicals are supportive (price above key moving averages with positive MACD), but the extremely high P/E significantly drags the overall attractiveness.

Positive Factors

Revenue recovery & positive net income

Return to sustained revenue growth and back-to-back positive net income in 2024–25 reduces structural loss risk and supports reinvestment. Stable accounting profits improve the company's ability to maintain stores and fund modest initiatives over the medium term despite thin margins.

Reasonable balance sheet & moderate leverage

Equity around ¥1.7B and moderate leverage give a tangible capital cushion and flexibility to manage working-capital swings or targeted investments. The balance-sheet posture reduces near-term solvency risk and helps support operations while cash generation recovers.

Defensive, recurring laundromat business model

WASHHOUSE runs self-service laundromats — a recurring, consumer staple service with predictable demand patterns. This structural demand supports steady revenue streams and operational leverage as locations scale, making revenue less cyclical than many discretionary services.

Negative Factors

Weak, volatile cash generation

OCF and FCF swung negative in 2025 after positive 2024 levels, and the company has prior years of negative operating cash flow. Persistent cash volatility constrains reinvestment, increases refinancing risk, and limits the firm's ability to withstand demand or cost shocks over the medium term.

Very thin operating margins

Operating profits are immaterial relative to revenue, leaving little buffer for rising costs or demand weakness. Thin margins reduce internal funding for growth, amplify earnings sensitivity to input cost changes, and make the business more dependent on careful cost and pricing management.

Pronounced earnings volatility

A steep EPS decline indicates sizeable earnings volatility and inconsistent profitability. Such swings complicate forecasting, undermine investor and creditor confidence, and make long-term planning and capital allocation decisions more difficult for management.

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

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WASHHOUSE Co., Ltd. Financial Statement Overview

Summary

Revenue has returned to growth and net income is positive in 2024–2025, but operating profitability is very thin and cash generation is the key weakness, with 2025 swinging back to negative operating and free cash flow.

Income Statement

Revenue has returned to growth, rising ~9% in 2024 and ~7% in 2025, showing improving demand. Profitability has also stabilized versus earlier years (notably losses in 2020–2021 and a net loss in 2023), with positive net income in 2024–2025. However, operating profitability remains thin (EBIT was only ¥22M in 2024 and ¥20M in 2025 on multi-billion yen revenue), indicating limited margin buffer if costs or demand move unfavorably.

Balance Sheet

The balance sheet looks reasonably supported by equity, with stockholders’ equity staying around ¥1.7B and leverage at moderate levels (debt-to-equity about 0.45 in 2024, improving from ~0.51 in 2023). Total debt increased in 2025 (to ~¥1.03B), which slightly raises financial risk, but overall assets (~¥4.39B in 2025) and equity provide a decent cushion. Returns on equity remain low (about 1.7% in 2024), highlighting that the company is not yet generating strong profits on its capital base.

Cash Flow

Cash generation is the key weak spot. After positive operating cash flow and free cash flow in 2024 (¥234M and ¥123M), both turned negative in 2025 (operating cash flow -¥34M; free cash flow -¥127M), suggesting volatility in working capital and/or investment intensity. The company has a history of uneven cash flow, including multiple years of negative operating cash flow (2020–2022), which reduces financial flexibility even as accounting earnings improve.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.36B	2.53B	2.08B	1.91B	1.92B	2.13B
Gross Profit	836.00M	739.00M	741.00M	732.00M	668.00M	626.00M
EBITDA	229.75M	188.00M	184.00M	147.00M	198.00M	5.00M
Net Income	44.00M	10.00M	30.00M	-33.00M	11.00M	-176.00M
Balance Sheet
Total Assets	4.30B	4.39B	4.08B	4.13B	4.28B	3.96B
Cash, Cash Equivalents and Short-Term Investments	916.00M	1.08B	999.00M	1.01B	1.10B	932.26M
Total Debt	924.00M	1.03B	778.00M	854.00M	896.00M	663.22M
Total Liabilities	2.48B	2.54B	2.26B	2.36B	2.49B	2.24B
Stockholders Equity	1.74B	1.75B	1.73B	1.69B	1.71B	1.64B
Cash Flow
Free Cash Flow	0.00	-127.00M	123.00M	-13.00M	-88.00M	-222.00M
Operating Cash Flow	0.00	-34.00M	234.00M	95.00M	-10.00M	-30.00M
Investing Cash Flow	0.00	-116.00M	-162.00M	-131.00M	-29.00M	-198.00M
Financing Cash Flow	0.00	229.00M	-103.00M	-56.00M	194.00M	-70.00M

WASHHOUSE Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 309.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 309 is below the 20-day moving average (MA) of 383.20, below the 50-day MA of 382.48, and below the 200-day MA of 399.00, indicating a bearish trend. The MACD of -5.01 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 54.64 is Neutral, 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
7040	75 Outperform	¥6.47B	8.94	―	3.47%	3.40%	-25.64%
9731	74 Outperform	¥13.61B	5.67	―	1.70%	0.71%	-14.82%
2485	64 Neutral	¥11.75B	12.72	―	4.02%	14.46%	18.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6537	54 Neutral	¥2.54B	247.24	―	―	27.27%	―