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WASHHOUSE Co., Ltd. (JP:6537)
:6537
Japanese Market
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WASHHOUSE Co., Ltd. (6537) AI Stock Analysis

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JP:6537

WASHHOUSE Co., Ltd.

(6537)

Rating:62Neutral
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. (6537) vs. iShares MSCI Japan ETF (EWJ)

WASHHOUSE Co., Ltd. Business Overview & Revenue Model

Company DescriptionWASHHOUSE 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 MoneyWASHHOUSE 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
70
Positive
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
65
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.08B1.91B1.92B2.13B2.18B
Gross Profit741.00M732.00M668.00M626.00M697.41M
EBITDA184.00M147.00M108.00M5.17M-12.49M
Net Income30.00M-33.00M11.00M-176.00M-128.43M
Balance Sheet
Total Assets4.08B4.13B4.28B3.96B4.10B
Cash, Cash Equivalents and Short-Term Investments999.00M1.01B1.10B932.00M1.21B
Total Debt778.00M854.00M896.00M661.00M726.45M
Total Liabilities2.27B2.37B2.50B2.24B2.23B
Stockholders Equity1.73B1.69B1.71B1.64B1.81B
Cash Flow
Free Cash Flow123.00M-13.00M-88.00M-222.00M-800.03M
Operating Cash Flow234.00M95.00M-10.00M-30.00M-113.18M
Investing Cash Flow-167.00M-131.00M-29.00M-198.00M-632.42M
Financing Cash Flow-98.00M-56.00M194.00M-70.00M697.59M

WASHHOUSE Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price483.00
Price Trends
50DMA
412.22
Positive
100DMA
393.07
Positive
200DMA
380.68
Positive
Market Momentum
MACD
10.51
Negative
RSI
68.36
Neutral
STOCH
71.96
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥13.78B5.86
1.52%0.61%13.84%
66
Neutral
¥2.61B117.62
2.21%0.21%-89.09%
63
Neutral
$17.10B10.62-8.48%2.94%1.62%-25.72%
62
Neutral
¥3.34B75.53
15.96%
61
Neutral
¥2.18B7.99
3.54%-2.43%-115.41%
47
Neutral
¥2.14B
-21.38%-195.77%
45
Neutral
¥1.45B
-6.77%60.70%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6537
WASHHOUSE Co., Ltd.
469.00
-104.00
-18.15%
JP:2300
Kyokuto Co., Ltd.
496.00
-11.04
-2.18%
JP:4679
TAYA Co.,Ltd.
251.00
-134.00
-34.81%
JP:6186
ICHIKURA Co., Ltd.
397.00
-166.28
-29.52%
JP:7578
Nichiryoku Co., Ltd.
123.00
-77.00
-38.50%
JP:9731
Hakuyosha Company,Ltd.
3,600.00
1,282.09
55.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025