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

• Market Cap: ¥2.78B
• Dividend Yield: N/A
• Average Volume (3M): 44.36K
• Price to Earnings (P/E): 64.7
• Beta (1Y): <0.01
• Revenue Growth: 18.96%
• EPS Growth: N/A
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 1.95
• Shares Outstanding: 6,925,400
• 10 Day Avg. Volume: 24,980
• 30 Day Avg. Volume: 44,360
• 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: ¥453.00
• Price Target Upside: 12.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥453.00 ▲(12.69% Upside)

The overall stock score of 60 reflects a company in recovery, with strong financial performance improvements, particularly in cash flow. However, technical indicators suggest short-term bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and notable corporate events limits additional insights.

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 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

WASHHOUSE Co., Ltd. has demonstrated a solid recovery trajectory in 2024, with improvements in revenue, profitability, and cash flow. The income statement shows a promising turnaround, and cash flow metrics are robust. However, the balance sheet suggests a need for stronger earnings to solidify its 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: 402.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 402 is below the 20-day moving average (MA) of 426.85, below the 50-day MA of 454.48, and below the 200-day MA of 402.50, indicating a bearish trend. The MACD of -11.14 indicates Positive momentum. The RSI at 31.67 is Neutral, neither overbought nor oversold. The STOCH value of 10.32 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	63 Neutral	¥12.09B	6.17	21.19%	1.73%	0.30%	-14.49%
2300	61 Neutral	¥2.74B	123.79	3.88%	2.11%	0.21%	-89.09%
6537	60 Neutral	¥2.78B	64.74	―	―	18.96%	―
6186	56 Neutral	¥2.14B	-7.76	-2.22%	3.61%	-2.89%	-144.95%
7578	48 Neutral	¥2.29B	-6.22	-5.91%	―	-18.74%	-1062.47%
4679	45 Neutral	¥1.45B	-50.02	-14.96%	―	-7.04%	83.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%