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

• Market Cap: ¥2.84B
• Dividend Yield: N/A
• Average Volume (3M): 26.19K
• Price to Earnings (P/E): 283.9
• Beta (1Y): 0.39
• 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: ¥408.00 ▲(32.04% 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

Recovering revenue trend

Consistent top-line recovery across 2024–2025 signals renewed demand for laundromat services and improves utilization of fixed assets. Sustained revenue growth supports operating leverage potential and reduces the structural risk tied to prior years' losses, aiding multi‑period planning.

Stable, essential business model

The company runs essential, location‑based self‑service laundromats with recurring customer need and stable foot traffic. This business model is resilient to cyclical swings, offers predictable demand, and enables incremental unit expansion or service add‑ons that can compound returns over multiple years.

Reasonable balance sheet cushioning

Moderate leverage and an equity base provide a financial cushion to absorb shocks and fund incremental store investment. Improving debt‑to‑equity trends lower refinancing pressure and preserve strategic optionality for rollouts or targeted capital expenditures over the medium term.

Negative Factors

Volatile and weak cash generation

Intermittent negative operating and free cash flows reduce the firm's ability to self‑fund maintenance, expansion, or debt service. This volatility heightens reliance on external financing during downturns, constraining strategic investments and increasing liquidity risk over a multi‑quarter horizon.

Very thin operating margins

Extremely narrow operating profits leave little buffer against rising costs (labor, utilities, rent) or competitive price pressure. Persistent low margins limit cash flow conversion and raise the odds that adverse cost or demand shifts materially impair profitability and capital return capacity.

Low returns on invested capital

Subpar ROE indicates the company struggles to generate meaningful returns from its asset and equity base. That reduces internal funding for growth and weakens shareholder economics absent sustained operational improvement or higher margin initiatives.

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

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	932.00M
Total Debt	924.00M	1.03B	778.00M	854.00M	896.00M	661.00M
Total Liabilities	2.48B	2.54B	2.27B	2.37B	2.50B	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: Positive
• Last Price: 309.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 309 is below the 20-day moving average (MA) of 398.30, below the 50-day MA of 374.02, and below the 200-day MA of 399.89, indicating a bullish trend. The MACD of 10.09 indicates Positive momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 13.58 is Positive, 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	74 Outperform	¥14.05B	6.58	―	1.70%	0.71%	-14.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2300	61 Neutral	¥2.64B	111.39	―	2.11%	0.33%	-80.32%
6186	61 Neutral	¥2.16B	-14.45	―	3.76%	-2.06%	-109.18%
6537	54 Neutral	¥2.84B	283.93	―	―	27.27%	―
4679	47 Neutral	¥2.89B	347.83	―	―	-6.45%	99.39%
7578	44 Neutral	¥2.07B	4.60	―	―	-15.38%	―