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MEDIROM Healthcare Technologies (MRM)
NASDAQ:MRM
US Market

MEDIROM Healthcare Technologies (MRM) AI Stock Analysis

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MEDIROM Healthcare Technologies

(NASDAQ:MRM)

Rating:53Neutral
Price Target:
$1.50
▲(6.38%Upside)
The overall stock score of 64 reflects a balance between strong revenue growth and low valuation, against challenges in profitability and high leverage. The technical indicators show neutral momentum, while the lack of earnings call data and corporate events limits additional insights.

MEDIROM Healthcare Technologies (MRM) vs. SPDR S&P 500 ETF (SPY)

MEDIROM Healthcare Technologies Business Overview & Revenue Model

Company DescriptionMEDIROM Healthcare Technologies (MRM) is a Japanese company operating in the healthcare and wellness sectors. It primarily provides health management services, including relaxation salons, digital health solutions, and related wellness products. The company aims to enhance the quality of life for its clients through innovative and personalized healthcare services.
How the Company Makes MoneyMEDIROM Healthcare Technologies generates revenue through multiple streams. A significant portion of its income comes from its network of relaxation salons, which offer therapeutic and wellness services to customers. The company also earns money by providing digital health solutions, including health monitoring applications and platforms that cater to the growing demand for personalized healthcare management. Additionally, MEDIROM partners with corporate clients to offer employee wellness programs, further diversifying its revenue base. These partnerships, along with its consumer-focused services, play a crucial role in the company's earnings.

MEDIROM Healthcare Technologies Financial Statement Overview

Summary
MEDIROM Healthcare Technologies exhibits strong revenue growth with a 21.5% increase, but faces profitability challenges with negative EBIT and thin profit margins. The balance sheet shows improvement in equity, yet high debt levels indicate financial risk. Cash flow concerns are significant, with a 147.2% decline in free cash flow, highlighting liquidity issues.
Income Statement
65
Positive
MEDIROM Healthcare Technologies shows a significant revenue growth rate of 21.5% from 2023 to 2024, indicating a positive trajectory. However, the company struggles with negative EBIT and thin profit margins, suggesting challenges in cost management and profitability. The Gross Profit Margin improved to 27.1% in 2024 showing better efficiency in revenue generation. The EBITDA Margin has also improved to 4.7% from a negative position. Overall, while revenue growth is strong, profitability remains a concern.
Balance Sheet
50
Neutral
The company has a high Debt-to-Equity Ratio, reflecting significant leverage and potential financial risk. Stockholders' Equity is positive in 2024, recovering from negative equity in previous years, indicating a strengthening balance sheet. The Equity Ratio is low at 11.5%, suggesting high reliance on debt financing. Return on Equity is positive but low at 15.9%, showing moderate efficiency in generating profits from shareholders’ investments. While improvements are seen in equity, the high debt levels pose a risk.
Cash Flow
40
Negative
Cash flow analysis reveals a significant deterioration in Free Cash Flow, with a decline of 147.2% from 2023 to 2024. The Operating Cash Flow to Net Income ratio is negative, indicating cash flow challenges relative to earnings. Financing activities have been significant, suggesting reliance on external funding. Overall, the cash flow situation is concerning, with negative free cash flow indicating liquidity challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.30B6.83B6.95B5.41B3.34B
Gross Profit2.25B1.57B1.90B1.42B428.95M
EBITDA387.50M310.08M281.02M-276.29M-551.16M
Net Income148.76M115.05M148.97M-990.73M-539.17M
Balance Sheet
Total Assets8.09B6.85B6.75B5.75B5.71B
Cash, Cash Equivalents and Short-Term Investments335.56M106.85M605.95M377.12M1.47B
Total Debt3.96B3.65B3.23B2.04B2.56B
Total Liabilities6.90B6.63B6.81B5.96B5.22B
Stockholders Equity933.27M210.88M-59.38M-208.34M491.26M
Cash Flow
Free Cash Flow-1.90B-767.58M-806.44M-652.88M-439.98M
Operating Cash Flow-1.33B-631.74M-685.70M-557.23M-366.42M
Investing Cash Flow361.39M-328.58M580.44M-83.94M-139.60M
Financing Cash Flow1.19B461.21M340.10M-427.95M1.43B

MEDIROM Healthcare Technologies Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.41
Price Trends
50DMA
1.23
Positive
100DMA
0.96
Positive
200DMA
1.60
Negative
Market Momentum
MACD
0.03
Positive
RSI
50.73
Neutral
STOCH
54.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRM, the sentiment is Neutral. The current price of 1.41 is below the 20-day moving average (MA) of 1.50, above the 50-day MA of 1.23, and below the 200-day MA of 1.60, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MRM.

MEDIROM Healthcare Technologies Risk Analysis

MEDIROM Healthcare Technologies disclosed 60 risk factors in its most recent earnings report. MEDIROM Healthcare Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
ADSs representing our common shares are listed on the Nasdaq Capital Market. As such, we must meet the Nasdaq Capital Market's continued listing requirements and other Nasdaq rules, or we may risk delisting. Delisting could negatively affect the price of our ADSs, which could make it more difficult for us to sell securities in a financing and for you to sell your ADSs. Q4, 2022
2.
Sale of our salons could depend heavily on a number of factors, and as a result, our annual revenue from sale of salons may vary from year on year. Q4, 2022

MEDIROM Healthcare Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$16.67B10.98-6.97%2.95%1.72%-24.21%
MEMED
58
Neutral
$160.25M66.49-3.32%-39.47%-110.28%
MEMED
58
Neutral
$160.25M66.49-3.32%-39.47%-110.28%
RGRGS
55
Neutral
$57.15M0.63548.07%-4.88%
RGRGS
55
Neutral
$57.15M0.63548.07%-4.88%
MRMRM
53
Neutral
$11.14M8.0223.48%12.93%66.81%
48
Neutral
$7.59M-446.50%445.72%84.92%
40
Underperform
$5.05M-797.66%1.33%35.82%
40
Underperform
$5.05M-797.66%1.33%35.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MRM
MEDIROM Healthcare Technologies
1.41
-2.70
-65.69%
MED
Medifast
14.64
-3.87
-20.91%
MED
Medifast
14.64
-3.87
-20.91%
RGS
Regis
23.46
1.50
6.83%
RGS
Regis
23.46
1.50
6.83%
XWEL
XWELL
0.93
-0.85
-47.75%
XWEL
XWELL
0.93
-0.85
-47.75%
TRNR
Interactive Strength Inc
6.53
-1,273.47
-99.49%
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: Jun 24, 2025