MEDIROM Healthcare Technologies (MRM) AI Stock Analysis

• Market Cap: $17.46M
• Dividend Yield: N/A
• Average Volume (3M): 4.82M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.02
• Revenue Growth: 13.71%
• EPS Growth: N/A
• Country: US
• Employees: 334
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -0.59
• Shares Outstanding: 7,901,950
• 10 Day Avg. Volume: 3,803,708
• 30 Day Avg. Volume: 4,821,025
• PEG Ratio: 0.24
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -0.44
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $2.00 ▼(-9.50% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. While the company shows strong revenue growth, profitability and liquidity challenges are significant concerns. The technical indicators suggest a bearish trend, but the stock appears undervalued based on its P/E ratio.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for MRM's services and products, suggesting potential for continued market expansion and increased market share.

Strategic Partnerships

Partnerships with major institutions like JGSDF enhance MRM's credibility and open opportunities for further adoption of its health tech solutions in various sectors.

Product Innovation

Investment in product development like the MOTHER Bracelet supports innovation, potentially leading to new revenue streams and strengthening competitive positioning.

Negative Factors

High Debt Levels

High leverage can increase financial risk, limiting MRM's ability to invest in growth opportunities and potentially impacting long-term financial stability.

Profitability Challenges

Struggles with profitability suggest issues in cost management, which could hinder the company's ability to sustain operations and invest in future growth.

Cash Flow Issues

Negative free cash flow indicates liquidity challenges, potentially restricting MRM's operational flexibility and ability to fund strategic initiatives.

MEDIROM Healthcare Technologies Business Overview & Revenue Model

Company Description

MEDIROM Healthcare Technologies Inc. provides holistic healthcare services in Japan. It operates in two segments, Relaxation Salon and Digital Preventative Healthcare. The Relaxation Salon segment owns and franchises relaxation salons, which provide finger-pressure style bodywork therapy, stretch therapy, and posture and joint alignment, as well as physical therapy elements; and various individual services, including anti-fatigue therapy, athletic support therapy, slim-down therapy, and reflexology. As of December 31, 2021, this segment operated 312 relaxation salons under the Re.Ra.Ku and Ruam Ruam brand. The Digital Preventative Healthcare segment offers government-sponsored Specific Health Guidance program, utilizing Lav, its internally developed on-demand health monitoring smartphone application; MOTHER Tracker for fitness applications; and preventative healthcare services utilizing its digital application and devices. MEDIROM Healthcare Technologies Inc. also operates Re.Ra.Ku College that offers continuing training for franchise owners, home office staff, and salon staff covering topics, such as customer service, salon operations, and relaxation techniques located in the Odaiba area in Tokyo. The company was formerly known as MEDIROM Inc. and changed its name to MEDIROM Healthcare Technologies Inc. in March 2020. MEDIROM Healthcare Technologies Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MEDIROM Healthcare Technologies generates revenue through multiple channels, including subscription fees for its telemedicine services, sales of wellness and diagnostic products, and partnerships with healthcare providers and institutions. The company offers tiered subscription plans for its telemedicine platform, catering to different user needs, which contributes significantly to its recurring revenue stream. Additionally, MEDIROM collaborates with hospitals and clinics to integrate its technology into their existing systems, earning revenue through service agreements and consulting fees. The company also benefits from strategic partnerships with pharmaceutical companies and health insurance providers, enhancing its market reach and providing additional revenue opportunities through joint ventures and co-marketing initiatives.

MEDIROM Healthcare Technologies Financial Statement Overview

Summary

MEDIROM Healthcare Technologies shows strong revenue growth but faces profitability challenges and high leverage. The balance sheet has improved equity, yet high debt levels pose risks. Cash flow issues, particularly negative free cash flow, highlight liquidity concerns.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.85B	8.30B	6.83B	6.95B	5.41B	3.34B
Gross Profit	1.67B	2.25B	1.57B	1.90B	1.42B	428.95M
EBITDA	825.29M	387.50M	310.08M	373.63M	-276.29M	-551.16M
Net Income	726.29M	148.76M	115.05M	148.97M	-990.73M	-539.17M
Balance Sheet
Total Assets	55.36M	8.09B	6.85B	6.75B	5.75B	5.71B
Cash, Cash Equivalents and Short-Term Investments	268.75K	335.56M	132.85M	605.95M	377.12M	1.47B
Total Debt	27.12M	3.96B	3.65B	3.23B	2.79B	2.56B
Total Liabilities	51.91M	6.90B	6.63B	6.81B	5.96B	5.22B
Stockholders Equity	3.07M	933.27M	210.88M	-59.38M	-208.34M	491.26M
Cash Flow
Free Cash Flow	-1.09B	-1.90B	-767.58M	-806.44M	-652.88M	-439.98M
Operating Cash Flow	-548.33M	-1.33B	-631.74M	-685.70M	-557.23M	-366.42M
Investing Cash Flow	-402.10M	361.39M	-328.58M	580.44M	-83.94M	-139.60M
Financing Cash Flow	1.13B	1.19B	461.21M	340.10M	-427.95M	1.43B

MEDIROM Healthcare Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRM, the sentiment is Positive. The current price of 2.21 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.17, and above the 200-day MA of 1.57, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 48.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRM.

MEDIROM Healthcare Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RGS	59 Neutral	$67.94M	0.62	98.54%	―	13.98%	34.14%
MRM	58 Neutral	$17.46M	6.04	48.22%	―	13.71%	―
YYGH	44 Neutral	$13.99M	-0.63	―	―	―	―
EJH	40 Neutral	$46.26M	-0.02	-1.75%	―	-2.53%	99.45%

MEDIROM Healthcare Technologies Corporate Events

MEDIROM Partners with TD SYNNEX for National Expansion of Health-Tech Solutions

On December 4, 2025, MEDIROM Healthcare Technologies Inc. announced a strategic partnership with TD SYNNEX K.K. to enhance the national distribution of the MOTHER Bracelet and REMONY health monitoring system. This collaboration aims to leverage TD SYNNEX’s extensive sales network to accelerate the adoption of these innovative health-tech solutions across Japan, potentially strengthening MEDIROM’s market position and offering significant benefits to stakeholders by improving health management and safety solutions.

MEDIROM Healthcare Technologies Reports Strong October 2025 KPIs

On December 3, 2025, MEDIROM Healthcare Technologies Inc. announced its updated Key Performance Indicators (KPIs) for October 2025. The company reported serving 69,669 customers with a sales per customer figure of JPY 7,445, significantly higher than the industry average. The customer repeat ratio improved to 77.8%, indicating strong customer loyalty. The company operates 295 salons, with 273 providing comparable data. In its health tech business, MEDIROM has contracts with 101 corporate insurance associations, and its Lav® app has over 11,000 users, reflecting growth in the health guidance market.

MEDIROM MOTHER Labs Completes ¥9 Billion Series A Financing

On October 30, 2025, MEDIROM Healthcare Technologies Inc. announced the completion of a private placement of new shares by its subsidiary, MEDIROM MOTHER Labs Inc., as part of a Series A equity financing round valued at ¥9 billion. This strategic move involves investment from the management team, aiming to enhance decision-making and management structure, thereby increasing business responsibility and growth motivation. The capital increase will bolster MEDIROM MOTHER Labs’ financial base, accelerate the development of upgraded versions of the MOTHER Bracelet, and facilitate the launch of new products, driving sustainable growth in the healthcare and wellness sector both domestically and internationally.

MEDIROM Adopts Cryptocurrency for Treasury Strategy

On October 29, 2025, MEDIROM Healthcare Technologies Inc. announced the adoption of cryptocurrency as part of its treasury strategy, with the Board of Directors approving the holding of Worldcoin (WLD) and Ethereum (ETH) as reserve assets. This move aims to diversify business activities, mitigate financial risks, and incentivize large-scale vital data collection through the MOTHER Bracelet by distributing WLD to users with specific medical conditions. The strategy reflects MEDIROM’s commitment to exploring new business growth opportunities and enhancing its financial strategies.

MEDIROM Surpasses 10,000 World ID Verifications in Japan

On October 28, 2025, MEDIROM Healthcare Technologies announced that it surpassed 10,000 verifications of World ID at its wellness salons across Japan as of October 23, 2025. This milestone is part of their collaboration with the World Network to promote digital proof of human technology, which is expected to enhance social infrastructure and contribute to revenue growth. The company plans to expand the installation of the Orb, a camera that verifies humanness, to 200 stores, positioning itself as a leader in integrating advanced authentication technologies in wellness services.

MEDIROM Healthcare Technologies Releases Interim Financial Results for First Half of 2025

On October 21, 2025, MEDIROM Healthcare Technologies Inc. announced its interim financial results for the six months ended June 30, 2025. The report provides a detailed analysis of the company’s financial condition and operations, highlighting its strategic initiatives and market positioning. The release is significant for stakeholders as it reflects the company’s ongoing efforts to expand its HealthTech segment and maintain profitability amidst changing economic conditions and market dynamics.

MEDIROM Healthcare Technologies Reports September 2025 KPIs and Expands Health Tech Reach

On October 20, 2025, MEDIROM Healthcare Technologies Inc. announced its Key Performance Indicators (KPIs) for September 2025, highlighting an increase in operational efficiency and customer engagement. The company served 72,236 customers with a sales per customer of ¥7,498, significantly above the industry average, and maintained a customer repeat ratio of 76.9%. Additionally, the company has expanded its health tech business, with its Lav® app reaching over 11,000 users, reflecting a growing market for health guidance services in Japan.

MEDIROM MOTHER Labs Announces Series A Financing Round

On October 9, 2025, MEDIROM MOTHER Labs Inc., a subsidiary of MEDIROM Healthcare Technologies, announced a Series A equity financing round involving a private placement of new shares to its President and CEO, Yoshio Uekusa, and Director, Ryo Saito, at a valuation of JPY9 billion. This strategic move aims to enhance decision-making and management structures, fostering business growth and innovation in the healthcare and wellness sector.

MEDIROM Expands World ID Device Installation to 200 Locations

On September 25, 2025, MEDIROM Healthcare Technologies announced its collaboration with ‘World’, co-founded by Sam Altman and Alex Blania, to expand the installation of the World ID proof of human authentication device, Orb, across 200 of its Re.Ra.Ku relaxation studios in Japan. This move represents the largest deployment of Orbs in Japan, aiming to enhance social infrastructure by enabling individuals to prove their unique humanness, reflecting MEDIROM’s commitment to integrating healthcare and technology.

MEDIROM Healthcare Technologies Reports August 2025 KPIs and Expands Health Tech Services

On September 24, 2025, MEDIROM Healthcare Technologies Inc. announced its updated Key Performance Indicators (KPIs) for August 2025. The company reported serving 82,780 customers with an average sales per customer of JPY 7,530, significantly above the industry average. The operation ratio increased to 48.4%, reflecting improved business fundamentals. Additionally, the company has expanded its health tech business by contracting with 101 corporate insurance associations and reaching over 10,000 users for its Lav® app, indicating growth in its health guidance services.

Japan Ground Self-Defense Force Adopts MEDIROM’s REMONY for Enhanced Health Monitoring

On September 18, 2025, MEDIROM Healthcare Technologies Inc. announced that the Japan Ground Self-Defense Force (JGSDF) has adopted its remote health monitoring system, REMONY, powered by the MOTHER Bracelet. This system addresses the need for continuous health monitoring in extreme conditions without the need for recharging, enhancing the safety and operational efficiency of JGSDF personnel. The adoption of REMONY marks a significant advancement in health management technology for the military, potentially influencing similar adoptions in other sectors.