MEDIROM Healthcare Technologies (MRM) AI Stock Analysis

• Market Cap: $10.43M
• Dividend Yield: N/A
• Average Volume (3M): 20.43K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.32
• Revenue Growth: 12.93%
• EPS Growth: 66.81%
• Country: US
• Employees: 334
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Personal Products & Services
• EPS (TTM): 0.95
• Shares Outstanding: 7,901,950
• 10 Day Avg. Volume: 25,104
• 30 Day Avg. Volume: 20,432
• PEG Ratio: 0.07
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.86
• 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: $1.00
• Price Target Upside: -24.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: $1.50 ▲(13.64%Upside)

MEDIROM Healthcare Technologies scores moderately due to strong revenue growth and undervaluation based on the P/E ratio. However, financial performance is hindered by high debt levels and cash flow challenges. Technical analysis indicates mixed signals, with no strong momentum or trend. The absence of earnings call and corporate event data means these factors do not contribute to the score.

MEDIROM Healthcare Technologies Business Overview & Revenue Model

Company Description

MEDIROM 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 Money

MEDIROM 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 shows strong revenue growth but faces profitability challenges and high leverage. The balance sheet improvement in equity is overshadowed by significant debt, and negative free cash flow highlights liquidity risks.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.30B	6.83B	6.95B	5.41B	3.34B
Gross Profit	2.25B	1.57B	1.90B	1.42B	428.95M
EBITDA	387.50M	310.08M	281.02M	-276.29M	-551.16M
Net Income	148.76M	115.05M	148.97M	-990.73M	-539.17M
Balance Sheet
Total Assets	8.09B	6.85B	6.75B	5.75B	5.71B
Cash, Cash Equivalents and Short-Term Investments	335.56M	106.85M	605.95M	377.12M	1.47B
Total Debt	3.96B	3.65B	3.23B	2.04B	2.56B
Total Liabilities	6.90B	6.63B	6.81B	5.96B	5.22B
Stockholders Equity	933.27M	210.88M	-59.38M	-208.34M	491.26M
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 Flow	361.39M	-328.58M	580.44M	-83.94M	-139.60M
Financing Cash Flow	1.19B	461.21M	340.10M	-427.95M	1.43B

MEDIROM Healthcare Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRM, the sentiment is Negative. The current price of 1.32 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.40, and below the 200-day MA of 1.45, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 15.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRM.

MEDIROM Healthcare Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$17.18B	10.68	-8.50%	2.94%	1.62%	-25.72%
RGS	59 Neutral	$49.50M	0.54	548.07%	―	-4.88%	―
MED	58 Neutral	$163.77M	66.49	-3.32%	―	-39.47%	-110.28%
MRM	56 Neutral	$10.43M	7.50	23.48%	―	12.93%	66.81%
TRNR	54 Neutral	$8.50M	―	-446.50%	―	445.72%	84.92%
XWEL	47 Neutral	$5.89M	―	-797.66%	―	1.33%	35.82%