MEDIROM Healthcare Technologies (MRM) AI Stock Analysis

• Market Cap: $19.20M
• Dividend Yield: N/A
• Average Volume (3M): 4.82M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.75
• Revenue Growth: 12.93%
• EPS Growth: 66.81%
• Country: US
• Employees: 334
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.95
• 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: 1.56
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.01
• Enterprise Value/Ebitda: 0.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $2.50 ▲(1.21% Upside)

The overall stock score of 64 reflects strong technical momentum and reasonable valuation, offset by financial performance concerns. The company's revenue growth is promising, but high debt and cash flow issues pose significant risks. The absence of earnings call and corporate events data means these factors do not influence the score.

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 primarily through its subscription-based health management services, which allow users to access personalized health assessments and data-driven insights. Additionally, the company earns revenue by partnering with healthcare providers and institutions, offering them technology solutions that enhance patient care and operational efficiency. Other revenue streams include direct sales of health-related products and services through their platform, as well as potential licensing agreements for their technology innovations. Strategic partnerships with health organizations and technology firms further bolster revenue generation by expanding MRM's market reach and enhancing service offerings.

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, but high debt levels remain a concern. Cash flow issues, particularly negative free cash flow, highlight 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	132.85M	631.95M	377.12M	1.47B
Total Debt	3.96B	3.65B	3.23B	2.79B	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: Positive
• Last Price: 2.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.47 is above the 20-day moving average (MA) of 2.27, above the 50-day MA of 1.99, and above the 200-day MA of 1.29, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 87.91 is Negative, 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
RGS	72 Outperform	$72.81M	0.69	96.56%	―	3.52%	26.12%
MRM	64 Neutral	$19.20M	13.81	48.22%	―	12.93%	66.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MED	46 Neutral	$138.93M	37.86	1.73%	―	-37.62%	-87.69%
TRNR	41 Neutral	$6.18M	―	-259.91%	―	373.32%	98.46%
XWEL	41 Neutral	$5.64M	-0.25	-1069.01%	―	-6.93%	22.70%

MEDIROM Healthcare Technologies Corporate Events

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.

MEDIROM’s REMONY System Gains Certification for Fatigue Prevention

On August 28, 2025, MEDIROM Healthcare Technologies announced that its ‘REMONY for Driver’ system, developed by its subsidiary MOTHER Labs, has been certified by Japan’s Ministry of Land, Infrastructure, Transport and Tourism as a device for preventing fatigue-related driving. This certification under the governmental subsidy program allows companies to reduce costs and enhance safety measures, potentially improving MEDIROM’s market positioning in the transportation industry.

MEDIROM Healthcare Technologies Launches New Digital Asset Strategy with ‘World’ Project

On August 22, 2025, MEDIROM Healthcare Technologies announced its involvement in the ‘World’ project, a ‘proof of human’ protocol, by installing the World ID authentication device, the ‘Orb,’ in approximately 100 Re.Ra.Ku relaxation salons. This initiative aims to provide access to a verified World ID for up to 500,000 individuals and integrate digital assets into its operations. The company plans to acquire Worldcoin tokens (WLD) and exchange up to 50% for Ethereum (ETH) as part of its financial strategy, potentially enhancing its market positioning and business expansion.

MEDIROM Healthcare Technologies Reports Strong July 2025 KPIs

On August 20, 2025, MEDIROM Healthcare Technologies announced its Key Performance Indicators for July 2025, highlighting a total of 76,544 customers served and a high sales per customer figure of JPY 7,389, which is significantly above the industry average. The company also reported a customer repeat ratio of 77.0% and an operation ratio of 44.8%. In its health tech business, MEDIROM has expanded its Lav® app user base to 10,842 and secured contracts with 101 corporate insurance associations, reflecting its growing influence in the health guidance market.

MEDIROM Partners with World Network to Introduce World ID in Japan

On August 1, 2025, MEDIROM Healthcare Technologies announced its collaboration with Hakuhodo Inc. to join the ‘World’ network, a proof of human protocol for the AI era, co-founded by Sam Altman. MEDIROM plans to install the ‘Orb’ World ID authentication device in 100 Re.Ra.Ku relaxation salons by December 2025, aiming to issue 500,000 new World IDs annually. This initiative is expected to enhance MEDIROM’s market positioning by integrating cutting-edge technology into its operations, potentially increasing customer trust and engagement.