olivLaw · US equity research
MEDIROM Healthcare Technologies Inc. MRM
Services-Personal Services · SIC 7200 · Vertical: Services-Personal Services (SIC 7200)
MEDIROM Healthcare Technologies is a holistic health services provider in Japan, running relaxation salons, luxury hair salons and a digital preventative healthcare platform. The relaxation segment is the core of the business and drove most of the revenue in 2024, while the company is shifting part of its salon portfolio toward investors and franchisees.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, MEDIROM Healthcare Technologies Inc. (MRM) stock was 0.31 USD (−6.33% on the day), with beta 0.21, 52-week range 0.31–2.31 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 22.1
- oversold (≤ 30)
- Bollinger (20, 2)
- 0.23 – 0.52
- in the lower half of the band · %B 0.28 · band width 77.8%
- SMA 50 / 200
- 0.63 / 1.06
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.09 / -0.10
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −42.8% | −1.1% | −41.7 pp | — |
| 3 months | −65.2% | −0.5% | −64.8 pp | — |
| 6 months | −74.3% | +4.4% | −78.7 pp | — |
| Year to date | −84.0% | +12.3% | −96.3 pp | — |
| 1 year | −84.3% | +13.5% | −97.8 pp | −9.9% |
| 3 years | −94.1% | +76.4% | −170.5 pp | +22.1% |
| 5 years | −95.6% | +63.7% | −159.3 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Revenue | 3.9 bn | 3.3 bn | 5.4 bn | 7.0 bn | 6.8 bn | 8.3 bn |
| Revenue YoY | unavailable | −14.5% | +61.9% | +28.5% | −1.8% | +21.5% |
| Net income | 17.3 m | -539.2 m | -990.7 m | 149.0 m | 115.4 m | 148.8 m |
| Net income YoY | unavailable | −3,210.3% | unavailable | unavailable | −22.5% | +28.9% |
| Diluted EPS | 4.06 | -133.97 | -203.13 | 27.23 | 22.34 | 28.52 |
| Diluted EPS YoY | unavailable | −3,399.8% | unavailable | unavailable | −18.0% | +27.7% |
| net % | 0.4% | -16.1% | -18.3% | 2.1% | 1.7% | 1.8% |
| Free cash flow | 464.0 k | -440.0 m | -652.9 m | -806.4 m | -767.6 m | -1.4 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2024 · 31 Dec 2024
- Cash
- 2.1 m JPY
- Financial debt
- 1.3 bn JPY
- Net debt
- 1.3 bn JPY
- Equity
- 987.9 m JPY
- Total assets
- 8.1 bn JPY
- Debt / equity
- 1.27x
- Current ratio
- 0.65x
- ROE
- 24.7%
- ROA
- 2.0%
- FCF margin
- -16.9%
Financial statements (source on every figure)
Revenue and net income (JPY)
Margins
Income statement · JPY
| Line | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.9 bn | 3.3 bn | 5.4 bn | 7.0 bn | 6.8 bn | 8.3 bn | SEC (XBRL)· 29 Apr 2025verified |
| Cost of revenue | — | — | — | 5.1 bn | 5.3 bn | 6.1 bn | SEC (XBRL)· 29 Apr 2025verified |
| Gross profit | — | — | — | 1.9 bn | 1.6 bn | 2.2 bn | SEC (XBRL)· 29 Apr 2025verified |
| SG&A | 871.9 m | 1.1 bn | 1.8 bn | 1.8 bn | 2.0 bn | 2.2 bn | SEC (XBRL)· 29 Apr 2025verified |
| Operating income | 34.4 m | -746.1 m | -470.6 m | 97.0 m | -391.6 m | -18.1 m | SEC (XBRL)· 29 Apr 2025verified |
| Depreciation & amortisation | 46.2 m | 62.3 m | 126.2 m | 184.1 m | 252.6 m | 290.0 m | SEC (XBRL)· 29 Apr 2025verified |
| EBITDA | 80.5 m ≈ | -683.8 m ≈ | -344.3 m ≈ | 281.0 m ≈ | -139.0 m ≈ | 271.9 m ≈ | SEC (XBRL)· 29 Apr 2025derived |
| Interest expense | 13.6 m | 13.2 m | 12.0 m | 9.8 m | 36.9 m | 49.7 m | SEC (XBRL)· 29 Apr 2025verified |
| Pre-tax income | 32.7 m | -626.7 m | -414.5 m | 179.8 m | 20.6 m | 47.7 m | SEC (XBRL)· 29 Apr 2025verified |
| Income tax | 16.0 m | -87.5 m | 576.3 m | 30.8 m | -94.4 m | -90.5 m | SEC (XBRL)· 29 Apr 2025verified |
| Net income | 17.3 m | -539.2 m | -990.7 m | 149.0 m | 115.4 m | 148.8 m | SEC (XBRL)· 29 Apr 2025verified |
| Diluted EPS | 4.06 | -133.97 | -203.13 | 27.23 | 22.34 | 28.52 | SEC (XBRL)· 29 Apr 2025verified |
| Weighted average diluted shares | 4.3 m | 4.0 m | 4.9 m | 5.5 m | 5.2 m | 5.9 m | SEC (XBRL)· 29 Apr 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · JPY
| Line | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 513.6 m | 1.4 bn | — | 4.6 m | 755.0 k | 2.1 m | SEC (XBRL)· 29 Apr 2025verified |
| Receivables | 337.0 m | 148.5 m | 312.3 m | 534.7 m | 621.9 m | 1.4 bn | SEC (XBRL)· 29 Apr 2025verified |
| Inventories | 5.5 m | 8.0 m | 18.7 m | 114.1 m | 140.0 m | 151.6 m | SEC (XBRL)· 29 Apr 2025verified |
| Current assets | 1.4 bn | 2.1 bn | 1.4 bn | 2.4 bn | 1.8 bn | 2.7 bn | SEC (XBRL)· 29 Apr 2025verified |
| Property, plant & equipment, net | 169.0 m | 235.9 m | 425.0 m | 424.3 m | 451.5 m | 435.7 m | SEC (XBRL)· 29 Apr 2025verified |
| Goodwill | 78.3 m | 150.7 m | 600.3 m | 539.5 m | 484.6 m | 389.1 m | SEC (XBRL)· 29 Apr 2025verified |
| Intangibles (excl. goodwill) | 77.6 m | 97.6 m | 391.0 m | 403.7 m | 920.7 m | 1.1 bn | SEC (XBRL)· 29 Apr 2025verified |
| Total assets | 4.8 bn | 5.7 bn | 5.8 bn | 6.7 bn | 6.8 bn | 8.1 bn | SEC (XBRL)· 29 Apr 2025verified |
| Accounts payable | 122.6 m | 67.0 m | 230.9 m | 207.6 m | 137.7 m | 1.0 bn | SEC (XBRL)· 29 Apr 2025verified |
| Short-term debt | 371.6 m | 242.3 m | 162.3 m | 99.2 m | 400.0 m | 491.7 m | SEC (XBRL)· 29 Apr 2025verified |
| Long-term debt | 150.5 m | 668.4 m | 746.6 m | 1.1 bn | 1.1 bn | 764.2 m | SEC (XBRL)· 29 Apr 2025verified |
| Current liabilities | 2.3 bn | 2.7 bn | 3.2 bn | 3.6 bn | 3.6 bn | 4.2 bn | SEC (XBRL)· 29 Apr 2025verified |
| Total liabilities | — | 5.2 bn | 6.0 bn | 6.8 bn | 6.6 bn | 6.9 bn | SEC (XBRL)· 29 Apr 2025verified |
| Equity | 600.1 m † | 491.3 m | -208.3 m | -59.4 m | 216.0 m | 987.9 m | SEC (XBRL)· 29 Apr 2025verified |
| Shares outstanding at year end | — | 4.8 m | 4.9 m | 4.9 m | 4.9 m | 7.9 m | SEC (XBRL)· 29 Apr 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · JPY
| Line | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 7.9 m | -366.4 m | -557.2 m | -685.7 m | -631.7 m | -1.3 bn | SEC (XBRL)· 29 Apr 2025verified |
| Capex | 7.4 m | 73.6 m | 95.7 m | 120.7 m | 135.8 m | 71.4 m | SEC (XBRL)· 29 Apr 2025verified |
| Free cash flow | 464.0 k ≈ | -440.0 m ≈ | -652.9 m ≈ | -806.4 m ≈ | -767.6 m ≈ | -1.4 bn ≈ | SEC (XBRL)· 29 Apr 2025derived |
| Investing cash flow | -37.9 m | -139.6 m | -83.9 m | 580.4 m | -328.6 m | 361.4 m | SEC (XBRL)· 29 Apr 2025verified |
| Financing cash flow | 332.0 m | 1.4 bn | -427.9 m | 340.1 m | 461.2 m | 1.2 bn | SEC (XBRL)· 29 Apr 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
52% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -0.8% | 20 (vs peers) | 20% |
| Net margin · Quality | 1.8% | 30 (vs peers) | 12% |
| FCF conversion · Quality | -943.2% | 0 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | 15.3% | 100 (on a fixed band) | 16% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 4.6x | 0 (on a fixed band) | 20% |
| Interest coverage · Balance sheet | -0.4x | 0 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 0.6x | 0 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet0/100 · 3/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality17/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Medirom Healthcare Technologies Inc. (MRM). Latest full fiscal year: 2024; data up to 2024-12-31.
Figures computed from the financial statements: revenue 8.3 bn JPY in 2024; YoY growth 21.5%; net margin 1.8%; ROE 26.0%; net debt/EBITDA 4.6x.
The estimated value range is 167.52–533.48 JPY per share (median of 2 methods, agreement: low); assumptions are illustrative. The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 15.3%
What contradicts it
- ROIC: -0.8%
- Net margin: 1.8%
- FCF conversion: -943.2%
- Net debt / EBITDA: 4.6x
- Interest coverage: -0.4x
- Current ratio: 0.6x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Services-Personal Services (SIC 7200) · same industry (4-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SCIService Corporation International | 10.5 bn | 19.2 | 35.7% | 12.7% | +2.9% | −3% / +26% |
| HRBH&R Block Inc | 6.8 bn | 9.8 | 710.9% | 18.6% | +4.9% | +32% / +22% |
| YELPYelp Inc | 1.2 bn | 10.6 | 18.2% | 8.6% | +3.7% | −24% / −50% |
| CSVCarriage Services, Inc. | 571.4 m | 12.8 | 17.3% | 10.7% | +3.3% | −17% / +59% |
| EVIEVI Industries, Inc. | 282.3 m | 45.3 | 5.3% | 1.7% | +14.6% | +6% / −16% |
| WWWw International, Inc. | 121.3 m | 0.1 | 332.6% | 148.1% | −11.6% | −57% / unavailable |
| RGSRegis Corporation | 79.4 m | 13.2 | 3.7% | 3.1% | +6.8% | +18% / +362% |
| DLPNDolphin Entertainment, Inc. | 12.2 m | — | -51.6% | -6.3% | +9.7% | −42% / −70% |
| XWELXWELL, Inc. | 5.1 m | — | — | -82.9% | −13.8% | −21% / −75% |
| UNFUnifirst Corporation | — | 41.7 | 5.0% | 4.3% | +3.7% | +45% / +45% |
| MRMMedirom Healthcare Technologies Inc. | — | — | 26.0% | 1.8% | +21.5% | −84% / −94% |
1- and 3-year price returns: for MRM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Apr 2025; since then the company filed 6-K (13 Oct 2026), 6-K (27 Aug 2026), 6-K (07 Aug 2026), 6-K (25 Jun 2026).
In brief
MEDIROM Healthcare Technologies is a holistic health services provider in Japan, running relaxation salons, luxury hair salons and a digital preventative healthcare platform. The relaxation segment is the core of the business and drove most of the revenue in 2024, while the company is shifting part of its salon portfolio toward investors and franchisees.1
SWOT
Strengths
- The Re.Ra.Ku brand has recognition in Japan, and the network is extensive in major cities, giving a strong customer base and a good position in the Tokyo metropolitan area.
- The company has a diversified model combining directly-operated salons, franchises and the management of salons sold to investors, which reduces reliance on a single revenue source.
- The integrated customer management and reservation system provides detailed operating data for each salon, useful for performance control.
Weaknesses
- Geographic concentration in the Tokyo area exposes the company to economic and market conditions specific to that region.
- The digital preventative healthcare segment remains small and has not yet reached profitability, which limits its contribution to overall results.
- Customer numbers and the repeat ratio declined, suggesting pressure on demand in the core segment.
Opportunities
- The planned acquisition of a 70% stake in Japan Gene Medicine Corporation could broaden the service portfolio and presence in health technology.
- Growth in salon sales to investors could continue if investor demand stays strong, supporting the shift toward a less asset-intensive model.
- Expanding franchises into new Japanese cities could add locations without major direct investment by the company.
Threats
- Labor shortages and competition for staff could limit the ability to operate salons and grow the customer base.
- Inflation and reduced consumer spending could lower the frequency of salon visits.
- Weaker economic conditions in Japan or in financial markets could weigh on demand and on access to financing for franchisees and investors.
Risks
- Dependence on the Tokyo marketmedium
Most salons are in the Tokyo metropolitan area, so economic or regulatory events in the region could affect results disproportionately.
- Development goals not methigh
The number of salons declined in 2024 and the company could struggle to reach its expansion plans, which would affect operating results.
- Volatility of salon salesmedium
Revenue from selling salons depends on investor interest and financial conditions, so it can vary significantly from year to year.
- Difficulties in the digital segmentmedium
Digital preventative healthcare has not yet reached profitability, and the expected growth may not materialize, which could limit overall profitability.
- Planned acquisitionmedium
Completion of the Japan Gene Medicine Corporation acquisition is not assured and could be delayed or changed, and integration could bring unforeseen difficulties.
Investment thesis
What would need to be true (bull case)
- The established brand and extensive network in Japan give a solid base, and the core segment dominates revenue, so results rest on a clear core.
- Growth in salon sales to investors points to real demand, and the operating model could generate steadier revenue over the longer term.
- The planned acquisition and expansion into health technology could diversify the portfolio and add growth beyond classic salons.
What would break the thesis
- The decline in customers and in the repeat ratio suggests demand in the core segment could weaken under inflationary pressure.
- Labor shortages and competition for staff could limit expansion and raise operating costs.
- The digital segment is not yet profitable, and if that persists its contribution to growth could remain limited.
What to watch
- Trend in number of salons and customers servedQ1 2027
- Volume of salon operating-right sales to investors2027
- Completion of the Japan Gene Medicine Corporation acquisitionnext 20-F
- Progress of the digital preventative healthcare segment toward profitability2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Apr 2025; since then the company filed 6-K (13 Oct 2026), 6-K (27 Aug 2026), 6-K (07 Aug 2026), 6-K (25 Jun 2026).
The business
The business model combines directly-operated salons, franchised salons and salons sold to investors, which Medirom continues to operate for a management fee. At December 31, 2024 there were 308 salons: 163 company-owned, 88 franchisee-operated and 57 investor-owned but managed by the company.1
Revenue comes from operating directly-operated salons, franchise royalties and fees, and sales of salons to investors. The company describes its strategy as a gradual move toward a less asset-intensive model, in which investors own the locations and Medirom earns from operating them.1
Segments
Relaxation salons
The core segment, with 308 locations across Japan at December 31, 2024, concentrated in the Tokyo metropolitan area. The customer relationship and reservation system is integrated in 283 salons, and services include relaxation therapy, joint alignment and reflexology.1
Luxury salons (ZACC)
ZACC operates high-end hair salons in central Tokyo under three brands. The segment generated 8.4% of 2024 revenue, smaller than the core segment, but with a different customer profile.1
Digital preventative healthcare
This segment covers a government-sponsored health guidance program, the Lav app and the MOTHER Bracelet, plus nutrition and preventative nursing services. It accounted for 1.9% of 2024 revenue, down from 2.9% in 2023, and still faces growth and profitability challenges.1
Market context
Medirom operates in Japan's relaxation and wellness services market, where the company says it is among the top three operators by number of salons in the Kanto region and the top four nationwide. Customers are mainly employed women with disposable income, and demand is supported by growing interest in health after the pandemic.1
The market is fragmented and competition for skilled staff and suitable sites is intense. In 2024 the company reported fewer customers served, which it attributes to fewer salons and a shortage of therapists, while sales of store operating rights to investors increased.1
Trends
- Growing interest in health and wellnesstailwind
The company observes that consumer interest in balancing sleep, diet and exercise is growing, which could support demand for its services if the trend persists.1
- Investor demand for salon operating rightsmixed
Sales of store operating rights to investors rose in 2024, pointing to solid investor demand. If that demand weakens, revenue from these sales could become more volatile from year to year.1
- Weaker consumer spending and inflationheadwind
The company links the decline in its repeat ratio to consumers spending less amid inflationary trends in Japan. If inflationary pressure continues, visit frequency could be affected.1
- Labor shortageheadwind
Greater competition for labor in Japan has reduced the availability of therapists, which affected customer numbers. If the labor market stays tight, operating costs and capacity could come under pressure.1
Competitive position
Medirom faces competition in Japan's relaxation salon segment, where several operators compete for sites, customers and therapists. The company notes that expansion becomes harder in markets where competitors are already more established or have greater penetration.1
In the digital and luxury salon segments, competition comes from technology providers and other premium hair salons in Tokyo. The source does not identify US-listed competitors in detail.1
- Other relaxation salon operators in Japan
Local competitors vying for the same sites and therapists; the source does not name them.
- Premium hair salon operators in Tokyo
Competition for the luxury clientele of the ZACC segment; not named in the source.
- Health technology providers
Competition in health monitoring apps and devices.
- Other wellness franchise networks
Networks competing for prospective franchisees under similar investment terms.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report (foreign issuer)13 Oct 2026
- Current report (foreign issuer)27 Aug 2026
- Current report (foreign issuer)27 Aug 2026
- Current report (foreign issuer)07 Aug 2026
- Current report (foreign issuer)07 Aug 2026
- Current report (foreign issuer)25 Jun 2026
- Current report (foreign issuer)29 May 2026
- Current report (foreign issuer)28 May 2026
- Current report (foreign issuer)22 Apr 2026
- Current report (foreign issuer)09 Apr 2026
Sources
- [1] Form 20-F, fiscal year ended 2024-12-31 · SEC / MEDIROM Healthcare Technologies Inc. · 29 Apr 2025
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.