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MEDIROM Healthcare Technologies Inc. (MRM) 10-Year Financial Performance & Capital Metrics

MRM • • Industrial / General
Consumer CyclicalPersonal ServicesPersonal Care & Wellness ServicesRelaxation & Therapy Services
AboutMEDIROM 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.Show more
  • Revenue $8.3B +21.5%
  • EBITDA $272M +295.7%
  • Net Income $149M +29.3%
  • EPS (Diluted) 28.52 +28.1%
  • Gross Margin 27.07% +17.8%
  • EBITDA Margin 3.28% +261.0%
  • Operating Margin -0.22% +96.2%
  • Net Margin 1.79% +6.4%
  • ROE 21.19% -85.6%
  • ROIC -0.32% +96.6%
  • Debt/Equity 3.33 -80.3%
  • Interest Coverage -0.36 +96.6%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Excellent 3Y average ROE of 84.1%
  • ✓Strong 5Y profit CAGR of 53.7%
  • ✓Momentum leader: RS Rating 82 (top 18%)
  • ✓Strong 5Y sales CAGR of 16.3%
  • ✓Trading at only 0.0x book value
  • ✓Efficient asset utilization: 1.0x turnover

✗Weaknesses

  • ✗High debt to equity ratio of 3.3x
  • ✗Negative free cash flow
  • ✗Shares diluted 13.3% in last year
  • ✗Trading more than 30% below 52-week high

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-
5Y16.25%
3Y15.33%
TTM87.09%

Profit (Net Income) CAGR

10Y-
5Y53.71%
3Y-
TTM203.34%

EPS CAGR

10Y-
5Y47.68%
3Y-
TTM120.98%

ROCE

10Y Avg-6.33%
5Y Avg-10.59%
3Y Avg-3.11%
Latest-0.5%

Peer Comparison

Relaxation & Therapy Services
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
MRMMEDIROM Healthcare Technologies Inc.13.83M1.750.0621.55%1.75%22.24%3.33

Profit & Loss

Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+3.43B3.91B3.34B5.41B6.95B6.83B8.3B
Revenue Growth %-0.14%-0.14%0.62%0.29%-0.02%0.22%
Cost of Goods Sold+2.48B2.96B2.91B3.99B5.05B5.26B6.05B
COGS % of Revenue0.72%0.76%0.87%0.74%0.73%0.77%0.73%
Gross Profit+956.87M950.76M428.95M1.42B1.9B1.57B2.25B
Gross Margin %0.28%0.24%0.13%0.26%0.27%0.23%0.27%
Gross Profit Growth %--0.01%-0.55%2.3%0.34%-0.18%0.43%
Operating Expenses+850.61M905.21M1.18B1.89B1.81B1.96B2.26B
OpEx % of Revenue0.25%0.23%0.35%0.35%0.26%0.29%0.27%
Selling, General & Admin842.82M871.86M1.07B1.81B1.81B1.96B2.24B
SG&A % of Revenue0.25%0.22%0.32%0.33%0.26%0.29%0.27%
Research & Development0000000
R&D % of Revenue-------
Other Operating Expenses033.35M106.5M75.21M0022.87M
Operating Income+114.05M78.9M-746.09M-470.59M96.97M-391.58M-18.1M
Operating Margin %0.03%0.02%-0.22%-0.09%0.01%-0.06%-0%
Operating Income Growth %--0.31%-10.46%0.37%1.21%-5.04%0.95%
EBITDA+158.31M125.07M-683.8M-344.34M281.02M-138.98M271.94M
EBITDA Margin %0.05%0.03%-0.2%-0.06%0.04%-0.02%0.03%
EBITDA Growth %--0.21%-6.47%0.5%1.82%-1.49%2.96%
D&A (Non-Cash Add-back)44.27M46.17M62.29M126.24M184.06M252.59M290.04M
EBIT107.41M46.33M-613.46M-402.53M189.57M57.49M97.46M
Net Interest Income+-14.7M-12.26M-11.9M-11.11M-3.73M-35.76M-49.74M
Interest Income785K1.34M1.33M839K6.07M1.11M8K
Interest Expense15.48M13.59M13.23M11.95M9.8M36.87M49.74M
Other Income/Expense-22.48M-1.05M119.4M56.11M82.81M412.2M65.81M
Pretax Income+91.56M33.3M-626.69M-414.48M179.77M20.62M47.71M
Pretax Margin %0.03%0.01%-0.19%-0.08%0.03%0%0.01%
Income Tax+25.25M15.96M-87.52M576.25M30.81M-94.43M-90.48M
Effective Tax Rate %0.72%0.52%0.86%2.39%0.83%5.58%3.12%
Net Income+66.31M17.34M-539.17M-990.73M148.97M115.05M148.76M
Net Margin %0.02%0%-0.16%-0.18%0.02%0.02%0.02%
Net Income Growth %--0.74%-32.1%-0.84%1.15%-0.23%0.29%
Net Income (Continuing)66.31M17.34M-539.17M-990.73M148.97M115.05M138.19M
Discontinued Operations0000000
Minority Interest000005.08M254.79M
EPS (Diluted)+14.044.06-133.97-203.1327.2322.2728.52
EPS Growth %--0.71%-34%-0.52%1.13%-0.18%0.28%
EPS (Basic)18.064.63-133.97-203.1330.5423.6429.13
Diluted Shares Outstanding4.72M4.27M4.02M4.88M5.47M5.17M5.85M
Basic Shares Outstanding4.72M4.27M4.02M4.88M5.47M5.17M5.11M
Dividend Payout Ratio-------

Balance Sheet

Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+934.04M1.38B2.09B1.38B2.36B1.76B2.71B
Cash & Short-Term Investments244.71M552.14M1.47B377.12M605.95M132.85M335.56M
Cash Only211.69M513.62M1.44B370.62M605.45M106.35M329.4M
Short-Term Investments33.02M38.52M32.52M6.5M500K500K6.16M
Accounts Receivable283M337.05M148.54M312.3M534.69M1.23B2B
Days Sales Outstanding30.0931.4816.2221.0728.0665.6488.04
Inventory6.4M5.51M7.96M18.7M114.11M139.98M151.64M
Days Inventory Outstanding0.940.6811.718.249.729.14
Other Current Assets359.88M436.54M411.28M563.01M815.82M0217.17M
Total Non-Current Assets+3.59B3.38B3.63B4.37B4.38B5.09B5.38B
Property, Plant & Equipment2.27B2B1.81B2.25B2.38B2.54B2.51B
Fixed Asset Turnover1.51x1.96x1.84x2.41x2.92x2.69x3.31x
Goodwill63.95M78.28M150.72M600.33M539.49M484.56M389.13M
Intangible Assets76.28M77.64M97.61M391.04M403.67M920.7M1.14B
Long-Term Investments51.98M14.04M500K53.02M53.02M81.54M87.42M
Other Non-Current Assets1.12B1.21B1.56B1.08B1.01B961.14M973.46M
Total Assets+4.52B4.76B5.71B5.75B6.75B6.85B8.09B
Asset Turnover0.76x0.82x0.58x0.94x1.03x1.00x1.03x
Asset Growth %-0.05%0.2%0.01%0.17%0.02%0.18%
Total Current Liabilities+2.35B2.26B2.65B3.2B3.64B3.56B4.18B
Accounts Payable141.32M122.59M67.02M230.9M207.58M137.7M1.01B
Days Payables Outstanding20.8315.138.421.1159.5661.16
Short-Term Debt413.74M371.57M242.28M162.25M99.17M500.42M1.11B
Deferred Revenue (Current)001000K1000K01000K1000K
Other Current Liabilities648.78M616.53M162.13M459.54M1.18B370.21M414.7M
Current Ratio0.40x0.61x0.79x0.43x0.65x0.49x0.65x
Quick Ratio0.39x0.61x0.78x0.43x0.62x0.45x0.61x
Cash Conversion Cycle10.217.038.821.6821.3165.836.02
Total Non-Current Liabilities+2.29B1.89B2.57B2.76B3.16B3.07B2.72B
Long-Term Debt342.77M150.53M668.38M746.59M1.15B1.05B764.2M
Capital Lease Obligations1.32B1.14B992.89M1.13B1.21B1.33B1.29B
Deferred Tax Liabilities0000000
Other Non-Current Liabilities621.8M607.39M908.35M889.61M802.36M687.2M632.51M
Total Liabilities4.64B4.16B5.22B5.96B6.81B6.63B6.9B
Total Debt+2.85B2.36B2.56B2.79B3.23B3.65B3.96B
Net Debt2.64B1.85B1.12B2.42B2.63B3.54B3.63B
Debt / Equity-3.94x5.21x--16.90x3.33x
Debt / EBITDA18.00x18.89x--11.50x-14.55x
Net Debt / EBITDA16.66x14.79x--9.34x-13.34x
Interest Coverage7.36x5.81x-56.38x-39.38x9.89x-10.62x-0.36x
Total Equity+-117.56M600.06M491.26M-208.34M-59.38M215.96M1.19B
Equity Growth %-6.1%-0.18%-1.42%0.71%4.64%4.5%
Book Value per Share-24.90140.45122.06-42.72-10.8541.80203.03
Total Shareholders' Equity-117.56M600.06M491.26M-208.34M-59.38M210.88M933.27M
Common Stock245.1M595.1M1.18B1.22B1.22B20M352.62M
Retained Earnings-722.64M-705.31M-1.7B-2.69B-2.55B80.28M229.04M
Treasury Stock-3M-3M-3M-3M-3M-3M-3M
Accumulated OCI-278K000000
Minority Interest000005.08M254.79M

Cash Flow

Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+141.87M7.87M-366.42M-557.23M-685.7M-631.74M-1.33B
Operating CF Margin %0.04%0%-0.11%-0.1%-0.1%-0.09%-0.16%
Operating CF Growth %--0.94%-47.56%-0.52%-0.23%0.08%-1.11%
Net Income66.31M17.34M-539.17M-990.73M148.97M115.05M138.19M
Depreciation & Amortization44.27M46.17M62.29M126.24M184.06M252.59M290.04M
Stock-Based Compensation149K00196.85M000
Deferred Taxes00000-101.64M-188.71M
Other Non-Cash Items151.54M42.88M-156.66M1.9M-968.78M-1.4B-1.57B
Working Capital Changes-120.39M-98.52M267.12M108.5M-49.94M498.76M1.97M
Change in Receivables30.17M-66.88M189.14M-37.02M-222.38M580.68M299.96M
Change in Inventory6.92M892K-2.44M-2.44M-95.41M-25.87M-10.61M
Change in Payables00000-69.88M876.51M
Cash from Investing+-79.39M-37.93M-139.6M-83.94M580.44M-328.58M361.39M
Capital Expenditures-34.3M-7.41M-73.56M-95.65M-120.74M-135.84M-71.41M
CapEx % of Revenue0.01%0%0.02%0.02%0.02%0.02%0.01%
Acquisitions-------
Investments-------
Other Investing15.18M-27.32M33.15M30.39M849.18M-774.41M-478.18M
Cash from Financing+-74.47M331.99M1.43B-427.95M340.1M461.21M1.19B
Debt Issued (Net)-------
Equity Issued (Net)-------
Dividends Paid0000000
Share Repurchases-------
Other Financing180M-126.09M-125.06M-176.87M-162.25M160.29M0
Net Change in Cash-------
Free Cash Flow+107.57M464K-439.98M-652.88M-806.44M-767.58M-1.9B
FCF Margin %0.03%0%-0.13%-0.12%-0.12%-0.11%-0.23%
FCF Growth %--1%-949.22%-0.48%-0.24%0.05%-1.47%
FCF per Share22.780.11-109.32-133.86-147.41-148.56-324.10
FCF Conversion (FCF/Net Income)2.14x0.45x0.68x0.56x-4.60x-5.49x-8.95x
Interest Paid17.01M11.87M10.22M10.87M7.54M34.58M47.56M
Taxes Paid14.78M24.34M7M45.51M30.81M52.1M12.78M

Key Ratios

Metric2018201920202021202220232024
Return on Equity (ROE)-7.19%-98.81%-700.38%-146.95%21.19%
Return on Invested Capital (ROIC)3.39%2.38%-27.55%-18.44%3.04%-9.29%-0.32%
Gross Margin27.87%24.33%12.84%26.16%27.36%22.98%27.07%
Net Margin1.93%0.44%-16.13%-18.31%2.14%1.69%1.79%
Debt / Equity-3.94x5.21x--16.90x3.33x
Interest Coverage7.36x5.81x-56.38x-39.38x9.89x-10.62x-0.36x
FCF Conversion2.14x0.45x0.68x0.56x-4.60x-5.49x-8.95x
Revenue Growth-13.84%-14.5%61.89%28.54%-1.81%21.55%

Revenue by Segment

20202021202220232024
Franchise175.44M-645.73M523.33M316.65M
Franchise Growth----18.96%-39.49%
Sublease revenue-437.98M411.7M364.37M308.31M
Sublease revenue Growth---6.00%-11.50%-15.38%
Other franchise revenues-247.35M630.23M181.76M179.35M
Other franchise revenues Growth--154.79%-71.16%-1.32%
Other revenues-43.97M427.03M200.4M160.63M
Other revenues Growth--871.30%-53.07%-19.85%
Royalty income-209.85M403.17M181.42M156.32M
Royalty income Growth--92.12%-55.00%-13.83%
Staffing service revenue-263.96M86.97M136.57M76.84M
Staffing service revenue Growth---67.05%57.02%-43.74%
Franchise fees-199.89M---
Franchise fees Growth-----
Franchisor Owned Outlet2.03B----
Franchisor Owned Outlet Growth-----
Sublease Revenue492.37M----
Sublease Revenue Growth-----
Staffing Service Revenue254.28M----
Staffing Service Revenue Growth-----
Other Franchise187.3M----
Other Franchise Growth-----
Royalty179.75M----
Royalty Growth-----
Product And Service Other25.67M----
Product And Service Other Growth-----

Frequently Asked Questions

Valuation & Price

MEDIROM Healthcare Technologies Inc. (MRM) has a price-to-earnings (P/E) ratio of 0.1x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

MEDIROM Healthcare Technologies Inc. (MRM) reported $15.13B in revenue for fiscal year 2024. This represents a 341% increase from $3.43B in 2018.

MEDIROM Healthcare Technologies Inc. (MRM) grew revenue by 21.5% over the past year. This is strong growth.

Yes, MEDIROM Healthcare Technologies Inc. (MRM) is profitable, generating $264.2M in net income for fiscal year 2024 (1.8% net margin).

Dividend & Returns

MEDIROM Healthcare Technologies Inc. (MRM) has a return on equity (ROE) of 21.2%. This is excellent, indicating efficient use of shareholder capital.

MEDIROM Healthcare Technologies Inc. (MRM) had negative free cash flow of $2.66B in fiscal year 2024, likely due to heavy capital investments.

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