Latest Ratios: P/E Ratio 6.1x · EV/EBITDA 16.4x · ROE 21.2%. (2018–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $5M | $6M | $30M | $25M | $30M | $58M | — | — |
| Enterprise Value | $28M | $3.6B | $3.6B | $2.7B | $2.5B | $1.2B | — | — |
| P/E Ratio → | 6.05 | 0.04 | 0.26 | 0.17 | — | — | — | — |
| P/S Ratio | 0.10 | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | — | — |
| P/B Ratio | 0.80 | 0.01 | 0.14 | — | — | 0.12 | — | — |
| P/FCF | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.44 | 0.52 | 0.38 | 0.45 | 0.35 | — | — |
| EV / EBITDA | 16.38 | 13.36 | — | 9.43 | — | — | — | — |
| EV / EBIT | — | 37.28 | 62.14 | 13.98 | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.1% | 27.1% | 23.0% | 27.4% | 26.2% | 12.8% | 24.3% | 27.9% |
| Operating Margin | -0.2% | -0.2% | -5.7% | 1.4% | -8.7% | -22.3% | 0.9% | 2.1% |
| Net Profit Margin | 1.8% | 1.8% | 1.7% | 2.1% | -18.3% | -16.1% | 0.4% | 1.9% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| ROE | 21.2% | 21.2% | 146.9% | — | -700.4% | -98.8% | 7.2% | — |
| ROA | 2.0% | 2.0% | 1.7% | 2.4% | -17.3% | -10.3% | 0.4% | 1.5% |
| ROIC | -0.3% | -0.3% | -9.3% | 3.0% | -18.4% | -27.5% | 1.0% | 2.2% |
| ROCE | -0.5% | -0.5% | -12.2% | 3.4% | -16.8% | -26.9% | 1.5% | 3.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.33 | 3.33 | 16.90 | — | — | 5.21 | 3.94 | — |
| Debt / EBITDA | 14.55 | 14.55 | — | 11.50 | — | — | 29.34 | 24.24 |
| Net Debt / Equity | — | 3.05 | 16.41 | — | — | 2.28 | 3.08 | — |
| Net Debt / EBITDA | 13.34 | 13.34 | — | 9.34 | — | — | 22.97 | 22.44 |
| Debt / FCF | — | — | — | — | — | — | 3985.57 | 24.51 |
| Interest Coverage | 1.96 | 1.96 | 1.56 | 19.34 | -33.68 | -46.35 | 5.81 | 7.36 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.65 | 0.65 | 0.49 | 0.65 | 0.43 | 0.79 | 0.61 | 0.40 |
| Quick Ratio | 0.61 | 0.61 | 0.45 | 0.62 | 0.43 | 0.78 | 0.61 | 0.39 |
| Cash Ratio | 0.08 | 0.08 | 0.03 | 0.17 | 0.12 | 0.56 | 0.24 | 0.10 |
| Asset Turnover | — | 1.03 | 1.00 | 1.03 | 0.94 | 0.58 | 0.82 | 0.76 |
| Inventory Turnover | 39.92 | 39.92 | 37.57 | 44.27 | 213.57 | 366.10 | 536.66 | 386.74 |
| Days Sales Outstanding | — | 88.04 | 65.64 | 28.06 | 21.07 | 16.22 | 31.48 | 30.09 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 16.5% | 2596.1% | 389.3% | 603.8% | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $6M | $5M | $5M | $5M | $4M | $4M | $5M |
High Execution and Liquidity Risk
According to current market data, MEDIROM trades at a P/S ratio of 0.10, which suggests that investors are heavily discounting the company's revenue base, likely due to the persistent lack of profitability and the high-risk nature of its transition toward digital health hardware.
The low P/S multiple relative to broader consumer service peers indicates that the market is not assigning significant value to the company's current salon-driven revenue. Investors should monitor whether the current valuation reflects a terminal decline in the core business or if it is merely waiting for evidence that the MOTHER Tracker can achieve meaningful, high-margin scale.
Based on reported financial figures, MEDIROM's ROIC has consistently languished in negative territory, reaching -13.3% in 2025Q2, which indicates that the company is currently destroying shareholder value rather than compounding it through its ongoing investments in salon expansion and digital health technology.
The inability to generate a positive return on invested capital suggests that the costs associated with the Re.Ra.Ku College and digital R&D are not yet being offset by operational gains. This trend warrants further investigation into whether the company's capital allocation strategy is fundamentally flawed or if it is simply in a prolonged, necessary investment phase.
As evidenced by quarterly filings, the company's cash conversion cycle has fluctuated significantly, with a 4-day cycle in 2025Q2 compared to 25 days in 2024Q2, suggesting that management's control over working capital remains highly erratic and sensitive to timing differences in payables.
The low asset turnover ratio of 0.39 indicates that the company is not effectively utilizing its physical salon footprint to drive revenue. This inefficiency, combined with the reliance on short-term working capital swings, suggests that the business model lacks the operational leverage required to achieve sustainable profitability in the near term.
According to recent balance sheet data, the current ratio has deteriorated to 0.24, a level that signals severe liquidity pressure and suggests that the company may struggle to meet its immediate financial obligations without external financing or a rapid improvement in cash generation.
The quick ratio of 0.21 further highlights the company's dependence on inventory and other less liquid assets to cover short-term liabilities. Investors should monitor this closely, as the current liquidity profile leaves almost no margin for error in the event of a sector-wide downturn or unexpected operational disruption.
The most commonly misapplied metric for MEDIROM is the Price-to-Sales ratio, which obscures the company's underlying structural shift from a high-volume, low-margin service provider to a speculative hardware-as-a-service model that requires fundamentally different valuation frameworks.
Using P/S to value MEDIROM ignores the fact that a significant portion of revenue is tied to low-margin salon operations that are currently struggling with labor costs. Analysts should instead focus on the growth of recurring digital subscription revenue and the unit economics of the MOTHER Tracker to determine if the company can eventually achieve the margins required to justify its current valuation.
Includes 30+ ratios · 7 years · Updated daily
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Quick answers to the most common questions about buying MRM stock.
MEDIROM Healthcare Technologies Inc.'s current P/E ratio is 6.1x. The historical average is 0.2x. This places it at the 100th percentile of its historical range.
MEDIROM Healthcare Technologies Inc.'s current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
MEDIROM Healthcare Technologies Inc.'s return on equity (ROE) is 21.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 19.1%.
Based on historical data, MEDIROM Healthcare Technologies Inc. is trading at a P/E of 6.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
MEDIROM Healthcare Technologies Inc. has 27.1% gross margin and -0.2% operating margin.
MEDIROM Healthcare Technologies Inc.'s Debt/EBITDA ratio is 14.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.