MEDIROM Healthcare Technologies Inc. (MRM) AI Stock Analysis

Headquartered in Tokyo, Japan, MEDIROM Healthcare Technologies Inc. offers holistic healthcare services through two primary segments: Relaxation Salon and Digital Preventative Healthcare. The Relaxation Salon segment operates and franchises wellness salons under the Re.Ra.Ku and Ruam Ruam brands, delivering finger-pressure style bodywork therapy, stretch therapy, posture alignment, and specialized treatments such as anti-fatigue therapy and reflexology, operating 312 salons across Japan as of December 31, 2021. The Digital Preventative Healthcare segment develops advanced health technology, including the Lav health monitoring mobile application, the MOTHER Tracker fitness device, and participation in government-sponsored initiatives like the Specific Health Guidance program.

MEDIROM's financial results show substantial fluctuations over recent periods. Revenue grew 61.9% in FY2021 to $5.41B, reached $6.95B in FY2022, dropped 1.8% to $6.83B in FY2023, and peaked at $8.30B in FY2024 with net income of $148.8M. In FY2025, revenue plunged 100.0% to $4.0M, though gross margin expanded to 96.6% and net income reached $374,720, delivering a net margin of 9.3%. Over the trailing twelve months ending March 31, 2026, revenue stood at $8.07B with an operating margin of -25.8% and a profit margin of 0.5%. For the latest quarter ended March 31, 2026, quarterly revenue fell 6.7% year-over-year while quarterly earnings grew 27.8%.

As of March 31, 2026, MEDIROM reported cash and short-term investments of $20.1M compared to total debt of $2.33B, leading to net debt of $2.31B. Shareholders' equity was $1.33B against total assets of $4.16B, resulting in a debt-to-equity ratio of 1.75 and a current ratio of 1.75. In FY2024, the company recorded operating cash flow of -$1.33B, free cash flow of -$1.90B, and capital expenditures of $564.8M. Over a five-year period, the share count increased by 61.9%.

At a share price of $0.36 as of October 16, 2026, MEDIROM has a market capitalization of $2.9M and an enterprise value of $30.5M. The stock trades at a trailing price-to-earnings ratio of 0.9x and an enterprise value-to-EBITDA ratio of 14.0x, compared to medians of 18.0x and 11.1x, respectively, for its US-listed Consumer Cyclical peers. Its price-to-book ratio is 3.8x. Over the past year, the stock fell 85.5%, trailing the S&P 500 (SPY) return of 16.8%, and has dropped 95.5% over the past 5 years.

Wall Street analysts have set a mean price target of $5.12 for MEDIROM, representing an upside of 1315.0% relative to its last close of $0.36. Over the last four quarters, the company beat consensus earnings per share estimates 1 time. TTM diluted earnings per share stood at $0.41 as of the latest quarter ended March 31, 2026.

This page is an AI-written research summary of MEDIROM Healthcare Technologies Inc. (MRM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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