(MRM) Medirom Healthcare - Ratings and Ratios
Relaxation Salons, Health Guidance, Fitness Tracker, Beauty Salons
Description: MRM Medirom Healthcare October 20, 2025
Medirom Healthcare Technologies Inc. (NASDAQ: MRM) is a Tokyo-based provider of integrated health and beauty services in Japan, operating under the GICS sub-industry “Health Care Services.” The firm runs three business lines: Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty.
The Relaxation Salon segment develops, owns, franchises, and supports salons offering finger-pressure bodywork, stretch therapy, posture alignment, and related physical-therapy services under the Re.Ra.Ku and Ruam Ruam brands. The Luxury Beauty segment operates hair-salon locations under the ZACC brand, while the Digital Preventative Healthcare segment delivers a government-backed Specific Health Guidance program via the Lav mobile app and the MOTHER bracelet, supplemented by nutritionist and health-nurse services.
As of FY 2023, Medirom reported ¥12.4 billion in revenue, a 7 % YoY increase driven primarily by a 12 % rise in franchise salon fees and a 15 % growth in digital-health subscription revenue. The company now operates roughly 180 relaxation-salon locations and 45 ZACC hair-salon sites, reflecting a steady expansion of its franchise network.
Key macro drivers include Japan’s rapidly aging population (≈28 % of residents aged 65+), which is boosting demand for preventive and wellness services, and a government push to reduce healthcare costs through digital health monitoring-both trends that favor Medirom’s integrated service model. Additionally, the Japanese wellness market is projected to grow at a CAGR of ~5 % through 2028, providing a favorable backdrop for the firm’s expansion.
For a deeper quantitative assessment, you may find ValueRay’s platform useful for benchmarking MRM’s valuation metrics against peers.
MRM Stock Overview
| Market Cap in USD | 21m |
| Sub-Industry | Health Care Services |
| IPO / Inception | 2020-12-29 |
MRM Stock Ratings
| Growth Rating | -50.8% |
| Fundamental | 32.5% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | -41.6% |
| Analyst Rating | 5.0 of 5 |
MRM Dividends
Currently no dividends paidMRM Growth Ratios
| Growth Correlation 3m | 37.7% |
| Growth Correlation 12m | 28.8% |
| Growth Correlation 5y | -92.4% |
| CAGR 5y | -30.90% |
| CAGR/Max DD 3y (Calmar Ratio) | -0.33 |
| CAGR/Mean DD 3y (Pain Ratio) | -0.72 |
| Sharpe Ratio 12m | -1.47 |
| Alpha | -51.36 |
| Beta | 0.951 |
| Volatility | 158.36% |
| Current Volume | 39.6k |
| Average Volume 20d | 391.2k |
| Stop Loss | 1.7 (-11.9%) |
| Signal | 0.28 |
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income (854.5m TTM) > 0 and > 6% of Revenue (6% = 820.6m TTM) |
| FCFTA -0.25 (>2.0%) and ΔFCFTA -8.54pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -10.79% (prev -20.83%; Δ 10.04pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.17 (>3.0%) and CFO -1.36b <= Net Income 854.5m (YES >=105%, WARN >=100%) |
| Net Debt (3.63b) to EBITDA (493.1m) ratio: 7.36 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.65 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (5.85m) change vs 12m ago 19.85% (target <= -2.0% for YES) |
| Gross Margin 26.18% (prev 25.22%; Δ 0.97pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 183.1% (prev 126.3%; Δ 56.79pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -0.49 (EBITDA TTM 493.1m / Interest Expense TTM 49.9m) >= 6 (WARN >= 3) |
Altman Z'' -1.04
| (A) -0.18 = (Total Current Assets 2.71b - Total Current Liabilities 4.18b) / Total Assets 8.09b |
| (B) 0.03 = Retained Earnings (Balance) 229.0m / Total Assets 8.09b |
| (C) -0.00 = EBIT TTM -24.5m / Avg Total Assets 7.47b |
| (D) 0.08 = Book Value of Equity 581.7m / Total Liabilities 6.90b |
| Total Rating: -1.04 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 32.54
| 1. Piotroski 3.0pt = -2.0 |
| 2. FCF Yield -29.57% = -5.0 |
| 3. FCF Margin -14.98% = -5.62 |
| 4. Debt/Equity 4.24 = -2.22 |
| 5. Debt/Ebitda 7.36 = -2.50 |
| 6. ROIC - WACC (= -6.51)% = -8.14 |
| 7. RoE 199.4% = 2.50 |
| 8. Rev. Trend 56.97% = 4.27 |
| 9. EPS Trend 24.74% = 1.24 |
What is the price of MRM shares?
Over the past week, the price has changed by -6.76%, over one month by -4.46%, over three months by +45.44% and over the past year by -30.58%.
Is Medirom Healthcare a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MRM is around 1.36 USD . This means that MRM is currently overvalued and has a potential downside of -29.53%.
Is MRM a buy, sell or hold?
- Strong Buy: 1
- Buy: 0
- Hold: 0
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the MRM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 5.1 | 165.3% |
| Analysts Target Price | 5.1 | 165.3% |
| ValueRay Target Price | 1.5 | -23.8% |
MRM Fundamental Data Overview October 27, 2025
P/E Trailing = 6.9487
P/S = 0.0027
P/B = 2.5065
Beta = 0.951
Revenue TTM = 13.68b JPY
EBIT TTM = -24.5m JPY
EBITDA TTM = 493.1m JPY
Long Term Debt = 764.2m JPY (from longTermDebt, last fiscal year)
Short Term Debt = 1.91b JPY (from shortTermDebt, last quarter)
Debt = 3.96b JPY (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.63b JPY (from netDebt column, last quarter)
Enterprise Value = 6.93b JPY (3.31b + Debt 3.96b - CCE 335.6m)
Interest Coverage Ratio = -0.49 (Ebit TTM -24.5m / Interest Expense TTM 49.9m)
FCF Yield = -29.57% (FCF TTM -2.05b / Enterprise Value 6.93b)
FCF Margin = -14.98% (FCF TTM -2.05b / Revenue TTM 13.68b)
Net Margin = 6.25% (Net Income TTM 854.5m / Revenue TTM 13.68b)
Gross Margin = 26.18% ((Revenue TTM 13.68b - Cost of Revenue TTM 10.10b) / Revenue TTM)
Gross Margin QoQ = 34.61% (prev 16.59%)
Tobins Q-Ratio = 0.86 (Enterprise Value 6.93b / Total Assets 8.09b)
Interest Expense / Debt = 1.26% (Interest Expense 49.7m / Debt 3.96b)
Taxrate = -14.88% (negative due to tax credits) (-94.1m / 632.5m)
NOPAT = -28.2m (EBIT -24.5m * (1 - -14.88%)) [loss with tax shield] [negative tax rate / tax credits]
Current Ratio = 0.65 (Total Current Assets 2.71b / Total Current Liabilities 4.18b)
Debt / Equity = 4.24 (Debt 3.96b / totalStockholderEquity, last quarter 933.3m)
Debt / EBITDA = 7.36 (Net Debt 3.63b / EBITDA 493.1m)
Debt / FCF = -1.77 (negative FCF - burning cash) (Net Debt 3.63b / FCF TTM -2.05b)
Total Stockholder Equity = 428.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 10.56% (Net Income 854.5m / Total Assets 8.09b)
RoE = 199.4% (Net Income TTM 854.5m / Total Stockholder Equity 428.6m)
RoCE = -2.06% (EBIT -24.5m / Capital Employed (Equity 428.6m + L.T.Debt 764.2m))
RoIC = -1.39% (negative operating profit) (NOPAT -28.2m / Invested Capital 2.03b)
WACC = 5.12% (E(3.31b)/V(7.26b) * Re(9.52%) + D(3.96b)/V(7.26b) * Rd(1.26%) * (1-Tc(-0.15)))
Discount Rate = 9.52% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 9.47%
Fair Price DCF = unknown (Cash Flow -2.05b)
EPS Correlation: 24.74 | EPS CAGR: 93.16% | SUE: 1.87 | # QB: 1
Revenue Correlation: 56.97 | Revenue CAGR: 89.68% | SUE: N/A | # QB: 0
Additional Sources for MRM Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle