Medirom Healthcare Technologies Inc. (MRM) stock analysis
MRMNasdaqServices-Personal ServicesFiscal year ends December 31
Financials through fiscal 2024, year ended Dec 31, 2024
$0.28+0.02 (+6.01%)
Close on Nov 11, 2026Market cap $2.19MP/E 1.5Yield –
Margins
Share of revenue, fiscal years 2018 to 2024
Gross margin
27.1%
Operating margin
-0.2%−1.1 pts over 5 years
Net margin
1.8%+1.3 pts over 5 years
Growth rates
Compound annual growth to fiscal 2024
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +21.5% | +15.3% | +16.3% | – | |
| Gross profit | +43.2% | – | – | – | |
| Net income | +28.9% | – | +53.7% | – | |
| EPS, diluted | +27.7% | – | +47.7% | – |
Returns and balance sheet
7 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2019 | FY2024 | Trend |
|---|---|---|---|---|
| Return on equity | – | 7.2% | 26.0% | |
| Return on assets | – | – | 2.0% | |
| Current ratio | – | 0.61 | 0.65 | |
| Debt to equity | – | 0.87 | 2.01 | |
| Net debt to EBITDA | – | 0.11× | 5.69× | |
| Interest coverage | – | 2.5× | -0.4× | |
| Inventory turnover | – | – | 41.5× | |
| Capex to revenue | – | 0.2% | 0.9% | |
| Diluted shares | – | 4M | 6M |
Where the cash went
Fiscal 2020 to 2024, five years combined
Medirom Healthcare Technologies generated ¥3.57B from operations and spent ¥497.20M on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
Generated
¥3.57B
Used
¥497.20M
Capital expenditure¥497.20M100%Dividends¥00%Share buybacks¥00%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin1.8%
×Asset turnover1.11×
×Equity multiplier13.06×
=Return on equity, FY202426.0%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2024 | 1.8% | 1.11× | 13.06× | 26.0% |
| FY2023 | 1.7% | 1.00× | 89.75× | 152.3% |
| FY2022 | 2.1% | 1.11× | -46.69× | -111.3% |
| FY2021 | -18.3% | 0.94× | 40.53× | -700.4% |
| FY2020 | -16.1% | 0.64× | 9.59× | -98.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2024 against fiscal 2023
6of 9 tests passed in fiscal 2024. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero¥148.76M
- Cash generatingOperating cash flow above zero-¥1.33B
- Return on assets improvedROA up on the prior year1.7% → 2.2%
- Earnings backed by cashOperating cash flow above net income-¥1.33B vs ¥148.76M
- Less leverageLong-term debt to assets fell15.3% → 9.4%
- Better liquidityCurrent ratio rose0.49 → 0.65
- No dilutionShare count did not rise5M → 6M
- Gross margin improvedGross margin up on the prior year22.98% → 27.07%
- More efficientAsset turnover rose1.01 → 1.21
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