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Medirom Healthcare Technologies Inc (MRM) Fair Value & Analysis

Consumer Cyclical · US · Market cap $9.2M · ISIN US58510H1032

What is Medirom Healthcare Technologies Inc really worth?

MH Medirom Healthcare Technologies Inc logo Medirom Healthcare Technologies Inc MRM · US
Price$0.9223
Fair Value$0.8000
Upside−13.3%
Quality18/100

Below-average quality, and trading another 15% above our fair value of $0.8000.

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Risks

!Weak Growth (revenue 5y −73.9 %/yr)
!Thin margins · 0.5% net margin
!Moderate debt · negative free cash flow
!Trails peers (2/9)
!Narrow moat 27/100
!Evidence only low, so the estimate is less certain
!Weak on valuation: 16 out of 100
Evidence: Low Range $0.6000 – $0.8000

Fair value as of: Sep 3, 2026

From 8 valuation models · updated yesterday

Fair value updated Sep 3, 2026, revised from $0.0100 to $0.8000 (+7,900.0%) since Aug 13, 2026. Share price +1.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($0.8000). The favourable scenario is already priced in.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Price vs Fair Value (5 years)

$12.80 $0.3600 Fair Value $0.8000 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range $0.3600 – $12.80 · fair‑value band $0.6000 – $0.8000 · the $0.9223 price screens above the $0.8000 fair value. Dashed = 300-day average. As of Sep 3, 2026.

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Analysis

Medirom Healthcare Technologies Inc (MRM) currently trades at $0.9223, while our model-based Fair Value estimate is $0.8000, implying the stock looks roughly 15.3% overvalued today. The Quality Score stands at 18/100 (below-average quality), in the Consumer Cyclical sector. Bull case: the Multiples group reads highest at a median of $0.8100 per share, and 4 of the 8 models we run sit above the $0.9223 price. Bear case: the Earnings-Based group reads lowest at $0.3900, and 4 of the 8 models stay below the price. Evidence for this calculation is low.

Revenue declined 6.7% year over year. It earns a return on equity of 53.2%. Net debt stands at $2.3B. The stock trades on a trailing P/E of 2.4. Fundamentals as of Sep 3, 2026

Our scenario range runs from $0.6000 (bear case) to $0.8000 (bull case); at $0.9223, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 74% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −11% fair-value upside, at −13%, MRM screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.2572 per share, which is 32.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence $100.47 $87.39 $49.97 70
Graham-Dodd $0.3200 $0.3900 $0.4400 67
EV/EBITDA $291.79 $420.44 $549.09 67
All 8 models by family
Earnings-Based
Graham-Dodd $0.3200 $0.3900 $0.4400 67
Multiples
P/E Multiple $0.7800 $1.04 $1.30 63
P/S Multiple $0.6000 $0.8100 $1.01 58
P/B Multiple $0.6000 $0.8100 $1.01 55
EV/EBITDA $291.79 $420.44 $549.09 67
Asset-Based
NCAV (Graham) $84.46 $113.18 $168.93 54
Economic Profit
Residual Income best evidence $100.47 $87.39 $49.97 70
Growth Earnings
Growth-Adj P/E $0.5500 $0.7900 $1.02 67

Widest divergence: Asset-Based ($113.18) versus Earnings-Based ($0.3900). Highest evidence: Residual Income (70).

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Key figures & financial health

P/E ratio 2.4
P/S ratio 0.23 P/E × margin
EPS (TTM) $0.3800 price ÷ EPS = P/E 2.4
Net margin 9.3% FY2025
Return on equity 53.2% TTM
Return on assets (EBIT) −2.2% avg 5y
More key figures
Profitability
Operating margin −25.8% TTM
Growth
Revenue growth (YoY) −6.7% 3y avg −91.7%
EPS growth (YoY) +27.8%
Balance sheet & cash flow
Free cash flow −$1.9B FY2024
Net debt $2.3B FY2025

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 18/100

Of which business quality 18 · Market factors (momentum, volatility) 12

Profitability 16
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 14
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 31
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

MEDIROM Healthcare Technologies Inc., together with its subsidiaries, provides holistic health services in Japan. It operates in three segments: Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty.

Full company description

MEDIROM Healthcare Technologies Inc., together with its subsidiaries, provides holistic health services in Japan. It operates in three segments: Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty. The Relaxation Salon segment develops, owns, operates, franchises, and supports 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. This segment operates relaxation salons under the Re.Ra.Ku and Ruam Ruam brands. The Digital Preventative Healthcare segment offers government-sponsored Specific Health Guidance program that utilizes Lav, an on-demand health monitoring smartphone application, as well as MOTHER Bracelet for fitness and health applications; and provides preventative healthcare services utilizing nutritionists and health nurses. The Luxury Beauty segment manages and operates hair salons under the ZACC brand name. The company 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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Medirom Healthcare Technologies Inc reported revenue of $4.0M in FY2025 versus $5.4B in FY2021, a compound −83.5%/yr. Reported net income was $375K in FY2025.

Growth Quality 13/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$4.0M
Latest YoY
−100.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−91.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−73.9%
Avg. revenue growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−61.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
−63.5% (−63.5 + 0.0)
Revenue −83.5%/yr
FY21 $5.4B
FY22 $7.0B
FY23 $6.8B
FY24 $8.3B
FY25 $4.0M
Net income
FY21 −$991M
FY22 $149M
FY23 $115M
FY24 $149M
FY25 $375K

MRM screens 15% overvalued. Compare with Rollins, Inc →

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Cite: Fair Value Calculator (2026). "Medirom Healthcare Technologies Inc Fair Value". https://www.fairvalue-calculator.com/stock/MRM

Peer Group

Personal Services · 42 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 18 · Bottom 25%
Fair Value upside −13% · Below median
Return on equity (TTM) 53% · Top 25%
Return on assets −2% · Bottom 25%
Net margin (TTM) 1% · Below median
Operating margin (TTM) −26% · Bottom 25%
Revenue growth −7% · Bottom 25%
Debt / equity 0.57× · Higher than 75% of peers

Valuation Multiples vs Personal Services median · lower = cheaper

P/E (TTM) 2.4× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE16 · sector 16
FUTURE0 · sector 18
PAST100 · sector 28
HEALTH71 · sector 94
DIVIDEND0 · sector 66

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Personal Services stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).

Stock Price Fair Value vs Fair Value
Rollins, Inc ROL $35.94 $21.11 −41%
Service Corporation SCI $81.43 $38.27 −53%
Frontdoor, Inc FTDR $82.59 $73.81 −11%
H&R Block, Inc HRB $52.67 $78.30 +49%
Bright Horizons Family Solutions Inc BFAM $70.29 $62.41 −11%
Fu Shou Yuan International Group 1448 HK$2.64 HK$4.22 +60%
CEWE Stiftung & Co CWC €96.00 €157.28 +64%
Lungyen Life Service Corporation 5530 51.20 TWD 31.33 TWD −39%
Carriage Services, Inc CSV $34.26 $27.81 −19%
Musti Group MUSTI €15.10 €14.08 −7%

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Frequently asked questions

Is Medirom Healthcare Technologies Inc (MRM) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of $0.8000 versus a price of $0.9223, about −13% upside (overvalued).
What is the fair value of MRM?
Our model-based fair value for Medirom Healthcare Technologies Inc is $0.8000 (as of Sep 3, 2026), built from audited fundamentals. The current price: $0.9223.
What is the quality score of MRM?
Medirom Healthcare Technologies Inc has a Quality Score of 18/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of MRM?
The net profit margin of Medirom Healthcare Technologies Inc is about 0.5%, meaning it keeps roughly 0.5% of revenue as net income. Based on the latest reported figures.
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