MEDIROM Healthcare Technologies Inc. American Depositary Share (MRM)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, with honest management, durable advantages, and a price that leaves room for error. MEDIROM runs relaxation salons, digital preventive healthcare, and luxury beauty in Japan, with 334 employees. That is a real service business, but it is small and consumer-cyclical, and the figures give me no proof of a durable moat. As of the 2026-10-13 close, the shares are $0.33 and market cap is $9.4M. FairStock shows a P/E of 0.87 and P/B of 1.65, so the price looks low against earnings but not against book value. ROE is 53.19%, which sounds wonderful, yet ROCE is negative at -1.78%; that tells me returns may be distorted by leverage or accounting, not by a wonderful operating business. Debt-to-equity is 7.86, which is enormous. The Piotroski F-Score is 0/9 and Altman Z-Score is -0.18, both flashing distress. FairStock's Graham Number is $31.78, implying a 98.96% margin of safety, but that conflicts with the $0.33 price and P/B of 1.65, so I would not hang my hat on it. The data list EPS of $0.38, but no filed period is named, so I cannot present it as a reported period figure. The 52-week range is $0.30-$2.85, a steep decline. Revenue and profit growth are N/A, and FairStock cannot assign a Lynch category because only 0 years of filed results exist versus the 3 needed. The FairStock score is 50/100. Graham would demand clear asset backing and stable earnings; Buffett would ask about durable competitive advantage. Here I see neither with confidence. A low price can be a trap when debt is high and returns on capital are negative.

In plain English: MEDIROM runs relaxation salons, digital health services, and beauty services in Japan. The business looks weak because it carries a lot of debt and shows several warning signs, even though it reports a high profit compared with the money shareholders have put in. At 33 cents a share, the price looks very cheap next to one calculated value, but the low price may also signal real trouble.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer