Medirom Healthcare Technologies Inc(MRM)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$0.35
10/23/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for MRM

10/23/2026: MRM (1-star) is currently NOT-A-BUY. Pass it for now.

Medirom Healthcare Technologies is a Japanese company that bridges physical relaxation services with digital health-tech. Its core strength lies in its established salon network, which provides a foundation for its more speculative health-tracking wearable, the MOTHER Bracelet. The primary investment story centers on scaling this 'phygital' health ecosystem through data-driven corporate wellness services. However, investors must consider risks such as intense competition from global technology firms, inconsistent profitability, and the operational complexity of its business model. The stock may suit growth-oriented investors interested in Japanese healthcare themes, provided they monitor the company's progress in achieving sustainable tech scalability and broader market adoption.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company provides exposure to health-tech, but growth has been inconsistent and capital-intensive.
Momentum investorWeak fitThe stock lacks the consistent high-volume trading and sustained upward price trends typical for momentum plays.
Value investorWeak fitThe company is in an intensive investment phase with limited earnings visibility, making it difficult to assess value.
Dividend investorWeak fitMedirom does not pay dividends and reinvests all capital.
Low-risk investorWeak fitHigh volatility and operational risks associated with a small-cap tech company make this unsuitable for low-risk portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is subject to significant price swings due to low float and speculative nature.
Valuation riskMedium / highDetermining an accurate valuation is difficult due to the mix of mature service revenues and speculative tech development.
Competition risk (Wearable Tech)HighThe company competes against massive global firms with significantly larger R&D budgets.
Business qualityMediumThe salon business provides stability, but the tech segment remains unproven at scale.
Dividend incomeLow / noneThere is no income generation for investors through dividends.
Execution riskHighSuccessfully scaling both physical services and sophisticated health hardware is a complex operational challenge.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -19.12%
Avg. Invested days 27
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/23/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
MRM receives a 3-star rating based on the available scored pillars. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
MRM has moderate overall fundamentals (3 stars), with moderate financial health, soft growth momentum, and solid ownership. In FY2025 versus FY2024, growth and ownership metrics are mixed: negative earnings growth (-99.7%), soft cash generation (FCF margin 0.0%), negative revenue growth (-100.0%).

Financial Health Rating

★★★★★
MRM's financial health is supported by moderate efficiency, including operating-expense and cost-of-revenue discipline (opex 86.3% of revenue). Liquidity is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is MRM's strongest growth driver at +100.0% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (-100.0%, negative) and earnings growth (-99.7%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 2.1% and approximately 72.9% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 23.71% supports management-shareholder alignment.

Top 5 Institutional Investors

Citadel Advisors Llc 0.71%
HRT FINANCIAL LLC 0.69%
UBS Group AG 0.34%
Virtu Financial LLC 0.20%
TWO SIGMA SECURITIES, LLC 0.13%

Unit Economics (Per $1K Revenue)

★★★★★
MRM generates approximately $966 of gross profit, $103 of operating income, and $0 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Moderate margins explain the 2-star rating, with weak cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 1.36%

Quantitative Style Profile

★★★★★
MRM has a liquid profile. Weak momentum is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

Value-OrientedHigh VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 2.74M USD
Price to earnings Ratio 0.89
1Y Target Price 5.12
Price to earnings Ratio 0.89
1Y Target Price 5.12
Volume (30-day avg) 269.5K shares
Beta 1.26
52 Weeks Range 0.24 - 2.73
Updated Date 10/24/2026
52 Weeks Range 0.24 - 2.73
Updated Date 10/24/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.39

How Company Makes Money

Business areaWhat it includesRetail investor read
Relaxation Salon ServicesRe.Ra.Ku salon operations, membership fees, and service charges.The company generates reliable cash flow from its physical massage salons.
Healthcare TechnologyMOTHER Bracelet sales, subscription software, and data analysis services.This is a growth-oriented, high-risk, high-reward segment based on wearable tech.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 0.89
Forward PE -
Enterprise Value 31.33M
Price to Sales(TTM) -
Enterprise Value 31.33M
Price to Sales(TTM) -
Enterprise Value to Revenue 0.6
Enterprise Value to EBITDA 14.12
Shares Outstanding 7.90M
Shares Floating 5.76M
Shares Outstanding 7.90M
Shares Floating 5.76M
Percent Insiders 23.71
Percent Institutions 2.12

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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