Is Medirom Healthcare Technologies Inc. (MRM) Halal?

NASDAQ Consumer Cyclical Japan $9M
✗ NOT HALAL
Confidence: 90/100
Medirom Healthcare Technologies Inc. (MRM) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 38519.9% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Medirom Healthcare Technologies Inc. operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 38519.9%
/ 30%
3266.5%
/ 30%
19485.9%
/ 30%
0.0%
/ 5%
✗ NOT HALAL
DJIM 38519.9%
/ 33%
3266.5%
/ 33%
19485.9%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
MSCI 48.9%
/ 33%
4.1%
/ 33%
24.7%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
S&P 38519.9%
/ 33%
3266.5%
/ 33%
19485.9%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
FTSE 48.9%
/ 33%
4.1%
/ 33%
24.7%
/ 50%
0.0%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
3.0
EPS
$0.37
P/B Ratio
5.7
EV/EBITDA
27.8
EV: $4.1B
Revenue
$8.3B
Growth: -6.7%
Beta
1.0
Average volatility
Current Ratio
0.2

Profitability

Gross Margin 25.1%
Operating Margin -25.8%
Net Margin 0.5%
Return on Equity (ROE) 53.2%
Return on Assets (ROA) -1.8%

Cash Flow & Balance Sheet

Operating Cash Flow-$1.3B
Free Cash Flow-$1.9B
Total Debt$4.0B
Debt-to-Equity786.4
Current Ratio0.2
Total Assets$8.1B

Price & Trading

Last Close$1.13
50-Day MA$1.39
200-Day MA$1.75
Avg Volume399K
Beta1.0
52-Week Range
$0.34
$4.45

About Medirom Healthcare Technologies Inc. (MRM)

CEO
Mr. Kouji Eguchi
Employees
334
Sector
Consumer Cyclical
Industry
Personal Services
Country
Japan
Exchange
NASDAQ
Market Cap
$9M
Currency
USD

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.

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Frequently Asked Questions

Is Medirom Healthcare Technologies Inc. (MRM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Medirom Healthcare Technologies Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Medirom Healthcare Technologies Inc.'s debt ratio?

Medirom Healthcare Technologies Inc.'s debt ratio is 38519.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 48.9%.

What are Medirom Healthcare Technologies Inc.'s key financial metrics?

Medirom Healthcare Technologies Inc. has a market capitalization of $9M, trailing P/E ratio of 3.0, and revenue of $8.3B. The company maintains a gross margin of 25.1% and a net margin of 0.5%. Return on equity stands at 53.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.