TipRanks
Go Ultimate55% OFF

WASHHOUSE Co., Ltd. (6537) AI Stock Analysis

JP:6537

WASHHOUSE Co., Ltd.

(TSE/TYO:6537)

Select Model
Rating:41Neutral
Price Target:JPY 243.00▼(-2.41% Downside)
Action:reiterated
Date:09/30/26

The overall score is very low, driven primarily by poor financial performance. The company struggles with consistent profitability and cash flow generation despite revenue growth, and rising debt adds risk. Technicals show a short-term bounce but remain in a longer-term downtrend with overbought signals. The negative P/E and lack of dividend further detract from the investment case.

Positive Factors
Revenue RecoveryRevenue growth in both 2024 and 2025 indicates that the company has regained operating momentum after earlier weakness. Continued expansion of sales can support better fixed-cost absorption, strengthen the store network, and provide a foundation for improving profitability over the next several quarters.
Negative Factors
Unreliable Cash GenerationThe reversal from positive operating and free cash flow in 2024 to losses in 2025 shows that accounting earnings are not consistently converting into cash. This volatility can constrain reinvestment, reduce financial flexibility, and make the company more exposed to working-capital or investment needs.

WASHHOUSE Co., Ltd. (6537) vs. iShares MSCI Japan ETF (EWJ)

-40%-30%-20%-10%0%10%20%30%JP:6537-32.98%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 1.76B
Dividend Yield
―
Average Volume (3M)
60.62K
Price to Earnings (P/E)
-13.5
Beta (1Y)
0.87
Revenue Growth
-2.20%
EPS Growth
-402.32%
Country
Japan
Employees
107
Sector
General
Sector Strength
55
Industry
Specialty Business Services

WASHHOUSE Co., Ltd. Business Overview & Revenue Model

Company Description

Washhouse Co.,Ltd. engages in self-service laundry business in Japan. It plans, develops, and operates remotely managed coin-operated laundry stores. The company was incorporated in 2001 and is headquartered in Miyazaki, Japan.

How the Company Makes Money

WASHHOUSE Co., Ltd. generates revenue primarily from the operation of self-service (coin) laundry stores. Key revenue streams include: (1) customer usage fees paid for running washers and dryers (typically coin- or cashless-operated), which form the...

WASHHOUSE Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak. Revenue grew 21%, but gross margin fell to 29% and net income is razor-thin at 0.4% of revenue. Operating cash flow turned negative, and free cash flow has been negative in five of the last six years. The balance sheet shows rising debt without corresponding profit improvement.

Income Statement

35Negative

Balance Sheet

45Neutral

Cash Flow

25Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.31B2.53B2.08B1.91B1.92B2.13B
Gross Profit723.00M739.00M741.00M732.00M668.00M626.00M
EBITDA64.00M205.00M184.00M147.00M198.00M5.00M
Net Income-130.00M10.00M30.00M-33.00M11.00M-176.00M
Balance Sheet
Total Assets4.47B4.39B4.08B4.13B4.28B3.96B
Cash, Cash Equivalents and Short-Term Investments948.00M1.08B999.00M1.01B1.10B932.26M
Total Debt1.22B1.03B778.00M854.00M896.00M663.22M
Total Liabilities2.72B2.54B2.26B2.36B2.49B2.24B
Stockholders Equity1.64B1.75B1.73B1.69B1.71B1.64B
Cash Flow
Free Cash Flow0-127.00M123.00M-13.00M-88.00M-222.00M
Operating Cash Flow0-34.00M234.00M95.00M-10.00M-30.00M
Investing Cash Flow0-116.00M-162.00M-131.00M-29.00M-198.00M
Financing Cash Flow0229.00M-103.00M-56.00M194.00M-70.00M

WASHHOUSE Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price249.00

Price Trends

50DMA288.02Negative
100DMA302.53Negative
200DMA333.45Negative

Market Momentum

MACD-10.89Positive
RSI32.28Neutral
STOCH1.75Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6537, the sentiment is Negative. The current price of 249.00 is below the 20-day moving average (MA) of 274.05, below the 50-day MA of 288.02, and below the 200-day MA of 333.45, indicating a bearish trend. The MACD of -10.89 indicates Positive momentum. The RSI at 32.28 is Neutral, neither overbought nor oversold. The STOCH value of 1.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6537.

WASHHOUSE Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6537 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7040JP:704072OutperformJPY 5.82B10.32―3.52%2.02%-32.58%
JP:9731JP:973171OutperformJPY 12.19B4.29―3.12%3.34%39.61%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2485JP:248551NeutralJPY 9.52B69.00―4.59%-2.14%-88.60%
JP:6537JP:653741NeutralJPY 1.76B-13.53――-2.20%-402.32%

* General Sector Average

Performance Comparison

-20%0%20%JP:6537JP:2485JP:7040JP:9731Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:6537 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6537WASHHOUSE Co., Ltd.254.00-125.00-32.98%
JP:2485TEAR Corp.423.00-53.31-11.19%
JP:7040SUN-LIFE HOLDING CO., LTD.950.0023.712.56%
JP:9731Hakuyosha Company,Ltd.3210.00132.634.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 30, 2026