MEDIROM Healthcare TechnologiesMRM -5.94%53 Gross Margin % is 10.83% as of Jun. 2025, which is 59% below its 10-year median of 26.16. GuruFocus rates MRM with a GF Score™ of 53/100 and a GF Value™ of $4.08 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 94 Personal Services companies, MEDIROM Healthcare Technologies ranks worse than 73.4% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
MEDIROM Healthcare Technologies had a gross margin of 10.83% for the quarter that ended in Jun. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
MEDIROM Healthcare Technologies Gross Margin % Related Terms
MEDIROM Healthcare Technologies Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Personal Services subindustry, MEDIROM Healthcare Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MEDIROM Healthcare Technologies Gross Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, MEDIROM Healthcare Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MEDIROM Healthcare Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
MEDIROM Healthcare Technologies (MRM) has a Gross Margin % of 10.83% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on MEDIROM Healthcare Technologies and its competitors. This is 59% below median its historical median of 26.16. Over the past decade, MEDIROM Healthcare Technologies' Gross Margin % has ranged from 12.84 to 27.87. According to the industry distribution chart, MEDIROM Healthcare Technologies ranks #69 out of 94 companies in the Personal Services industry, placing it in the top 73.4%.
Is MEDIROM Healthcare Technologies' Gross Margin % too high?
MEDIROM Healthcare Technologies' current Gross Margin % of 10.83% is 59% below median its 10-year median of 26.16. Over the past 10 years, this metric has ranged from a low of 12.84 to a high of 27.87. The Personal Services industry median Gross Margin % is 41.80. MEDIROM Healthcare Technologies' value of 10.83% is 74.1% below this industry median. Based on the distribution chart, MEDIROM Healthcare Technologies ranks #69 out of 94 companies in the Personal Services industry, which is below the industry midpoint. Overall, MEDIROM Healthcare Technologies has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does MEDIROM Healthcare Technologies' Gross Margin % compare to EJH and CLIK?
According to the Personal Services industry distribution chart, MEDIROM Healthcare Technologies ranks #69 out of 94 companies for Gross Margin %. This places MEDIROM Healthcare Technologies in the lower half of its industry. The industry median Gross Margin % is 41.80. MEDIROM Healthcare Technologies' value of 10.83% is 74.1% below this benchmark. Historically, MEDIROM Healthcare Technologies' own Gross Margin % has ranged from 12.84 to 27.87 over the past decade. While the company's 10-year median is 26.16 vs. the industry median of 41.80, MEDIROM Healthcare Technologies has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Personal Services company?
The median Gross Margin % among Personal Services companies is 41.80, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MEDIROM Healthcare Technologies's current Gross Margin % of 10.83% is 74.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on MEDIROM Healthcare Technologies and its competitors. For the Personal Services industry, the median Gross Margin % is 41.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MEDIROM Healthcare Technologies's current Gross Margin % is 10.83%, which is 59% below median its own 10-year median of 26.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MEDIROM Healthcare Technologies stock overvalued right now?
Based on GuruFocus' analysis, MEDIROM Healthcare Technologies (MRM) is currently considered Possible Value Trap. The stock's GF Value™ is $4.08, compared to a current price of $0.97 — trading 76.2% below its estimated fair value. The current Gross Margin % is 10.83%, which is 59% below median its 10-year median of 26.16 and 74.1% below the Personal Services industry median of 41.80. MEDIROM Healthcare Technologies' overall GF Score™ is 53/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For MEDIROM Healthcare Technologies (MRM), the current Gross Margin % is 10.83% as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MEDIROM Healthcare Technologies (MRM) Overvalued in 2026?
Based on GuruFocus' analysis, MEDIROM Healthcare Technologies stock appears to be undervalued.
The current stock price of $0.97 is trading 76.2% below its estimated GF Value™ of $4.08.
GuruFocus considers MEDIROM Healthcare Technologies to be Possible Value Trap.
Key valuation signals for MRM:
Gross Margin %: 10.83% (59% below median its 10-year median of 26.16)
GF Value™: $4.08 vs. price of $0.97 (76.2% below fair value)
Industry Position: 74.1% below the Personal Services median (#69 of 94)
No single metric tells the full story. See the MRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MEDIROM Healthcare Technologies Business Description
MEDIROM Healthcare Technologies Inc provides health services. The company is a franchiser and operator of healthcare salons and operates in segments namely Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty Segment. The company generates a majority of its revenue from the Relaxation Salon business segment. Geographically, the company generates a maximum share of its revenue from Japan.
53GF Score
Get the complete analysis for MRM
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MRM has been successfully added to your 
