Solasto Corp. (6197) AI Stock Analysis

• Market Cap: ¥40.55B
• Dividend Yield: 4.67%
• Average Volume (3M): 282.37K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.68
• Revenue Growth: 1.70%
• EPS Growth: 83.73%
• Country: JP
• Employees: 33,884
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Care Facilities
• EPS (TTM): 7.24
• Shares Outstanding: 94,741,790
• 10 Day Avg. Volume: 419,380
• 30 Day Avg. Volume: 282,373
• PEG Ratio: 0.13
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥462.00
• Price Target Upside: 9.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥448.00 ▲(5.91%Upside)

Solasto Corp.'s robust financial performance is a significant strength, showcasing strong revenue growth, profitability, and effective cash management. However, technical analysis reveals a bearish trend with oversold conditions. The stock's valuation is favorable, suggesting potential undervaluation, which could present an investment opportunity. Investors should monitor technical indicators for signs of trend reversal.

Solasto Corp. Business Overview & Revenue Model

Company Description

Solasto Corp. is a Japanese company primarily engaged in the provision of medical outsourcing services, elderly care services, and child care services. It operates in three main sectors: Medical Outsourcing, Elderly Care, and Child Care. Solasto's core services include medical administration support, staffing services for medical institutions, operation of elderly care facilities, and child care centers. The company leverages its expertise in managing human resources and operational efficiencies to deliver quality support services across these sectors.

How the Company Makes Money

Solasto Corp. generates revenue through its diversified service offerings in the Medical Outsourcing, Elderly Care, and Child Care sectors. In the Medical Outsourcing sector, the company earns income by providing staffing services and administrative support to hospitals and medical institutions, ensuring efficient management of medical operations. In the Elderly Care sector, revenue is derived from operating nursing homes and providing home-based care services, catering to the growing aging population in Japan. The Child Care sector contributes to earnings through the management and operation of child care centers, addressing the demand for quality child care solutions. Additionally, strategic partnerships with healthcare providers and local governments enhance Solasto's market presence and expand its service offerings, further driving its revenue growth.

Solasto Corp. Financial Statement Overview

Summary

Solasto Corp. exhibits solid financial health with growing revenues and effective cash flow management. While profitability metrics reflect operational challenges, the company's stability and growth trajectory remain positive. Attention is needed on profitability margins and leverage to ensure continued financial resilience.

Income Statement

Solasto Corp. displays strong revenue growth with a consistent increase in total revenue over recent periods. The Gross Profit Margin remains stable, indicating effective cost management. However, the Net Profit Margin has decreased over the TTM period, suggesting increased expenses or inefficiencies impacting net income. The EBIT and EBITDA margins show a slight decline, reflecting a need for operational efficiency improvements.

Balance Sheet

The company's equity ratio is healthy, showing a solid proportion of equity financing in its capital structure. However, the Debt-to-Equity Ratio is relatively high, suggesting potential leverage risks. The Return on Equity has declined, pointing to reduced profitability from equity investments. Overall, the balance sheet reflects stability with caution advised on leveraging.

Cash Flow

Solasto Corp. demonstrates strong cash flow management, with a notable increase in free cash flow over recent periods. The Operating Cash Flow to Net Income Ratio is robust, indicating effective cash generation from operations. However, the Free Cash Flow to Net Income Ratio shows a declining trend, which needs attention to sustain operational cash efficiency.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
137.04B	135.14B	131.09B	117.24B	106.18B	95.72B
	Gross Profit
22.09B	21.93B	21.75B	20.46B	18.86B	17.00B
	EBIT
7.07B	5.52B	6.33B	6.32B	6.06B	5.46B
	EBITDA
6.89B	7.77B	9.46B	8.92B	8.40B	7.42B
	Net Income Common Stockholders
1.14B	2.26B	3.17B	3.50B	3.54B	4.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.29B	15.12B	11.96B	10.34B	8.97B	12.23B
	Total Assets
70.57B	75.20B	69.85B	70.75B	60.10B	57.70B
	Total Debt
21.01B	28.52B	25.89B	28.65B	21.75B	23.21B
	Net Debt
7.72B	13.40B	13.93B	18.31B	12.77B	10.97B
	Total Liabilities
48.61B	54.72B	48.28B	50.60B	41.63B	40.94B
	Stockholders Equity
21.96B	20.48B	21.57B	20.15B	18.47B	16.77B
Cash Flow		Free Cash Flow
6.54B	6.28B	7.69B	4.72B	5.78B	2.95B
	Operating Cash Flow
7.15B	7.86B	9.01B	5.52B	6.73B	4.25B
	Investing Cash Flow
115.00M	-2.76B	-2.17B	-7.45B	-3.82B	-3.48B
	Financing Cash Flow
-7.87B	-1.84B	-5.21B	3.20B	-5.72B	1.78B

Solasto Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 423.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6197, the sentiment is Neutral. The current price of 423 is above the 20-day moving average (MA) of 417.70, below the 50-day MA of 429.82, and below the 200-day MA of 470.18, indicating a neutral trend. The MACD of -2.62 indicates Negative momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 78.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6197.

Solasto Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7071	75 Outperform	¥47.19B	6.64		0.83%	30.50%	3.57%
2374	73 Outperform	¥19.48B	12.88		3.85%	4.15%	-25.66%
6062	72 Outperform	¥40.96B	9.60		2.39%	7.94%	8.41%
7061	69 Neutral	¥10.57B	18.47		1.20%	21.97%	-20.94%
6197	67 Neutral	¥40.55B	9.85		4.67%	1.70%	83.73%
6059	64 Neutral	¥5.93B	2.91		3.26%	0.91%	857.08%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%

Solasto Corp. Corporate Events

Solasto Corp. Announces Board and Auditor Elections

Solasto Corporation has announced the election of candidates for directors and a substitute corporate auditor, as resolved by its Board of Directors. The election will be formalized at the 57th Ordinary General Meeting of Shareholders on June 25, 2025. The announcement includes the reelection of current directors, the introduction of a new director, and the designation of independent officers, reflecting Solasto’s commitment to maintaining a robust governance structure.

The most recent analyst rating on (JP:6197) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Solasto Corp. stock, see the JP:6197 Stock Forecast page.

Solasto Corporation Evaluates Board Effectiveness to Enhance Governance

Solasto Corporation has conducted an evaluation of its Board of Directors’ effectiveness, confirming a robust system for decision-making and business operation supervision. The evaluation highlighted the need for improved corporate governance and identified key initiatives such as developing future management and optimizing business portfolios to enhance board effectiveness and strengthen governance.

Solasto Corporation Unveils Medium-term Business Plan for Continued Growth

Solasto Corporation has announced its Medium-term Business Plan for FY2025-2029, aiming to continue its growth and adapt to the changing business environment. The company plans to focus on enhancing service quality through employee training and leveraging new technologies, while also maximizing shareholder value and fulfilling its social responsibilities.