Solasto Corp. (6197) AI Stock Analysis

• Market Cap: ¥46.14B
• Dividend Yield: 4.08%
• Average Volume (3M): 295.06K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.63
• Revenue Growth: 1.43%
• EPS Growth: N/A
• Country: JP
• Employees: 33,884
• Sector: Healthcare
• Sector Strength: 52
• Industry: Medical - Care Facilities
• EPS (TTM): 12.45
• Shares Outstanding: 94,741,790
• 10 Day Avg. Volume: 232,270
• 30 Day Avg. Volume: 295,056
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥545.00
• Price Target Upside: 11.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥540.00 ▲(10.20% Upside)

Solasto Corp. scores well due to its solid financial performance and attractive valuation. The stock's technical indicators suggest bullish momentum, though caution is advised due to overbought signals. The absence of earnings call data and corporate events does not impact the score.

Solasto Corp. Business Overview & Revenue Model

Company Description

Solasto Corp. (6197) is a Japanese company primarily engaged in the provision of medical-related services, nursing care, and child care services. It operates through three main segments: Medical Related Business, Nursing Care and Child Care Business, and Other Businesses. Solasto offers medical administration outsourcing services, home visit nursing care, and management of child care facilities, aiming to support healthcare institutions and local communities with essential services.

How the Company Makes Money

Solasto Corp. generates revenue through its diversified service offerings across its main business segments. In the Medical Related Business, the company earns income by providing outsourcing services for medical administration, such as medical billing and office work for hospitals and clinics. The Nursing Care and Child Care Business segment generates revenue by offering home-based nursing care services, operating nursing homes, and managing child care facilities. Additionally, the company may engage in various partnerships with healthcare institutions and local governments to enhance service delivery and expand its client base, contributing to its earnings.

Solasto Corp. Financial Statement Overview

Summary

Solasto Corp. exhibits solid financial health with consistent revenue growth and strong cash flow generation. While profitability margins and leverage ratios show room for improvement, the company is on a positive trajectory with effective cash management and improving equity returns.

Income Statement

Solasto Corp. has demonstrated consistent revenue growth, with a notable increase in the TTM period. Gross profit margins have slightly decreased over time, but net profit margins have remained relatively stable. The EBIT and EBITDA margins indicate a healthy operational performance, though there is room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, reflecting better leverage management. Return on equity has shown a positive trend, indicating effective use of equity to generate profits. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Solasto Corp. has shown strong free cash flow growth in the TTM period, recovering from previous declines. The operating cash flow to net income ratio is stable, and the free cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.26B	137.44B	135.14B	131.09B	117.24B	106.18B
Gross Profit	21.59B	20.75B	21.93B	21.75B	20.46B	18.86B
EBITDA	10.18B	9.85B	7.77B	8.82B	8.47B	7.91B
Net Income	4.25B	3.96B	2.26B	3.17B	3.50B	3.54B
Balance Sheet
Total Assets	68.27B	70.10B	75.20B	69.85B	70.75B	60.10B
Cash, Cash Equivalents and Short-Term Investments	12.18B	14.00B	15.12B	11.96B	10.34B	8.97B
Total Debt	18.62B	23.08B	28.52B	25.89B	28.65B	21.75B
Total Liabilities	45.36B	47.41B	54.72B	48.28B	50.60B	41.63B
Stockholders Equity	22.91B	22.68B	20.48B	21.57B	20.15B	18.47B
Cash Flow
Free Cash Flow	6.20B	5.46B	6.28B	7.69B	4.72B	5.78B
Operating Cash Flow	6.53B	5.88B	7.86B	9.01B	5.52B	6.73B
Investing Cash Flow	-419.00M	347.00M	-2.76B	-2.17B	-7.45B	-3.82B
Financing Cash Flow	-6.84B	-7.33B	-1.84B	-5.21B	3.20B	-5.72B

Solasto Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 490.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6197, the sentiment is Positive. The current price of 490 is above the 20-day moving average (MA) of 481.50, above the 50-day MA of 447.58, and above the 200-day MA of 447.74, indicating a bullish trend. The MACD of 11.37 indicates Positive momentum. The RSI at 71.80 is Negative, neither overbought nor oversold. The STOCH value of 59.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6197.

Solasto Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2374	78 Outperform	¥20.10B	11.48		3.65%	4.31%	-9.01%
6197	74 Outperform	¥46.14B	10.56		4.08%	1.43%	―
7071	72 Outperform	¥59.97B	9.42		0.66%	26.79%	-9.91%
6059	68 Neutral	¥6.42B	2.92		3.01%	0.92%	1344.43%
7061	66 Neutral	¥10.96B	20.30		1.15%	20.37%	-5.97%
6062	58 Neutral	¥33.68B	11.49		3.29%	-2.42%	-31.36%
Sector *	51 Neutral	$7.95B	-0.38	-43.43%	2.22%	22.30%	-1.83%

Solasto Corp. Corporate Events

Solasto Corporation Announces Strategic Stock Buy-back Plan

Solasto Corporation announced a stock buy-back plan as part of its Medium-term Business Plan for FY2025–2029, aiming to improve capital efficiency and enhance shareholder returns. The company plans to repurchase up to 4.8% of its outstanding common stock, with a total aggregate repurchase amount of up to 1.4 billion yen, through market purchases on the Tokyo Stock Exchange between August 13, 2025, and May 31, 2026.

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 Reports Q1 FY2025 Financial Results with Increased Net Income

Solasto Corporation reported its Q1 FY2025 financial results, showing a slight increase in net sales by 2.4% compared to the previous year, reaching 34,926 million yen. Despite a decline in operating profit by 4.1%, the company experienced a significant increase in net income by 34.5%. The company maintained its dividend forecast for FY2025, with a slight increase expected in the year-end dividend per share. The financial results indicate a stable market position, although there are challenges in maintaining operating profit levels.

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 Completes Treasury Stock Disposal for Compensation

Solasto Corporation, a company listed on the Tokyo Stock Exchange, has completed the payment process for the disposal of treasury stock as restricted stock compensation. This move involves the disposal of 72,756 shares of common stock at a price of 417 yen per share, amounting to a total of 30,339,252 yen. The shares are allocated to two directors and two corporate officers, marking a strategic step in aligning the interests of key personnel with the company’s performance.

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 Corp. Announces Treasury Stock Disposal for Compensation Plan

Solasto Corporation announced the disposal of its treasury stock as part of a restricted stock compensation plan aimed at incentivizing directors and corporate officers to improve corporate value and align with shareholder interests. This move involves the allocation of 72,756 shares to eligible directors and officers, with a transfer restriction period set for three years, reflecting the company’s strategy to foster medium-term value sharing.

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 Announces Strategic Split of Children Business

Solasto Corporation has announced a strategic move to split its Children Business into a new subsidiary, Solasto KIDS NEXT Corporation, effective April 1, 2026. This decision aims to address changing childcare demands and operational challenges by allowing the Children Business to make autonomous decisions and implement site-specific initiatives. The new structure is expected to enhance flexibility and responsiveness, ensuring continued high-quality service for parents and communities.

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 Clarifies Relationship with Controlling Shareholder Daito Trust

Solasto Corporation announced details regarding its relationship with its controlling shareholder, Daito Trust Construction Co., Ltd., which holds 34.49% of Solasto’s voting rights. Despite the significant shareholding, Solasto maintains operational independence with limited geographical overlap in business operations. The announcement underscores Solasto’s commitment to independent management while acknowledging the strategic influence of Daito Trust.

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 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.