Solasto Corp. (JP:6197)
:6197
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Solasto Corp.
(6197)
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Rating:68Neutral
Price Target:
¥1,219.00
▲(143.31% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by solid financial performance (strong revenue growth and improving leverage) and supportive technical trend/momentum. These positives are tempered by thin net margins and weakening recent free-cash-flow growth, while valuation looks demanding at ~27x earnings despite a ~2% dividend yield.
Positive Factors
Consistent multi-year revenue growth
Sustained revenue expansion and a large 2026 increase indicate durable demand for outsourced hospital services. Scale from recurring contracts improves fixed-cost absorption, strengthens negotiating position with medical institutions, and supports longer-term reinvestment in operations and training.
Negative Factors
Thin and volatile net margins
Net margins around ~2.6% and historical volatility mean small revenue or cost shocks materially hit net income. For a labor‑heavy outsourcing model, low margins limit retained earnings for reinvestment, reduce buffer against wage or regulatory cost increases, and constrain strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent multi-year revenue growth
Sustained revenue expansion and a large 2026 increase indicate durable demand for outsourced hospital services. Scale from recurring contracts improves fixed-cost absorption, strengthens negotiating position with medical institutions, and supports longer-term reinvestment in operations and training.
Read all positive factors
Solasto Corp. (6197) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥105.35B
Dividend Yield2.47%
Average Volume (3M)1.21M
Price to Earnings (P/E)27.3
Beta (1Y)0.59
Revenue Growth2.70%
EPS Growth-4.93%
CountryJP
Employees33,884
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)40.81
Shares Outstanding94,741,790
10 Day Avg. Volume3,043,910
30 Day Avg. Volume1,212,820
Financial Highlights & Ratios
PEG Ratio-5.53
Price to Book (P/B)4.36
Price to Sales (P/S)0.72
P/FCF Ratio15.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)48.05
Revenue Forecast (FY)¥145.75B
Solasto Corp. Business Overview & Revenue Model
Company Description
Solasto Corp. (6197) is a leading provider of healthcare services in Japan, focusing primarily on the management of medical facilities and the provision of various healthcare-related solutions. The company operates in multiple sectors including ou...
How the Company Makes Money
Solasto primarily makes money by charging healthcare providers (such as hospitals, clinics, and related public/medical organizations) fees under outsourcing and service contracts. Key revenue streams generally include: (1) contracted medical-admin...
Solasto Corp. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
64
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 141.14B | 137.44B | 135.14B | 131.09B | 117.24B |
| Gross Profit | 21.65B | 20.75B | 20.11B | 20.02B | 19.06B |
| EBITDA | 10.45B | 10.13B | 8.86B | 9.46B | 8.92B |
| Net Income | 3.74B | 3.96B | 2.26B | 3.17B | 3.50B |
Balance Sheet | |||||
| Total Assets | 66.21B | 70.10B | 75.20B | 69.85B | 70.75B |
| Cash, Cash Equivalents and Short-Term Investments | 12.21B | 14.00B | 15.12B | 11.96B | 10.34B |
| Total Debt | 18.12B | 23.29B | 28.52B | 25.89B | 28.65B |
| Total Liabilities | 42.75B | 47.41B | 54.71B | 48.28B | 50.59B |
| Stockholders Equity | 23.46B | 22.68B | 20.48B | 21.57B | 20.15B |
Cash Flow | |||||
| Free Cash Flow | 6.52B | 5.46B | 6.64B | 7.98B | 5.25B |
| Operating Cash Flow | 6.82B | 5.88B | 7.86B | 9.01B | 5.52B |
| Investing Cash Flow | -548.00M | 347.00M | -2.76B | -2.17B | -7.45B |
| Financing Cash Flow | -8.06B | -7.33B | -1.84B | -5.21B | 3.20B |
Solasto Corp. Technical Analysis
Positive
501.00
Price Trends
1016.80
Positive
893.90
Positive
679.44
Positive
Market Momentum
31.79
Positive
68.09
Neutral
25.00
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 501 is below the 20-day moving average (MA) of 1097.85, below the 50-day MA of 1016.80, and below the 200-day MA of 679.44, indicating a bullish trend. The MACD of 31.79 indicates Positive momentum. The RSI at 68.09 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥43.35B | 11.46 | 20.80% | 1.77% | 14.79% | 20.14% | |
72 Outperform | ¥40.86B | 11.51 | ― | 2.63% | 3.49% | -14.24% | |
68 Neutral | ¥105.35B | 27.32 | ― | 2.47% | 2.70% | -4.93% | |
62 Neutral | ¥35.39B | 12.32 | ― | 0.91% | 9.10% | -54.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | ¥5.56B | 23.20 | ― | 4.07% | 4.75% | 20.56% |
* Healthcare Sector Average
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Solasto Corp. Corporate Events
Solasto Books ¥1.15 Billion Extraordinary Loss on Impairments and Tender Offer Costs
May 13, 2026
Solasto Corporation has booked extraordinary losses totaling 1,148 million yen for the fiscal year ended March 31, 2026, driven mainly by the deteriorating profitability of certain elderly care and childcare facilities. The company recorded impair...
Solasto lifts sales and profit but cuts dividend as MBO drives planned delisting
May 13, 2026
Solasto Corporation reported consolidated net sales of ¥141.1 billion for the fiscal year ended March 31, 2026, up 2.7% year on year, with operating profit rising 4.7% and ordinary profit up 7.0%, while net income declined 5.6%, partly reflec...
Solasto Consolidates Debt with ¥19 Billion Loan from New Parent Ahead of Privatization
May 13, 2026
Solasto Corporation has approved a revolving loan facility of up to 19 billion yen from MP-2605 Co., Ltd., the entity that conducted a recent tender offer aimed at taking Solasto private. The funds will be used to repay 14.8 billion yen in existin...
Solasto shifts control as MP-2605 Co. secures majority stake via tender offer
May 12, 2026
Solasto Corporation has announced the successful completion of a tender offer for its common shares by MP-2605 Co., Ltd., which ran from March 25 to May 11, 2026. The offer met its minimum acceptance threshold, with applications for 48,373,328 sha...
Solasto Audit Board Member Resigns, Governance Requirements Remain Met
May 12, 2026
Solasto Corporation has announced that outside Audit and Supervisory Board member Tsukasa Okamoto has resigned from the board effective May 12, 2026, citing personal reasons. The company stated that, despite this departure, it continues to meet al...
Solasto Sets Record Date for Potential Extraordinary Shareholders Meeting Amid MBO
Apr 27, 2026
Solasto Corporation has set May 19, 2026, as the record date to determine shareholders eligible to vote at an Extraordinary General Meeting of Shareholders planned for early July 2026. The move ensures the company can promptly convene the meeting ...
Solasto MBO Tender Offer Terms Amended After Employee Shareholder Deal
Apr 9, 2026
Solasto Corp. disclosed that MP-2605 Co., Ltd., the entity conducting a management buyout of the company, has changed certain conditions of its ongoing tender offer for Solasto’s common stock. The move follows agreement reached on April 8 wi...
Solasto Updates Tender Offer Notice After Amendment by Bidder MP-2605
Apr 9, 2026
MP-2605 Co., Ltd., which shares leadership with Solasto Corporation, has filed an amendment to its tender offer registration statement with the Kanto Local Finance Bureau regarding its ongoing tender offer for Solasto’s common shares. In lin...
Solasto Secures Employee Support for MBO Tender Offer Structure
Apr 9, 2026
Solasto Corporation said its board continues to support a management buyout via a tender offer for its common stock by MP-2605 Co., Ltd., and maintains its recommendation that shareholders tender their shares. The company disclosed that its employ...
Solasto Backs Management Buyout, Recommends Shareholders Tender at ¥1,119
Mar 26, 2026
Solasto Corporation’s board has approved and expressed support for a management buyout in which MP-2605 Co., Ltd., a newly established acquisition vehicle led by President and CEO Toru Noda, will launch a tender offer for all common shares a...
Solasto President and MBK-Backed Vehicle Launch MBO Tender Offer to Take Company Private
Mar 26, 2026
MP-2605 Co., Ltd., a newly established vehicle controlled indirectly by an MBK Partners-advised fund and Solasto president Toru Noda, has launched a tender offer to acquire all outstanding common shares of Solasto Corporation, excluding treasury s...
Solasto Cancels Year-End Dividend as Board Backs Privatization Tender Offer
Mar 26, 2026
Solasto Corporation has revised its dividend forecast for the fiscal year ending March 31, 2026, deciding that it will pay no year-end dividend, subject to the successful completion of a tender offer by MP-2605 Kabushiki Kaisha to take the company...
Solasto Cancels Share Buyback to Back Management Buyout Tender Offer
Mar 26, 2026
Solasto Corporation has cancelled its previously approved share buyback program in light of a new management buyout proposal. The board has decided to support a tender offer for the company’s common stock by MP-2605 Co., Ltd., and is recomme...
Solasto Updates Progress on Ongoing Share Buy-Back Program
Mar 2, 2026
Solasto Corporation has reported the latest progress of its ongoing share buy-back program authorized by its board in August 2025, which allows repurchases of up to 4.4 million shares, or 4.8% of outstanding stock, for a total of up to ¥1.4 b...
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.