Solasto Corp. (6197) AI Stock Analysis

• Market Cap: ¥53.43B
• Dividend Yield: 4.09%
• Average Volume (3M): 256.12K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.61
• Revenue Growth: 1.86%
• EPS Growth: 1370.48%
• Country: JP
• Employees: 33,884
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 13.15
• Shares Outstanding: 94,741,790
• 10 Day Avg. Volume: 311,920
• 30 Day Avg. Volume: 256,123
• PEG Ratio: 0.14
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 7.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 45.28
• Revenue Forecast (FY): ¥140.25B

• Rating: 80 Outperform
• Price Target: ¥602.00 ▲(20.16% Upside)

Solasto Corp. demonstrates strong financial performance and technical indicators, supported by an attractive valuation. The company's consistent revenue growth and strong cash flow generation are key strengths. However, the stock's technical indicators suggest it may be nearing overbought conditions, which could limit short-term upside.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Solasto's healthcare services and effective business strategies, supporting long-term expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing Solasto to invest in growth opportunities and manage debt effectively.

Leverage Management

Improved leverage management reduces financial risk, providing Solasto with a more stable capital structure to support future growth.

Negative Factors

Profitability Margins

Decreasing gross profit margins could pressure Solasto's profitability, potentially limiting reinvestment capacity and affecting long-term financial health.

Equity Ratio

Moderate reliance on debt financing may pose risks if market conditions change, impacting Solasto's ability to manage financial obligations sustainably.

Profitability Improvement

Limited profitability improvement could hinder Solasto's ability to enhance shareholder value and invest in strategic initiatives over the long term.

Solasto Corp. Business Overview & Revenue Model

Company Description

Solasto Corporation provides medical outsourcing services primarily to medical institutions in Japan. The company's medical outsourcing services include contracted services of medical clerical work. It also offers elderly care services, such as day service, home help, facility-based service, etc.; and childcare services, as well as engages in the education business. The company was formerly known as N.I.C Corporation. Solasto Corporation was founded in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Solasto Corp. generates revenue through multiple streams, predominantly from its medical facility management services, which include outpatient clinics and rehabilitation centers. The company receives fee-for-service payments from patients and health insurance providers for the medical services rendered. Additionally, Solasto earns income from its nursing care services, which include home care and institutional care for the elderly. Key revenue streams also include partnerships with local governments and healthcare institutions that seek to improve healthcare accessibility and efficiency. The company continuously explores opportunities for expansion and collaboration in the healthcare sector, contributing to its overall financial performance.

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: 501.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 523.15, below the 50-day MA of 507.91, and above the 200-day MA of 453.02, indicating a bullish trend. The MACD of 14.85 indicates Negative momentum. The RSI at 77.27 is Negative, neither overbought nor oversold. The STOCH value of 86.89 is Negative, 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
6197	80 Outperform	¥53.43B	11.86	―	4.09%	1.86%	1370.48%
2374	75 Outperform	¥20.65B	11.80	―	2.47%	3.88%	0.31%
6062	72 Outperform	¥35.51B	12.12	―	2.67%	0.30%	-31.28%
7061	70 Neutral	¥11.42B	21.15	―	1.15%	18.03%	-11.68%
6059	69 Neutral	¥6.84B	3.12	―	2.71%	1.26%	562.09%
7071	65 Neutral	¥42.08B	11.41	―	0.85%	15.77%	-50.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Solasto Corp. Corporate Events

Solasto Corporation Updates on Stock Buy-Back Progress

Solasto Corporation announced the status of its stock buy-back program, which was initially declared on August 12, 2025. As of September 30, 2025, the company repurchased 259,900 shares of common stock for a total of 126,486,693 yen through market purchases on the Tokyo Stock Exchange. This buy-back is part of a larger plan authorized by the Board of Directors to repurchase up to 4,400,000 shares, with an aggregate repurchase amount of up to 1.4 billion yen, to be executed by May 31, 2026. The buy-back initiative aims to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:6197) stock is a Buy with a Yen540.00 price target. To see the full list of analyst forecasts on Solasto Corp. stock, see the JP:6197 Stock Forecast page.

Solasto Corp. Announces Change in Corporate Directorate

Solasto Corporation has announced a change in its corporate directorate, effective October 1, 2025. Kazuhiro Mashihara will take on new responsibilities as the Chief Information Officer and General Manager of IT Strategy Division, while also being in charge of Business Development. This change reflects the company’s strategic focus on strengthening its IT and business development capabilities, potentially impacting its market positioning and operational effectiveness.

The most recent analyst rating on (JP:6197) stock is a Buy with a Yen540.00 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 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.