Solasto Corp. (6197) AI Stock Analysis

• Market Cap: ¥40.74B
• Dividend Yield: 4.69%
• Average Volume (3M): 233.21K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.64
• Revenue Growth: 1.70%
• EPS Growth: 83.74%
• Country: JP
• Employees: 33,884
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Care Facilities
• EPS (TTM): 7.24
• Shares Outstanding: 94,741,790
• 10 Day Avg. Volume: 186,580
• 30 Day Avg. Volume: 233,213
• PEG Ratio: 0.04
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.14
• 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: 7.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥488.00 ▲(13.49%Upside)

Solasto Corp. benefits from strong financial performance and attractive valuation metrics, making it an appealing investment. The technical analysis suggests stability with potential for slight gains. The absence of new earnings call data and corporate events limits further insights, but the company's fundamentals and valuation provide a solid foundation for a positive outlook.

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. shows strong revenue growth and profitability with effective cost management. The balance sheet is stable with moderate leverage and solid equity. Cash flow management is strong, though free cash flow growth has declined slightly. Overall, the company demonstrates robust financial performance.

Income Statement

Solasto Corp. has demonstrated strong revenue and profit growth over the years. The TTM (Trailing-Twelve-Months) gross profit margin is 15.1%, with a net profit margin of 2.9%. The company has shown consistent revenue growth, with a 1.7% increase from the previous year. The EBIT margin has improved to 5.1%, and the EBITDA margin stands at 7.2%. These margins indicate effective cost management and operational efficiency.

Balance Sheet

The balance sheet shows a stable financial position. The debt-to-equity ratio is 1.02, indicating moderate leverage. Return on equity (ROE) is 17.5%, reflecting good profitability relative to shareholders' equity. The equity ratio is 32.4%, showing a solid base of equity financing. Overall, the company maintains a balanced capital structure with manageable debt levels.

Cash Flow

Cash flow analysis reveals healthy cash generation capabilities. The free cash flow growth rate is -13.0%, showing a slight decline, but operating cash flow remains strong at 1.48 times the net income. The free cash flow to net income ratio is 1.38, indicating effective conversion of profits into cash flow. The company demonstrates strong cash flow management, supporting its operations and investments.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	137.44B	135.14B	131.09B	117.24B	106.18B
Gross Profit	20.75B	21.93B	21.75B	20.46B	18.86B
EBITDA	9.85B	7.77B	8.82B	8.47B	7.91B
Net Income	3.96B	2.26B	3.17B	3.50B	3.54B
Balance Sheet
Total Assets	70.10B	75.20B	69.85B	70.75B	60.10B
Cash, Cash Equivalents and Short-Term Investments	14.00B	15.12B	11.96B	10.34B	8.97B
Total Debt	23.08B	28.52B	25.89B	28.65B	21.75B
Total Liabilities	47.41B	54.72B	48.28B	50.60B	41.63B
Stockholders Equity	22.68B	20.48B	21.57B	20.15B	18.47B
Cash Flow
Free Cash Flow	5.46B	6.28B	7.69B	4.72B	5.78B
Operating Cash Flow	5.88B	7.86B	9.01B	5.52B	6.73B
Investing Cash Flow	347.00M	-2.76B	-2.17B	-7.45B	-3.82B
Financing Cash Flow	-7.33B	-1.84B	-5.21B	3.20B	-5.72B

Solasto Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 430.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 430 is above the 20-day moving average (MA) of 422.80, above the 50-day MA of 419.38, and below the 200-day MA of 449.51, indicating a neutral trend. The MACD of 2.86 indicates Negative momentum. The RSI at 69.92 is Neutral, neither overbought nor oversold. The STOCH value of 94.29 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
7071	81 Outperform	¥51.42B	7.35		0.76%	30.50%	3.57%
6197	80 Outperform	¥40.74B	10.02		4.69%	1.70%	83.74%
2374	78 Outperform	¥19.43B	12.88		3.86%	4.15%	-25.67%
6062	76 Outperform	¥43.37B	10.20		2.65%	7.94%	8.41%
6059	65 Neutral	¥5.95B	2.91		3.27%	0.91%	856.87%
7061	63 Neutral	¥8.74B	15.79		1.44%	21.97%	-20.94%
Sector *	51 Neutral	$7.35B	0.50	-65.61%	2.47%	15.28%	1.44%

Solasto Corp. Corporate Events

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.

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.