Want to see JP:6197 full AI Analyst Report?
Top Page
Solasto Corp.
(6197)
Select Model
Select Model
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 Yield1.98%
Average Volume (3M)1.21M
Price to Earnings (P/E)27.2
Beta (1Y)0.56
Revenue Growth2.70%
EPS Growth-5.16%
CountryJP
Employees33,674
SectorGeneral
Sector StrengthN/A
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)46.6
Revenue Forecast (FY)¥144.50B
Solasto Corp. Business Overview & Revenue Model
Company Description
Solasto Corporation, which began operations in 1965 in Tokyo, Japan (originally under the name N.I.C Corporation), primarily concentrates on providing outsourced support services to healthcare institutions across Japan. A significant aspect of its...
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 | 9.71B | 9.85B | 7.77B | 8.82B | 8.47B |
| 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
1110.56
Positive
1101.65
Positive
924.26
Positive
Market Momentum
1.41
Negative
78.91
Negative
69.44
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 1111.75, below the 50-day MA of 1110.56, and below the 200-day MA of 924.26, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 78.91 is Negative, neither overbought nor oversold. The STOCH value of 69.44 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥45.81B | 11.52 | ― | 2.63% | 5.16% | 37.79% | |
73 Outperform | ¥46.92B | 14.53 | 21.08% | 1.94% | 12.86% | 30.95% | |
68 Neutral | ¥105.35B | 27.25 | ― | 2.47% | 2.70% | -5.16% | |
58 Neutral | ¥38.05B | 13.18 | ― | 0.91% | 9.10% | -54.63% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | ¥5.45B | 51.99 | ― | 4.07% | 4.85% | -85.27% |
* General Sector Average
JP:6197
Solasto Corp.
1,118.00
652.47
140.16%
JP:6099
Elan Corp.
761.00
-29.69
-3.75%
JP:2373
Care Twentyone Corporation
405.00
-5.07
-1.24%
JP:6062
Charm Care Corporation
1,427.00
323.89
29.36%
JP:7071
Amvis Holdings.Inc.
389.00
-306.39
-44.06%
Solasto Corp. Corporate Events
Solasto Wins Approval for Share Consolidation Ahead of TSE Delisting
Jul 6, 2026
Solasto Corporation has obtained shareholder approval at an extraordinary general meeting for a drastic share consolidation and related amendments to its articles of incorporation. The consolidation will reduce its total issued common shares to ju...
Solasto Shifts to Majority Control Under MP-2605, Plans Delisting and Full Ownership
Jun 25, 2026
Solasto Corporation has undergone a significant change in its ownership structure, with investment vehicle MP-2605 Co., Ltd. acquiring a 53.42% voting stake and becoming its direct parent company, alongside indirect parents MP-2604 Co., Ltd. and M...
Solasto Proposes Reappointment of Directors, Emphasizing Independent Governance
May 27, 2026
Solasto Corporation has proposed a slate of five director candidates to be voted on at its 58th Ordinary General Meeting of Shareholders scheduled for June 24, 2026. The board’s proposal follows input from the Nomination, Evaluation, and Com...
Solasto to Cancel All Treasury Shares Ahead of Planned Share Consolidation
May 27, 2026
Solasto Corporation’s board has approved the cancellation of all its treasury shares pursuant to Article 178 of the Companies Act, as part of a broader capital restructuring. The move concerns common shares held in treasury, including restri...
Solasto Calls July EGM as MBO Plan Drives Delisting from TSE Prime
May 27, 2026
Solasto’s board has resolved to convene an extraordinary general meeting of shareholders on July 6, 2026, in Tokyo to vote on a share consolidation and related amendments to its articles of incorporation. These steps include abolishing provi...
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...
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.