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Solasto Corp. (JP:6197)
:6197
Japanese Market

Solasto Corp. (6197) AI Stock Analysis

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JP

Solasto Corp.

(6197)

Rating:67Neutral
Price Target:
¥448.00
▲(6.16%Upside)
Solasto Corp.'s robust financial performance is a significant strength, showcasing strong revenue growth, profitability, and effective cash management. However, technical analysis reveals a bearish trend with oversold conditions. The stock's valuation is favorable, suggesting potential undervaluation, which could present an investment opportunity. Investors should monitor technical indicators for signs of trend reversal.

Solasto Corp. (6197) vs. iShares MSCI Japan ETF (EWJ)

Solasto Corp. Business Overview & Revenue Model

Company DescriptionSolasto Corp. is a Japanese company primarily engaged in the provision of medical outsourcing services, elderly care services, and child care services. It operates in three main sectors: Medical Outsourcing, Elderly Care, and Child Care. Solasto's core services include medical administration support, staffing services for medical institutions, operation of elderly care facilities, and child care centers. The company leverages its expertise in managing human resources and operational efficiencies to deliver quality support services across these sectors.
How the Company Makes MoneySolasto Corp. generates revenue through its diversified service offerings in the Medical Outsourcing, Elderly Care, and Child Care sectors. In the Medical Outsourcing sector, the company earns income by providing staffing services and administrative support to hospitals and medical institutions, ensuring efficient management of medical operations. In the Elderly Care sector, revenue is derived from operating nursing homes and providing home-based care services, catering to the growing aging population in Japan. The Child Care sector contributes to earnings through the management and operation of child care centers, addressing the demand for quality child care solutions. Additionally, strategic partnerships with healthcare providers and local governments enhance Solasto's market presence and expand its service offerings, further driving its revenue growth.

Solasto Corp. Financial Statement Overview

Summary
Solasto Corp. exhibits solid financial health with growing revenues and effective cash flow management. While profitability metrics reflect operational challenges, the company's stability and growth trajectory remain positive. Attention is needed on profitability margins and leverage to ensure continued financial resilience.
Income Statement
78
Positive
Solasto Corp. displays strong revenue growth with a consistent increase in total revenue over recent periods. The Gross Profit Margin remains stable, indicating effective cost management. However, the Net Profit Margin has decreased over the TTM period, suggesting increased expenses or inefficiencies impacting net income. The EBIT and EBITDA margins show a slight decline, reflecting a need for operational efficiency improvements.
Balance Sheet
70
Positive
The company's equity ratio is healthy, showing a solid proportion of equity financing in its capital structure. However, the Debt-to-Equity Ratio is relatively high, suggesting potential leverage risks. The Return on Equity has declined, pointing to reduced profitability from equity investments. Overall, the balance sheet reflects stability with caution advised on leveraging.
Cash Flow
85
Very Positive
Solasto Corp. demonstrates strong cash flow management, with a notable increase in free cash flow over recent periods. The Operating Cash Flow to Net Income Ratio is robust, indicating effective cash generation from operations. However, the Free Cash Flow to Net Income Ratio shows a declining trend, which needs attention to sustain operational cash efficiency.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue137.04B135.14B131.09B117.24B106.18B95.72B
Gross Profit22.09B21.93B21.75B20.46B18.86B17.00B
EBITDA6.89B7.77B9.46B8.92B8.40B7.42B
Net Income1.14B2.26B3.17B3.50B3.54B4.74B
Balance Sheet
Total Assets70.57B75.20B69.85B70.75B60.10B57.70B
Cash, Cash Equivalents and Short-Term Investments13.29B15.12B11.96B10.34B8.97B12.23B
Total Debt21.01B28.52B25.89B28.65B21.75B23.21B
Total Liabilities48.61B54.72B48.28B50.60B41.63B40.94B
Stockholders Equity21.96B20.48B21.57B20.15B18.47B16.77B
Cash Flow
Free Cash Flow6.54B6.28B7.69B4.72B5.78B2.95B
Operating Cash Flow7.15B7.86B9.01B5.52B6.73B4.25B
Investing Cash Flow115.00M-2.76B-2.17B-7.45B-3.82B-3.48B
Financing Cash Flow-7.87B-1.84B-5.21B3.20B-5.72B1.78B

Solasto Corp. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price422.00
Price Trends
50DMA
422.86
Negative
100DMA
438.34
Negative
200DMA
459.43
Negative
Market Momentum
MACD
-1.21
Negative
RSI
53.50
Neutral
STOCH
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6197, the sentiment is Neutral. The current price of 422 is above the 20-day moving average (MA) of 418.40, below the 50-day MA of 422.86, and below the 200-day MA of 459.43, indicating a neutral trend. The MACD of -1.21 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6197.

Solasto Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥18.78B12.45
3.99%4.15%-25.67%
74
Outperform
¥42.10B9.90
2.63%7.94%8.41%
73
Outperform
¥46.70B6.68
0.84%30.50%3.57%
67
Neutral
¥39.51B9.71
4.80%1.70%83.74%
63
Neutral
¥6.01B2.94
3.21%0.91%856.87%
63
Neutral
¥8.68B15.69
1.46%21.97%-20.94%
52
Neutral
$7.45B0.27-61.87%2.30%16.62%1.04%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6197
Solasto Corp.
422.00
-25.52
-5.70%
JP:2374
Saint-Care Holding Corp.
754.00
-74.01
-8.94%
JP:6059
Uchiyama Holdings Co., Ltd.
310.00
-21.88
-6.59%
JP:6062
Charm Care Corporation
1,308.00
-168.29
-11.40%
JP:7061
Japan Hospice Holdings Inc.
1,042.00
-360.60
-25.71%
JP:7071
Amvis Holdings.Inc.
484.00
-1,628.58
-77.09%

Solasto Corp. Corporate Events

Solasto Corp. Announces Treasury Stock Disposal for Compensation Plan
Jul 8, 2025

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
Jul 8, 2025

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
Jun 26, 2025

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
May 27, 2025

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
May 12, 2025

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
May 12, 2025

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.

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.Date of analysis: May 27, 2025