Solasto Corp. (6197) AI Stock Analysis

• Market Cap: ¥42.44B
• Dividend Yield: 4.46%
• Average Volume (3M): 197.15K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 0.72
• Revenue Growth: 2.51%
• EPS Growth: -76.09%
• Country: JP
• Employees: 33,884
• Sector: Healthcare
• Sector Strength: 54
• Industry: Medical - Care Facilities
• EPS (TTM): 14.71
• Shares Outstanding: 94,741,790
• 10 Day Avg. Volume: 95,820
• 30 Day Avg. Volume: 197,150
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥550.00
• Price Target Upside: 22.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Solasto Corp. demonstrates a strong financial foundation with notable revenue growth and effective cash flow management. However, challenges in profitability margins and leverage pose risks. Technical indicators reveal a mixed outlook with near-term caution advised. The stock's valuation is on the higher side, but the dividend yield offers a compensatory benefit.

Solasto Corp. Business Overview & Revenue Model

Company Description

Solasto 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 Money

Solasto 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

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

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

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.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
135.14B	131.09B	117.24B	106.18B	95.72B
	Gross Profit
21.93B	21.75B	20.46B	18.86B	17.00B
	EBIT
5.52B	6.33B	6.32B	6.06B	5.46B
	EBITDA
7.77B	9.46B	8.92B	8.40B	7.42B
	Net Income Common Stockholders
2.26B	3.17B	3.50B	3.54B	4.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.12B	11.96B	10.34B	8.97B	12.23B
	Total Assets
75.20B	69.85B	70.75B	60.10B	57.70B
	Total Debt
28.52B	25.89B	28.65B	21.75B	23.21B
	Net Debt
13.40B	13.93B	18.31B	12.77B	10.97B
	Total Liabilities
54.72B	48.28B	50.60B	41.63B	40.94B
	Stockholders Equity
20.48B	21.57B	20.15B	18.47B	16.77B
Cash Flow		Free Cash Flow
6.28B	7.69B	4.72B	5.78B	2.95B
	Operating Cash Flow
7.86B	9.01B	5.52B	6.73B	4.25B
	Investing Cash Flow
-2.76B	-2.17B	-7.45B	-3.82B	-3.48B
	Financing Cash Flow
-1.84B	-5.21B	3.20B	-5.72B	1.78B

Solasto Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 448.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 448 is above the 20-day moving average (MA) of 439.45, below the 50-day MA of 450.40, and below the 200-day MA of 476.98, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9432	77 Outperform	$12.88T	11.33	11.36%	3.04%	3.22%	-4.93%
9433	76 Outperform	$10.24T	16.73	11.94%	2.43%	1.71%	-4.87%
2374	74 Outperform	¥19.40B	12.48		3.87%	4.02%	-27.53%
6197	68 Neutral	¥42.44B	36.10		4.46%	2.51%	-76.09%
2432	65 Neutral	$404.30B	22.26	8.31%	1.07%	8.46%	―
4755	56 Neutral	$1.79T	―	-18.23%	―	10.04%	57.36%
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%

Solasto Corp. Corporate Events

Solasto Corp. Announces Corporate Officer Restructuring

Solasto Corporation has announced changes in its Corporate Officer structure, which will take effect on April 1, 2025. These changes include integrating the Transformation Division into the Medical Business Division and the retirement of Masateru Kawanishi from his roles as Corporate Officer and Director. Such structural adjustments might streamline operations within the company, potentially enhancing efficiency in its Medical and Elderly Care Business Divisions.

Solasto Corporation Revises FY2024 Forecasts with Profitable Outlook

Solasto Corporation has revised its financial forecasts for FY2024, projecting a decrease in net sales but a significant increase in profits due to successful structural reforms, particularly in the Smart Hospital and Elderly Care businesses. Despite facing challenges like minimum wage increases, the company anticipates exceeding profit expectations, indicating effective strategic adjustments and improved facility utilization.

Solasto Corporation Announces FY2024 Q3 Financial Results with Revised Earnings Forecast

Solasto Corporation has announced its consolidated financial results for the third quarter of FY2024, revealing a modest increase in net sales by 1.9% to 102,939 million yen. However, the profit attributable to owners of the parent decreased by 25.3% compared to the previous year. The company has revised its earnings forecast for the full year, anticipating a 71% increase in profit attributable to owners, indicating a positive outlook despite the recent dip in profits.