Solasto Corp. (6197) AI Stock Analysis

• Market Cap: ¥77.69B
• Dividend Yield: 2.47%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.70
• 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: 3,043,910
• 30 Day Avg. Volume: 1,212,820
• 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): ¥140.38B

• Rating: 76 Outperform
• Price Target: ¥855.00 ▲(70.66% Upside)

Solasto Corp. is well-positioned with strong technical indicators and a solid valuation, making it an attractive investment. The company's financial performance is stable, though attention to cash flow management is needed. The absence of recent earnings call data or notable corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Leverage Management

Improved leverage management enhances financial flexibility and reduces risk, supporting sustainable growth and investment capacity.

Profitability

Stable profit margins demonstrate operational efficiency and cost management, which are crucial for long-term profitability and competitiveness.

Negative Factors

Cash Flow Management

Declining free cash flow growth can limit reinvestment opportunities and financial flexibility, posing a risk to long-term operations.

Debt Reliance

Moderate reliance on debt can increase financial risk, especially if interest rates rise, affecting long-term financial health.

Cash Flow Stability

Unstable cash flow can hinder the company's ability to fund operations and growth initiatives, impacting long-term sustainability.

Solasto Corp. Business Overview & Revenue Model

Company Description

Solasto Corp. (6197) is a leading provider of healthcare services in Japan, focusing primarily on the management of medical facilities and the provision of various healthcare-related solutions. The company operates in multiple sectors including outpatient services, rehabilitation, and nursing care. Solasto is committed to enhancing the quality of healthcare delivery through innovative services and technology-driven solutions, catering to both patients and healthcare providers.

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	139.08B	137.44B	135.14B	131.09B	117.24B	106.18B
Gross Profit	21.14B	20.75B	21.93B	21.75B	20.46B	18.86B
EBITDA	10.20B	9.85B	7.77B	8.82B	8.47B	7.91B
Net Income	4.38B	3.96B	2.26B	3.17B	3.50B	3.54B
Balance Sheet
Total Assets	68.88B	70.10B	75.20B	69.85B	70.75B	60.10B
Cash, Cash Equivalents and Short-Term Investments	10.99B	14.00B	15.12B	11.96B	10.34B	8.97B
Total Debt	17.55B	23.08B	28.52B	25.89B	28.65B	21.75B
Total Liabilities	44.97B	47.41B	54.72B	48.28B	50.60B	41.63B
Stockholders Equity	23.90B	22.68B	20.48B	21.57B	20.15B	18.47B
Cash Flow
Free Cash Flow	6.18B	5.46B	6.28B	7.69B	4.72B	5.78B
Operating Cash Flow	6.54B	5.88B	7.86B	9.01B	5.52B	6.73B
Investing Cash Flow	-486.00M	347.00M	-2.76B	-2.17B	-7.45B	-3.82B
Financing Cash Flow	-7.37B	-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: 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 700.55, below the 50-day MA of 588.08, and above the 200-day MA of 476.10, indicating a bullish trend. The MACD of 85.05 indicates Negative momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 54.10 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
6197	76 Outperform	¥77.69B	17.25	―	2.47%	1.86%	1370.48%
2374	75 Outperform	¥30.23B	17.11	―	2.48%	3.88%	0.31%
6062	72 Outperform	¥42.13B	13.81	―	2.63%	0.30%	-31.28%
7061	70 Neutral	¥8.97B	17.55	―	1.41%	18.03%	-11.68%
6059	69 Neutral	¥7.13B	3.35	―	2.71%	1.26%	562.09%
7071	62 Neutral	¥43.36B	11.76	―	0.91%	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 Reports FY2025 Q2 Financial Results with Revised Earnings Forecast

Solasto Corporation reported its consolidated financial results for the second quarter of FY2025, showing a modest increase in net sales by 2.4% to 70,033 million yen. However, operating profit decreased by 4.7%, while net income saw a significant rise of 21.9%. The company also announced a revision in its earnings forecast for the full fiscal year, reflecting adjustments due to a stock buyback plan. The dividend per share is forecasted to increase, indicating a positive outlook for shareholders.

Solasto Corporation Revises FY2025 Financial Forecasts Upwards

Solasto Corporation has revised its financial forecasts for FY2025, reflecting an optimistic outlook due to successful price negotiations in the Medical Business and improved service utilization in the Elderly Care Business. The company anticipates higher net sales and profits than previously forecasted, despite initial expectations of decreased operating profit due to employee treatment improvements and IT investments.

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.

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.