Fact based stock research
Solasto (TSE:6197)

JP3436250009

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Solasto stock research in summary

solasto.co.jp

ANALYSIS: With an Obermatt Combined Rank of 96 (better than 96% compared with investment alternatives), Solasto (Health Care Services, Japan) shares have much better financial characteristics than comparable stocks. Shares of Solasto are a good value (attractively priced) with a consolidated Value Rank of 99 (better than 99% of alternatives), show above-average growth (Growth Rank of 71) but are riskily financed (Safety Rank of 45), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 96, is a strong buy recommendation based on Solasto's financial characteristics. As the company Solasto's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 99) and above-average growth (Obermatt Growth Rank of 71), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 45) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	99
Growth Rank	71
Safety Rank	45
Combined Rank	96

Country	Japan
Industry	Health Care Services
Index
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Solasto

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	70	55	92	99
GROWTH
GROWTH	48	41	71	71
SAFETY
SAFETY	63	22	22	45
SENTIMENT
SENTIMENT	n/a	75	88	^new
360° VIEW
360° VIEW	n/a	37	86	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Solasto is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	70	55	92	99
GROWTH
GROWTH	48	41	71	71
SAFETY
SAFETY	63	22	22	45
COMBINED
COMBINED	74	19	75	96

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Solasto the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 99 (better than 99% compared with alternatives) for 2024, Solasto shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Solasto. Price-to-Sales is 93 which means that the stock price compared with what market professionals expect for future sales is lower than for 93% of comparable companies, indicating a good value for Solasto's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 87% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 65. Compared with other companies in the same industry, dividend yields of Solasto are expected to be higher than for 96% of all competitors (a Dividend Yield rank of 96). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 99, is a buy recommendation based on Solasto's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Solasto based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	85	80	89	93
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	63	47	93	87
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	35	31	62	65
DIVIDEND YIELD
DIVIDEND YIELD	53	78	78	96
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	70	55	92	99

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Solasto; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), Solasto shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Solasto. Profit Growth, with a rank of 62 (better than 62% of its competitors), and Capital Growth, with a rank of 95, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 37, which means that, currently, professionals expect the company to grow less than 63% of its competitors, and Stock Returns are at a rank of 19. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	46	50	48	37
PROFIT GROWTH
PROFIT GROWTH	n/a	60	88	62
CAPITAL GROWTH
CAPITAL GROWTH	n/a	59	84	95
STOCK RETURNS
STOCK RETURNS	29	15	11	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	48	41	71	71

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Solasto.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 45 (better than 45% compared with alternatives), the company Solasto has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Solasto is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Solasto and the other two below average. Refinancing is at 78, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 78% of its competitors. But Leverage is high with a rank of 5, meaning the company has an above-average debt-to-equity ratio. It has more debt than 95% of its competitors. Liquidity is also on the riskier side with a rank of 43, meaning the company generates less profit to service its debt than 57% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 45 (worse than 55% compared with alternatives), Solasto has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Solasto are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Solasto and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	43	11	8	5
REFINANCING
REFINANCING	69	32	50	78
LIQUIDITY
LIQUIDITY	65	37	40	43
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	63	22	22	45

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Solasto and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	88	87	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	79	59	^new
MARKET PULSE
MARKET PULSE	n/a	8	73	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	75	88	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Solasto.
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