Roland Corporation (7944) AI Stock Analysis

• Market Cap: ¥85.64B
• Dividend Yield: 4.74%
• Average Volume (3M): 74.89K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.82
• Revenue Growth: -1.25%
• EPS Growth: 9.33%
• Country: JP
• Employees: 2,957
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 58.03
• Shares Outstanding: 26,580,660
• 10 Day Avg. Volume: 85,500
• 30 Day Avg. Volume: 74,890
• PEG Ratio: -0.66
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 11.79
• 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: ¥4,000.00
• Price Target Upside: 10.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥4,008.00 ▲(11.18% Upside)

Roland Corporation's strong financial performance and attractive valuation are key strengths, supported by robust cash flow management and a reasonable P/E ratio. However, technical indicators suggest potential overbought conditions, which could impact short-term price movements. The absence of recent earnings call insights or notable corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Management

Improved cash generation capabilities provide a cushion for future investments or debt repayments, enhancing long-term financial stability.

Operational Efficiency

Strong operational efficiency indicates effective cost management and resource utilization, supporting sustainable profitability.

Stable Balance Sheet

A stable balance sheet with a solid capital structure ensures financial resilience and the ability to withstand economic fluctuations.

Negative Factors

Rising Leverage

Increasing leverage may strain financial flexibility and necessitate careful debt management to avoid long-term financial risks.

Declining Revenue Growth

Negative revenue growth could impact future profitability, requiring strategic initiatives to drive sales and market expansion.

Decreased Profitability

Reduced profitability margins may indicate challenges in pricing strategies or cost control, affecting long-term earnings potential.

Roland Corporation Business Overview & Revenue Model

Company Description

Roland Corporation manufactures, markets, imports, and exports electronic musical instruments, electronic equipment, and software in Japan. The company offers electronic musical instruments, such as electronic drums, digital pianos, synthesizers, and dance/DJ gear, as well as a range of professional audio/visual and music production equipment under the Roland brand; effects processors, instrument amplifiers, guitar synthesizers, tuners, wireless systems, and other products under the BOSS brand name; and headphones, earphones, and other mobile audio products under the V-MODA brand. It also provides organs, keyboards, bass, percussions, AIRA modulars, DJ controllers, and grooveboxes, as well as cables, cases/bags, stands, foot controllers, microphones, AC and rack adaptors, misc, and other accessories; and Roland Cloud, a cloud-based suite of software synthesizers, drum machines, and sampled instruments. Roland Corporation was incorporated in 1972 and is headquartered in Hamamatsu, Japan.

How the Company Makes Money

Roland Corporation generates revenue primarily through the sales of its musical instruments and audio products. The company's key revenue streams include the sale of synthesizers, electronic drum kits, digital pianos, and other electronic musical instruments. Additionally, Roland earns income from software and applications that enhance the user experience of its hardware products. The company has established significant partnerships with music retailers and distributors worldwide, allowing for a broad market reach. Seasonal sales promotions, product launches, and participation in music trade shows further contribute to its earnings by increasing brand visibility and customer engagement.

Roland Corporation Financial Statement Overview

Summary

Roland Corporation demonstrates strong operational efficiency and cash flow management, despite facing challenges in revenue growth and profitability margins. The balance sheet remains stable, but increasing leverage requires attention. Overall, the company is well-positioned in the leisure industry, with a need to focus on revenue growth strategies and cost control to enhance profitability.

Income Statement

Roland Corporation's income statement shows a stable gross profit margin of around 42.8% over recent periods, indicating consistent cost management. However, the net profit margin has decreased from 9.3% in 2022 to 6.8% in TTM, reflecting potential challenges in controlling expenses or pricing strategies. The revenue growth rate has been negative in the latest period, which could be a concern for future profitability. Despite these challenges, the EBIT and EBITDA margins remain healthy, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.70 in TTM, which is manageable but has increased from previous years, indicating rising leverage. The return on equity has decreased from 20.4% in 2023 to 15.9% in TTM, suggesting reduced profitability for shareholders. The equity ratio remains stable, reflecting a solid capital structure. Overall, the balance sheet shows stability but highlights the need for careful debt management.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 6.01% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.57, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is strong at 0.83, reflecting robust cash flow relative to earnings. These metrics highlight strong cash flow management, providing a cushion for future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.53B	99.43B	102.44B	95.84B	80.03B	64.04B
Gross Profit	42.14B	42.57B	43.93B	39.36B	36.14B	30.38B
EBITDA	11.64B	11.83B	14.05B	12.83B	11.88B	7.45B
Net Income	6.20B	5.98B	8.15B	8.94B	8.59B	4.30B
Balance Sheet
Total Assets	84.97B	81.59B	80.97B	77.06B	52.81B	46.10B
Cash, Cash Equivalents and Short-Term Investments	19.03B	14.48B	12.88B	10.51B	8.78B	10.83B
Total Debt	25.34B	20.44B	25.30B	28.65B	7.87B	10.89B
Total Liabilities	44.96B	34.91B	40.86B	43.31B	24.15B	25.95B
Stockholders Equity	39.75B	46.42B	39.88B	33.56B	28.50B	20.01B
Cash Flow
Free Cash Flow	10.94B	9.18B	11.94B	-587.00M	3.62B	5.74B
Operating Cash Flow	12.82B	11.72B	15.43B	793.00M	4.93B	6.90B
Investing Cash Flow	-2.78B	-1.19B	-3.58B	-11.35B	-803.00M	-901.00M
Financing Cash Flow	-5.27B	-9.66B	-8.67B	12.88B	-6.07B	-3.67B

Roland Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3605.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7944, the sentiment is Positive. The current price of 3605 is above the 20-day moving average (MA) of 3486.00, above the 50-day MA of 3401.90, and above the 200-day MA of 3327.47, indicating a bullish trend. The MACD of 62.76 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 80.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7944.

Roland Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7944	73 Outperform	¥85.64B	14.30	―	4.74%	-1.25%	9.33%
7458	72 Outperform	¥164.67B	9.10	―	3.58%	6.12%	-3.75%
7951	71 Outperform	¥515.41B	28.07	3.68%	2.60%	-4.47%	-4.52%
6238	64 Neutral	¥28.35B	16.58	―	3.59%	2.20%	2.39%
7867	63 Neutral	¥291.45B	16.90	―	2.01%	10.50%	27.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7952	56 Neutral	¥22.35B	43.08	―	3.70%	-5.25%	-4.95%

Roland Corporation Corporate Events

Roland Corporation Reports Nine-Month Financial Results with Increased Profitability

Roland Corporation reported its consolidated financial results for the nine months ended September 30, 2025, showing a slight decline in net sales by 0.1% compared to the previous year. Despite the decrease in sales, the company experienced a significant increase in profit attributable to owners of the parent by 26.8%, indicating improved profitability. The company’s equity ratio decreased from 56.8% to 48.3%, reflecting changes in its financial position. The forecast for the fiscal year ending December 31, 2025, anticipates a range of outcomes for net sales and profits, with potential declines or slight increases compared to the previous year, depending on various factors.

The most recent analyst rating on (JP:7944) stock is a Buy with a Yen3680.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.