Roland Corporation (7944) AI Stock Analysis

• Market Cap: ¥93.48B
• Dividend Yield: 4.78%
• Average Volume (3M): 74.89K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.84
• 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: 11.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥4,058.00 ▲(13.51% Upside)

Roland Corporation's stock is supported by strong financial performance, particularly in revenue growth and operational stability. The technical analysis indicates positive momentum, and the valuation is attractive with a strong dividend yield. These factors contribute to a favorable overall stock score.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Gross Profit Margin

A healthy gross profit margin reflects efficient production and pricing strategies, supporting long-term profitability and competitive positioning.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and resilience against economic downturns.

Negative Factors

Leverage Increase

Increased leverage can heighten financial risk and limit strategic options, potentially impacting long-term financial stability.

Free Cash Flow Decline

A decline in free cash flow may constrain the company's ability to fund new projects or return capital to shareholders, affecting future growth.

Net Profit Margin

A modest net profit margin indicates potential inefficiencies or pricing pressures, which could affect long-term profitability and competitiveness.

Roland Corporation Business Overview & Revenue Model

Company Description

Roland Corporation (7944) is a leading manufacturer of electronic musical instruments, including synthesizers, digital pianos, and electronic percussion instruments. Founded in 1972 and headquartered in Hamamatsu, Japan, Roland operates in the musical instrument sector, offering a wide range of products that cater to both amateur and professional musicians. The company also produces audio equipment and software solutions, positioning itself as a key player in the creative technology industry.

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	99.39B	99.43B	102.44B	95.84B	80.03B	64.04B
Gross Profit	42.48B	42.57B	43.93B	39.36B	36.14B	30.38B
EBITDA	12.38B	11.83B	14.05B	12.83B	11.88B	7.45B
Net Income	7.13B	5.98B	8.15B	8.94B	8.59B	4.30B
Balance Sheet
Total Assets	83.03B	81.59B	80.97B	77.06B	52.81B	46.10B
Cash, Cash Equivalents and Short-Term Investments	13.30B	14.48B	12.88B	10.51B	8.78B	10.83B
Total Debt	25.90B	20.44B	25.30B	28.65B	7.87B	10.89B
Total Liabilities	42.65B	34.91B	40.86B	43.31B	24.15B	25.95B
Stockholders Equity	40.13B	46.42B	39.88B	33.56B	28.50B	20.01B
Cash Flow
Free Cash Flow	10.41B	9.18B	11.94B	-587.00M	3.62B	5.74B
Operating Cash Flow	14.63B	11.72B	15.43B	793.00M	4.93B	6.90B
Investing Cash Flow	-4.80B	-1.19B	-3.58B	-11.35B	-803.00M	-901.00M
Financing Cash Flow	-7.17B	-9.66B	-8.67B	12.88B	-6.07B	-3.67B

Roland Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3575.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3575 is below the 20-day moving average (MA) of 3580.75, above the 50-day MA of 3456.50, and above the 200-day MA of 3319.20, indicating a neutral trend. The MACD of 22.20 indicates Positive momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 54.02 is Neutral, 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	75 Outperform	¥93.48B	13.40	―	4.78%	-1.25%	9.33%
7458	72 Outperform	¥172.30B	11.89	―	3.43%	6.12%	-3.75%
7951	68 Neutral	¥526.54B	29.16	3.68%	2.39%	-4.47%	-4.52%
6238	64 Neutral	¥28.89B	15.36	―	3.69%	2.20%	2.39%
7952	64 Neutral	¥22.94B	28.80	―	3.56%	-5.25%	-4.95%
7867	63 Neutral	¥242.51B	15.36	―	2.18%	10.50%	27.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.