Roland Corporation (7944) AI Stock Analysis

• Market Cap: ¥89.43B
• Dividend Yield: 4.97%
• Average Volume (3M): 90.78K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.78
• Revenue Growth: -4.39%
• EPS Growth: -27.30%
• Country: JP
• Employees: 2,957
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Leisure
• EPS (TTM): 78.78
• Shares Outstanding: 26,580,660
• 10 Day Avg. Volume: 63,370
• 30 Day Avg. Volume: 90,783
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,822.00
• Price Target Upside: 12.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: ¥3,844.00 ▲(12.89% Upside)

Roland Corporation's stock is supported by strong financial performance, particularly in cash flow management and operational efficiency. The technical analysis indicates a positive market sentiment with a bullish trend. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. These factors combined suggest a solid investment opportunity, though attention to revenue growth and leverage management is advised.

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 sale of its electronic musical instruments and audio equipment. The company’s product lines include digital pianos, synthesizers, electronic drums, guitar effects, and professional audio devices, which are sold through a network of dealers, distributors, and directly to consumers. Roland leverages its strong brand reputation and continuous innovation to maintain a competitive edge in the music technology market. Additionally, the company engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. These partnerships may involve co-developing new technologies or distributing products through well-established channels to reach a broader audience. Roland's ability to adapt to changing market trends and consumer preferences is a key factor in its financial performance.

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: 3405.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 3405 is above the 20-day moving average (MA) of 3345.00, above the 50-day MA of 3209.10, and below the 200-day MA of 3414.88, indicating a neutral trend. The MACD of 49.38 indicates Positive momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 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	80 Outperform	¥89.43B	14.94		4.97%	-4.39%	-27.30%
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
YAMCF	―	$3.29B	77.61	1.32%	5.15%	―	―
7458	80 Outperform	¥179.62B	9.92		3.30%	5.69%	48.81%
6238	78 Outperform	¥30.64B	17.92		3.51%	3.56%	-20.82%
7867	71 Outperform	¥297.64B	17.26		1.69%	17.05%	66.00%
7952	57 Neutral	¥21.96B	42.34		3.60%	-6.74%	-69.87%

Roland Corporation Corporate Events

Roland Corporation Reports Mixed Financial Results for First Half of 2025

Roland Corporation reported a slight decline in net sales and operating profit for the first half of 2025 compared to the previous year. Despite this, the company saw an increase in profit attributable to owners of the parent, indicating a potential shift in financial strategy or operational efficiency. The equity ratio decreased, reflecting changes in the company’s financial structure, while dividends remained consistent with previous forecasts, suggesting stability in shareholder returns.

The most recent analyst rating on (JP:7944) stock is a Hold with a Yen4200.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Roland Corporation to Receive Dividend from Malaysian Subsidiary

Roland Corporation announced it will receive a dividend from its subsidiary, MI Services Malaysia Sdn. Bhd., amounting to MYR 172 million. This dividend will be recorded as non-operating income in Roland’s non-consolidated financial statements for the fiscal year ending December 31, 2025, but will not impact the company’s consolidated financial results.

The most recent analyst rating on (JP:7944) stock is a Hold with a Yen4200.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Roland Corporation Revises Financial Forecasts Amid U.S. Tariff Uncertainty

Roland Corporation has revised its financial forecasts for the fiscal year ending December 31, 2025, due to uncertainties arising from the U.S. tariff policy. The company anticipates a potential impact on its operations, as many musical instruments sold in the U.S. are imported from regions like China, which faces high tariffs. Despite this, Roland’s main production facility in Malaysia positions it at a relatively low risk. The company is implementing strategies to leverage its production advantages while minimizing tariff impacts. The dividend forecast remains unchanged, with a focus on maintaining stable returns for shareholders.

The most recent analyst rating on (JP:7944) stock is a Hold with a Yen4200.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Roland Corporation Reports Mixed Financial Results for Q1 2025

Roland Corporation reported its consolidated financial results for the first quarter of 2025, showing a slight increase in net sales by 2.1% compared to the previous year. Despite the rise in sales, the company experienced a decline in operating profit by 7.8%, while ordinary profit increased by 19.6% and profit attributable to owners of the parent surged by 87.1%. The company revised its fiscal year forecast to a range format, reflecting adjustments in expected net sales and profits, indicating a cautious approach to future financial performance.

The most recent analyst rating on (JP:7944) stock is a Hold with a Yen4200.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.