Roland Corporation (7944) AI Stock Analysis

• Market Cap: ¥83.81B
• Dividend Yield: 5.3%
• Average Volume (3M): 107.54K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.81
• Revenue Growth: -1.74%
• EPS Growth: -11.79%
• Country: JP
• Employees: 2,957
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Leisure
• EPS (TTM): 67.65
• Shares Outstanding: 26,580,660
• 10 Day Avg. Volume: 93,590
• 30 Day Avg. Volume: 107,540
• PEG Ratio: 0.81
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.64
• 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: ¥3,712.00
• Price Target Upside: 15.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥3,621.00 ▲(12.98%Upside)

The overall stock score of 77 reflects a strong valuation and solid financial performance. The low P/E ratio and high dividend yield enhance the stock's appeal. However, mixed technical indicators and the lack of earnings call or corporate event data moderately temper the score.

Roland Corporation Business Overview & Revenue Model

Company Description

Roland Corporation (7944) is a leading Japanese manufacturer and distributor of electronic musical instruments, audio equipment, and related products. Founded in 1972, the company is renowned for its innovative digital pianos, synthesizers, electronic drum kits, guitar products, and professional audio equipment. Roland operates globally, providing musicians and audio professionals with high-quality, technologically advanced tools that span a wide range of musical styles and applications.

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 financial performance with a stable income statement, a solid balance sheet, and efficient cash management. Revenue growth and profitability are consistent, though slightly fluctuating, and the company maintains a well-capitalized structure with effective cash generation capabilities.

Income Statement

Roland Corporation has shown a stable and strong performance in its income statement metrics. The gross profit margin for TTM is impressive, and while the net profit margin has slightly decreased from the previous year, the company maintains healthy profitability. The revenue growth rate has been positive over the years, indicating a consistent upward trajectory, though it has faced some fluctuations. EBIT and EBITDA margins are solid, suggesting effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio and a strong equity base. The debt-to-equity ratio has increased slightly in the latest TTM, indicating higher leverage, but remains within manageable levels. Return on equity is robust, although it has seen some pressure due to increased liabilities. The equity ratio shows a well-capitalized structure, supporting financial stability.

Cash Flow

Roland Corporation's cash flow analysis reveals a strong operating cash flow to net income ratio, suggesting healthy cash generation relative to earnings. The free cash flow has grown significantly in the latest TTM, reflecting improved cash management and capital efficiency. The free cash flow to net income ratio is favorable, indicating a strong capacity to generate cash profits.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.43B	102.44B	95.84B	80.03B	64.04B
Gross Profit	42.57B	43.93B	39.36B	36.14B	30.38B
EBITDA	12.84B	14.05B	12.83B	12.71B	8.69B
Net Income	5.98B	8.15B	8.94B	8.59B	4.30B
Balance Sheet
Total Assets	81.59B	80.97B	77.06B	52.81B	46.10B
Cash, Cash Equivalents and Short-Term Investments	14.48B	12.88B	10.51B	8.78B	10.83B
Total Debt	20.44B	25.30B	28.65B	7.87B	10.89B
Total Liabilities	34.91B	40.86B	43.31B	24.15B	25.95B
Stockholders Equity	46.42B	39.88B	33.56B	28.50B	20.01B
Cash Flow
Free Cash Flow	9.18B	11.94B	-587.00M	3.62B	5.74B
Operating Cash Flow	11.72B	15.43B	793.00M	4.93B	6.90B
Investing Cash Flow	-1.19B	-3.58B	-11.35B	-803.00M	-901.00M
Financing Cash Flow	-9.66B	-8.67B	12.88B	-6.07B	-3.67B

Roland Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3205.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 3205 is above the 20-day moving average (MA) of 3089.25, above the 50-day MA of 3137.53, and below the 200-day MA of 3473.85, indicating a neutral trend. The MACD of 10.82 indicates Negative momentum. The RSI at 60.45 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7944.

Roland Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6238	78 Outperform	¥29.55B	17.56		3.61%	3.59%	-34.72%
7944	77 Outperform	¥83.81B	12.89		5.30%	-1.74%	-11.79%
7458	73 Outperform	¥175.69B	9.31		3.57%	4.28%	47.52%
7951	73 Outperform	$529.45B	39.65	2.69%	2.32%	-0.17%	-54.29%
7867	68 Neutral	¥282.67B	17.31		1.76%	20.12%	69.12%
Sector *	67 Neutral	¥265.88B	13.61	6.45%	2.58%	5.21%	-11.91%
7952	61 Neutral	¥22.51B	55.61		3.63%	-9.07%	-85.45%

Roland Corporation Corporate Events

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.