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Roland Corporation (JP:7944)
:7944
Japanese Market

Roland Corporation (7944) AI Stock Analysis

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JP:7944

Roland Corporation

(7944)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥4,132.00
▲(15.74% Upside)
Action:DowngradedDate:02/18/26
The score is driven primarily by steady but currently pressured fundamentals (weaker 2025 profitability and a modestly less conservative balance sheet) offset by solid cash generation. Technicals are supportive with price above key moving averages and a positive MACD, while valuation is held back by a high P/E despite a strong dividend yield.
Positive Factors
Cash generation
Strong operating cash flow and positive free cash flow provide durable internal funding for capex, product development, and dividends. This cash-generation capacity supports resilience through cyclical demand and reduces reliance on external financing, aiding long-term financial flexibility.
Long-run revenue growth & diversified portfolio
Sustained multi-year revenue growth, combined with a broad product mix across pianos, synths, drums, guitar gear and production tools, and global distribution channels, supports recurring demand and reduces single-market dependency, underpinning durable top-line stability.
Gross profit resilience
Relatively steady gross profit indicates product economics remain intact despite cost pressures. That suggests Roland can preserve unit margins through pricing or sourcing, leaving operating-cost control as the lever to restore overall profitability when demand normalizes.
Negative Factors
Profitability compression
A sharp drop in net income signals weaker operating leverage and margin pressure that may persist. Lower profitability reduces retained earnings for reinvestment, constrains dividend/capital allocation choices, and raises the bar for management to restore prior return levels.
Rising leverage / reduced equity buffer
Higher debt and a smaller equity buffer shrink financial flexibility, increasing vulnerability to earnings shocks. Elevated leverage raises interest and refinancing risk, which can constrain strategic investments or require slower payout policies if cash generation weakens.
Declining free cash flow trend
A downward trend in free cash flow limits the company’s capacity to fund growth, service debt, and sustain shareholder returns without higher leverage. Historical volatility (including negative FCF years) indicates cash generation is not yet consistently resilient across cycles.

Roland Corporation (7944) vs. iShares MSCI Japan ETF (EWJ)

Roland Corporation Business Overview & Revenue Model

Company DescriptionRoland 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 MoneyRoland 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
Financials are stable but pressured: long-run revenue growth is meaningful, yet recent momentum cooled and 2025 net income fell sharply versus 2021–2023. Cash generation remains a relative strength with solid operating cash flow and positive free cash flow, but free cash flow has been trending down and leverage has risen with a reduced equity buffer.
Income Statement
63
Positive
Revenue has grown meaningfully over the long run (2020–2025), but momentum has cooled recently (2024 decline followed by low-single-digit growth in 2025). Profitability has compressed versus prior years: net income fell sharply in 2025 and is well below 2021–2023 levels, while EBIT/EBITDA also stepped down from the 2022–2023 peak. Offsetting this, gross profit has remained relatively resilient in yen terms, suggesting cost pressure is more pronounced below the gross line (operating costs/other items) rather than a collapse in product economics.
Balance Sheet
62
Positive
Leverage looks manageable overall, but has trended higher: total debt increased in 2025 and equity declined versus 2024, reducing balance-sheet cushion. Total assets are broadly stable to slightly up, and historical returns on equity were solid in 2022–2024, supporting the view the business can generate attractive profitability in stronger years. The key risk is reduced equity buffer alongside higher debt, which can limit flexibility if earnings remain pressured.
Cash Flow
68
Positive
Cash generation is a relative strength: operating cash flow is solid and improved in 2025 versus 2024, and free cash flow remains meaningfully positive. However, free cash flow has been declining recently (notably in 2024 and 2025), and the company has shown volatility in prior years (a weak 2022 with negative free cash flow). Overall, current cash flow supports resilience, but the downward trend in free cash flow warrants monitoring.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue100.95B99.43B102.44B95.84B80.03B
Gross Profit42.65B42.57B43.93B39.36B36.14B
EBITDA12.39B11.83B14.05B12.83B11.88B
Net Income2.17B5.98B8.15B8.94B8.59B
Balance Sheet
Total Assets83.48B81.59B80.97B77.06B52.81B
Cash, Cash Equivalents and Short-Term Investments15.88B14.48B12.88B10.51B8.78B
Total Debt24.04B20.44B25.30B28.65B7.87B
Total Liabilities42.11B34.91B40.86B43.31B24.15B
Stockholders Equity41.08B46.42B39.88B33.56B28.50B
Cash Flow
Free Cash Flow7.73B9.18B11.94B-587.00M3.62B
Operating Cash Flow13.70B11.72B15.43B793.00M4.93B
Investing Cash Flow-6.44B-1.19B-3.58B-11.35B-803.00M
Financing Cash Flow-7.42B-9.66B-8.67B12.88B-6.07B

Roland Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3570.00
Price Trends
50DMA
3788.97
Positive
100DMA
3576.71
Positive
200DMA
3362.82
Positive
Market Momentum
MACD
55.90
Positive
RSI
53.27
Neutral
STOCH
69.67
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 3570 is below the 20-day moving average (MA) of 3921.25, below the 50-day MA of 3788.97, and above the 200-day MA of 3362.82, indicating a bullish trend. The MACD of 55.90 indicates Positive momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 69.67 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥177.80B12.433.40%6.12%-3.75%
67
Neutral
¥574.96B27.913.68%2.35%-4.47%-4.52%
64
Neutral
¥32.80B15.163.63%2.20%2.39%
64
Neutral
¥25.87B25.113.56%-5.25%-4.95%
63
Neutral
¥105.51B49.394.78%-1.25%9.33%
63
Neutral
¥246.45B21.372.18%10.50%27.82%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7944
Roland Corporation
3,935.00
317.68
8.78%
JP:7951
Yamaha
1,193.00
115.27
10.70%
JP:6238
FURYU CORP.
1,179.00
196.58
20.01%
JP:7458
Daiichikosho Co., Ltd.
1,737.00
192.90
12.49%
JP:7867
Tomy Company, Ltd.
2,770.50
-785.81
-22.10%
JP:7952
Kawai Musical Instruments Manufacturing Co., Ltd.
2,888.00
-66.53
-2.25%

Roland Corporation Corporate Events

Roland to Reclassify ¥3.7 Billion in Legal Capital Surplus to Boost Capital Flexibility
Feb 13, 2026

Roland Corporation has approved a proposal to reduce its legal capital surplus by ¥3.663 billion, reallocating this amount to other capital surplus as part of a broader capital strategy. The move, to be submitted to shareholders at the March 26, 2026 annual meeting, is intended to increase funds available for shareholder returns and other capital measures.

The reclassification, conducted under Japan’s Corporate Law, does not change the company’s total net assets and is not expected to affect its financial results. By reshaping the structure of its equity rather than its overall size, Roland aims to enhance financial flexibility for future capital policies while maintaining balance sheet strength, a development of interest to investors monitoring its capital allocation approach.

The most recent analyst rating on (JP:7944) stock is a Buy with a Yen4382.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Roland Takes One-Off Hit on Drum Workshop Impairment Despite Solid Core Earnings
Feb 13, 2026

Roland Corporation reported that its net sales, operating profit and ordinary profit for the fiscal year ended December 31, 2025 were broadly in line with or slightly above earlier forecasts, but profit attributable to owners of parent fell sharply versus guidance due to one-off charges. While revenue reached about ¥101 billion and core profits remained solid, basic earnings per share dropped significantly compared with both forecasts and the prior year.

The company booked a ¥3.86 billion impairment loss on certain fixed assets at Drum Workshop, Inc., acquired in 2022, after reassessing future cash flows amid changing market conditions, including U.S. tariff impacts and slower-than-expected synergy realization. It also reversed ¥1.803 billion in deferred tax assets related to DW and, on a non-consolidated basis, recognized a ¥7.148 billion loss on valuation of DW shares, a charge that does not affect consolidated results, while indicating plans to revamp DW’s management and push for a turnaround to restore growth and synergies.

The most recent analyst rating on (JP:7944) stock is a Buy with a Yen4382.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Roland Profit Slumps in 2025 but Company Signals Strong Earnings Rebound for 2026
Feb 13, 2026

Roland Corporation reported a modest 1.5% rise in net sales to ¥100.95 billion for the year ended December 31, 2025, but operating profit slipped 5.4% and profit attributable to owners of parent plunged 63.7%, dragging basic earnings per share down to ¥81.69 and reducing the equity ratio to 49.2%. Despite the profit slump, the company maintained an annual dividend of ¥170 per share, implying a sharply higher payout ratio, and it projects fiscal 2026 net sales of ¥106.4 billion and profit attributable to owners of parent of ¥7.2 billion, signaling expectations of a strong earnings rebound that could reassure shareholders about future cash flows and capital returns.

Operating cash flow improved to ¥13.7 billion while investing cash outflows rose, and total assets edged up to ¥83.48 billion even as net assets declined, reflecting reduced retained earnings and share count changes. Management also flagged the application of new accounting standards and plans to hold an investor briefing, underscoring an effort to maintain transparency and engagement with institutional investors as it aims to restore profitability and strengthen its financial position in the coming year.

The most recent analyst rating on (JP:7944) stock is a Buy with a Yen4382.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Roland Sets Three-Year Plan to Boost Profits and Expand in Digital and Emerging Markets
Feb 13, 2026

Roland Corporation has unveiled a three-year mid-term management plan running from fiscal 2026 to 2028, targeting sales growth from JPY 100.9 billion in FY2025 to JPY 120 billion in FY2028 and a sharp increase in profit attributable to owners of the parent to JPY 10.2 billion. The strategy aims to lift ROE above 20% and ROIC above 18%, positioning the company for higher profitability as it moves beyond a recent risk-response phase.

Management is focusing on a vision of co-creating new musical cultures with next-generation users by accelerating initiatives around electronic and connected instruments. Key pillars include integrating connected hardware, Roland Retail, Roland Cloud, and a new Roland app, driving innovation in electronic instruments, and stepping up expansion in China, India, Latin America, and the Middle East to capture growing demand in emerging markets.

Roland also plans to harness advances in AI, IoT, and broader digitalization trends to enhance its products and services. By targeting a large pool of lapsed and potential players in developed markets while tapping rising GDP and expanding buyer bases in emerging economies, the company aims to strengthen its global footprint and long-term growth trajectory.

The most recent analyst rating on (JP:7944) stock is a Buy with a Yen4382.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Roland Revamps Board and Auditor Lineup to Bolster Governance
Feb 13, 2026

Roland Corporation has announced planned changes to its leadership structure, including the reappointment of CEO and Representative Director Masahiro Minowa and several incumbent directors, alongside the promotion of outside auditor Yoji Morizumi to outside director. Two outside directors will step down at the end of their terms, while attorney Shizuko Kamoda has been nominated as a new auditor, moves that refresh the board’s composition and strengthen governance with added financial and legal expertise.

These appointments, which remain subject to shareholder approval at the March 26, 2026 general meeting and a subsequent board session, are designed to maintain continuity in top management while enhancing oversight capabilities. By combining experienced internal leadership with independent experts in accounting and law, Roland signals a focus on robust corporate governance and risk management, which may bolster investor confidence and support its long‑term strategic execution.

The most recent analyst rating on (JP:7944) stock is a Buy with a Yen4382.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Roland Overhauls Stock Compensation to Tighten Link Between Executive Pay and Performance
Feb 13, 2026

Roland Corporation plans to partially revise its stock compensation structure for directors and entrusted corporate executive officers, increasing the maximum performance achievement coefficient to 250% and strengthening the performance-linked component of share-based pay. The company will also introduce a new share benefit trust for officers to deliver shares subject to continuous service, replacing its former trust scheme over time and tightening the link between executive rewards, share price, and long-term value creation.

The amended plan, which covers a three-year performance evaluation period aligned with Roland’s midterm business plan, combines performance share units for internal directors and executive officers with restricted share units for outside directors. Subject to shareholder approval at the March 26, 2026 general meeting, up to 80,000 shares per fiscal year may be issued or sourced from treasury stock, aiming to better align management and outside directors with shareholder interests and incentivize sustainable corporate value growth.

The most recent analyst rating on (JP:7944) stock is a Buy with a Yen4382.00 price target. To see the full list of analyst forecasts on Roland Corporation stock, see the JP:7944 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026