Roland Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nintendo Co., Ltd.

Bandai Namco Holdings, Inc.

Roland Corp.

GLOBERIDE, Inc.

Tomy Co., Ltd.

Mars Group Holdings Corp.

Yonex Co., Ltd.

Yamaha Corp.

Alpen Co., Ltd.

Fujishoji Co., Ltd.

Snow Peak, Inc. (Japan)

Why is Roland Corp. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 28.87%

Healthy long term growth as Operating profit has grown by an annual rate 5.76%
Company has very low debt and has enough cash to service the debt requirements

With ROCE of 19.58%, it has a very attractive valuation with a 2.33 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 28.77%, its profits have fallen by -6%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Roland Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Roland Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Roland Corp.

28.77%

0.15

22.76%

Japan Nikkei 225

66.43%

2.73

25.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.53%

EBIT Growth (5y)

5.76%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

1.57

Tax Ratio

22.48%

Dividend Payout Ratio

208.10%

Pledged Shares

Institutional Holding

ROCE (avg)

28.87%

ROE (avg)

23.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.56

EV to EBIT

11.90

EV to EBITDA

9.04

EV to Capital Employed

2.33

EV to Sales

1.11

PEG Ratio

Dividend Yield

ROCE (Latest)

19.58%

ROE (Latest)

14.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

CASH AND EQV(HY)

Highest at JPY 29,180 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.07 times

NET SALES(Q)

Highest at JPY 31,382 MM

PRE-TAX PROFIT(Q)

Highest at JPY 3,094 MM

-16What is not working for the Company

INTEREST(HY)

At JPY 145 MM has Grown at 88.31%

ROCE(HY)

Lowest at 4.96%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

NET PROFIT(Q)

Lowest at JPY 590 MM

EPS(Q)

Lowest at JPY -122.75

Here's what is working for Roland Corp.

Net Sales

At JPY 31,382 MM has Grown at 26.3%

over average net sales of the previous four periods of JPY 24,848 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 31,382 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 3,094 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 29,180 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.07 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 765 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Roland Corp.

Interest

At JPY 145 MM has Grown at 88.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 590 MM has Fallen at -66.17%

over average net sales of the previous four periods of JPY 1,744.16 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Profit

Lowest at JPY 590 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -122.75

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)