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.

Yonex Co., Ltd.

Roland Corp.

GLOBERIDE, Inc.

Tomy Co., Ltd.

Mars Group Holdings Corp.

Yamaha Corp.

Alpen Co., Ltd.

Fujishoji Co., Ltd.

Snow Peak, Inc. (Japan)

Why is Roland Corp. ?

High Management Efficiency with a high ROCE of 28.87%

Company has very low debt and has enough cash to service the debt requirements

Flat results in Mar 26

INTEREST(HY) At JPY 141 MM has Grown at 83.12%
NET PROFIT(HY) At JPY 2,065.68 MM has Grown at -41.62%
ROCE(HY) Lowest at 4.46%

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 35.31%, its profits have fallen by -6%

Underperformed the market in the last 1 year

The stock has generated a return of 35.31% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

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.

35.31%

0.24

24.43%

Japan Nikkei 225

85.83%

3.09

27.80%

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)

1.58

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 14,731 MM

RAW MATERIAL COST(Y)

Fallen by 1.76% (YoY

CASH AND EQV(HY)

Highest at JPY 32,137 MM

DEBT-EQUITY RATIO (HY)

Lowest at 10.12 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.24 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.87 times

-14What is not working for the Company

INTEREST(HY)

At JPY 141 MM has Grown at 83.12%

NET PROFIT(HY)

At JPY 2,065.68 MM has Grown at -41.62%

ROCE(HY)

Lowest at 4.46%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,882.61

Here's what is working for Roland Corp.

Operating Cash Flow

Highest at JPY 14,731 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 32,137 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 10.12 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.76% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Roland Corp.

Interest

At JPY 141 MM has Grown at 83.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,882.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 2,065.68 MM has Grown at -41.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)