Rakuten Inc (JP:4755)
:4755
Want to see JP:4755 full AI Analyst Report?
Top Page
Rakuten
(4755)
Select Model
Select Model
Rating:46Neutral
Price Target:
¥745.00
▼(-3.65% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by persistent net losses and very high leverage despite improving EBIT and solid recent cash flow. Technicals add pressure with the stock trading below major moving averages and negative MACD, while valuation is constrained by the negative P/E and lack of dividend yield data.
Positive Factors
Diversified ecosystem & loyalty program
Rakuten’s multi-segment ecosystem—commerce, fintech, digital content and mobile—plus the Rakuten Points loyalty program drives cross-selling and repeat engagement. Structurally this raises customer lifetime value, lowers marginal acquisition costs, and stabilizes transaction volumes across cycles.
Negative Factors
Very high leverage
Debt-to-equity above 5x creates material balance-sheet risk. High leverage increases interest expense sensitivity, limits strategic flexibility for M&A or capex, raises refinancing and covenant risk, and reduces resilience to revenue or margin shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified ecosystem & loyalty program
Rakuten’s multi-segment ecosystem—commerce, fintech, digital content and mobile—plus the Rakuten Points loyalty program drives cross-selling and repeat engagement. Structurally this raises customer lifetime value, lowers marginal acquisition costs, and stabilizes transaction volumes across cycles.
Read all positive factors
Rakuten (4755) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.64T
Dividend YieldN/A
Average Volume (3M)12.39M
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth10.70%
EPS Growth36.82%
CountryJP
Employees29,334
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-56.78
Shares Outstanding2,174,516,000
10 Day Avg. Volume10,950,400
30 Day Avg. Volume12,385,006
Financial Highlights & Ratios
PEG Ratio-1.39
Price to Book (P/B)2.19
Price to Sales (P/S)0.87
P/FCF Ratio7.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥910.00Price Target Upside17.69% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-11.47
Revenue Forecast (FY)¥2.73T
Rakuten Business Overview & Revenue Model
Company Description
Rakuten Group, Inc. offers internet services in Japan and internationally. It operates through three segments: Internet Services, FinTech, and Mobile segments. The Internet Services segment operates Rakuten Ichiba, an internet shopping mall; Rakut...
How the Company Makes Money
Rakuten makes money through multiple business segments that reinforce each other via its membership base and Rakuten Points loyalty program.
1) Internet Services (Commerce & digital services)
- Marketplace and commerce fees: Rakuten earns revenue...
Rakuten Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The earnings call reflects strong growth in revenue and EBITDA, driven by improvements across several segments, particularly in Mobile and FinTech. The launch of Rakuten AI and advancements in AI initiatives showcase the company's innovation. However, challenges remain with valuation losses in the Internet Services segment, financial issues related to taxation, and a reported net loss, balancing the positive aspects with notable concerns.Positive Updates
Record Growth in Revenue and EBITDA
Consolidated revenue increased by 11% YoY to JPY596.4 billion, and consolidated EBITDA increased significantly by 54.5% YoY, reaching JPY103.2 billion, marking the highest amount ever recorded for a Q2.
Negative Updates
Valuation Losses in Internet Services Segment
Non-GAAP operating income in the Internet Services segment declined by 10.5% YoY due to valuation losses on securities held in the minority investment business.
Read all updates
Q2-2025 Updates
Positive
Negative
Record Growth in Revenue and EBITDA
Consolidated revenue increased by 11% YoY to JPY596.4 billion, and consolidated EBITDA increased significantly by 54.5% YoY, reaching JPY103.2 billion, marking the highest amount ever recorded for a Q2.
Read all positive updates
Company Guidance
In the Q2 2025 call, Rakuten Group reported significant financial and operational progress across various segments. Rakuten Mobile achieved a stand-alone EBITDA of JPY5.6 billion, improving by JPY19.1 billion YoY, with a subscriber base reaching 9.08 million. The Group's consolidated revenue grew by 11% YoY to JPY596.4 billion, with notable contributions from the Internet Services, FinTech, and Mobile segments, which saw revenue increases of 6.8%, 14.8%, and 18.1%, respectively. Consolidated non-GAAP operating income rose by JPY31.9 billion YoY to JPY20.1 billion, marking the first Q2 profit since FY2019. Additionally, Rakuten launched its Rakuten AI and Agentic AI platform, enhancing user experience with personalized search and AI-driven advertising optimizations. The FinTech segment saw a 10.2% YoY increase in Rakuten Card shopping GTV to JPY6.5 trillion, while Rakuten Bank's accounts surpassed 17 million, reflecting robust growth in the customer base. The Mobile segment's revenue surged by 33.5% YoY to JPY90.6 billion, with improvements in network quality and innovative packages like the Rakuten Saikyo U-Next package. The call also highlighted Rakuten's issuance of sustainability bonds as part of its financial strategy to ensure medium-term stability and growth.Rakuten Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
28
Negative
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.58T | 2.50T | 2.28T | 2.07T | 1.92T | 1.68T |
| Gross Profit | 136.78B | 97.41B | 948.08B | 790.31B | 585.31B | 542.63B |
| EBITDA | 448.73B | 417.88B | 306.69B | 150.77B | -58.35B | -87.31B |
| Net Income | -123.06B | -177.89B | -162.44B | -339.47B | -377.22B | -133.83B |
Balance Sheet | ||||||
| Total Assets | 29.31T | 28.80T | 26.51T | 22.63T | 20.40T | 16.83T |
| Cash, Cash Equivalents and Short-Term Investments | 5.04T | 5.84T | 6.33T | 5.24T | 4.79T | 4.48T |
| Total Debt | 5.65T | 5.57T | 5.51T | 4.86T | 4.89T | 3.75T |
| Total Liabilities | 28.04T | 27.45T | 25.28T | 21.54T | 19.55T | 15.71T |
| Stockholders Equity | 901.13B | 992.40B | 927.87B | 836.57B | 791.35B | 1.09T |
Cash Flow | ||||||
| Free Cash Flow | 525.56B | 277.83B | 1.04T | 493.47B | -584.07B | 295.85B |
| Operating Cash Flow | 596.65B | 343.50B | 1.13T | 687.30B | -285.40B | 582.71B |
| Investing Cash Flow | -720.21B | -779.81B | -920.42B | -584.09B | -944.93B | -611.83B |
| Financing Cash Flow | 231.34B | 94.72B | 819.49B | 315.52B | 1.51T | 1.40T |
Rakuten Technical Analysis
Negative
773.20
Price Trends
768.68
Negative
844.86
Negative
888.08
Negative
Market Momentum
-4.73
Positive
44.82
Neutral
32.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4755, the sentiment is Negative. The current price of 773.2 is above the 20-day moving average (MA) of 766.78, above the 50-day MA of 768.68, and below the 200-day MA of 888.08, indicating a bearish trend. The MACD of -4.73 indicates Positive momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 32.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4755.
Rakuten Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥880.07B | 22.31 | 49.14% | 2.82% | 7.15% | 6.34% | |
66 Neutral | ¥298.20B | 11.66 | 11.17% | 2.61% | 5.12% | 12.69% | |
66 Neutral | ¥696.00B | 17.13 | 31.11% | ― | 13.25% | 104.75% | |
63 Neutral | ¥1.44T | 15.94 | 9.29% | 1.11% | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | ¥501.71B | 23.87 | 4.18% | 2.57% | 3.85% | -43.62% | |
46 Neutral | ¥1.64T | -21.05 | -21.14% | ― | 10.70% | 36.82% |
* Consumer Cyclical Sector Average
JP:4755
Rakuten
750.60
-44.10
-5.55%
JP:3048
BIC Cameras
1,720.00
270.32
18.65%
JP:4385
Mercari
4,066.00
1,692.00
71.27%
JP:9843
Nitori Holdings Co
2,490.00
-418.89
-14.40%
JP:3092
ZOZO
1,003.50
-514.53
-33.89%
JP:9831
Yamada Denki Co
611.50
192.63
45.99%
Rakuten Corporate Events
Rakuten swings to operating profit on higher revenue but remains in net loss with thin equity base
May 14, 2026
Rakuten Group reported strong top-line growth for the first quarter of 2026, with revenue rising 14.4% year on year to ¥643.6 billion and EBITDA climbing 36.2%, while swinging to an operating profit of ¥30.4 billion from a loss a year ea...
Rakuten Securities Earnings Surge, Boosting Rakuten Group’s Financial Arm
Apr 28, 2026
Rakuten Securities, a consolidated subsidiary of Rakuten Group, reported strong growth for the quarter ended March 31, 2026, with operating revenue rising to ¥50.3 billion and net income more than doubling to ¥7.8 billion from the prior-...
Rakuten Grants Long-Term Retirement Stock Options to Senior Executives
Apr 15, 2026
Rakuten Group has approved the issuance of 5,423 share acquisition rights, equivalent to up to 542,300 common shares, as retirement compensation to two directors who also serve as executive officers. The options, exercisable only within 10 days af...
Rakuten Rolls Out Broad Stock Option Plan to Align Staff With Shareholders
Apr 15, 2026
Rakuten Group has approved the issuance of new share acquisition rights as stock options to five company directors and 6,168 employees at its subsidiaries, covering up to 15,149,800 common shares. These options, issued without cash payment and exe...
Rakuten’s Operating Profit Surges in FY2025 but One-Off Losses Drive Net Result into Red
Feb 25, 2026
Rakuten Group reported a sharp rise in non-consolidated operating income for fiscal 2025, with profit from core operations jumping more than fourfold to ¥70.0 billion on the back of steady domestic e-commerce growth and stable selling, genera...
Rakuten Overhauls Board as CFO Steps Down and New Directors Join
Feb 25, 2026
Rakuten Group announced a board reshuffle effective March 27, 2026, centered on the resignation of Director and Group CFO Kenji Hirose, who will retire from his executive roles and become an Executive Fellow. The company plans to appoint Group Exe...
Rakuten Revives FinTech Reorganization Talks With Rakuten Bank Amid Intensifying Competition
Feb 25, 2026
Rakuten Group and its listed subsidiary Rakuten Bank have agreed to restart talks on reorganizing Rakuten’s FinTech business and have signed a new memorandum of understanding after previously launching and then discontinuing similar discussi...
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.