Rakuten Bank, Ltd. (5838) AI Stock Analysis

• Market Cap: ¥1.20T
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 1.09
• Revenue Growth: 27.16%
• EPS Growth: 34.93%
• Country: JP
• Employees: 1,056
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Diversified
• EPS (TTM): 89.40
• Shares Outstanding: 174,497,990
• 10 Day Avg. Volume: 1,283,620
• 30 Day Avg. Volume: 1,269,510
• PEG Ratio: 1.60
• Price to Book (P/B): 3.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥7,470.00
• Price Target Upside: 15.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: ―

Rakuten Bank's overall score reflects its strong financial performance and stability, which are somewhat offset by bearish technical indicators. The reasonable valuation provides support, but the absence of dividend yield and recent technical weakness suggest cautious optimism.

Rakuten Bank, Ltd. Business Overview & Revenue Model

Company Description

Rakuten Bank, Ltd. (5838) is a leading online financial institution in Japan, providing a wide range of banking services primarily through digital platforms. As a part of the Rakuten Group, the bank leverages technology to offer services such as savings accounts, loans, and payment solutions to both individual and corporate clients. With a focus on innovation and customer convenience, Rakuten Bank aims to enhance the digital banking experience while integrating seamlessly with Rakuten's extensive ecosystem of e-commerce and digital services.

How the Company Makes Money

Rakuten Bank, Ltd. generates revenue through various streams, primarily from net interest income, fees, and commissions. The bank earns interest income from loans and mortgages offered to individuals and businesses. Fee income is derived from transaction fees, account maintenance charges, and other service fees related to its banking products. Additionally, Rakuten Bank benefits from cross-selling opportunities within the Rakuten ecosystem, where it can offer financial products to users of Rakuten's e-commerce and digital services platforms. Strategic partnerships and collaborations with other financial and tech firms also contribute to its earnings, enhancing its product offerings and market reach.

Rakuten Bank, Ltd. Financial Statement Overview

Summary

Rakuten Bank exhibits strong financial performance with robust revenue and profitability growth, stable leverage, and solid cash generation. However, inconsistencies in cash flow reporting slightly dampen the overall assessment.

Income Statement

Rakuten Bank demonstrates robust revenue growth, with total revenue increasing from 66.13 trillion to 136.93 trillion yen over the analyzed period, showcasing a strong upward trajectory. The gross profit margin remains high, reflecting effective cost management. The net profit margin also shows improvement, indicating enhanced profitability. Both EBIT and EBITDA margins are strong, highlighting operational efficiency and solid earnings before interest and taxes. Overall, the income statement reflects an impressive growth trajectory and profitability.

Balance Sheet

The balance sheet indicates a solid financial position with a low debt-to-equity ratio, reflecting prudent financial leverage. The equity ratio is stable, indicating a good proportion of equity financing relative to total assets. Return on equity is strong, showcasing effective use of shareholder funds to generate profit. Despite the high total liabilities, the strong cash position suggests good liquidity management. The balance sheet reflects financial stability with well-managed leverage and strong equity.

Cash Flow

Operating cash flow shows strong performance, but the absence of reported cash flows in the latest TTM period raises some concerns about reporting consistency. Historical free cash flow growth was significant, showing strong cash generation capacity. The high free cash flow to net income ratio underscores the ability to convert net income into cash. However, the current lack of data on cash flows limits complete analysis. Overall, the cash flow statement indicates strong past performance but needs consistent data reporting.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	183.69B	124.28B	80.53B	66.13B	64.31B
Gross Profit	0.00	93.42B	80.53B	66.13B	64.31B
EBITDA	73.19B	53.40B	43.28B	31.86B	30.55B
Net Income	50.78B	34.44B	27.69B	20.04B	19.34B
Balance Sheet
Total Assets	14.75T	13.48T	11.59T	9.49T	6.49T
Cash, Cash Equivalents and Short-Term Investments	0.00	4.79T	4.05T	3.65T	2.68T
Total Debt	2.76T	2.58T	2.29T	1.61T	663.20B
Total Liabilities	14.43T	13.20T	2.29T	1.61T	663.20B
Stockholders Equity	302.25B	260.69B	213.03B	187.08B	167.97B
Cash Flow
Free Cash Flow	62.83B	1.02T	586.89B	1.46T	1.50T
Operating Cash Flow	63.41B	1.03T	594.70B	1.46T	1.50T
Investing Cash Flow	-1.81T	-301.06B	-193.58B	-495.98B	37.55B
Financing Cash Flow	1.20T	1.46T	1.40T	2.98T	2.59T

Rakuten Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6469.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5838, the sentiment is Positive. The current price of 6469 is below the 20-day moving average (MA) of 6577.40, below the 50-day MA of 6880.62, and above the 200-day MA of 5293.03, indicating a bullish trend. The MACD of -21.66 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 63.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5838.

Rakuten Bank, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8604	78 Outperform	¥2.90T	8.85	9.88%	3.74%	13.94%	109.60%
8411	76 Outperform	¥11.04T	12.56	8.45%	2.78%	7.33%	30.52%
8306	75 Outperform	¥23.73T	13.11	9.18%	3.05%	10.98%	28.45%
8410	70 Neutral	¥319.57B	17.45		4.05%	8.66%	-42.80%
5838	68 Neutral	¥1.20T	23.67		―	27.16%	34.93%
Sector *	68 Neutral	$17.10B	11.62	9.70%	3.86%	11.32%	-7.37%
8308	66 Neutral	$3.19T	14.98	7.67%	1.70%	18.56%	44.11%

Rakuten Bank, Ltd. Corporate Events

Rakuten Bank Announces Shareholder Benefit Program for March 2025

Rakuten Bank, Ltd. has announced a shareholder benefit program for those holding 100 shares or more as of March 31, 2025. The program offers various financial incentives, such as increased interest rates on deposits and cashbacks on loans, aimed at enhancing shareholder value and engagement. This initiative reflects the company’s strategy to strengthen its market position and foster loyalty among its stakeholders.

Rakuten Bank Reports Strong Financial Growth for 2024

Rakuten Bank, Ltd. reported consolidated financial results for the nine months ending December 31, 2024, showing significant growth with a 30.3% increase in ordinary income and a 40.4% rise in ordinary profit compared to the previous year. This performance highlights the bank’s strong position in the industry and its successful strategies, which may positively impact its stakeholders and market presence.

Rakuten Bank Upgrades Financial Forecasts Amid Growth

Rakuten Bank, Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2025, due to increased interest income and improved management efficiency. The bank anticipates higher ordinary income and profit, reflecting a positive shift in its financial performance and promising implications for stakeholders.