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Rakuten Bank, Ltd.
(5838)
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Rating:56Neutral
Price Target:
¥5,974.00
▼(-33.04% Downside)
Action:Reiterated
Date:05/23/26
The score is held back most by weak technicals (price below all major moving averages with negative MACD) and mixed financial quality (high leverage and historically volatile cash flow), despite strong profitability trends and a reasonable P/E valuation.
Positive Factors
Rakuten ecosystem integration
Integration with the Rakuten Group delivers a durable customer acquisition and engagement advantage. Lower acquisition costs and embedded cross‑sell to a large ecosystem support deposit growth, transaction volumes and loan origination, strengthening long‑term net interest and fee income.
Negative Factors
Very high leverage
Debt‑to‑equity at multiples well above typical bank norms creates structural sensitivity to funding costs and market stress. High leverage constrains strategic flexibility, magnifies earnings volatility from funding spreads and raises reliance on stable deposit funding long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Rakuten ecosystem integration
Integration with the Rakuten Group delivers a durable customer acquisition and engagement advantage. Lower acquisition costs and embedded cross‑sell to a large ecosystem support deposit growth, transaction volumes and loan origination, strengthening long‑term net interest and fee income.
Read all positive factors
Rakuten Bank, Ltd. (5838) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.01T
Dividend YieldN/A
Average Volume (3M)1.32M
Price to Earnings (P/E)13.6
Beta (1Y)0.90
Revenue Growth38.64%
EPS Growth43.89%
CountryJP
Employees1,186
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)418.76
Shares Outstanding174,509,480
10 Day Avg. Volume1,435,070
30 Day Avg. Volume1,322,350
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)2.65
Price to Sales (P/S)3.89
P/FCF Ratio18.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,330.00Price Target Upside-29.05% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)480.39
Revenue Forecast (FY)¥201.81B
Rakuten Bank, Ltd. Business Overview & Revenue Model
Company Description
Operating in Japan, Rakuten Bank, Ltd. delivers a comprehensive suite of online banking solutions. For individual clients, its offerings encompass diverse financial tools such as payment processing, convenient money transfers, prepaid cards, both ...
How the Company Makes Money
Rakuten Bank makes money mainly through (1) net interest income and (2) fee-based income typical of a retail bank operating largely online.
1) Net interest income (core earnings)
- The bank gathers funding primarily from customer deposits (e.g., ...
Rakuten Bank, Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 252.97B | 182.84B | 137.23B | 119.29B | 105.72B |
| Gross Profit | 193.79B | 151.72B | 123.64B | 111.23B | 100.49B |
| EBITDA | 110.99B | 71.52B | 53.40B | 43.28B | 27.91B |
| Net Income | 73.07B | 50.78B | 34.44B | 27.69B | 20.04B |
Balance Sheet | |||||
| Total Assets | 16.59T | 14.75T | 13.48T | 11.59T | 9.49T |
| Cash, Cash Equivalents and Short-Term Investments | 4.14T | 4.24T | 4.79T | 4.05T | 3.65T |
| Total Debt | 2.82T | 2.76T | 2.58T | 2.31T | 2.25T |
| Total Liabilities | 16.20T | 14.43T | 13.20T | 11.36T | 9.28T |
| Stockholders Equity | 372.07B | 302.25B | 260.69B | 213.03B | 187.08B |
Cash Flow | |||||
| Free Cash Flow | 52.56B | 62.83B | -404.89B | -418.31B | -145.27B |
| Operating Cash Flow | 54.05B | 63.41B | -403.58B | -416.89B | -144.50B |
| Investing Cash Flow | -1.80T | -1.83T | -611.99B | -1.25T | -1.87T |
| Financing Cash Flow | 1.64T | 1.22T | 1.76T | 2.07T | 2.98T |
Rakuten Bank, Ltd. Technical Analysis
Neutral
8922.00
Price Trends
5394.04
Positive
5935.82
Negative
6747.95
Negative
Market Momentum
137.32
Negative
58.95
Neutral
75.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5838, the sentiment is Neutral. The current price of 8922 is above the 20-day moving average (MA) of 5361.30, above the 50-day MA of 5394.04, and above the 200-day MA of 6747.95, indicating a neutral trend. The MACD of 137.32 indicates Negative momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 75.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5838.
Rakuten Bank, Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥1.86T | 4.29 | 20.02% | 2.63% | 23.87% | 148.64% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | ¥758.24B | 9.59 | 7.97% | 3.48% | 6.29% | 147.90% | |
61 Neutral | ¥335.51B | 13.09 | 3.46% | 3.04% | 8.42% | 84.66% | |
58 Neutral | ¥294.65B | 24.58 | ― | 3.66% | 2.57% | -21.10% | |
56 Neutral | ¥1.01T | 13.57 | ― | ― | 38.64% | 43.89% | |
56 Neutral | ¥183.35B | 17.48 | 7.26% | 4.16% | 17.45% | ― |
* Financial Sector Average
JP:5838
Rakuten Bank, Ltd.
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Rakuten Bank, Ltd. Corporate Events
Rakuten Bank weighs reduction of share investment unit to boost liquidity
Jun 24, 2026
Rakuten Bank has outlined its stance on potentially reducing the minimum investment unit for its shares, framing the move as an important tool to improve share liquidity and broaden its investor base. The bank signaled that it sees a smaller tradi...
Rakuten Bank Outlines Parent-Group Ties and Governance Safeguards
Jun 24, 2026
Rakuten Bank has detailed its relationship with parent company Rakuten Group, which holds 49.27% of its voting rights and licenses the Rakuten brand for the bank’s use. As part of the wider Rakuten Ecosystem, the bank benefits from access to...
Rakuten Bank Updates FAQ on FinTech Reorganization to Clarify Class A Shares and EPS Outlook
Jun 9, 2026
Rakuten Bank has released an updated version of its responses to frequently asked questions regarding the Rakuten Group’s FinTech business reorganization. The revised material adds clarifications on the structure and features of the Class A ...
Rakuten Bank Issues Clarifications on Fintech Reorganization and Securities Disclosure
May 29, 2026
Rakuten Bank has issued supplementary explanatory material addressing frequently asked questions regarding its planned fintech reorganization. The document is positioned as corporate information only and emphasizes that it is not a solicitation to...
Rakuten Bank Grants New Stock Options to Executives to Boost Long-Term Performance
May 20, 2026
Rakuten Bank has approved the issuance of stock acquisition rights as stock options to one director, 16 executive officers and directors of its subsidiaries, covering up to 173 units tied to 17,300 common shares. The program introduces two types o...
Rakuten Bank Overhauls Board and Executive Lineup Ahead of June Shareholders’ Meeting
May 20, 2026
Rakuten Bank has announced a slate of changes to its executive structure, with its board approving new director and Audit Supervisory Board member candidates ahead of the 27th Annual General Shareholders’ Meeting on June 24, 2026. The reshu...
Rakuten Discloses Cautious Update on Fintech Business Reorganization
May 20, 2026
Rakuten Group, Inc. and Rakuten Bank, Ltd. have released supplemental material concerning a reorganization of the Group’s fintech business, framed primarily as a disclosure document rather than a transactional announcement. The material emph...
Rakuten Bank to Amend Articles for Class A Non-Voting Shares in Fintech Reorganization
May 20, 2026
Rakuten Bank plans to amend its Articles of Incorporation to introduce Class A non-voting shares as part of a broader reorganization of Rakuten Group’s fintech operations. The bank will propose these changes at its 27th annual shareholders&#...
Mizuho Bank and Rakuten Bank Forge Strategic Alliance to Build New Credit Model
May 20, 2026
Mizuho Bank and Rakuten Bank have agreed a strategic capital and business alliance designed to create a new credit creation model by linking a megabank’s corporate lending capabilities with a digital bank’s retail deposit base. The mov...
Rakuten Bank to Lead Reorganized FinTech Arm as Parent of Card and Securities Units
May 20, 2026
Rakuten Group and Rakuten Bank have agreed an integrated reorganization of the group’s FinTech operations, with Rakuten Bank to become the parent of Rakuten Card and Rakuten Securities Holdings via share deliveries. The move, subject to shar...
Rakuten Bank Denies Making Any Decision on Reported Mizuho Investment
May 17, 2026
Rakuten Bank has issued a clarification following a newspaper report that Mizuho Financial Group plans to invest in the online lender. The bank stated that this information did not originate from the company and should not be treated as an officia...
Rakuten Bank Delivers Strong 2026 Earnings and Projects Continued Growth
May 12, 2026
Rakuten Bank reported strong consolidated results for the fiscal year ended March 31, 2026, with ordinary income rising 38.4% to ¥255.6 billion and profit attributable to owners of the parent climbing 43.9% to ¥73.1 billion, reflecting i...
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.