Rakuten Bank, Ltd. (JP:5838)
:5838
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Rakuten Bank, Ltd.
(5838)
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Rating:62Neutral
Price Target:
¥6,410.00
▼(-28.16% Downside)
Action:ReiteratedDate:03/06/26
The score is supported by solid financial performance (strong growth, profitability, and cash generation), but is held back by high leverage and notably weak technicals (price below major moving averages with bearish momentum). Valuation appears reasonable based on the P/E, though dividend yield data is unavailable.
Positive Factors
Sustained revenue growth and margins
Consistent top-line expansion combined with a high net margin indicates durable demand and disciplined cost management. Over 2-6 months this supports reinvestment, underwriting capacity for loans, and resilience to cyclical pressure in retail banking franchises.
Negative Factors
Very high leverage
Extremely elevated debt-to-equity raises structural risk for a bank: higher funding costs, sensitivity to rate moves, and narrower capital buffers versus shocks. Over months this can constrain lending, require capital raises, or increase regulatory scrutiny.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth and margins
Consistent top-line expansion combined with a high net margin indicates durable demand and disciplined cost management. Over 2-6 months this supports reinvestment, underwriting capacity for loans, and resilience to cyclical pressure in retail banking franchises.
Read all positive factors
Rakuten Bank, Ltd. (5838) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.05T
Dividend YieldN/A
Average Volume (3M)1.32M
Price to Earnings (P/E)15.8
Beta (1Y)0.98
Revenue Growth41.15%
EPS Growth54.73%
CountryJP
Employees1,056
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)109.52
Shares Outstanding174,499,180
10 Day Avg. Volume1,435,070
30 Day Avg. Volume1,322,350
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)3.71
Price to Sales (P/S)6.14
P/FCF Ratio17.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)473.81
Revenue Forecast (FY)¥230.17B
Rakuten Bank, Ltd. Business Overview & Revenue Model
Company Description
Rakuten Bank, Ltd. provides internet banking products and services in Japan. The company offers personal services, including payment, money support/easy bank transfer, prepaid cards, Yen/foreign currency deposits, remittance, loan services, lotter...
How the Company Makes Money
Rakuten Bank generates revenue through various channels, primarily from interest income on loans and fees associated with banking services. The bank offers personal and business loans, earning interest from borrowers. Additionally, it charges fees...
Rakuten Bank, Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
65
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 230.70B | 182.84B | 137.23B | 119.29B | 105.72B | 102.46B |
| Gross Profit | 184.00B | 151.72B | 123.64B | 111.23B | 100.49B | 98.25B |
| EBITDA | 97.13B | 71.52B | 53.40B | 43.28B | 27.91B | 27.21B |
| Net Income | 68.72B | 50.78B | 34.44B | 27.69B | 20.04B | 19.34B |
Balance Sheet | ||||||
| Total Assets | 16.89T | 14.75T | 13.48T | 11.59T | 9.49T | 6.49T |
| Cash, Cash Equivalents and Short-Term Investments | 4.92T | 4.24T | 4.79T | 4.05T | 3.65T | 2.68T |
| Total Debt | 2.90T | 2.76T | 2.58T | 2.31T | 2.25T | 1.02T |
| Total Liabilities | 16.52T | 14.43T | 13.20T | 11.36T | 9.28T | 6.30T |
| Stockholders Equity | 354.05B | 302.25B | 260.69B | 213.03B | 187.08B | 167.97B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 62.83B | -404.89B | -418.31B | -145.27B | -228.41B |
| Operating Cash Flow | 0.00 | 63.41B | -403.58B | -416.89B | -144.50B | -226.92B |
| Investing Cash Flow | 0.00 | -1.83T | -611.99B | -1.25T | -1.87T | -823.93B |
| Financing Cash Flow | 0.00 | 1.22T | 1.76T | 2.07T | 2.98T | 2.59T |
Rakuten Bank, Ltd. Technical Analysis
Negative
8922.00
Price Trends
6984.98
Negative
7033.89
Negative
7321.44
Negative
Market Momentum
-279.33
Negative
42.76
Neutral
42.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5838, the sentiment is Negative. The current price of 8922 is above the 20-day moving average (MA) of 6069.05, above the 50-day MA of 6984.98, and above the 200-day MA of 7321.44, indicating a bearish trend. The MACD of -279.33 indicates Negative momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 42.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | ¥1.95T | 3.01 | 20.02% | 2.63% | 23.96% | 179.16% | |
70 Neutral | ¥268.29B | -58.23 | ― | 3.66% | 3.30% | 79.42% | |
69 Neutral | ¥738.97B | 10.93 | 7.97% | 3.48% | 6.65% | -4.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ¥347.49B | 14.65 | 3.46% | 3.04% | 10.31% | -40.64% | |
62 Neutral | ¥1.05T | 15.78 | ― | ― | 41.15% | 54.73% | |
43 Neutral | ¥172.83B | 13.27 | 7.26% | 4.16% | 14.69% | -114.36% |
* Financial Sector Average
JP:5838
Rakuten Bank, Ltd.
6,009.00
1,396.00
30.26%
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Rakuten Bank, Ltd. Corporate Events
Rakuten Bank to Launch Expanded Shareholder Benefit Program for March 2026 Record Date
Feb 25, 2026
Rakuten Bank, Ltd. has announced a shareholder benefit program for investors holding at least 100 shares as of March 31, 2026, granting preferential terms on selected banking products in Japan. Eligible individual shareholders, excluding certain b...
Rakuten Bank to Boost Capital at Taiwanese Digital Banking Unit
Feb 25, 2026
Rakuten Bank will inject additional capital into its consolidated subsidiary, Rakuten International Commercial Bank in Taiwan, to strengthen the unit’s capital base and support operational expansion. The planned increase of TWD 1.4 billion, ...
Rakuten Bank Taps Veteran Lawyer as New Outside Director
Feb 25, 2026
Rakuten Bank has nominated prominent lawyer Satoshi Kawai as a new outside director, to be put to a shareholder vote at the 27th Annual General Shareholders’ Meeting scheduled for June 2026. The move follows the planned retirement of outside...
Rakuten Bank Lifts Earnings Outlook on Strong Nine-Month Profit Surge
Feb 9, 2026
Rakuten Bank reported strong growth for the nine months ended December 31, 2025, with ordinary income rising 39.1% year on year to ¥183.3 billion and profit attributable to owners of the parent climbing 50.9% to ¥53.1 billion. Total asse...
Rakuten Bank Raises Full-Year Earnings Forecast on Higher Interest Income and Efficiency Gains
Feb 9, 2026
Rakuten Bank has revised upward its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected performance. The bank now projects ordinary income of ¥254.4 billion and profit attributable to owners...
Rakuten Bank Issues Employee Stock Options to Strengthen Long-Term Incentives
Jan 26, 2026
Rakuten Bank’s board has approved the issuance of stock acquisition rights as stock options to 316 employees, covering up to 31,900 common shares, as part of a long-term incentive program tied to the bank’s share price. The options, wh...
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.