Rakuten Bank, Ltd. (JP:5838)
:5838
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Rakuten Bank, Ltd.
(5838)
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Rating:56Neutral
Price Target:
¥4,992.00
▼(-44.05% 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
High Profitability & Growth
Consistently high net margins (roughly 20–29%) combined with accelerating revenue growth (2026 ≈9.7% vs ≈0.3% prior) indicate durable earnings power. This supports reinvestment in digital services and fee businesses, sustaining profitability over the medium term.
Negative Factors
High Leverage
Material leverage (very high debt-to-equity) amplifies sensitivity to funding-cost shocks, interest-rate swings and credit deterioration. Elevated leverage constrains strategic flexibility, increases refinancing risk, and can magnify earnings volatility during adverse market conditions over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Growth
Consistently high net margins (roughly 20–29%) combined with accelerating revenue growth (2026 ≈9.7% vs ≈0.3% prior) indicate durable earnings power. This supports reinvestment in digital services and fee businesses, sustaining profitability over the medium term.
Read all positive factors
Rakuten Bank, Ltd. (5838) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥894.19B
Dividend YieldN/A
Average Volume (3M)1.32M
Price to Earnings (P/E)12.5
Beta (1Y)0.88
Revenue Growth38.64%
EPS Growth43.89%
CountryJP
Employees1,056
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)467.22
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 primarily makes money through banking income earned from (1) net interest income—earning interest and fees on loans and other interest-earning assets while paying interest on customer deposits and other funding, with profitability inf...
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
Negative
8922.00
Price Trends
5784.82
Negative
6340.02
Negative
6986.14
Negative
Market Momentum
-149.43
Negative
46.41
Neutral
69.60
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 4962.75, above the 50-day MA of 5784.82, and above the 200-day MA of 6986.14, indicating a neutral trend. The MACD of -149.43 indicates Negative momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 69.60 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 | ¥1.87T | 4.42 | 20.02% | 2.63% | 31.37% | 148.24% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | ¥702.78B | 8.79 | 7.97% | 3.48% | 6.29% | 147.90% | |
61 Neutral | ¥318.68B | 15.14 | 3.46% | 3.04% | 7.13% | 34.82% | |
58 Neutral | ¥270.05B | 24.06 | ― | 3.66% | 2.57% | -21.10% | |
56 Neutral | ¥894.19B | 12.53 | ― | ― | 38.64% | 43.89% | |
56 Neutral | ¥154.30B | 14.54 | 7.26% | 4.16% | 46.50% | ― |
* Financial Sector Average
JP:5838
Rakuten Bank, Ltd.
5,124.00
-1,775.00
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Rakuten Bank, Ltd. Corporate Events
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...
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...
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.