Rakuten Bank, Ltd. (5838) AI Stock Analysis

• Market Cap: ¥1.14T
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.02
• Revenue Growth: 27.16%
• EPS Growth: 34.93%
• Country: JP
• Employees: 1,056
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Diversified
• EPS (TTM): 89.40
• Shares Outstanding: 174,482,770
• 10 Day Avg. Volume: 2,501,540
• 30 Day Avg. Volume: 1,928,080
• PEG Ratio: 2.19
• Price to Book (P/B): 3.34
• 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: ¥7,860.00
• Price Target Upside: 20.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• 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. 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, lottery, account linking, foreign exchange, and asset management services. It also provides corporate services, such as business debit cards, ATM deposit, business loans, international remittance, payment, transfer, account verification, withdrawal, settlement, and deposits services. Rakuten Bank, Ltd. was incorporated in 2000 and is based in Tokyo, Japan. Rakuten Bank, Ltd. operates as a subsidiary of Rakuten Group, Inc.

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
136.93B	124.28B	80.53B	66.13B	64.31B
	Gross Profit
133.02B	93.42B	80.53B	66.13B	64.31B
	EBIT
91.06B	82.33B	39.98B	28.86B	27.68B
	EBITDA
19.73B	53.40B	43.28B	31.86B	30.55B
	Net Income Common Stockholders
44.54B	34.44B	27.69B	20.04B	19.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.20T	4.79T	4.05T	3.65T	2.68T
	Total Assets
15.38T	13.48T	11.59T	9.49T	6.49T
	Total Debt
2.69T	2.58T	2.29T	1.61T	663.20B
	Net Debt
-2.51T	-2.21T	-1.76T	-2.04T	-2.02T
	Total Liabilities
15.07T	13.20T	2.29T	1.61T	663.20B
	Stockholders Equity
292.79B	260.69B	213.03B	187.08B	167.97B
Cash Flow		Free Cash Flow
0.00	1.02T	586.89B	1.46T	1.50T
	Operating Cash Flow
0.00	1.03T	594.70B	1.46T	1.50T
	Investing Cash Flow
0.00	-301.06B	-193.58B	-495.98B	37.55B
	Financing Cash Flow
0.00	1.46T	1.40T	2.98T	2.59T

Rakuten Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6525.00
• 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 6525 is above the 20-day moving average (MA) of 6084.50, above the 50-day MA of 6046.74, and above the 200-day MA of 4504.35, indicating a bullish trend. The MACD of 236.08 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 64.09 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
5838	68 Neutral	¥1.14T	22.54		―	27.16%	34.93%
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%
SBHGF		$8.49B	7.84	12.69%	4.06%	―	―
7163	70 Outperform	¥495.98B	17.64		0.58%	―	―
5831	68 Neutral	¥899.64B	12.11		3.66%	-2.86%	34.66%
8410	62 Neutral	¥317.57B	17.34		4.09%	14.13%	-74.08%
8600		¥103.16B	6.60		3.04%	―	―

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.