Rakuten Bank, Ltd. (5838) AI Stock Analysis

• Market Cap: ¥1.36T
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.19
• Revenue Growth: 38.03%
• EPS Growth: 52.11%
• Country: JP
• Employees: 1,056
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 96.48
• Shares Outstanding: 174,498,470
• 10 Day Avg. Volume: 1,435,070
• 30 Day Avg. Volume: 1,322,350
• PEG Ratio: 0.47
• Price to Book (P/B): 3.71
• Price to Sales (P/S): 7.28
• P/FCF Ratio: 17.87
• 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: ¥8,816.67
• Price Target Upside: 3.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: ¥8,836.00 ▲(4.14% Upside)

Rakuten Bank, Ltd. demonstrates strong financial performance with robust revenue and profit growth, although high leverage is a concern. The technical analysis indicates a positive trend, but the valuation suggests the stock may be overvalued. The absence of earnings call and corporate events data limits further insights.

Rakuten Bank, Ltd. Business Overview & Revenue Model

Company Description

Rakuten Bank, Ltd. (5838) is a leading online bank based in Japan, operating as a subsidiary of Rakuten Group, Inc. The bank primarily focuses on providing a wide range of financial services, including personal and business banking products, savings accounts, loans, credit cards, and investment services. Leveraging technology and digital innovation, Rakuten Bank aims to offer convenient and user-friendly banking solutions to its customers, catering to both individual and corporate clients in the rapidly evolving financial landscape.

How the Company Makes Money

Rakuten Bank generates revenue through multiple streams, primarily from interest income earned on loans issued to customers, which includes personal loans, mortgages, and business loans. Additionally, the bank earns income from service fees associated with various banking operations, such as account maintenance fees and transaction fees. Another significant revenue source comes from credit card operations, where the bank receives fees from merchants for processing card transactions. The bank also benefits from partnerships with other financial institutions and businesses within the Rakuten ecosystem, enhancing cross-selling opportunities and increasing customer engagement. Furthermore, Rakuten Bank may generate income from investment activities and asset management services, contributing to its overall profitability.

Rakuten Bank, Ltd. Financial Statement Overview

Summary

Rakuten Bank, Ltd. exhibits strong revenue and profit growth, supported by robust operational margins. However, the high leverage poses potential financial risks. The cash flow position is improving, with strong cash generation relative to income. The company is on a positive growth trajectory, but careful management of debt levels is crucial to sustain financial stability.

Income Statement

Rakuten Bank, Ltd. has shown a strong revenue growth rate of 12.62% in the latest period, indicating robust top-line expansion. The net profit margin is healthy at 27.64%, reflecting efficient cost management. However, the gross profit margin is not available, which limits a full assessment of cost efficiency. The EBIT and EBITDA margins are strong, suggesting good operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 9.13, indicating significant leverage, which could pose financial risks. However, the return on equity is solid at 16.80%, showing effective use of equity to generate profits. The equity ratio is not provided, limiting the assessment of asset financing.

Cash Flow

Rakuten Bank, Ltd. has demonstrated a remarkable free cash flow growth rate, although the exact figure is not calculable due to previous negative cash flows. The operating cash flow to net income ratio is strong at 1.44, indicating good cash generation relative to net income. The free cash flow to net income ratio is nearly 1, showing efficient conversion of income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	161.26B	150.68B	124.28B	112.38B	100.84B	99.11B
Gross Profit	161.26B	123.55B	93.42B	80.53B	66.13B	64.31B
EBITDA	84.46B	77.90B	53.40B	43.28B	27.50B	30.55B
Net Income	56.69B	50.78B	34.44B	27.69B	20.04B	19.34B
Balance Sheet
Total Assets	15.25T	14.75T	13.48T	11.59T	9.49T	6.49T
Cash, Cash Equivalents and Short-Term Investments	0.00	4.24T	4.79T	4.05T	3.65T	2.68T
Total Debt	2.93T	2.76T	2.58T	2.29T	1.61T	663.20B
Total Liabilities	14.91T	14.43T	13.20T	11.36T	9.28T	6.30T
Stockholders Equity	323.36B	302.25B	260.69B	213.03B	187.08B	167.97B
Cash Flow
Free Cash Flow	0.00	62.83B	-404.89B	586.89B	1.46T	1.50T
Operating Cash Flow	0.00	63.41B	-403.58B	594.70B	-144.50B	1.50T
Investing Cash Flow	0.00	-1.83T	-301.06B	-193.58B	-495.98B	37.55B
Financing Cash Flow	0.00	1.22T	1.46T	1.40T	2.98T	2.59T

Rakuten Bank, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8485.00
• 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 8485 is above the 20-day moving average (MA) of 8166.75, above the 50-day MA of 8082.74, and above the 200-day MA of 6677.52, indicating a bullish trend. The MACD of 119.57 indicates Negative momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 73.07 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
8473	―	$2.27T	8.79	20.02%	2.60%	23.96%	179.16%
8600	―	¥128.81B	7.92	―	3.22%	9.30%	2.14%
5831	―	¥1.10T	14.45	―	2.89%	-1.35%	24.12%
8410	―	¥276.30B	18.55	―	3.89%	4.01%	-42.81%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7163	―	―	―	―	―	23.73%	12.39%
5838	―	¥1.36T	23.94	―	―	38.03%	52.11%

Rakuten Bank, Ltd. Corporate Events

Rakuten Bank Introduces New Shareholder Benefit Program

Rakuten Bank, Ltd. has announced a shareholder benefit program for those holding 100 shares or more by the end of September 2025. The program includes various benefits such as enhanced interest rates on fixed-term deposits and cashback offers on loans, aimed at improving shareholder satisfaction and engagement.

The most recent analyst rating on (JP:5838) stock is a Hold with a Yen8050.00 price target. To see the full list of analyst forecasts on Rakuten Bank, Ltd. stock, see the JP:5838 Stock Forecast page.

Rakuten Bank Announces New Executive Structure

Rakuten Bank, Ltd. announced a new management structure following a Board of Directors meeting on August 25, 2025. The changes in executive positions, effective September 1, 2025, aim to streamline operations and enhance strategic planning across various divisions, potentially impacting the bank’s operational efficiency and market positioning.

The most recent analyst rating on (JP:5838) stock is a Hold with a Yen8050.00 price target. To see the full list of analyst forecasts on Rakuten Bank, Ltd. stock, see the JP:5838 Stock Forecast page.

Rakuten Bank Reports Strong Financial Growth in Q2 2025

Rakuten Bank, Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with a 40.8% rise in ordinary income and a 56.8% increase in ordinary profit compared to the previous year. The bank’s strong performance is indicative of its robust operational strategies and market positioning, with a notable improvement in profit attributable to owners, reflecting its effective management and growth trajectory.

The most recent analyst rating on (JP:5838) stock is a Hold with a Yen7340.00 price target. To see the full list of analyst forecasts on Rakuten Bank, Ltd. stock, see the JP:5838 Stock Forecast page.

Rakuten Bank Issues Stock Options to Align Employee and Shareholder Interests

Rakuten Bank, Ltd. has announced the issuance of stock acquisition rights (SARs) to its employees as a form of stock options. This initiative aims to align employees’ interests with shareholders by linking the value of SARs to the company’s stock price, thereby motivating employees to improve company performance and retain talent over the long term.

The most recent analyst rating on (JP:5838) stock is a Hold with a Yen7340.00 price target. To see the full list of analyst forecasts on Rakuten Bank, Ltd. stock, see the JP:5838 Stock Forecast page.