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Rakuten Bank, Ltd.
(5838)
Select Model
Select Model
Rating:66Neutral
Price Target:
¥7,191.00
▼(-19.40% Downside)
Action:Reiterated
Date:08/19/26
The score is primarily supported by strong profitability and improving growth, plus a constructive technical backdrop (price above key moving averages and positive MACD). The main constraint is risk from very high leverage and historically volatile cash-flow generation, while valuation looks reasonable at ~14x earnings but lacks dividend support due to missing yield data.
Positive Factors
Strong Profitability
Persistently high net margins and expanding operating profitability indicate strong earnings power in the core banking model. This provides internal capacity to build capital, invest in digital services, and withstand moderate operating volatility over the next several quarters.
Negative Factors
High Leverage
Very high leverage leaves the bank more sensitive to funding costs, credit losses, and market shocks. Even with improving equity, the capital structure can constrain financial flexibility and amplify the effect of adverse changes in asset quality or financing conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Persistently high net margins and expanding operating profitability indicate strong earnings power in the core banking model. This provides internal capacity to build capital, invest in digital services, and withstand moderate operating volatility over the next several quarters.
Read all positive factors
Rakuten Bank, Ltd. (5838) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.02T
Dividend YieldN/A
Average Volume (3M)924.87K
Price to Earnings (P/E)13.3
Beta (1Y)1.03
Revenue Growth37.55%
EPS Growth36.16%
CountryJP
Employees1,186
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)442.42
Shares Outstanding174,515,780
10 Day Avg. Volume1,056,480
30 Day Avg. Volume924,870
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)417.95
Revenue Forecast (FY)¥205.09B
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 | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 267.76B | 252.97B | 182.84B | 137.23B | 119.29B | 105.72B |
| Gross Profit | 204.31B | 193.79B | 151.72B | 123.64B | 111.23B | 100.49B |
| EBITDA | 109.36B | 110.99B | 71.52B | 53.40B | 43.25B | 27.91B |
| Net Income | 77.20B | 73.07B | 50.78B | 34.44B | 27.69B | 20.04B |
Balance Sheet | ||||||
| Total Assets | 16.49T | 16.59T | 14.75T | 13.48T | 11.59T | 9.49T |
| Cash, Cash Equivalents and Short-Term Investments | 3.76T | 4.14T | 4.24T | 4.79T | 4.05T | 3.65T |
| Total Debt | 2.27T | 2.82T | 2.76T | 2.58T | 2.31T | 2.25T |
| Total Liabilities | 16.07T | 16.20T | 14.43T | 13.20T | 11.36T | 9.28T |
| Stockholders Equity | 393.62B | 372.07B | 302.25B | 260.69B | 213.03B | 187.08B |
Cash Flow | ||||||
| Free Cash Flow | 52.56B | 52.56B | 62.83B | -404.89B | -418.31B | -145.27B |
| Operating Cash Flow | 54.05B | 54.05B | 63.41B | -403.58B | -416.89B | -144.50B |
| Investing Cash Flow | -1.80T | -1.80T | -1.83T | -611.99B | -1.25T | -1.87T |
| Financing Cash Flow | 1.64T | 1.64T | 1.22T | 1.76T | 2.07T | 2.98T |
Rakuten Bank, Ltd. Technical Analysis
Negative
8922.00
Price Trends
6230.06
Negative
5779.57
Negative
6196.61
Negative
Market Momentum
-121.40
Positive
41.54
Neutral
14.39
Positive
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 6098.85, above the 50-day MA of 6230.06, and above the 200-day MA of 6196.61, indicating a bearish trend. The MACD of -121.40 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 14.39 is Positive, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥1.91T | 3.84 | 28.41% | 3.64% | 23.11% | 103.05% | |
68 Neutral | ¥687.74B | 10.60 | 9.18% | 4.98% | 6.57% | 22.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ¥1.02T | 13.27 | ― | ― | 37.55% | 36.16% | |
65 Neutral | ¥328.22B | 23.28 | ― | 3.28% | 3.36% | -6.47% | |
64 Neutral | ¥313.71B | 13.96 | 4.80% | 3.65% | 8.37% | 58.03% | |
55 Neutral | ¥157.55B | 14.42 | 8.82% | 4.88% | 16.13% | ― |
* Financial Sector Average
JP:5838
Rakuten Bank, Ltd.
5,858.00
-2,446.00
-29.46%
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Rakuten Bank, Ltd. Corporate Events
Rakuten Bank to Launch Enhanced Shareholder Benefit Program Tied to Core Retail Services
Aug 24, 2026
Rakuten Bank has approved a new shareholder benefit program for investors holding at least 100 shares as of September 30, 2026, designed to enhance returns for individual shareholders who also use the bank’s services. Eligible personal accou...
Rakuten Bank Boosts Quarterly Profit and Raises Full-Year Outlook While Holding Dividends at Zero
Aug 6, 2026
Rakuten Bank reported strong results for the three months ended June 30, 2026, with ordinary income rising 36.3% year on year to ¥78.4 billion and profit attributable to owners of parent climbing 24.5% to ¥21.0 billion. Profit per share ...
Rakuten Bank Lifts Full-Year Profit Outlook on Higher Interest Income and Efficiency Gains
Aug 6, 2026
Rakuten Bank has raised its consolidated earnings forecast for the fiscal year ending March 31, 2027, reflecting stronger-than-expected performance and improved operational efficiency as its business scale expands. The bank now projects ordinary i...
Rakuten Bank Issues Employee Stock Options to Bolster Long-Term Performance
Jul 27, 2026
Rakuten Bank has approved the issuance of 383 units of stock acquisition rights as stock options to 369 employees, covering up to 38,300 common shares. The options are structured with a vesting schedule over four years and an exercise window exten...
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 ...
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.