Rakuten Group, Inc.
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Why this colour
We assign red at a point that can be documented precisely: operating income does not cover the interest bill. IFRS operating income of JPY 14,382m in 2025 faced net interest expense of JPY 82,423m, and 2024 was negative on the same test at JPY 52,975m against JPY 81,897m. That is exactly what produces five consecutive loss years for shareholders. Add an equity ratio of 2.9 percent at the owner level, deeply negative retained earnings of minus JPY 971,240m, and a speculative S&P rating. This is expressly not a judgement on the share price and no doubt about the substance of the commerce and financial businesses: the filing contains no going-concern qualification and no liquidity problem, the 2026 refinancing is done, and the mobile loss is shrinking measurably. Should income before tax hold up without a tax gift and interest cover move durably above one, a better grade is due. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Rakuten has grown reliably for years and has cut the mobile loss by two thirds since 2022 — that is real progress. The celebrated quarterly profit of August 10, 2026, however, came almost entirely from a tax credit triggered by a share sale, and across the whole first half of 2026 shareholders are still down. Three figures decide the case, and all three carry a date: income before tax without special effects, the dollar bond maturing in February 2027, and the roaming arrangement with KDDI from October 2026. Not investment advice.
Growth
Consolidated revenue rose from JPY 1,681,757m in 2021 to JPY 2,496,575m in 2025 and by a further 12.9 percent to JPY 1,309,052m in the first half of 2026. Rakuten calls 2025 its 29th consecutive record year. All three segments grew in the first half of 2026, with the financial business leading at 25.1 percent.
Earnings quality
The quarterly profit reported on August 10, 2026 did not come from the business: about JPY 0.5bn remained before tax, and only a tax credit of roughly JPY 26.7bn from loss carryforwards lifted the result to JPY 27.2bn — with, in the company's own words, no actual tax payment. Non-GAAP operating income and IFRS operating income were also JPY 91,895m apart in 2025.
Leverage and interest cover
IFRS operating income of JPY 14,382m in 2025 faced net interest expense of JPY 82,423m, so the operating business did not cover its interest bill. The equity ratio stood at 4.2 percent on June 30, 2026, and at 2.9 percent counting only equity attributable to owners. S&P has rated the credit BB, in speculative territory, unchanged since July 29, 2026.
Mobile turnaround
The direction is right: the segment operating loss fell from JPY 475,916m in 2022 to JPY 161,841m in 2025 and to JPY 71,080m in the first half of 2026 against JPY 88,457m a year earlier, and 2025 was the first year with positive mobile EBITDA. Management names no date for operating break-even, and roaming provision by KDDI from October 1, 2026 is still to be agreed.
Shareholders' share of profit
Rakuten fully consolidates its bank, card and brokerage operations even though substantial parts belong to others. In the second quarter of 2026, JPY 19.5bn of JPY 27.2bn in group profit went to minority interests. In the first half the group earned JPY 25,429m while Rakuten shareholders were left with a loss of JPY 10,941m — a fifth consecutive loss year is taking shape.
Tradability and payout
The RKUNF listing carried a median daily volume of 600 shares between June 1 and August 14, 2026 — at $4.81 roughly $2,900 of turnover a day. Rakuten paid no dividend for 2025 (JPY 0.00) and has declared none for 2026. The share count has risen more than 52 percent since the end of 2020, to 2,181,203,900.
Worth Noting
Rakuten reached our research list through the discussion rankings of the German investor forum wallstreet-online (August 2026), not through a quantitative screen. Forum attention is a hook, not a buy signal.
Data as of August 17, 2026. The most recent periodic report is the quarterly report for the period ended June 30, 2026, published August 10, 2026; it contains neither a going-concern qualification nor reportable subsequent events. All filings after that date were reviewed.
Risk of confusion: 4755 (Tokyo), RKUNF (U.S. over-the-counter common share) and RKUNY (U.S. depositary receipt) all denote the same company. Not to be confused with the separately listed subsidiary Rakuten Bank, Ltd. Non-GAAP operating income must also be distinguished from IFRS operating income.
Currency mismatch: Rakuten reports in yen while the RKUNF listing trades in U.S. dollars. Metrics that would mix the two — Altman Z and net current asset value per share — are therefore deliberately left empty.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at RKUNF since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 4.10 $ to 7.00 $ · Last price: 4.20 $ (As of: September 30, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 10/01/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Internet Retail
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Rakuten Group, Inc. RKUNF | 9.2 | – | 4.2 | 52.7 | 3.0 | 9.6 | -33.1 |
| Amazon.com Inc AMZN | 2,654.9 | 35.2 | 11.2 | 50.8 | 13.1 | 12.4 | 12.5 |
| Alibaba Group Holding Ltd BABA | 257.6 | 17.1 | 15.0 | 38.2 | 1.0 | 2.7 | -39.3 |
| PDD Holdings Inc. PDD | 108.9 | 8.0 | 2.4 | 56.3 | 18.4 | 9.7 | -41.0 |
| MercadoLibre Inc. MELI | 85.4 | 43.2 | 26.4 | 47.8 | 6.7 | 39.1 | -26.0 |
| DoorDash, Inc. DASH | 79.6 | 85.5 | 46.1 | 52.2 | 5.3 | 27.9 | -32.5 |
| Sea Ltd SE | 47.4 | 32.8 | 22.8 | 44.3 | 8.4 | 36.4 | -45.5 |
| eBay Inc EBAY | 45.3 | 24.9 | 16.3 | 72.1 | 23.2 | 8.0 | 18.1 |
| Coupang LLC CPNG | 24.5 | – | 787.2 | 28.3 | -2.9 | 14.1 | -57.5 |
| Median of companies shown | 79.6 | 32.8 | 16.3 | 50.8 | 6.7 | 12.4 | -33.1 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year JPY m
Revenue Operating income Net income
| Fiscal Year | Revenue (JPY m) | EBIT (JPY m) | Net Income (JPY m) | EPS (JPY) | Operating Cash Flow (JPY m) | Equity (JPY m) | Total Assets (JPY m) |
|---|---|---|---|---|---|---|---|
| 2016 | 781,916 | 77,977 | 38,429 | 26.74 | 30,700 | 680,247 | 4,604,672 |
| 2017 | 944,474 | 149,344 | 110,585 | 79.28 | 162,056 | 683,181 | 6,184,299 |
| 2018 | 1,101,480 | 170,425 | 142,282 | 104.38 | 145,615 | 774,473 | 7,345,002 |
| 2019 | 1,263,932 | -35,531 | -33,068 | -24.42 | 318,320 | 735,672 | 9,165,697 |
| 2020 | 1,455,538 | -124,092 | -114,199 | -84.00 | 1,041,391 | 608,738 | 12,524,438 |
| 2021 | 1,681,757 | -284,662 | -133,828 | -87.62 | 582,707 | 1,093,719 | 16,831,221 |
| 2022 | 1,927,878 | -326,240 | -375,911 | -236.91 | -257,947 | 813,730 | 20,437,298 |
| 2023 | 2,071,315 | -163,644 | -339,473 | -177.27 | 724,192 | 836,572 | 22,625,576 |
| 2024 | 2,279,233 | 52,975 | -162,442 | -75.66 | 1,190,882 | 927,868 | 26,514,728 |
| 2025 | 2,498,754 | 97,493 | -178,041 | -82.31 | 343,803 | 993,268 | 28,829,535 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales (JPY m) | Sales YoY (%) | Net Margin (%) | OCF (JPY m) | FCF (JPY m) |
|---|---|---|---|---|---|---|---|
| 2024: Q3 | -0.23 | -4.70 | 566,713 | 9.30 | -13.10 | 153,826 | 144,560 |
| 2024: Q4 | -0.04 | 91.10 | 661,612 | 14.10 | -1.80 | 371,379 | 356,200 |
| 2025: Q1 | -0.22 | -67.90 | 562,704 | 9.60 | -13.10 | -737,720 | -759,220 |
| 2025: Q2 | -0.16 | -62.60 | 596,369 | 11.00 | -8.50 | 4,040 | -12,742 |
| 2025: Q3 | -0.08 | 63.70 | 637,545 | 12.50 | -4.30 | 36,732 | 23,764 |
| 2025: Q4 | -0.08 | -116.30 | 709,559 | 7.20 | -3.80 | 484,525 | 469,911 |
| 2026: Q1 | -0.05 | 75.50 | 647,634 | 15.10 | -2.90 | -509,000 | -536,092 |
| 2026: Q2 | 0.02 | 113.60 | 660,657 | 10.80 | 1.20 | 163,448 | 130,741 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 3 of our scanner strategies — each hit links to the scanner.
Growth
Research
Risk & Weakness
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. Scanners marked in red are red-flag signals (risk/short scanners) — appearing there is not a seal of approval. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate (JPY) | EPS Range (JPY) | Revenue Estimate (JPY m) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | – | – | 2,765,274 | – | 15 |
| 12/31/2027 | – | – | 2,963,826 | – | 15 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
AI classification
AI Rating
Rakuten verkauft KI als bepreistes Produkt — die Konzerntochter Rakuten Mobile bietet den Generative-KI-Dienst „Rakuten AI for Business“ für 1.100 Yen je Lizenz und Monat an —, führt das Wachstum des Werbegeschäfts (65,6 Mrd. Yen, +15,6 Prozent im zweiten Quartal 2026) ausdrücklich auf KI-gestützte Suche zurück und entwickelt mit Rakuten AI 3.0 ein eigenes japanisches Sprachmodell.
View the full file — quotes, sources, reviewed filings
„Rakuten Mobile, Inc. today announced the launch of the “Rakuten AI for Business” generative AI service to support a wide range of business activities for corporate clients."
Rakuten Mobile, Inc. hat heute den Start des Generative-KI-Dienstes „Rakuten AI for Business“ bekanntgegeben, der ein breites Spektrum geschäftlicher Tätigkeiten von Firmenkunden unterstützt.
Pressemitteilung · 2025-01-29 · View SEC filing
„The service is available at a monthly rate of 1,100 yen (tax included) per license."
Der Dienst ist zu einem Monatspreis von 1.100 Yen (inklusive Steuer) je Lizenz erhältlich.
Pressemitteilung · 2025-01-29 · View SEC filing
„The advertising business achieved high growth with revenue reaching 65.6 billion yen, up 15.6% YoY, driven by AI-powered search and targeted banner advertising on Rakuten Ichiba and Rakuten Travel."
Das Werbegeschäft erzielte ein hohes Wachstum: Der Umsatz erreichte 65,6 Milliarden Yen, ein Plus von 15,6 Prozent gegenüber dem Vorjahr, getragen von KI-gestützter Suche und zielgerichteter Bannerwerbung auf Rakuten Ichiba und Rakuten Travel.
Quartalsmitteilung · 2026-08-10 · View SEC filing
„From Q1/26, a portion of AI-related development costs are allocated to each business. Retroactive adjustments were made to segment and business performance from Q1/25 onwards."
Ab dem ersten Quartal 2026 wird ein Teil der KI-bezogenen Entwicklungskosten den einzelnen Geschäftsbereichen zugerechnet. Die Segment- und Geschäftsbereichszahlen wurden rückwirkend ab dem ersten Quartal 2025 angepasst.
Quartalsmitteilung · 2026-08-10 · View SEC filing
Filings Reviewed: Wertpapierbericht 2026-03-26 · Quartalsmitteilung 2026-08-10 · Ergebnispräsentation 2026-08-10 · Pressemitteilung 2026-03-17 · Pressemitteilung 2026-01-05 · Pressemitteilung 2025-07-30 · Pressemitteilung 2025-01-29 · Pressemitteilung 2023-11-14
Rated on August 17, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 9.0%
- More than 10% revenue growth is expected for the coming year -72.2%
- Share count grows by less than 3% a year 10.9%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 20.8%
- Gross margin at 40% or higher and without meaningful erosion 3.9%
- Goodwill from acquisitions does not grow faster than revenue 2.3%
- Net debt below twice EBITDA 0.2 x EBITDA
- Operating cash flow covers the profits of the last three years 2,938,833 m
- Return on capital at 15% or higher, or up versus two years ago 0.4%
- Insiders hold at least 10% or are net buyers 33.6%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
5/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 13.8%
- Exp. sales growth 3Y > 5% 8.9%
- EBIT growth 10Y > 5% 2.5%
- Exp. EBIT growth 3Y > 5% 8.9%
- Net debt < 4x EBIT 1.0x
- EBIT positive, 10Y straight 5
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% –
- ROCE > 15% 0.3%
- Expected return > 10% 29.9%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
The company
About the Company
Rakuten Group, Inc. provides various services in e-commerce, fintech, digital content, and communications to various users in Japan, the Americas, Europe, rest of Asia, and internationally. It operates in three segments: Internet Services, FinTech, and Mobile. The company operates a range of e-commerce sites comprising Rakuten Ichiba, an Internet shopping mall; online cash-back sites; travel booking sites; portal sites; and digital content sites, as well as provides messaging services. It also offers credit card, banking, and securities services through the Internet; crypto asset/virtual currency spot transactions; life and general insurance services; and payment services. In addition, the company engages in the sale of advertising; management of professional sport teams; provision of communication services and technologies; operation of electricity supply services; and investment activities. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.
- Employees
- 29,419
- Headquarters
- Setagaya, Japan
- Address
- Rakuten Crimson House, 158-0094 Setagaya, Japan
- Phone
- 81 50 5581 6910
- Website
- global.rakuten.com/corp
- Stock Split
- 100:1 on 06/28/2012
Management
| Name | Title | Birth Year |
|---|---|---|
| Hiroshi Mikitani | Founder, Chairman, President & CEO | 1965 |
| Kentaro Hyakuno | Group Senior EVP, Group COO, Group CCO, Group Senior EVP of Acctn. Div. & Representative Director | 1967 |
| Eiichi Kaga | Group Managing Executive Officer, Vice Group CFO, Director of Finance Supervisory Dept. & Director | 1976 |
| Akihito Kurozumi | Group Executive Vice President, Group Chief Information Officer & Group CTO | – |
| Kyoko Altman | Executive Officer & GM of Investor Relations Department | – |
| Naho Kono | Group Executive VP, Chief Marketing Officer & Director | 1976 |
| Shinji Kuroda | Group Managing Executive Officer & Director of Group Human Resources Supervisory Department | – |
| Masatada Kobayashi | Group Managing Executive Officer & Group Chief Culture Officer | 1971 |
| Koichi Nakamura | Group Managing Executive Officer | 1972 |
| Kuniaki Matsumura | Group MEO, President of Ad & Media Company and Group MEO of Global Ad Division | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Data as of: September 30, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.