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Buy Day today: Neutral (58) Mixed market breadth · no major macro event
RKUNF

Rakuten Group, Inc.

Consumer Cyclical · Internet Retail

4.81$ +0.2% vs. previous close Closing price · As of: Aug 17, 2026
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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.

Substance risk

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.

Read the Full Deep Dive Rakuten: the first quarterly profit in six years — and where the 27 billion yen actually came from On August 10, 2026, Rakuten reported net income of 27.2 billion yen for the second quarter — the first profit for its own shareholders in six years. Only 0.5 billion yen of that survived to the pre-tax line. The remaining 26.7 billion was a tax credit triggered by a share sale whose every trading day is on file with the U.S. securities regulator. Across the full first half, shareholders are still down 10.9 billion yen. We read what the report actually says — and what the headline leaves out. Read the analysis →

Stock Watch

This analysis is as of August 17, 2026. Stock Watch will tell you what's changed at RKUNF since then.

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Price history

Chart

Interactive price chart (TradingView).

Last price: 4.81 $ (As of: August 17, 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

Market Cap ?The value of the entire company on the market: share price times total shares outstanding. 10.5$B
Shares Outstanding ?Total number of shares issued. Price times share count gives market cap. –
Float ?Share of stock freely tradable on the market — not locked up in the hands of founders, insiders, or major shareholders. –
Beta ?Volatility versus the overall market: 1 = moves like the market, 2 = twice as much, under 1 = calmer than the market. –

Performance

Perf. 1M ?Price performance over the last month. -1.90%
Perf. 3M ?Price performance over the last 3 months. 14.50%
Perf. 6M ?Price performance over the last 6 months. -22.40%
YTD Performance (%) ?Price performance since the start of the year (Year to Date). -24.99%
52-Week-High Distance ?How far the price sits below its highest point over the last 52 weeks. 0% means the stock is at its year high. -31.1%

Valuation

P/E ?Price-to-earnings ratio: how many years of profit does the stock cost? The lower, the cheaper the valuation. No earnings means no P/E. –
Forward P/E ?P/E based on expected earnings for the next 12 months instead of past earnings — analysts' bet on the future. –
PEG ?P/E divided by expected earnings growth: puts valuation in relation to growth. Around 1 is considered fair, well above that is pricey. –
P/B ?Price-to-book ratio: market value relative to book equity. 1.8
P/S ?Price-to-sales ratio: market value divided by annual sales. Important for companies that aren't (yet) profitable. –
EV/EBITDA ?Enterprise value including debt (EV) relative to operating profit before depreciation and amortization (EBITDA) — more comparable than P/E because debt counts too. Extreme values arise when EBITDA is near zero. –
Price/FCF ?Market value divided by free cash flow: how many years of freely available cash does the stock cost? More honest than P/E because cash flow is harder to dress up. –

Profitability

Gross Margin ?Gross margin: what's left of sales after only direct production costs are deducted — the product's pricing power. –
EBIT Margin ?EBIT margin: operating profit as a percentage of sales — the earning power of the core business before interest and taxes. 3.0%
Net Margin ?Net margin: what's left of sales as profit after ALL costs, interest, and taxes. –
Return on Equity ?Return on equity: how much profit does the company generate per year on shareholders' equity? 0.3%
Return on Assets ?Return on assets: how much profit the company generates from its total assets (equity and debt combined). –

Balance Sheet & Safety

Equity Ratio ?Equity ratio: equity as a share of total assets. The higher, the more resilient the balance sheet. very low 3.5%
Debt/Equity ?Leverage ratio: financial debt divided by equity. Under 1 is generally seen as solid; negative values mean negative equity. 8.2
Altman Z″ ?Edward Altman's bankruptcy early-warning score. We use the Z″ variant, built from four balance-sheet ratios — it is designed for service companies and non-manufacturers and uses book value instead of market value. On that scale: below 1.1 = danger zone, 2.6 and up = safe zone, in between a grey area. Because the classic Altman Z is calculated differently, the two numbers are not directly comparable. The formula does not fit banks, insurers, or real-estate stocks. –
Piotroski ?Balance-sheet health check by Joseph Piotroski: 9 yes/no criteria on profit, cash flow, leverage, and efficiency. 7+ is very solid, under 3 is a red flag. 4 out of 9

Growth

Sales Growth Last Quarter ?Sales growth in the most recently reported quarter versus the same quarter a year ago (YoY). 11.60%
EPS Growth Last Quarter ?Growth in earnings per share in the most recently reported quarter versus the same quarter a year ago (YoY). 0.00%
Sales Growth (Year) ?Sales growth in the last fiscal year versus the year before. 9.63%
Forward Sales Growth ?Sales growth analysts expect over the next 12 months — an estimate, not a guarantee. -72.22%
Forward EPS Growth ?Earnings-per-share growth analysts expect over the next 12 months — an estimate, not a guarantee. –

Dividend

No dividend data is available for this stock yet.

Quality & Screener

Stage ?Weinstein phases 1 through 4: 1 = basing, 2 = uptrend (the only buy phase), 3 = topping, 4 = downtrend. Measured against the 30-week line. –
RS Rating ?Relative strength from 1 to 99: an RS of 95 means the stock has outperformed 95% of all stocks. –
EPS Rating ?Earnings growth rating from 1 to 99 versus all stocks — high values mean above-average earnings growth. –
Fundamental Rating ?Our own Fundamental Rating: 0 to 100 points with an A+ to F grade. 50 points is the average across the universe, 100 the best possible score. It scores growth, earnings surprises, analyst estimates, margins, cash flow, and balance-sheet safety — every stock percentile-ranked against all others. Grades: A+ from 95, A from 75, B from 55, C from 45, D from 25, E from 5, F below. B (61 out of 100)

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

Industry comparison
Company Market cap ($B) P/E EV/EBITDA Gross Margin % EBIT Margin % Sales Growth (Year) % Perf. 1Y %
Rakuten Group, Inc. RKUNF 10.5 – – – 3.0 9.6 –
Amazon.com Inc AMZN 2,810.0 36.6 11.9 50.8 13.1 12.4 13.7
Alibaba Group Holding Ltd BABA 296.6 19.6 11.0 39.8 1.0 2.7 2.2
PDD Holdings Inc. PDD 120.7 8.9 3.2 56.0 18.4 9.7 -26.1
DoorDash, Inc. DASH 94.9 99.7 51.0 51.8 5.3 27.9 -12.3
MercadoLibre Inc. MELI 93.5 47.3 26.6 47.8 6.7 39.1 -20.5
Sea Ltd SE 60.6 41.9 – – 8.4 36.4 -29.9
eBay Inc EBAY 44.1 23.8 18.0 71.8 23.2 8.0 6.1
Coupang LLC CPNG 28.6 – 38.4 28.8 -2.9 14.1 -43.1
Median of companies shown 93.5 36.6 18.0 50.8 6.7 12.4 -16.4

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 →

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.

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.

Sales Per Quarter (JPY m)
2024: Q3 · 566,713.0 JPY m Q3 2024: Q4 · 661,612.0 JPY m Q4 2025: Q1 · 562,704.0 JPY m Q1 2025: Q2 · 596,369.0 JPY m Q2 2025: Q3 · 637,545.0 JPY m Q3 2025: Q4 · 709,558.6 JPY m Q4 2026: Q1 · 647,634.0 JPY m Q1 2026: Q2 · 660,656.6 JPY m Q2

Source: fundamental data

Quarterly Figures
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.

Compare with other stocks →

Screening

Appears in These Scanners

This stock currently matches 2 of our scanner strategies — each hit links to the scanner.

Growth

Research

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. View all scanners

AI classification

AI Rating

Sells AI

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

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.

Data as of: August 17, 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.

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