Rakuten Bank Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shizuoka Financial Group, Inc.

Nishi-Nippon Financial Holdings, Inc.

Rakuten Bank Ltd.

Gunma Bank, Ltd.

Concordia Financial Group, Ltd.

Hirogin Holdings, Inc.

Iyogin Holdings, Inc.

Yamaguchi Financial Group, Inc.

Japan Post Bank Co., Ltd.

The Hachijuni Bank, Ltd.

Resona Holdings, Inc.

Why is Rakuten Bank Ltd. ?

Poor Management Efficiency with a low ROA of 0.13%

The bank has been able to generate a Return on Assets (avg) of 0.13% signifying low profitability per unit of total assets

Weak Long Term Fundamental Strength with an average Return on Assets (ROA) of 0.13%

The bank has been able to generate a Return on Assets (avg) of 0.13% signifying low profitability per unit of total assets

Weak Long Term Fundamental Strength with an average Return on Assets (ROA) of 0.13%

The company has declared Positive results for the last 10 consecutive quarters

NII(Q) Highest at JPY 43,751 MM
ROCE(HY) Highest at 0.49%
NET SALES(Q) Highest at JPY 63,095 MM

With ROA of 0.41%, it has a very expensive valuation with a 2.58 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.76%, its profits have risen by 47% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.76% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rakuten Bank Ltd. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rakuten Bank Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rakuten Bank Ltd.

-19.76%

1.86

54.69%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

292.10%

EBIT Growth (5y)

532.45%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.58

EV to EBIT

-47.45

EV to EBITDA

-43.99

EV to Capital Employed

0.89

EV to Sales

-24.96

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

-1.87%

ROE (Latest)

19.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

24What is working for the Company

NII(Q)

Highest at JPY 43,751 MM

ROCE(HY)

Highest at 0.49%

NET SALES(Q)

Highest at JPY 63,095 MM

OPERATING PROFIT(Q)

Highest at JPY 33,246 MM

PRE-TAX PROFIT(Q)

Highest at JPY 30,207 MM

NET PROFIT(Q)

Highest at JPY 20,965 MM

CREDIT DEPOSIT RATIO(HY)

Highest at 48.08%

EPS(Q)

Highest at JPY 119.96

-6What is not working for the Company

INTEREST(9M)

At JPY 50,406 MM has Grown at 75.54%

ROCE(HY)

Lowest at 0.49%

Here's what is working for Rakuten Bank Ltd.

NII

Highest at JPY 43,751 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Net Sales

Highest at JPY 63,095 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 63,095 MM has Grown at 44.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 33,246 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 30,207 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 20,965 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

EPS

Highest at JPY 119.96

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Credit Deposit Ratio

Highest at 48.08%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Depreciation

Highest at JPY 2,288 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Rakuten Bank Ltd.

Interest

At JPY 50,406 MM has Grown at 75.54%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)