Rakuten Group, Inc. (4755) 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

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Rakuten Group, Inc.

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Why is Rakuten Group, Inc. ?

Poor Management Efficiency with a low ROE of 0%

The company has reported losses. Due to this company has reported negative ROE

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.20

Poor long term growth as Operating profit has grown by an annual rate 15.10% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.20
The company has reported losses. Due to this company has reported negative ROE

The company has declared negative results in Mar'2025 after 2 consecutive positive quarters

PRE-TAX PROFIT(Q) At JPY 28,518 MM has Fallen at -64.92%
NET PROFIT(Q) At JPY -26,592 MM has Fallen at -121.65%
OPERATING CASH FLOW(Y) Lowest at JPY 343,503 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -17.82%, its profits have risen by 52.2%

Below par performance in long term as well as near term

Along with generating -17.82% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rakuten Group, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Rakuten Group, Inc.

-17.82%

206.95

36.98%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.10%

EBIT Growth (5y)

15.10%

EBIT to Interest (avg)

-2.20

Debt to EBITDA (avg)

0.25

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

0.37

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

0.01%

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

NA (Loss Making)

Industry P/E

Price to Book Value

2.11

EV to EBIT

3934.25

EV to EBITDA

6.18

EV to Capital Employed

1.79

EV to Sales

0.88

PEG Ratio

Dividend Yield

ROCE (Latest)

0.05%

ROE (Latest)

-19.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

NET PROFIT(HY)

Higher at JPY -59,582.54 MM

RAW MATERIAL COST(Y)

Fallen by -286.45% (YoY

NET SALES(Q)

Highest at JPY 708,940 MM

OPERATING PROFIT(Q)

Highest at JPY 132,009 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.62 %

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 28,518 MM has Fallen at -64.92%

NET PROFIT(Q)

At JPY -26,592 MM has Fallen at -121.65%

OPERATING CASH FLOW(Y)

Lowest at JPY 343,503 MM

INTEREST(Q)

Highest at JPY 29,301 MM

Here's what is working for Rakuten Group, Inc.

Net Sales

Highest at JPY 708,940 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 132,009 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 18.62 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -286.45% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Rakuten Group, Inc.

Pre-Tax Profit

At JPY 28,518 MM has Fallen at -64.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -26,592 MM has Fallen at -121.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 29,301 MM has Grown at 33.54%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 343,503 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

Highest at JPY 29,301 MM

in the last five periods and Increased by 33.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)