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 22.73% 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

With a growth in Operating Profit of 47.82%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at -14.32%
PRE-TAX PROFIT(Q) At JPY 11,235 MM has Grown at 135.56%
NET PROFIT(Q) Highest at JPY -18,330.35 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 -10.12%, its profits have risen by 50.9%

Majority shareholders : Non Institution

Below par performance in long term as well as near term

Along with generating -10.12% 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 hold?

Overall Portfolio exposure to Rakuten Group, Inc. should be less than 10%
Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%

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

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

Is Rakuten Group, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Rakuten Group, Inc.

-10.12%

212.18

33.85%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.39%

EBIT Growth (5y)

22.73%

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

1.70

EV to EBIT

14.54

EV to EBITDA

3.39

EV to Capital Employed

1.95

EV to Sales

0.57

PEG Ratio

Dividend Yield

ROCE (Latest)

13.45%

ROE (Latest)

-9.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

13What is working for the Company

ROCE(HY)

Highest at -14.32%

PRE-TAX PROFIT(Q)

At JPY 11,235 MM has Grown at 135.56%

NET PROFIT(Q)

Highest at JPY -18,330.35 MM

RAW MATERIAL COST(Y)

Fallen by -373.49% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.68 times

EPS(Q)

Highest at JPY -8.59

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 67.92 %

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

Pre-Tax Profit

At JPY 11,235 MM has Grown at 135.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY -18,330.35 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)

Net Profit

At JPY -18,330.35 MM has Grown at 68.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY -8.59

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 6.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -373.49% (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.

Debt-Equity Ratio

Highest at 67.92 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio