Morningstar

Rakuten Group Inc 4755

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Stock XTKS Rating as of
¥‎963.30 +16.90 (1.79%)
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As of Delayed Price Open

Company Report

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Strong Fintech Growth and Improvement in Mobile Losses Make Rakuten Stocks Attractive

Kazunori Ito, Pujance Chan

While Rakuten is most notable for its e-commerce platform, Rakuten Ichiba, we believe the company’s success in Japan lies in its first-mover advantage in establishing a comprehensive ecosystem composed of e-commerce, fintech, and mobile network services. Over the years, Rakuten accumulated over 40 million monthly active users, and close to 80% of users use more than two Rakuten services. We identify the convenience of accessing multiple services with one Rakuten ID and Rakuten’s point reward system as the main contributors for user stickiness.

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Price vs Fair Value

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4755 is trading at a 134% premium.
Price
¥‎946.40
Fair Value
¥‎366.00
Uncertainty
Very High
1-Star Price
¥‎9,485.80
5-Star Price
¥‎361.00
Economic Moat
Spwxn
Capital Allocation
Bvhp

Bulls Say, Bears Say

Bulls

Rakuten Ichiba gains share in e-commerce against Amazon, as it improves logistics capabilities to be on par with Amazon and Rakuten’s ecosystem strengthens over time.

Bears

Amazon and Yahoo promote aggressively and gain share against Rakuten.

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News

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Trading Information

Previous Close Price
¥‎946.40
Day Range
¥‎941.00–963.30
52-Week Range
¥‎531.00–1,069.50
Bid/Ask
¥‎963.10 / ¥‎963.30
Market Cap
¥‎2.07 Tril
Volume/Avg
16.3 Mil / 32.4 Mil

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
0.94
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
—

Company Profile

Rakuten is a leading e-commerce and fintech service provider in Japan. It has built up a comprehensive Rakuten ecosystem in Japan, including Rakuten Ichiba for e-commerce, Rakuten Travel, Rakuten Card, Rakuten Bank, Rakuten Securities, and became the fourth mobile network operator in Japan in April 2020. The loyalty program, Rakuten Super Points, has encouraged cross-use of services in its ecosystem. About 80% of its revenue is generated from the Japanese market.
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
Large Growth
Total Number of Employees
30,830
Website
https://www.rakuten.co.jp

Competitors

Valuation

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Metric
4755
9434
4689
Price/Earnings (Normalized)
 —1.9524.06
Price/Book Value
 2.363.911.04
Price/Sales
 0.941.551.71
Price/Cash Flow
 5.746.947.27
Price/Earnings
4755
9434
4689

Financial Strength

Metric
4755
9434
4689
Quick Ratio
 35.030.692.34
Current Ratio
 35.030.742.37
Interest Coverage
 −1.3713.91—
Quick Ratio
4755
9434
4689

Profitability

Metric
4755
9434
4689
Return on Assets (Normalized)
 −1.11%4.10%1.62%
Return on Equity (Normalized)
 −27.92%26.96%4.74%
Return on Invested Capital (Normalized)
 −4.26%6.45%2.69%
Return on Assets
4755
9434
4689

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