Rakuten Bank, Ltd.
Rakuten Bank, Ltd. Fundamental Analysis
Rakuten Bank, Ltd. (5838.T) shows strong financial fundamentals with a PE ratio of 15.24, profit margin of 29.79%, and ROE of 20.85%. The company generates $230.7B in annual revenue with strong year-over-year growth of 21.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 5838.T's fundamental strength across five key dimensions:
Efficiency Score
Weak5838.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent5838.T trades at attractive valuation levels.
Growth Score
Excellent5838.T delivers strong and consistent growth momentum.
Financial Health Score
Moderate5838.T shows balanced financial health with some risks.
Profitability Score
Moderate5838.T maintains healthy but balanced margins.
Key Financial Metrics
Is 5838.T Expensive or Cheap?
P/E Ratio
5838.T trades at 15.24 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 5838.T's PEG of 1.57 indicates fair valuation.
Price to Book
The market values Rakuten Bank, Ltd. at 2.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 31.58 times EBITDA. This signals the market has high growth expectations.
How Well Does 5838.T Make Money?
Net Profit Margin
For every $100 in sales, Rakuten Bank, Ltd. keeps $29.79 as profit after all expenses.
Operating Margin
Core operations generate 42.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.85 in profit for every $100 of shareholder equity.
ROA
Rakuten Bank, Ltd. generates $0.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rakuten Bank, Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Rakuten Bank, Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
5838.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
139.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How 5838.T Stacks Against Its Sector Peers
| Metric | 5838.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.24 | 18.59 | Better (Cheaper) |
| ROE | 20.85% | 801.00% | Weak |
| Net Margin | 29.79% | -498.00% (disorted) | Strong |
| Debt/Equity | 8.20 | 0.98 | Weak (High Leverage) |
| Current Ratio | 139.34 | 661.40 | Strong Liquidity |
| ROA | 0.41% | -21324.00% (disorted) | Weak |
5838.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rakuten Bank, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.30%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
147.52%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-96.02%
Industry Style: Value, Dividend, Cyclical
Declining