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4755:TSERakuten Group, Inc. Analysis

Data as of 2026-06-14 - not real-time

¥739.50

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Rakuten Group is trading well below its long‑term moving averages, with the price under the 20‑day, 50‑day and 200‑day SMA, signalling a bearish technical backdrop. The RSI sits in the mid‑range, suggesting neither extreme oversold nor overbought conditions, while the MACD histogram is negative, reinforcing downside momentum. Volatility is elevated and volume trends are decreasing, which adds short‑term price uncertainty. However, the latest earnings call highlighted a record‑high revenue increase of double‑digit percent and the first non‑GAAP operating profit since the mobile network expansion, indicating a meaningful earnings turnaround. The DCF‑derived fair value is dramatically higher than the current market price, implying a potential upside of over thirty percent, and the Fear & Greed Index reflects extreme market optimism, which could compress further gains if sentiment shifts. Overall, the stock presents a classic value play with improving fundamentals but faces near‑term technical headwinds and elevated volatility.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • price is near a defined support level
  • technical indicators remain bearish
  • recent earnings profitability may limit further downside

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • substantial valuation gap to DCF fair value
  • double‑digit revenue growth and first operating profit
  • strategic diversification across e‑commerce, fintech and mobile

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • long‑run upside potential remains robust
  • ongoing expansion of high‑margin fintech and mobile services
  • manageable beta and exposure primarily in yen, limiting currency risk

Key Metrics & Analysis

Financial Health

Revenue Growth14.40%
Profit Margin-4.78%
P/E Ratio-97.2
ROE-5.23%
ROA0.32%
Debt/Equity442.91
P/B Ratio1.8
Op. Cash Flow¥674.8B
Free Cash Flow¥-1065982885888

Technical Analysis

TrendBearish
RSI44.4
Support¥717.30
Resistance¥814.30
MA 20¥758.19
MA 50¥767.61
MA 200¥885.63
MACDBearish
VolumeDecreasing
Fear & Greed Index89.86

Valuation

Fair Value¥4,959.42
Target Price¥973.08
Upside/Downside31.59%
GradeUndervalued
TypeBlend

Risk Assessment

Beta0.61
Volatility33.55%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.