Rakuten Group, Inc. Fundamental Analysis
Rakuten Group, Inc. (RKUNY) shows moderate financial fundamentals with a PE ratio of -12.68, profit margin of -4.76%, and ROE of -14.09%. The company generates $2615.4B in annual revenue with moderate year-over-year growth of 9.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RKUNY's fundamental strength across five key dimensions:
Efficiency Score
WeakRKUNY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRKUNY trades at attractive valuation levels.
Growth Score
ModerateRKUNY shows steady but slowing expansion.
Financial Health Score
ModerateRKUNY shows balanced financial health with some risks.
Profitability Score
WeakRKUNY struggles to sustain strong margins.
Key Financial Metrics
Is RKUNY Expensive or Cheap?
P/E Ratio
RKUNY trades at -12.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RKUNY's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Rakuten Group, Inc. at 1.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.19 times EBITDA. This is generally considered low.
How Well Does RKUNY Make Money?
Net Profit Margin
For every $100 in sales, Rakuten Group, Inc. keeps $-4.76 as profit after all expenses.
Operating Margin
Core operations generate 5.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-14.09 in profit for every $100 of shareholder equity.
ROA
Rakuten Group, Inc. generates $-0.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rakuten Group, Inc. produces operating cash flow of $637.94B, showing steady but balanced cash generation.
Free Cash Flow
Rakuten Group, Inc. generates strong free cash flow of $565.32B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $260.07 in free cash annually.
FCF Yield
RKUNY converts 35.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-12.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.14
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How RKUNY Stacks Against Its Sector Peers
| Metric | RKUNY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -12.68 | 23.66 | Better (Cheaper) |
| ROE | -14.09% | 1193.00% | Weak |
| Net Margin | -4.76% | 2550.00% | Weak |
| Debt/Equity | 6.27 | 0.71 | Weak (High Leverage) |
| Current Ratio | 9.96 | 2.83 | Strong Liquidity |
| ROA | -0.42% | -8434.00% (disorted) | Weak |
RKUNY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rakuten Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.80%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
2.10%
Industry Style: Cyclical, Growth, Discretionary
GrowingFCF CAGR
-79.27%
Industry Style: Cyclical, Growth, Discretionary
Declining