# Rakuten Group (4755.JP)

Canonical: https://gigainvestors.com/s/4755.JP

Analysis as of: 2026-10-15T07:10:26.827Z. Financial observations: FY2012–FY2025.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 611.30 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 7

- Operating margin variation: 20.17×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.16×

- FY2018: 0.15×

- FY2019: 0.06×

- FY2020: -0.06×

- FY2021: -0.12×

- FY2022: -0.19×

- FY2023: -0.10×

- FY2024: 0.02×

- FY2025: 0.01×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.4%

- ROIC, second-lowest year: -20.1%

- Years with nonpositive capital: 8

- Capital spending / revenue: 13.5%

- ROIC including acquisitions, ten-year median: 2.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.6%

- FY2017: 7.3%

- FY2018: 18.9%

- FY2019: 7.8%

- FY2020: -12.2%

- FY2021: -14.1%

- FY2022: -37.1%

- FY2023: -20.1%

- FY2024: 3.7%

- FY2025: 1.1%

### economics: fail

- Cash conversion uses consolidated free cash flow after all capital expenditure and consolidated net income (informational).

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: Yes

- Owner earnings, five-year total: JPY 782B

- Net income, five-year total: JPY -1.10T

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -18.6 pp

- Working capital / revenue, change between three-year averages: -126.7 pp

- Working capital / revenue, final three-year average: -3.6%

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.3% vs 1.1%

- Per-share earnings: 31.07 to -82.24 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.2%

- Ordinary dilution, 5-year annual growth: 9.7%

- Market cap gain: JPY 531B

- Cumulative retained earnings: JPY -1.25T

- Diluted shares, 10-year annual growth: 4.2%

- Diluted shares, 5-year annual growth: 9.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: JPY -113.31

- Per-share value, starting three-year median: JPY 31.07

- Per-share value, ending three-year median: JPY -82.24

- Average buyback yield: 6.8%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 673B

- Cumulative net income, 10 years: JPY -1.05T

- ROIC, first three-year median: 7.3%

- ROIC, last three-year median: 1.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: JPY 26.52

- FY2017: JPY 77.09

- FY2018: JPY 99.18

- FY2019: JPY -23.55

- FY2020: JPY -84.00

- FY2021: JPY -87.62

- FY2022: JPY -237.73

- FY2023: JPY -177.27

- FY2024: JPY -75.61

- FY2025: JPY -82.24

### accounting: pass

- Sloan accruals: -2.1%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: -3.7%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.74×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.2%

- FY2017: -0.8%

- FY2018: -0.0%

- FY2019: -3.8%

- FY2020: -9.2%

- FY2021: -4.3%

- FY2022: -0.6%

- FY2023: -4.7%

- FY2024: -5.1%

- FY2025: -2.1%

## Holders

## Price story

Down 51% since Oct 2021 · sales +9.5%

Story as of 2026-10-16T10:00:14.259Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +9.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTNW.pdf; observed 2026-03-26.

- FY2016: JPY 782B 

- FY2017: JPY 944B 

- FY2018: JPY 1.10T 

- FY2019: JPY 1.26T 

- FY2020: JPY 1.46T 

- FY2021: JPY 1.68T 

- FY2022: JPY 1.92T 

- FY2023: JPY 2.07T 

- FY2024: JPY 2.28T 

- FY2025: JPY 2.50T 

### Gross margin · FY2019

gross margin 18%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTNW.pdf; observed 2026-03-26.

- FY2016: 13.3% 

- FY2017: 11.3% 

- FY2018: 6.7% 

- FY2019: 18.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet retail; annual sales are JPY 2.5 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTNW.pdf (filed 2026-03-26); FY2025: revenue 2496575000000; operatingIncome 14382000000; margin = operatingIncome / revenue.

### Why customers stay

It earns 2.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2023: operatingIncome / revenue = -10.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2024: operatingIncome / revenue = 2.3%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTNW.pdf (filed 2026-03-26); FY2025: operatingIncome / revenue = 0.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); 10-year return on capital observations [[2016,0.056071885920170164],[2017,0.07340609537298969],[2018,0.1887469124679907],[2019,0.07811708206918301],[2020,-0.12179412160896806],[2021,-0.14065179447371765],[2022,-0.37097758137665837],[2023,-0.2010072414568023],[2024,0.03711061271646398],[2025,0.011448767737267761]]; median 0.02427969022686587. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 10 years.

- Source: https://eodhd.com/api/fundamentals/RAK.F.json#2017-12-31 (filed 2026-03-26); FY2017: growth capex 0; upkeep 31874000000; owner earnings 130182000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2018: growth capex 13018977203.399063; upkeep 74563022796.60094; owner earnings 139295977203.39905. Growth capex / owner earnings = 0.09346269335824997.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); Dividend observations: [[2016,6408000000],[2017,6420000000],[2018,6056000000],[2019,6113000000],[2020,6103000000],[2021,6131000000],[2022,7118000000],[2023,7157000000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 0.5 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); Closing price 611.2999877929688 JPY; reporting-to-trading FX 1; FY2025 annual sales per share 1154.2129678558176; price multiple 0.5296249520819206. FY2022 cash earnings/share -321.6962246753496. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 1,128.00 per share

- 2016-12: JPY 1,145.50 per share

- 2017-01: JPY 1,127.50 per share

- 2017-02: JPY 1,113.00 per share

- 2017-03: JPY 1,115.00 per share

- 2017-04: JPY 1,141.00 per share

- 2017-05: JPY 1,346.00 per share

- 2017-06: JPY 1,322.00 per share

- 2017-07: JPY 1,348.00 per share

- 2017-08: JPY 1,305.50 per share

- 2017-09: JPY 1,227.00 per share

- 2017-10: JPY 1,209.00 per share

- 2017-11: JPY 1,147.50 per share

- 2017-12: JPY 1,032.50 per share

- 2018-01: JPY 985.80 per share

- 2018-02: JPY 977.30 per share

- 2018-03: JPY 899.10 per share

- 2018-04: JPY 780.20 per share

- 2018-05: JPY 731.60 per share

- 2018-06: JPY 749.40 per share

- 2018-07: JPY 786.90 per share

- 2018-08: JPY 849.90 per share

- 2018-09: JPY 870.80 per share

- 2018-10: JPY 764.00 per share

- 2018-11: JPY 914.00 per share

- 2018-12: JPY 736.00 per share

- 2019-01: JPY 819.00 per share

- 2019-02: JPY 876.00 per share

- 2019-03: JPY 1,048.00 per share

- 2019-04: JPY 1,235.00 per share

- 2019-05: JPY 1,135.00 per share

- 2019-06: JPY 1,280.00 per share

- 2019-07: JPY 1,116.00 per share

- 2019-08: JPY 1,001.00 per share

- 2019-09: JPY 1,065.00 per share

- 2019-10: JPY 1,038.00 per share

- 2019-11: JPY 949.00 per share

- 2019-12: JPY 935.00 per share

- 2020-01: JPY 856.00 per share

- 2020-02: JPY 903.00 per share

- 2020-03: JPY 820.00 per share

- 2020-04: JPY 916.00 per share

- 2020-05: JPY 976.00 per share

- 2020-06: JPY 948.00 per share

- 2020-07: JPY 965.00 per share

- 2020-08: JPY 933.00 per share

- 2020-09: JPY 1,132.00 per share

- 2020-10: JPY 1,015.00 per share

- 2020-11: JPY 1,169.00 per share

- 2020-12: JPY 994.00 per share

- 2021-01: JPY 1,029.00 per share

- 2021-02: JPY 1,191.00 per share

- 2021-03: JPY 1,319.00 per share

- 2021-04: JPY 1,389.00 per share

- 2021-05: JPY 1,255.00 per share

- 2021-06: JPY 1,254.00 per share

- 2021-07: JPY 1,203.00 per share

- 2021-08: JPY 1,152.00 per share

- 2021-09: JPY 1,081.00 per share

- 2021-10: JPY 1,250.00 per share

- 2021-11: JPY 1,161.00 per share

- 2021-12: JPY 1,154.00 per share

- 2022-01: JPY 991.00 per share

- 2022-02: JPY 974.00 per share

- 2022-03: JPY 967.00 per share

- 2022-04: JPY 918.00 per share

- 2022-05: JPY 724.00 per share

- 2022-06: JPY 612.00 per share

- 2022-07: JPY 655.00 per share

- 2022-08: JPY 676.00 per share

- 2022-09: JPY 621.00 per share

- 2022-10: JPY 666.00 per share

- 2022-11: JPY 653.00 per share

- 2022-12: JPY 596.00 per share

- 2023-01: JPY 657.00 per share

- 2023-02: JPY 672.00 per share

- 2023-03: JPY 614.00 per share

- 2023-04: JPY 675.00 per share

- 2023-05: JPY 576.00 per share

- 2023-06: JPY 499.00 per share

- 2023-07: JPY 555.10 per share

- 2023-08: JPY 568.30 per share

- 2023-09: JPY 613.10 per share

- 2023-10: JPY 556.80 per share

- 2023-11: JPY 585.70 per share

- 2023-12: JPY 628.00 per share

- 2024-01: JPY 650.50 per share

- 2024-02: JPY 820.00 per share

- 2024-03: JPY 851.20 per share

- 2024-04: JPY 763.50 per share

- 2024-05: JPY 816.00 per share

- 2024-06: JPY 829.90 per share

- 2024-07: JPY 882.40 per share

- 2024-08: JPY 1,033.50 per share

- 2024-09: JPY 925.60 per share

- 2024-10: JPY 922.70 per share

- 2024-11: JPY 858.40 per share

- 2024-12: JPY 858.90 per share

- 2025-01: JPY 982.60 per share

- 2025-02: JPY 920.70 per share

- 2025-03: JPY 851.30 per share

- 2025-04: JPY 839.50 per share

- 2025-05: JPY 798.60 per share

- 2025-06: JPY 796.40 per share

- 2025-07: JPY 772.00 per share

- 2025-08: JPY 916.90 per share

- 2025-09: JPY 959.90 per share

- 2025-10: JPY 1,009.50 per share

- 2025-11: JPY 954.50 per share

- 2025-12: JPY 1,004.00 per share

- 2026-01: JPY 925.00 per share

- 2026-02: JPY 828.10 per share

- 2026-03: JPY 723.10 per share

- 2026-04: JPY 759.20 per share

- 2026-05: JPY 745.30 per share

- 2026-06: JPY 753.40 per share

- 2026-07: JPY 833.60 per share

- 2026-08: JPY 776.00 per share

- 2026-09: JPY 690.40 per share

- 2026-10: JPY 628.70 per share

## Annual estimated value (JPY per share)

- FY2017: low JPY 1,065.94 per share, central JPY 1,147.36 per share, high JPY 1,255.75 per share

- FY2018: low JPY 1,736.23 per share, central JPY 1,882.56 per share, high JPY 2,077.36 per share

- FY2019: low JPY 1,910.55 per share, central JPY 2,026.00 per share, high JPY 2,179.67 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XTNW.pdf); period 2025-12-31, filed 2026-03-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.