Rakuten Group, Inc. (4755.T) stock analysis

In our weekly check, Rakuten Group, Inc. is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 11 pass, warnings: 4, red flags: 7.

About Rakuten Group, Inc.

Rakuten Group, Inc. is a Consumer Cyclical company (Specialty Retail) based in Japan, listed on JPX as 4755.T.

What our checks show for 4755.T

Red flags

• Net debt is 0.6x a year of EBITDA (debt/equity 5.24). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.6 times: a weak year could make the payments hard.
• The gross margin fell by 26.1 points, to 6.2%: costs are rising faster than prices.
• Earnings per share fell 50% a year over the last 3 years.
• The company is losing money: the net margin is -2.4%.
• The stock has fallen as much as 80% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.5%.

Warning signs

• Free cash flow is only 3.5% of revenue.
• The price swings a lot: 37.5% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• The share count grew by 13% in 2 years: each shareholder owns a smaller slice.

Strengths

• The net margin rose by 5.5 points over 5 years, to -2.4%.
• Operating cash flow is 2.78x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 16.5% a year over the next years.
• Analysts expect the net margin to improve by 5.6 points from today's -2.4%.
• Actively traded: about 19.6 million shares a day.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2026-11-13

Similar companies

8136.T · NYKAA.NS · 9843.T · 7532.T · AMZN · 3690.HK

Questions

What grade does Rakuten Group, Inc. (4755.T) have?

In our weekly check, Rakuten Group, Inc. is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 11 pass, warnings: 4, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 4755.T stock?

This week's biggest flags for Rakuten Group, Inc.: High debt, Weak interest cover, Gross margin falling. In total 11 of 22 checks show a warning or a red flag.

What does Rakuten Group, Inc. do?

Rakuten Group, Inc. is a Consumer Cyclical company (Specialty Retail) based in Japan, listed on JPX as 4755.T.

When does Rakuten Group, Inc. report earnings next?

The next earnings report is expected on 2026-11-13. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis