Rakuten is mainly engaged in the Internet-related business. Along with its affiliates, Co. operates in two business segments. The Internet Services segment is engaged in the operation of electronic commerce sites, including an Internet shopping mall "Rakuten Ichiba," an online cash back site, a travel booking site, portal sites and digital contents sites; the sale of advertising on Co.'s sites; the provision of messaging and communication services; and the management of a professional baseball team "Tohoku Rakuten Golden Eagles." FinTech segment is engaged in the provision of Internet banking services and online securities trading services, and the credit card and life insurance businesses.
  • Ticker4755
  • ISINJP3967200001
  • SectorGeneral Retailers
  • CountryUnited States

Analysts

RAKUTEN INCO. sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of RAKUTEN INCO. (JP), a company active in the Broadline Retailers industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 1 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date August 23, 2019, the closing price was JPY 1,012.00 and its potential was estimated at JPY 1,324.63.

Kazunori Ito

Morningstar | Rakuten’s FVE Raised to JPY 1,100 Because of Lyft IPO, but Worries About EC Business Not Addressed

We raise Rakuten’s fair value estimate to JPY 1,100 from JPY 950 to incorporate the value of gains from the Lyft IPO. Rakuten is the largest shareholder of Lyft, holding 13% of its shares, and the company recorded JPY 110 billion gains in first quarter of 2019 because of Lyft’s IPO on the Nasdaq. Other businesses were in line with our original forecast. While the revenue for the from domestic e-commerce, or EC, increased 14.7% from the previous year, its operating margin dropped to 12.7% from 17.7% in 2018 and 21.5% in 2017, which did not address our concern that Rakuten needs to continue payi...

Kazunori Ito

Morningstar | Rakuten’s FVE Raised to JPY 1,100 Because of Lyft IPO, but Worries About EC Business Not Addressed. See Updated Analyst Note from 03 Jun 2019

We raise Rakuten’s fair value estimate to JPY 1,100 from JPY 950 to incorporate the value of gains from the Lyft IPO. Rakuten is the largest shareholder of Lyft, holding 13% of its shares, and the company recorded JPY 110 billion gains in first quarter of 2019 because of Lyft’s IPO on the Nasdaq. Other businesses were in line with our original forecast. While the revenue for the from domestic e-commerce, or EC, increased 14.7% from the previous year, its operating margin dropped to 12.7% from 17.7% in 2018 and 21.5% in 2017, which did not address our concern that Rakuten needs to continue payi...

Kazunori Ito

Rakuten’s FVE Raised to JPY 1,100 Because of Lyft IPO, but Worries About EC Business Not Addressed

We raise Rakuten’s fair value estimate to JPY 1,100 from JPY 950 to incorporate the value of gains from the Lyft IPO. Rakuten is the largest shareholder of Lyft, holding 13% of its shares, and the company recorded JPY 110 billion gains in first quarter of 2019 because of Lyft’s IPO on the Nasdaq. Other businesses were in line with our original forecast. While the revenue for the from domestic e-commerce, or EC, increased 14.7% from the previous year, its operating margin dropped to 12.7% from 17...

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Kazunori Ito

Morningstar | Rakuten’s FVE Raised to JPY 1,100 Because of Lyft IPO, but Worries About EC Business Not Addressed

We raise Rakuten’s fair value estimate to JPY 1,100 from JPY 950 to incorporate the value of gains from the Lyft IPO. Rakuten is the largest shareholder of Lyft, holding 13% of its shares, and the company recorded JPY 110 billion gains in first quarter of 2019 because of Lyft’s IPO on the Nasdaq. Other businesses were in line with our original forecast. While the revenue for the from domestic e-commerce, or EC, increased 14.7% from the previous year, its operating margin dropped to 12.7% from 17.7% in 2018 and 21.5% in 2017, which did not address our concern that Rakuten needs to continue payi...

Kazunori Ito

Morningstar | Rakuten’s FVE Raised to JPY 1,100 Because of Lyft IPO, but Worries About EC Business Not Addressed. See Updated Analyst Note from 03 Jun 2019

We raise Rakuten’s fair value estimate to JPY 1,100 from JPY 950 to incorporate the value of gains from the Lyft IPO. Rakuten is the largest shareholder of Lyft, holding 13% of its shares, and the company recorded JPY 110 billion gains in first quarter of 2019 because of Lyft’s IPO on the Nasdaq. Other businesses were in line with our original forecast. While the revenue for the from domestic e-commerce, or EC, increased 14.7% from the previous year, its operating margin dropped to 12.7% from 17.7% in 2018 and 21.5% in 2017, which did not address our concern that Rakuten needs to continue payi...

Kazunori Ito

Rakuten’s FVE Raised to JPY 1,100 Because of Lyft IPO, but Worries About EC Business Not Addressed

We raise Rakuten’s fair value estimate to JPY 1,100 from JPY 950 to incorporate the value of gains from the Lyft IPO. Rakuten is the largest shareholder of Lyft, holding 13% of its shares, and the company recorded JPY 110 billion gains in first quarter of 2019 because of Lyft’s IPO on the Nasdaq. Other businesses were in line with our original forecast. While the revenue for the from domestic e-commerce, or EC, increased 14.7% from the previous year, its operating margin dropped to 12.7% from 17...

Kazunori Ito

Morningstar | Cutting Rakuten FVE to JPY 950; Concerns Remain Regarding Tough Competition for E-Commerce

We have trimmed our fair value estimate for Rakuten to JPY 950 per share from JPY 1,080 as we now believe the company's operating margin will be lower than our original forecast, owing to larger customer incentives and heavier up-front investment. While we acknowledge the strength of Rakuten’s unique ecosystem, which is a combination of e-commerce and financial businesses and the source of our narrow moat rating, costs necessary to improve the service and retain users in this ecosystem, such as improving logistics and establishing mobile payment service, may be higher than we had anticipated. ...

Kazunori Ito

Cutting Rakuten FVE to JPY 950; Concerns Remain Regarding Tough Competition for E-Commerce

We have trimmed our fair value estimate for Rakuten to JPY 950 per share from JPY 1,080 as we now believe the company's operating margin will be lower than our original forecast, owing to larger customer incentives and heavier up-front investment. While we acknowledge the strength of Rakuten’s unique ecosystem, which is a combination of e-commerce and financial businesses and the source of our narrow moat rating, costs necessary to improve the service and retain users in this ecosystem, such as ...

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RAKUTEN INCO. sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of RAKUTEN INCO. (JP), a company active in the Broadline Retailers industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 1 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date August 23, 2019, the closing price was JPY 1,012.00 and its potential was estimated at JPY 1,324.63.

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