Rakuten Inc Adr Stock Buy Hold or Sell Recommendation
| RKUNY Stock | USD 5.24 0.02 0.38% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Rakuten Inc ADR is 'Strong Hold'. Macroaxis provides Rakuten buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Rakuten positions. The advice algorithm takes into account all of Rakuten's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Rakuten's buy or sell advice are summarized below:
Real Value 5.16 | Hype Value 5.24 | Market Value 5.24 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Rakuten Inc ADR given historical horizon and risk tolerance towards Rakuten. When Macroaxis issues a 'buy' or 'sell' recommendation for Rakuten Inc ADR, the advice is generated through an automated system that utilizes algorithms and statistical models.
Rakuten |
Execute Rakuten Buy or Sell Advice
The Rakuten recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Rakuten Inc ADR. Macroaxis does not own or have any residual interests in Rakuten Inc ADR or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Rakuten's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | OK | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Rakuten Trading Alerts and Improvement Suggestions
| The company has accumulated 3.4 T in total debt with debt to equity ratio (D/E) of 2.42, implying the company greatly relies on financing operations through barrowing. Rakuten Inc ADR has a current ratio of 0.9, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Rakuten until it has trouble settling it off, either with new capital or with free cash flow. So, Rakuten's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Rakuten Inc ADR sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Rakuten to invest in growth at high rates of return. When we think about Rakuten's use of debt, we should always consider it together with cash and equity. | |
| The entity reported the revenue of 1.68 T. Net Loss for the year was (133.83 B) with loss before overhead, payroll, taxes, and interest of (284.66 B). |
Rakuten Returns Distribution Density
The distribution of Rakuten's historical returns is an attempt to chart the uncertainty of Rakuten's future price movements. The chart of the probability distribution of Rakuten daily returns describes the distribution of returns around its average expected value. We use Rakuten Inc ADR price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Rakuten returns is essential to provide solid investment advice for Rakuten.
| Mean Return | 0.26 | Value At Risk | -3.57 | Potential Upside | 5.12 | Standard Deviation | 2.86 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Rakuten historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Rakuten Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Rakuten or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Rakuten's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Rakuten pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.18 | |
β | Beta against NYSE Composite | 1.43 | |
σ | Overall volatility | 2.91 | |
Ir | Information ratio | 0.07 |
Rakuten Volatility Alert
Rakuten Inc ADR currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.18. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Rakuten's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Rakuten's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Rakuten Fundamentals Vs Peers
Comparing Rakuten's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Rakuten's direct or indirect competition across all of the common fundamentals between Rakuten and the related equities. This way, we can detect undervalued stocks with similar characteristics as Rakuten or determine the pink sheets which would be an excellent addition to an existing portfolio. Peer analysis of Rakuten's fundamental indicators could also be used in its relative valuation, which is a method of valuing Rakuten by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Rakuten to competition |
| Fundamentals | Rakuten | Peer Average |
| Return On Equity | -0.28 | -0.31 |
| Return On Asset | -0.0165 | -0.14 |
| Profit Margin | (0.16) % | (1.27) % |
| Operating Margin | (0.25) % | (5.51) % |
| Current Valuation | 9.73 B | 16.62 B |
| Shares Outstanding | 1.59 B | 571.82 M |
| Shares Owned By Institutions | 0.01 % | 39.21 % |
| Price To Earning | 13.36 X | 28.72 X |
| Price To Book | 1.03 X | 9.51 X |
| Price To Sales | 0 X | 11.42 X |
| Revenue | 1.68 T | 9.43 B |
| Gross Profit | (284.66 B) | 27.38 B |
| EBITDA | 25.36 B | 3.9 B |
| Net Income | (133.83 B) | 570.98 M |
| Cash And Equivalents | 5.58 T | 2.7 B |
| Total Debt | 3.4 T | 5.32 B |
| Debt To Equity | 2.42 % | 48.70 % |
| Current Ratio | 0.92 X | 2.16 X |
| Book Value Per Share | 619.37 X | 1.93 K |
| Cash Flow From Operations | 582.71 B | 971.22 M |
| Earnings Per Share | (0.94) X | 3.12 X |
| Price To Earnings To Growth | 24.63 X | 4.89 X |
| Number Of Employees | 28.26 K | 18.84 K |
| Beta | 0.87 | -0.15 |
| Market Capitalization | 7.78 B | 19.03 B |
| Total Asset | 16.83 T | 29.47 B |
| Retained Earnings | 216.53 B | 9.33 B |
| Working Capital | 96.94 B | 1.48 B |
| Current Asset | 3.61 T | 9.34 B |
| Current Liabilities | 3.51 T | 7.9 B |
| Annual Yield | 0.01 % | |
| Net Asset | 16.83 T | |
| Last Dividend Paid | 4.5 |
Rakuten Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Rakuten . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Rakuten Buy or Sell Advice
When is the right time to buy or sell Rakuten Inc ADR? Buying financial instruments such as Rakuten Pink Sheet isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Rakuten in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Diversified Assets Thematic Idea Now
Diversified Assets
Pablicly traded close-end funds and other entities backed by different types of diversified investments. The Diversified Assets theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Diversified Assets Theme or any other thematic opportunities.
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Check out Rakuten Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Complementary Tools for Rakuten Pink Sheet analysis
When running Rakuten's price analysis, check to measure Rakuten's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rakuten is operating at the current time. Most of Rakuten's value examination focuses on studying past and present price action to predict the probability of Rakuten's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rakuten's price. Additionally, you may evaluate how the addition of Rakuten to your portfolios can decrease your overall portfolio volatility.
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