Rakuten GroupFRA:RAKA -2.15%58 Interest Coverage is 1.28 as of Mar. 2026, which is 93% below its 10-year median of 18.87. GuruFocus rates FRA:RAKA with a GF Score™ of 58/100 and a GF Value™ of €4.86. The stock has 6 warning signs investors should review. Among 828 Retail - Cyclical companies, Rakuten Group ranks worse than 94.81% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Rakuten Group's
Operating Income
for the
three
months ended in Mar. 2026 was €166 Mil. Rakuten Group's Interest Expense for the
three
months ended in Mar. 2026 was €-130 Mil.
Rakuten Group's interest coverage for the quarter that ended in Mar. 2026 was 1.28.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Rakuten Group Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Rakuten Group's Interest Coverage or its related term are showing as below:
FRA:RAKA'
s Interest Coverage Range Over the Past 10 Years
Min: 0.14 Med: 18.87 Max: 44.94
Current: 0.68
FRA:RAKA's Interest Coverage is ranked worse than 94.81% of 828
companies
in the Retail - Cyclical industry
Industry Median: 7.915
vs FRA:RAKA: 0.68
Rakuten Group (FRA:RAKA) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Rakuten Group Interest Coverage Related Terms
Rakuten Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Rakuten Group's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:RAKA vs AMZN, BABA, PDD: Interest Coverage Comparison
For the Internet Retail subindustry, Rakuten Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rakuten Group Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Rakuten Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Rakuten Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rakuten Group (FRA:RAKA) has a Interest Coverage of 1.28 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rakuten Group and its competitors. This is 93% below median its historical median of 18.87. Over the past decade, Rakuten Group's Interest Coverage has ranged from 0.14 to 44.94. According to the industry distribution chart, Rakuten Group ranks #785 out of 828 companies in the Retail - Cyclical industry, placing it in the top 94.8%.
Is Rakuten Group's Interest Coverage too high?
Rakuten Group's current Interest Coverage of 1.28 is 93% below median its 10-year median of 18.87. Over the past 10 years, this metric has ranged from a low of 0.14 to a high of 44.94. The Retail - Cyclical industry median Interest Coverage is 7.92. Rakuten Group's value of 1.28 is 83.8% below this industry median. Based on the distribution chart, Rakuten Group ranks #785 out of 828 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Rakuten Group has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Rakuten Group's Interest Coverage compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Rakuten Group ranks #785 out of 828 companies for Interest Coverage. This places Rakuten Group in the lower half of its industry. The industry median Interest Coverage is 7.92. Rakuten Group's value of 1.28 is 83.8% below this benchmark. Historically, Rakuten Group's own Interest Coverage has ranged from 0.14 to 44.94 over the past decade. While the company's 10-year median is 18.87 vs. the industry median of 7.92, Rakuten Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 828 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rakuten Group's current Interest Coverage of 1.28 is 83.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rakuten Group and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rakuten Group's current Interest Coverage is 1.28, which is 93% below median its own 10-year median of 18.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rakuten Group stock overvalued right now?
Rakuten Group (FRA:RAKA) has a current Interest Coverage of 1.28. The stock's GF Value™ is €4.86, compared to a current price of €3.64 — trading 25.1% below its estimated fair value. The current Interest Coverage is 1.28, which is 93% below median its 10-year median of 18.87 and 83.8% below the Retail - Cyclical industry median of 7.92. Rakuten Group's overall GF Score™ is 58/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Rakuten Group (FRA:RAKA), the current Interest Coverage is 1.28 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rakuten Group (FRA:RAKA) Overvalued in 2026?
Based on GuruFocus' analysis, Rakuten Group stock appears to be undervalued.
The current stock price of €3.64 is trading 25.1% below its estimated GF Value™ of €4.86.
Key valuation signals for FRA:RAKA:
Interest Coverage: 1.28 (93% below median its 10-year median of 18.87)
GF Value™: €4.86 vs. price of €3.64 (25.1% below fair value)
Industry Position: 83.8% below the Retail - Cyclical median (#785 of 828)
No single metric tells the full story. See the FRA:RAKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rakuten is a leading e-commerce and financial technology service provider in Japan. It has built up a comprehensive Rakuten ecosystem in Japan, including Rakuten Ichiba for e-commerce, Rakuten Travel, Rakuten Card, Rakuten Bank, and Rakuten Securities, and became the fourth mobile network operator in Japan in April 2020. The loyalty program, Rakuten Super Points, has encouraged cross-use of services in its ecosystem. About 90% of its revenue is generated from the Japanese market.
58GF Score
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