Rakuten GroupRKUNF 71 Operating Margin % is 4.72% as of Mar. 2026, which is 226% above its 10-year median of 1.45. GuruFocus rates RKUNF with a GF Score™ of 71/100 and a GF Value™ of $5.28 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Rakuten Group ranks worse than 60.02% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Rakuten Group's Operating Income for the
three
months ended in Mar. 2026 was $192 Mil. Rakuten Group's Revenue for the
three
months ended in Mar. 2026 was $4,056 Mil. Therefore, Rakuten Group's Operating Margin % for the quarter that ended in Mar. 2026 was 4.72%.
The historical rank and industry rank for Rakuten Group's Operating Margin % or its related term are showing as below:
RKUNF'
s Operating Margin % Range Over the Past 10 Years
Min: -19.35 Med: 1.45 Max: 15.81
Current: 2.34
RKUNF's Operating Margin % is ranked worse than 60.02% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs RKUNF: 2.34
Rakuten Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Rakuten Group Inc had lost money in 50% of the time over the past 12quarters.
Rakuten Group (OTCPK:RKUNF) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Rakuten Group Operating Margin % Related Terms
Rakuten Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Rakuten Group's Operating Margin % 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.
RKUNF vs AMZN, BABA, PDD: Operating Margin % Comparison
For the Internet Retail subindustry, Rakuten Group's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Rakuten Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rakuten Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Rakuten Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (RKUNF) has a Operating Margin % of 4.72% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rakuten Group and its competitors. This is 226% above median its historical median of 1.45. According to the industry distribution chart, Rakuten Group ranks #677 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 60%.
Is Rakuten Group's Operating Margin % too high?
Rakuten Group's current Operating Margin % of 4.72% is 226% above median its 10-year median of 1.45. The Retail - Cyclical industry median Operating Margin % is 3.91. Rakuten Group's value of 4.72% is 20.9% above this industry median. Based on the distribution chart, Rakuten Group ranks #677 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Rakuten Group has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rakuten Group's Operating Margin % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Rakuten Group ranks #677 out of 1128 companies for Operating Margin %. This places Rakuten Group in the lower half of its industry. The industry median Operating Margin % is 3.91. Rakuten Group's value of 4.72% is 20.9% above this benchmark. While the company's 10-year median is 1.45 vs. the industry median of 3.91, Rakuten Group has consistently been above 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 Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rakuten Group's current Operating Margin % of 4.72% is 20.9% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Rakuten Group and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rakuten Group's current Operating Margin % is 4.72%, which is 226% above median its own 10-year median of 1.45. 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?
Based on GuruFocus' analysis, Rakuten Group (RKUNF) is currently considered Modestly Undervalued. The stock's GF Value™ is $5.28, compared to a current price of $4.30 — trading 18.6% below its estimated fair value. The current Operating Margin % is 4.72%, which is 226% above median its 10-year median of 1.45 and 20.9% above the Retail - Cyclical industry median of 3.91. Rakuten Group's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Rakuten Group (RKUNF), the current Operating Margin % is 4.72% 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 (RKUNF) Overvalued in 2026?
Based on GuruFocus' analysis, Rakuten Group stock appears to be undervalued.
The current stock price of $4.30 is trading 18.6% below its estimated GF Value™ of $5.28.
GuruFocus considers Rakuten Group to be Modestly Undervalued.
Key valuation signals for RKUNF:
Operating Margin %: 4.72% (226% above median its 10-year median of 1.45)
GF Value™: $5.28 vs. price of $4.30 (18.6% below fair value)
Industry Position: 20.9% above the Retail - Cyclical median (#677 of 1128)
No single metric tells the full story. See the RKUNF 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.
71GF Score
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