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RITE AID CORP (RAD) Stock Fundamental Analysis

NYSE:RAD - New York Stock Exchange, Inc. - US7677548726 - Common Stock - Currency: USD

0.6483  -0.13 (-16.81%)

Premarket: 0.6121 -0.04 (-5.58%)

Fundamental Rating

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RAD gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. RAD has a bad profitability rating. Also its financial health evaluation is rather negative. RAD has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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1. Profitability

1.1 Basic Checks

In the past year RAD has reported negative net income.
RAD had a negative operating cash flow in the past year.
RAD had negative earnings in each of the past 5 years.
In multiple years RAD reported negative operating cash flow during the last 5 years.
RAD Yearly Net Income VS EBIT VS OCF VS FCFRAD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B 2B

1.2 Ratios

With a Return On Assets value of -12.37%, RAD is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
RAD's Return On Invested Capital of 0.17% is on the low side compared to the rest of the industry. RAD is outperformed by 68.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RAD is significantly below the industry average of 7.97%.
Industry RankSector Rank
ROA -12.37%
ROE N/A
ROIC 0.17%
ROA(3y)-5.75%
ROA(5y)-5.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)1.08%
ROIC(5y)1.49%
RAD Yearly ROA, ROE, ROICRAD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1K 2K 3K

1.3 Margins

Looking at the Operating Margin, with a value of 0.04%, RAD is doing worse than 68.18% of the companies in the same industry.
RAD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.17%, RAD is in line with its industry, outperforming 40.91% of the companies in the same industry.
In the last couple of years the Gross Margin of RAD has declined.
Industry RankSector Rank
OM 0.04%
PM (TTM) N/A
GM 20.17%
OM growth 3Y-66.11%
OM growth 5Y-40.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.57%
GM growth 5Y-2.13%
RAD Yearly Profit, Operating, Gross MarginsRAD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RAD is destroying value.
The number of shares outstanding for RAD has been increased compared to 1 year ago.
The number of shares outstanding for RAD has been increased compared to 5 years ago.
Compared to 1 year ago, RAD has a worse debt to assets ratio.
RAD Yearly Shares OutstandingRAD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
RAD Yearly Total Debt VS Total AssetsRAD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

RAD has an Altman-Z score of 1.98. This is not the best score and indicates that RAD is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RAD (1.98) is worse than 70.45% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z 1.98
ROIC/WACC0.03
WACC6.02%
RAD Yearly LT Debt VS Equity VS FCFRAD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 1.32 indicates that RAD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, RAD is in line with its industry, outperforming 52.27% of the companies in the same industry.
RAD has a Quick Ratio of 1.32. This is a bad value and indicates that RAD is not financially healthy enough and could expect problems in meeting its short term obligations.
RAD has a Quick ratio of 0.61. This is comparable to the rest of the industry: RAD outperforms 45.45% of its industry peers.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.61
RAD Yearly Current Assets VS Current LiabilitesRAD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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3. Growth

3.1 Past

RAD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.04%.
RAD shows a decrease in Revenue. In the last year, the revenue decreased by -2.83%.
The Revenue has been growing slightly by 2.27% on average over the past years.
EPS 1Y (TTM)-10.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-21.67%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y3.19%
Revenue growth 5Y2.27%
Sales Q2Q%-6.01%

3.2 Future

Based on estimates for the next years, RAD will show a decrease in Earnings Per Share. The EPS will decrease by -2.17% on average per year.
RAD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.39% yearly.
EPS Next Y-86.91%
EPS Next 2Y-5.02%
EPS Next 3Y-3.17%
EPS Next 5Y-2.17%
Revenue Next Year-3.31%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.13%
Revenue Next 5Y0.39%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RAD Yearly Revenue VS EstimatesRAD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 10B 20B 30B
RAD Yearly EPS VS EstimatesRAD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 -4 6

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4. Valuation

4.1 Price/Earnings Ratio

RAD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year RAD is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
RAD Price Earnings VS Forward Price EarningsRAD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as RAD.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.48
RAD Per share dataRAD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200 300 400

4.3 Compensation for Growth

RAD's earnings are expected to decrease with -3.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.02%
EPS Next 3Y-3.17%

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5. Dividend

5.1 Amount

No dividends for RAD!.
Industry RankSector Rank
Dividend Yield N/A

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RITE AID CORP

NYSE:RAD (10/13/2023, 8:15:35 PM)

Premarket: 0.6121 -0.04 (-5.58%)

0.6483

-0.13 (-16.81%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)09-27 2023-09-27/bmo
Earnings (Next)12-19 2023-12-19/bmo
Inst Owners0%
Inst Owner Change0%
Ins Owners153.29%
Ins Owner Change0%
Market Cap36.76M
Analysts42
Price Target1.02 (57.33%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.47%
Min EPS beat(2)-59.44%
Max EPS beat(2)50.5%
EPS beat(4)2
Avg EPS beat(4)8.66%
Min EPS beat(4)-59.44%
Max EPS beat(4)56%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)5.79%
Min Revenue beat(2)5.14%
Max Revenue beat(2)6.44%
Revenue beat(4)4
Avg Revenue beat(4)3.56%
Min Revenue beat(4)1.22%
Max Revenue beat(4)6.44%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)26.98%
EPS NY rev (1m)-2.91%
EPS NY rev (3m)-162.98%
Revenue NQ rev (1m)99900%
Revenue NQ rev (3m)3.54%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 11.48
EPS(TTM)-2.74
EYN/A
EPS(NY)-2.88
Fwd EYN/A
FCF(TTM)-6.75
FCFYN/A
OCF(TTM)-3.05
OCFYN/A
SpS418.53
BVpS-16.71
TBVpS-27.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -12.37%
ROE N/A
ROCE 0.21%
ROIC 0.17%
ROICexc 0.17%
ROICexgc 0.2%
OM 0.04%
PM (TTM) N/A
GM 20.17%
FCFM N/A
ROA(3y)-5.75%
ROA(5y)-5.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)1.08%
ROIC(5y)1.49%
ROICexc(3y)1.1%
ROICexc(5y)1.52%
ROICexgc(3y)1.4%
ROICexgc(5y)2%
ROCE(3y)1.37%
ROCE(5y)1.88%
ROICexcg growth 3Y-61.95%
ROICexcg growth 5Y-42.18%
ROICexc growth 3Y-60.94%
ROICexc growth 5Y-38.28%
OM growth 3Y-66.11%
OM growth 5Y-40.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.57%
GM growth 5Y-2.13%
F-Score3
Asset Turnover3.1
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 11.81
Cap/Depr 77%
Cap/Sales 0.88%
Interest Coverage 0.04
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.32
Quick Ratio 0.61
Altman-Z 1.98
F-Score3
WACC6.02%
ROIC/WACC0.03
Cap/Depr(3y)77.65%
Cap/Depr(5y)73.33%
Cap/Sales(3y)0.95%
Cap/Sales(5y)0.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-21.67%
EPS Next Y-86.91%
EPS Next 2Y-5.02%
EPS Next 3Y-3.17%
EPS Next 5Y-2.17%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y3.19%
Revenue growth 5Y2.27%
Sales Q2Q%-6.01%
Revenue Next Year-3.31%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.13%
Revenue Next 5Y0.39%
EBIT growth 1Y-83.58%
EBIT growth 3Y-65.03%
EBIT growth 5Y-39.38%
EBIT Next Year160.07%
EBIT Next 3Y37.37%
EBIT Next 5Y26.98%
FCF growth 1Y-2859.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-172.77%
OCF growth 3YN/A
OCF growth 5YN/A