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RITE AID CORP (RAD) Stock Fundamental Analysis

USA - NYSE:RAD - US7677548726 - Common Stock

0.6483 USD
-0.13 (-16.81%)
Last: 10/13/2023, 8:15:35 PM
0.6121 USD
-0.04 (-5.58%)
Pre-Market: 10/16/2023, 8:03:29 AM
Fundamental Rating

1

Overall RAD gets a fundamental rating of 1 out of 10. We evaluated RAD against 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of RAD have multiple concerns. RAD is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year RAD has reported negative net income.
In the past year RAD has reported a negative cash flow from operations.
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

RAD has a worse Return On Assets (-12.37%) than 77.27% of its industry peers.
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.
RAD had an Average Return On Invested Capital over the past 3 years of 1.08%. This is significantly below the industry average of 8.47%.
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

RAD's Operating Margin of 0.04% is on the low side compared to the rest of the industry. RAD is outperformed by 68.18% of its industry peers.
RAD's Operating Margin has declined in the last couple of years.
RAD has a Gross Margin (20.17%) which is comparable to the rest of the 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.
RAD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RAD has been increased compared to 5 years ago.
RAD has a worse debt/assets ratio than last year.
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.
RAD has a worse Altman-Z score (1.98) 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

RAD has a Current Ratio of 1.32. This is a normal value and indicates that RAD is financially healthy and should not expect problems in meeting its short term obligations.
RAD's Current ratio of 1.32 is in line compared to the rest of the industry. RAD outperforms 52.27% of its industry peers.
A Quick Ratio of 0.61 indicates that RAD may have some problems paying 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

The earnings per share for RAD have decreased strongly by -10.04% in the last year.
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

RAD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.17% yearly.
The Revenue is expected to grow by 0.39% on average over the next years.
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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

RAD's Enterprise Value to EBITDA is on the same level as the industry average.
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

RAD does not give a dividend.
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