RITE AID CORP (RAD)
US7677548726 - Common Stock
We assign a fundamental rating of 1 out of 10 to RAD. RAD was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. RAD may be in some trouble as it scores bad on both profitability and health. RAD does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
RAD had negative earnings in the past year.
In the past year RAD has reported a negative cash flow from operations.
In the past 5 years RAD always reported negative net income.
In multiple years RAD reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -12.37%, RAD is doing worse than 77.27% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.17%, RAD is doing worse than 68.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RAD is significantly below the industry average of 9.90%.
| Industry Rank | Sector 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%
1.3 Margins
RAD has a Operating Margin of 0.04%. This is in the lower half of the industry: RAD underperforms 68.18% of its industry peers.
In the last couple of years the Operating Margin of RAD has declined.
RAD's Gross Margin of 20.17% is in line compared to the rest of the industry. RAD outperforms 40.91% of its industry peers.
RAD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
RAD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
RAD has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 1.98, RAD is not doing good in the industry: 70.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC0.03
WACC6.02%
2.3 Liquidity
A Current Ratio of 1.32 indicates that RAD should not have too much problems paying its short term obligations.
RAD has a Current ratio (1.32) which is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 0.61, RAD is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.61 |
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%.
The Revenue has decreased by -2.83% in the past year.
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 growth Q2Q-21.67%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y3.19%
Revenue growth 5Y2.27%
Revenue growth 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.
Based on estimates for the next years, RAD will show a small growth in Revenue. The Revenue will grow by 0.39% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RAD. In the last year negative earnings were reported.
Also next year RAD is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
RAD's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
A cheap valuation may be justified as RAD's earnings are expected to decrease with -3.17% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.02%
EPS Next 3Y-3.17%
5. Dividend
5.1 Amount
No dividends for RAD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RITE AID CORP
NYSE:RAD (10/13/2023, 7:15:35 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap36.76M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.37% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.04% | ||
| PM (TTM) | N/A | ||
| GM | 20.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-10.04%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-86.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y3.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y