RITE AID CORP's gross profit margin for the first quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. RITE AID CORP has very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 13.19% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q1 FY14||Q1 FY13|
|Net Sales ($mil)||6465.53||6293.06|
|Net Income ($mil)||41.45||89.66|
|Balance Sheet||Q1 FY14||Q1 FY13|
|Cash & Equiv. ($mil)||166.0||108.9|
|Total Assets ($mil)||6946.52||6945.44|
|Total Debt ($mil)||5704.39||5911.67|
|Profitability||Q1 FY14||Q1 FY13|
|Gross Profit Margin||29.48||30.55|
|Return on Assets||2.89||3.39|
|Return on Equity||0.0||0.0|
|Debt||Q1 FY14||Q1 FY13|
|Share Data||Q1 FY14||Q1 FY13|
|Shares outstanding (mil)||978.04||909.39|
|Div / share||0.0||0.0|
|Book value / share||-2.09||-2.59|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2.6055704E7||2.7324648E7|
HOLD. RITE AID CORP's P/E ratio indicates a significant premium compared to an average of 21.13 for the Food & Staples Retailing industry and a significant premium compared to the S&P 500 average of 19.69. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.
|RAD 38.53||Peers 21.13||RAD 8.56||Peers 11.95|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
RAD is trading at a significant premium to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
RAD is trading at a significant discount to its peers.
|RAD 14.40||Peers 19.14||RAD 0.74||Peers 3.15|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
RAD is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
RAD trades at a significant discount to its peers.
|RAD NM||Peers 3.26||RAD -29.17||Peers 2.56|
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
RAD's P/B is negative making this valuation measure meaningless.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, RAD is expected to significantly trail its peers on the basis of its earnings growth rate.
|RAD 0.25||Peers 0.54||RAD 1.91||Peers 6.49|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
RAD is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
RAD significantly trails its peers on the basis of sales growth
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