RITE AID CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. RITE AID CORP has very weak liquidity. Currently, the Quick Ratio is 0.50 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.
During the same period, stockholders' equity ("net worth") has increased by 19.56% 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||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||6692.33||6357.73|
|Net Income ($mil)||104.85||71.55|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||232.95||183.21|
|Total Assets ($mil)||7185.99||7138.17|
|Total Debt ($mil)||5850.69||5952.43|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||30.3||29.91|
|Return on Assets||4.58||4.44|
|Return on Equity||0.0||0.0|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||981.34||965.41|
|Div / share||0.0||0.0|
|Book value / share||-1.83||-2.31|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2.459766E7||2.8368056E7|
HOLD. RITE AID CORP's P/E ratio indicates a discount compared to an average of 24.30 for the Food & Staples Retailing industry and a value on par with the S&P 500 average of 19.99. 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. After reviewing these and other key valuation criteria, RITE AID CORP proves to trade at a discount to investment alternatives within the industry.
|RAD 20.55||Peers 24.30||RAD 9.98||Peers 14.86|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
RAD is trading at a discount 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 16.95||Peers 20.50||RAD 0.53||Peers 3.80|
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 3.81||RAD 13.79||Peers 2.38|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
RAD is expected to have an earnings growth rate that significantly exceeds its peers.
|RAD 0.25||Peers 0.60||RAD 3.52||Peers 5.38|
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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