RITE AID CORP's gross profit margin for the fourth 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 0.44 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.
At the same time, stockholders' equity ("net worth") has greatly increased by 102.69% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||6847.93||6597.46|
|Net Income ($mil)||1835.03||55.38|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||115.9||146.41|
|Total Assets ($mil)||8863.25||6944.87|
|Total Debt ($mil)||5644.94||5757.14|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||30.13||30.13|
|Return on Assets||23.79||3.59|
|Return on Equity||3696.67||0.0|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||981.77||971.33|
|Div / share||0.0||0.0|
|Book value / share||0.06||-2.18|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2.605378E7||2.0662824E7|
HOLD. RITE AID CORP's P/E ratio indicates a significant discount compared to an average of 23.53 for the Food & Staples Retailing industry and a significant discount compared to the S&P 500 average of 20.57. For additional comparison, its price-to-book ratio of 141.31 indicates a significant premium versus the S&P 500 average of 2.84 and a significant premium versus the industry average of 5.39. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, RITE AID CORP seems to be trading at a discount to investment alternatives within the industry.
|RAD 3.99||Peers 23.53||RAD 12.42||Peers 12.76|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
RAD is trading at a significant discount to its peers.
Average. 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 valuation on par to its peers.
|RAD 24.15||Peers 20.47||RAD NM||Peers 1.15|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
RAD is trading at a significant premium to its peers.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|RAD 141.31||Peers 5.39||RAD 836.36||Peers 18.36|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
RAD is trading at a significant premium to its peers.
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 0.30||Peers 0.68||RAD 3.92||Peers 6.70|
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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