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Rite Aid Corp
RAD : NYSE : Services
$6.23 -0.13 | -2.00%
Today's Range: 6.22 - 6.48
Avg. Daily Volume: 22,181,600
10/06/15 - 11:39 AM ET

Financial Analysis

RITE AID CORP's gross profit margin for the second quarter of its fiscal year 2015 has decreased 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 weak liquidity. Currently, the Quick Ratio is 0.60 which 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 122.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)7664.786522.58
EBITDA ($mil)0.0348.56
EBIT ($mil)1922.29247.08
Net Income ($mil)21.47127.85

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)152.65185.76
Total Assets ($mil)11979.236959.34
Total Debt ($mil)7444.315752.29
Equity ($mil)429.7-1906.53

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin26.7530.6
EBITDA Margin0.05.34
Operating Margin0.03.79
Sales Turnover2.333.73
Return on Assets16.534.25
Return on Equity460.820.0
Debt Q2 FY15 Q2 FY14
Current Ratio1.51.74
Interest Expense115.41100.95
Interest Coverage16.662.45

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)1014.83981.34
Div / share0.00.0
Book value / share0.42-1.94
Institutional Own % n/a n/a
Avg Daily Volume2.2163764E72.2224456E7


HOLD. RITE AID CORP's P/E ratio indicates a significant discount compared to an average of 19.84 for the Food & Staples Retailing industry and a significant discount compared to the S&P 500 average of 19.38. For additional comparison, its price-to-book ratio of 14.60 indicates a significant premium versus the S&P 500 average of 2.58 and a significant premium versus the industry average of 3.46. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RAD 3.20 Peers 19.84   RAD 9.91 Peers 11.11

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.


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 discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
RAD 23.77 Peers 18.56   RAD NM Peers 1.59

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RAD 14.60 Peers 3.46   RAD 614.81 Peers 14.70

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RAD 0.23 Peers 0.58   RAD 7.35 Peers 7.47

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.


Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

RAD is keeping pace with its peers on the basis of sales growth.



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