Rite Aid Corp
Find Ratings ReportsRITE AID CORP's gross profit margin for the second quarter of its fiscal year 2016 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 weak liquidity. Currently, the Quick Ratio is 0.64 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 43.51% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
| Income Statement | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Net Sales ($mil) | 8029.81 | 7664.78 |
| EBITDA ($mil) | 280.55 | 324.15 |
| EBIT ($mil) | 138.5 | 196.45 |
| Net Income ($mil) | 14.77 | 21.47 |
| Balance Sheet | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 136.09 | 152.65 |
| Total Assets ($mil) | 11610.97 | 11979.23 |
| Total Debt ($mil) | 7244.7 | 7444.31 |
| Equity ($mil) | 616.67 | 429.7 |
| Profitability | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Gross Profit Margin | 25.64 | 26.75 |
| EBITDA Margin | 3.49 | 4.22 |
| Operating Margin | 1.72 | 2.56 |
| Sales Turnover | 2.81 | 2.33 |
| Return on Assets | 1.16 | 16.53 |
| Return on Equity | 21.94 | 460.82 |
| Debt | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Current Ratio | 1.62 | 1.5 |
| Debt/Capital | 0.92 | 0.95 |
| Interest Expense | 105.39 | 115.41 |
| Interest Coverage | 1.31 | 1.7 |
| Share Data | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Shares outstanding (mil) | 1048.77 | 1045.62 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.01 | 0.02 |
| Book value / share | 0.59 | 0.41 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1.6032185E7 | 1.3521631E7 |
HOLD. RITE AID CORP's P/E ratio indicates a significant premium compared to an average of 20.79 for the Food & Staples Retailing industry and a significant premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 13.81 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 3.39. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, RITE AID CORP proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RAD 62.46 | Peers 20.79 | RAD 12.74 | Peers 9.75 | |||||||||||||||||||||
|
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. |
Premium. 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 premium to its peers. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| RAD 32.74 | Peers 19.13 | RAD NA | Peers 2.00 | |||||||||||||||||||||
|
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. Ratio not available. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| RAD 13.81 | Peers 3.39 | RAD -93.27 | Peers -9.23 | |||||||||||||||||||||
|
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. |
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. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| RAD 0.26 | Peers 0.53 | RAD 17.18 | Peers 4.01 | |||||||||||||||||||||
|
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. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. RAD has a sales growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
