Rite Aid Corporation
Find Ratings Reports
-0.03 |
-0.16%
RITE AID CORP's gross profit margin for the fourth quarter of its fiscal year 2020 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. RITE AID CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which 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 decreased by 8.80% 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 | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Net Sales ($mil) | 5916.86 | 5727.24 |
| EBITDA ($mil) | 19.79 | 162.77 |
| EBIT ($mil) | -57.78 | 83.47 |
| Net Income ($mil) | -18.5 | -324.72 |
| Balance Sheet | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 160.9 | 218.18 |
| Total Assets ($mil) | 9335.4 | 9452.37 |
| Total Debt ($mil) | 6432.25 | 6305.94 |
| Equity ($mil) | 615.15 | 674.53 |
| Profitability | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Gross Profit Margin | 20.54 | 23.5 |
| EBITDA Margin | 0.33 | 2.84 |
| Operating Margin | -0.98 | 1.46 |
| Sales Turnover | 2.58 | 2.32 |
| Return on Assets | -0.97 | -4.78 |
| Return on Equity | -16.27 | -69.56 |
| Debt | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Current Ratio | 1.38 | 1.34 |
| Debt/Capital | 0.91 | 0.9 |
| Interest Expense | 50.0 | 53.43 |
| Interest Coverage | -1.16 | 1.56 |
| Share Data | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Shares outstanding (mil) | 55.25 | 54.72 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.34 | -6.43 |
| Book value / share | 11.13 | 12.33 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2684158.0 | 4347127.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.59 indicates a significant discount versus the S&P 500 average of 4.38 and a significant discount versus the subsector average of 7.19. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, RITE AID CORP proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RAD NM | Peers 30.32 | RAD 42.51 | Peers 13.07 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. RAD's P/E is negative making this valuation measure meaningless. |
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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| RAD 72.20 | Peers 28.86 | RAD NA | Peers 2.59 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. RAD is trading at a discount 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. |
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| Price/Book |
|
Earnings Growth |
|
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| RAD 1.59 | Peers 7.19 | RAD 78.78 | Peers -10.48 | |||||||||||||||||||||
|
Discount. 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 is trading at a significant discount 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. |
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| Price/Sales |
|
Sales Growth |
|
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| RAD 0.04 | Peers 0.71 | RAD 9.64 | Peers 5.84 | |||||||||||||||||||||
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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 subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. RAD has a sales growth rate that significantly exceeds its peers. |
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