Rite Aid Corp

Find Ratings Reports
RAD : NYSE : Services
$2.39 | %
Today's Range: 2.35 - 2.42
Avg. Daily Volume: 3.58675E7
09/22/17 - 4:00 PM ET

Financial Analysis


RITE AID CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. RITE AID CORP has weak liquidity. Currently, the Quick Ratio is 0.66 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 5.21% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)7781.458184.18
EBITDA ($mil)135.75234.06
EBIT ($mil)-6.3495.27
Net Income ($mil)-75.35-4.59


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)214.45144.84
Total Assets ($mil)11460.1411254.95
Total Debt ($mil)7240.276974.4
Equity ($mil)560.63591.5


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin24.4324.84
EBITDA Margin1.742.85
Operating Margin-0.081.16
Sales Turnover2.832.87
Return on Assets-0.581.26
Return on Equity-11.8924.01
Debt Q1 FY17 Q1 FY16
Current Ratio1.651.53
Debt/Capital0.930.92
Interest Expense109.94105.11
Interest Coverage-0.060.91


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1053.691048.77
Div / share0.00.0
EPS-0.070.0
Book value / share0.530.56
Institutional Own % n/a n/a
Avg Daily Volume3.595034E72.0635088E7

Valuation


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 4.55 indicates a premium versus the S&P 500 average of 3.11 and a premium versus the industry average of 3.90. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RAD NM Peers 20.45   RAD 16.15 Peers 9.62

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RAD NM Peers 18.45   RAD NA Peers 1.47

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

RAD's ratio is negative making this valuation measure meaningless.

 

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
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RAD 4.55 Peers 3.90   RAD -150.00 Peers 12.68

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 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
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RAD 0.08 Peers 0.51   RAD 0.52 Peers 6.92

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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