Rite Aid Corp.
Find Ratings Reports
-0.03 |
-1.9%
RITE AID CORP's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. RITE AID CORP has weak liquidity. Currently, the Quick Ratio is 0.67 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 160.72% 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 FY17 | Q4 FY16 |
|---|---|---|
| Net Sales ($mil) | 5394.26 | 5903.39 |
| EBITDA ($mil) | 133.74 | 173.24 |
| EBIT ($mil) | 40.13 | 70.34 |
| Net Income ($mil) | 767.07 | -21.14 |
| Balance Sheet | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 447.33 | 245.41 |
| Total Assets ($mil) | 8989.33 | 11593.75 |
| Total Debt ($mil) | 3391.64 | 7328.69 |
| Equity ($mil) | 1601.01 | 614.07 |
| Profitability | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Gross Profit Margin | 25.27 | 24.6 |
| EBITDA Margin | 2.47 | 2.93 |
| Operating Margin | 0.74 | 1.19 |
| Sales Turnover | 2.39 | 1.98 |
| Return on Assets | 10.49 | 0.03 |
| Return on Equity | -21.83 | 0.66 |
| Debt | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Current Ratio | 1.37 | 1.69 |
| Debt/Capital | 0.68 | 0.92 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Shares outstanding (mil) | 1067.89 | 1053.69 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.46 | -0.02 |
| Book value / share | 1.5 | 0.58 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2.3096368E7 | 2.6070372E7 |
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 1.07 indicates a significant discount versus the S&P 500 average of 3.18 and a significant discount versus the industry average of 4.19. 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 discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RAD NM | Peers 23.20 | RAD 6.42 | Peers 10.22 | |||||||||||||||||||||
|
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. |
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 significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| RAD 22.86 | Peers 17.81 | RAD NA | Peers 0.82 | |||||||||||||||||||||
|
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. |
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| Price/Book |
|
Earnings Growth |
|
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| RAD 1.07 | Peers 4.19 | RAD -3400.00 | Peers -5.30 | |||||||||||||||||||||
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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. |
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. |
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| Price/Sales |
|
Sales Growth |
|
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| RAD 0.08 | Peers 0.50 | RAD -6.10 | Peers 5.57 | |||||||||||||||||||||
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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 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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