Rite Aid Corp

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RAD : NYSE : Services
$8.09 | %
Today's Range: 8.06 - 8.13
Avg. Daily Volume: 15,997,400
09/23/16 - 4:01 PM ET

Financial Analysis


RITE 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.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)8029.817664.78
EBITDA ($mil)280.55324.15
EBIT ($mil)138.5196.45
Net Income ($mil)14.7721.47


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)136.09152.65
Total Assets ($mil)11610.9711979.23
Total Debt ($mil)7244.77444.31
Equity ($mil)616.67429.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin25.6426.75
EBITDA Margin3.494.22
Operating Margin1.722.56
Sales Turnover2.812.33
Return on Assets1.1616.53
Return on Equity21.94460.82
Debt Q2 FY16 Q2 FY15
Current Ratio1.621.5
Debt/Capital0.920.95
Interest Expense105.39115.41
Interest Coverage1.311.7


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1048.771045.62
Div / share0.00.0
EPS0.010.02
Book value / share0.590.41
Institutional Own % n/a n/a
Avg Daily Volume1.6032185E71.3521631E7

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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.

 

 

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