Rite Aid Corp

Find Ratings Reports
RAD : NYSE : Services
$6.82 | %
Today's Range: 6.81 - 6.92
Avg. Daily Volume: 17,515,400
07/22/16 - 4:01 PM ET

Financial Analysis


RITE AID CORP's gross profit margin for the first quarter of its fiscal year 2016 has decreased 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 0.61 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 287.28% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)8184.186647.56
EBITDA ($mil)234.68282.3
EBIT ($mil)95.89172.66
Net Income ($mil)-4.5918.84


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)144.841922.13
Total Assets ($mil)11254.9510529.77
Total Debt ($mil)6974.47234.87
Equity ($mil)591.5152.73


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin24.8429.62
EBITDA Margin2.864.24
Operating Margin1.172.6
Sales Turnover2.872.54
Return on Assets1.2619.81
Return on Equity24.011366.16
Debt Q1 FY16 Q1 FY15
Current Ratio1.532.42
Debt/Capital0.920.98
Interest Expense105.11123.61
Interest Coverage0.911.4


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)1048.771014.83
Div / share0.00.0
EPS0.00.02
Book value / share0.560.15
Institutional Own % n/a n/a
Avg Daily Volume1.73231E71.1341313E7

Valuation


HOLD. RITE AID CORP's P/E ratio indicates a significant premium compared to an average of 22.61 for the Food & Staples Retailing industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 12.17 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 3.83. 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 49.00 Peers 22.61   RAD 9.25 Peers 10.98

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.

 

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 discount 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 27.66 Peers 19.78   RAD 19.60 Peers 2.43

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.

 

Premium. 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.

RAD trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RAD 12.17 Peers 3.83   RAD -93.14 Peers -2.76

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 0.22 Peers 0.56   RAD 20.82 Peers 6.26

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.

 

 

Latest Stock Upgrades/Downgrades