Rite Aid Corp

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RAD : NYSE : Services
$3.54 -0.06 | -1.67%
Today's Range: 3.52 - 3.74
Avg. Daily Volume: 1.90145E7
05/23/17 - 4:00 PM ET

Financial Analysis


RITE AID CORP's gross profit margin for the fourth 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 0.67 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 increased by 5.61% 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 FY16 Q4 FY15
Net Sales ($mil)8541.368270.14
EBITDA ($mil)280.29357.49
EBIT ($mil)136.14222.06
Net Income ($mil)-21.1465.62


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)245.41124.47
Total Assets ($mil)11593.7511277.01
Total Debt ($mil)7328.696994.14
Equity ($mil)614.07581.43


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin25.926.32
EBITDA Margin3.284.32
Operating Margin1.592.69
Sales Turnover2.832.73
Return on Assets0.031.46
Return on Equity0.6628.45
Debt Q4 FY16 Q4 FY15
Current Ratio1.691.52
Debt/Capital0.920.92
Interest Expense115.18103.68
Interest Coverage1.182.14


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1053.691047.75
Div / share0.00.0
EPS-0.020.06
Book value / share0.580.55
Institutional Own % n/a n/a
Avg Daily Volume1.9005244E72.351544E7

Valuation


HOLD. The price-to-book ratio of 5.89 indicates a significant premium versus the S&P 500 average of 3.00 and a significant premium versus the industry average of 3.87. 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 NA Peers 22.13   RAD 16.00 Peers 9.69

Neutral. A lower P/E ratio can signify a less expensive stock or lower growth potential.

Ratio not available.

 

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 63.52 Peers 19.03   RAD NA Peers 2.27

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 5.89 Peers 3.87   RAD -100.00 Peers 5.42

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 0.11 Peers 0.54   RAD 6.85 Peers 0.17

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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