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
Interest Expense115.18103.68
Interest Coverage1.182.14

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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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