BOVESPA:RADL3

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Executive Summary

Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Raia Drogasil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RADL3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RADL3's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

RADL3

0.8%

BR Consumer Retailing

-0.7%

BR Market


1 Year Return

3.3%

RADL3

6.0%

BR Consumer Retailing

0.8%

BR Market

Return vs Industry: RADL3 underperformed the BR Consumer Retailing industry which returned 6% over the past year.

Return vs Market: RADL3 exceeded the BR Market which returned 0.8% over the past year.


Shareholder returns

RADL3IndustryMarket
7 Day-1.5%0.8%-0.7%
30 Day0.5%6.0%4.9%
90 Day-0.7%3.4%16.8%
1 Year3.9%3.3%8.8%6.0%3.5%0.8%
3 Year54.4%51.0%29.3%20.0%54.4%37.8%
5 Year234.9%221.3%61.0%38.3%219.0%164.3%

Long-Term Price Volatility Vs. Market

How volatile is Raia Drogasil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Raia Drogasil undervalued compared to its fair value and its price relative to the market?

102.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RADL3 (R$25.51) is trading above our estimate of fair value (R$9.55)

Significantly Below Fair Value: RADL3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RADL3 is poor value based on its PE Ratio (102.9x) compared to the BR Consumer Retailing industry average (42.6x).

PE vs Market: RADL3 is poor value based on its PE Ratio (102.9x) compared to the BR market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: RADL3 is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: RADL3 is overvalued based on its PB Ratio (10.1x) compared to the BR Consumer Retailing industry average (2.6x).


Next Steps

Future Growth

How is Raia Drogasil forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RADL3's forecast earnings growth (29.9% per year) is above the savings rate (9.9%).

Earnings vs Market: RADL3's earnings (29.9% per year) are forecast to grow faster than the BR market (27.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RADL3's revenue (14.2% per year) is forecast to grow faster than the BR market (10.4% per year).

High Growth Revenue: RADL3's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RADL3's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has Raia Drogasil performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RADL3 has high quality earnings.

Growing Profit Margin: RADL3's current net profit margins (2.1%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: RADL3's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: RADL3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RADL3 had negative earnings growth (-49.1%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-8.4%).


Return on Equity

High ROE: RADL3's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Raia Drogasil's financial position?


Financial Position Analysis

Short Term Liabilities: RADL3's short term assets (R$6.4B) exceed its short term liabilities (R$4.2B).

Long Term Liabilities: RADL3's short term assets (R$6.4B) exceed its long term liabilities (R$4.6B).


Debt to Equity History and Analysis

Debt Level: RADL3's debt to equity ratio (41%) is considered high.

Reducing Debt: RADL3's debt to equity ratio has increased from 9.9% to 41% over the past 5 years.

Debt Coverage: RADL3's debt is well covered by operating cash flow (66.3%).

Interest Coverage: RADL3's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Raia Drogasil current dividend yield, its reliability and sustainability?

0.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RADL3's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (0.95%).

High Dividend: RADL3's dividend (0.5%) is low compared to the top 25% of dividend payers in the BR market (5%).


Stability and Growth of Payments

Stable Dividend: RADL3's dividend payments have been volatile in the past 10 years.

Growing Dividend: RADL3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.7%), RADL3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RADL3's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

19.0yrs

Average board tenure


CEO

Marcílio Pousada (55 yo)

7.5yrs

Tenure

Mr. Marcílio D'Amigo Pousada has been the Chief Executive Officer of Raia Drogasil S.A. since July 1, 2013 and serves as its Member of Executive Board. Mr. Pousada serves as the Chief Executive Officer of ...


Board Members

NamePositionTenureCompensationOwnership
Eugênio De Zagottis
VP of Corporate Planningno datano data0%
R$ 0
Jairo Loureiro
Independent Director14yrsno datano data
Plínio Musetti
Directorno datano datano data
Carlos Oliveira Dias
Director27yrsno datano data
José Correa Sobrinho
Alternate Directorno datano data7.76%
R$ 3.4b
Antonio de Freitas
Alternate Directorno datano datano data
Renato Oliveira Dias
Director19yrsno datano data
Paulo Coutinho Galvão Filho
Director27yrsno data0.77%
R$ 332.4m
Antonio Pipponzi
Chairman of the Boardno datano data3.45%
R$ 1.5b
Cristiana Pipponzi
Director7.75yrsno data1.19%
R$ 514.0m
Marco Ambrogio Bonomi
Independent Directorno datano datano data
Marcelo José E Silva
Independent Directorno datano datano data

19.0yrs

Average Tenure

Experienced Board: RADL3's board of directors are seasoned and experienced ( 19 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Raia Drogasil S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Raia Drogasil S.A.
  • Ticker: RADL3
  • Exchange: BOVESPA
  • Founded: 1905
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: R$43.230b
  • Shares outstanding: 1.65b
  • Website: https://www.rd.com.br

Number of Employees


Location

  • Raia Drogasil S.A.
  • Av. Corifeu de Azevedo Marques, 3097
  • Butantã
  • São Paulo
  • São Paulo
  • 05339-000
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RADL3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLNov 2008
RADL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2016

Biography

Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. As of September 30, 2020, the company...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 21:59
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.