Raia Drogasil (BOVESPA:RADL3) - Share price, News & Analysis

RADL3 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	5/6
Financial Health	5/6
Dividends	1/6

RADL3 Stock Overview

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

Rewards

Earnings are forecast to grow 21.24% per year

Earnings grew by 34.2% over the past year

Risk Analysis

No risks detected for RADL3 from our risk checks.

Raia Drogasil Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Raia Drogasil
Historical stock prices
Current Share Price	R$19.85
52 Week High	R$27.66
52 Week Low	R$17.83
Beta	0.54
1 Month Change	3.22%
3 Month Change	-16.17%
1 Year Change	-19.70%
3 Year Change	30.42%
5 Year Change	41.56%
Change since IPO	2,804.88%

Recent News & Updates

Jun 09

There Are Reasons To Feel Uneasy About Raia Drogasil's (BVMF:RADL3) Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd...

May 25

With EPS Growth And More, Raia Drogasil (BVMF:RADL3) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 10

Does Raia Drogasil (BVMF:RADL3) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	RADL3	BR Consumer Retailing	BR Market
7D	3.9%	-1.0%	-0.8%
1Y	-19.7%	-29.4%	-29.7%

Return vs Industry: RADL3 exceeded the BR Consumer Retailing industry which returned -31.1% over the past year.

Return vs Market: RADL3 exceeded the BR Market which returned -31.2% over the past year.

Price Volatility

Is RADL3's price volatile compared to industry and market?
RADL3 volatility
RADL3 Average Weekly Movement	4.4%
Consumer Retailing Industry Average Movement	5.4%
Market Average Movement	5.9%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.8%

Stable Share Price: RADL3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RADL3's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1905	50,141	Marcílio Pousada	https://www.rd.com.br

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 March 31, 2022, the company operated a network of 2,530 drug stores in 26 Brazilian states. It also markets its goods through telesales and its three call centers in the states of São Paulo, Tocantins, and Pernambuco.

Raia Drogasil Fundamentals Summary

How do Raia Drogasil's earnings and revenue compare to its market cap?
RADL3 fundamental statistics
Market Cap	R$32.71b
Earnings (TTM)	R$718.28m
Revenue (TTM)	R$25.07b

45.5x

P/E Ratio

1.3x

P/S Ratio

Is RADL3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RADL3 income statement (TTM)
Revenue	R$25.07b
Cost of Revenue	R$17.58b
Gross Profit	R$7.49b
Other Expenses	R$6.77b
Earnings	R$718.28m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.44
Gross Margin	29.89%
Net Profit Margin	2.87%
Debt/Equity Ratio	45.2%

How did RADL3 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

n/a

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is RADL3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RADL3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RADL3. This is calculated by dividing RADL3's market cap by their current preferred multiple.
What is RADL3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$32.71b

RADL3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	20.5x
PEG Ratio	2.1x

Price to Earnings Ratio vs Peers

How does RADL3's PE Ratio compare to its peers?

RADL3 PE Ratio vs Peers

The above table shows the PE ratio for RADL3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.5x

Forward PE

Price-To-Earnings vs Peers: RADL3 is expensive based on its Price-To-Earnings Ratio (45.5x) compared to the peer average (14.5x).

Price to Earnings Ratio vs Industry

How does RADL3's PE Ratio compare vs other companies in the Consumer Retailing Industry?

Price-To-Earnings vs Industry: RADL3 is expensive based on its Price-To-Earnings Ratio (45.5x) compared to the BR Consumer Retailing industry average (13.8x)

Price to Earnings Ratio vs Fair Ratio

What is RADL3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RADL3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	45.5x
Fair PE Ratio	24.4x

Price-To-Earnings vs Fair Ratio: RADL3 is expensive based on its Price-To-Earnings Ratio (45.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

Share Price vs Fair Value

What is the Fair Price of RADL3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RADL3 (R$19.85) is trading above our estimate of fair value (R$17.63)

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

Price to Earnings Growth Ratio

PEG Ratio: RADL3 is poor value based on its PEG Ratio (2.1x)

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Future Growth

How is Raia Drogasil forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RADL3's forecast earnings growth (21.2% per year) is above the savings rate (9.1%).

Earnings vs Market: RADL3's earnings (21.2% per year) are forecast to grow faster than the BR market (7.1% per year).

High Growth Earnings: RADL3's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RADL3's revenue (12.6% per year) is forecast to grow faster than the BR market (5.7% per year).

High Growth Revenue: RADL3's revenue (12.6% 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 (21.2%)

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Past Performance

How has Raia Drogasil performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RADL3 has high quality earnings.

Growing Profit Margin: RADL3's current net profit margins (2.9%) are higher than last year (2.6%).

Past Earnings Growth Analysis

Earnings Trend: RADL3's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: RADL3's earnings growth over the past year (34.2%) exceeds its 5-year average (9% per year).

Earnings vs Industry: RADL3 earnings growth over the past year (34.2%) exceeded the Consumer Retailing industry 3.5%.

Return on Equity

High ROE: RADL3's Return on Equity (15.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Raia Drogasil's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RADL3's short term assets (R$8.5B) exceed its short term liabilities (R$5.9B).

Long Term Liabilities: RADL3's short term assets (R$8.5B) exceed its long term liabilities (R$4.9B).

Debt to Equity History and Analysis

Debt Level: RADL3's net debt to equity ratio (35.5%) is considered satisfactory.

Reducing Debt: RADL3's debt to equity ratio has increased from 16.3% to 45.2% over the past 5 years.

Debt Coverage: RADL3's debt is well covered by operating cash flow (56.5%).

Interest Coverage: RADL3's interest payments on its debt are well covered by EBIT (3.7x coverage).

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.21%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RADL3's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.74%).

High Dividend: RADL3's dividend (1.21%) is low compared to the top 25% of dividend payers in the BR market (7.74%).

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (125%), RADL3's dividend payments are not well covered by cash flows.

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Management

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

5.1yrs

Average board tenure

CEO

Marcílio Pousada (56 yo)

8.92yrs

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

Experienced Board: RADL3's board of directors are considered experienced (5.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31