NYSE:RAD

Stock Analysis Report

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Executive Summary

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. More Details


Snowflake Analysis

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has Rite Aid's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAD is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: RAD's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

8.4%

RAD

-1.0%

US Consumer Retailing

1.4%

US Market


1 Year Return

60.8%

RAD

18.7%

US Consumer Retailing

22.6%

US Market

Return vs Industry: RAD exceeded the US Consumer Retailing industry which returned 18.9% over the past year.

Return vs Market: RAD exceeded the US Market which returned 22.8% over the past year.


Shareholder returns

RADIndustryMarket
7 Day8.4%-1.0%1.4%
30 Day7.2%2.2%4.9%
90 Day98.0%2.1%14.6%
1 Year60.8%60.8%21.4%18.7%25.4%22.6%
3 Year-55.7%-55.7%39.1%30.8%46.8%37.0%
5 Year-87.3%-87.3%100.0%79.0%132.0%106.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Rite Aid undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAD ($19.49) is trading below our estimate of fair value ($270.06)

Significantly Below Fair Value: RAD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RAD is unprofitable, so we can't compare its PE Ratio to the US Consumer Retailing industry average.

PE vs Market: RAD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RAD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RAD is good value based on its PB Ratio (1.8x) compared to the US Consumer Retailing industry average (2.4x).


Next Steps

Future Growth

How is Rite Aid forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

71.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAD is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RAD is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RAD is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RAD's revenue (1.3% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: RAD's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAD is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Rite Aid performed over the past 5 years?

-59.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAD is currently unprofitable.

Growing Profit Margin: RAD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAD is unprofitable, and losses have increased over the past 5 years at a rate of 59.4% per year.

Accelerating Growth: Unable to compare RAD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RAD is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (57.8%).


Return on Equity

High ROE: RAD has a negative Return on Equity (-69.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rite Aid's financial position?


Financial Position Analysis

Short Term Liabilities: RAD's short term assets ($4.0B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: RAD's short term assets ($4.0B) do not cover its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: RAD's debt to equity ratio (524.2%) is considered high.

Reducing Debt: RAD's debt to equity ratio has reduced from 1448.4% to 524.2% over the past 5 years.

Debt Coverage: RAD's debt is not well covered by operating cash flow (2%).

Interest Coverage: RAD is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Rite Aid current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RAD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RAD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RAD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RAD's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Heyward Donigan (59 yo)

1.42yrs

Tenure

US$8,619,340

Compensation

Ms. Heyward Rutledge Donigan, B.A., has been Chief Executive Officer and a Member of the Board of Rite Aid Corporation since August 23, 2019 and serves as its President at Rite Aid Corporation since Februa...


CEO Compensation Analysis

Compensation vs Market: Heyward's total compensation ($USD8.62M) is above average for companies of similar size in the US market ($USD2.39M).

Compensation vs Earnings: Insufficient data to compare Heyward's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Heyward Donigan
President CEO & Director1.42yrsUS$8.62m0.72%
$ 7.7m
Matthew Schroeder
CFO & Executive VP1.83yrsUS$1.63m0.13%
$ 1.4m
James Peters
Chief Operating Officer1.25yrsUS$1.56m0.20%
$ 2.2m
Jocelyn Konrad
Executive VP & Chief Pharmacy Officer5.42yrsUS$1.64m0.17%
$ 1.8m
Brian Hoover
Chief Accounting Officer1.83yrsno data0.044%
$ 471.6k
Justin Mennen
Executive VP & Chief Information Officer2.08yrsno data0.096%
$ 1.0m
Byron Purcell
Senior Director of Treasury Services & Investor Relationsno datano datano data
Trent Kruse
Senior Vice President of Investor Relations & Treasury0.33yrno datano data
Paul Gilbert
Executive VP0.42yrno data0.061%
$ 654.8k
Susan Henderson
Chief Communications Officer & Senior VP9.42yrsno datano data
Frank Vitrano
Chief Strategic Business Development Officer5.25yrsUS$1.20mno data
Jessica Kazmaier
Executive VP & Chief Human Resources Officer1.83yrsno data0.068%
$ 728.0k

1.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: RAD's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Heyward Donigan
President CEO & Director1.42yrsUS$8.62m0.72%
$ 7.7m
Robert Knowling
Independent Director2.25yrsUS$229.97k0.054%
$ 582.3k
Arun Nayar
Independent Director2.25yrsUS$229.97k0.054%
$ 582.3k
Bruce Bodaken
Independent Chairman of the Board2.25yrsUS$319.97k0.066%
$ 708.2k
Elizabeth Burr
Independent Director1.75yrsUS$199.72k0.040%
$ 430.4k
Kevin Lofton
Independent Director7.17yrsUS$229.97k0.064%
$ 693.4k
Bari Harlam
Director0.33yrno data0.022%
$ 241.6k
Louis Miramontes
Independent Director2.25yrsUS$239.97k0.054%
$ 582.3k
Katherine Quinn
Independent Director1.75yrsUS$192.47k0.040%
$ 430.4k

2.3yrs

Average Tenure

65yo

Average Age

Experienced Board: RAD's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

Rite Aid Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rite Aid Corporation
  • Ticker: RAD
  • Exchange: NYSE
  • Founded: 1927
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: US$1.076b
  • Shares outstanding: 55.22m
  • Website: https://www.riteaid.com

Number of Employees


Location

  • Rite Aid Corporation
  • 30 Hunter Lane
  • Camp Hill
  • Pennsylvania
  • 17011
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RADNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1968
RTA1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1968

Biography

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Phar...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 23:04
End of Day Share Price2021/01/22 00:00
Earnings2020/11/28
Annual Earnings2020/02/29


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.