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Rite Aid

NYSE:RAD
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RAD
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Consumer Retailing
Company description

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The last earnings update was 46 days ago. More info.


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RAD Share Price and Events
7 Day Returns
-6.9%
NYSE:RAD
-1.1%
US Consumer Retailing
-3.4%
US Market
1 Year Returns
-22.4%
NYSE:RAD
20%
US Consumer Retailing
10%
US Market
RAD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rite Aid (RAD) -6.9% 19.8% -16% -22.4% -84.3% -78.2%
US Consumer Retailing -1.1% 7.9% 5.2% 20% 57.7% 45.5%
US Market -3.4% -0.6% -4.3% 10% 55.8% 96.7%
1 Year Return vs Industry and Market
  • RAD underperformed the Consumer Retailing industry which returned 20% over the past year.
  • RAD underperformed the Market in United States of America which returned 10% over the past year.
Price Volatility
RAD
Industry
5yr Volatility vs Market

Value

 Is Rite Aid undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rite Aid to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rite Aid.

NYSE:RAD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:RAD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.48
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.476 (1 + (1- 21%) (276.75%))
1.517
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.52
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.517 * 7.05%)
13.65%

Discounted Cash Flow Calculation for NYSE:RAD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rite Aid is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:RAD DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 170.40 199.75 238.20 317.20 415.40
Source Analyst x1 Analyst x2 Analyst x2 Analyst x1 Analyst x1
Present Value
Discounted (@ 13.65%)
149.94 154.66 162.29 190.16 219.13
Present value of next 5 years cash flows $876.18
NYSE:RAD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $415.40 × (1 + 2.95%) ÷ (13.65% – 2.95%)
$3,998.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $3,998.40 ÷ (1 + 13.65%)5
$2,109.22
NYSE:RAD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $876.18 + $2,109.22
$2,985.40
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,985.40 / 1,053.22
$2.83
NYSE:RAD Discount to Share Price
Calculation Result
Value per share (USD) From above. $2.83
Current discount Discount to share price of $1.21
= -1 x ($1.21 - $2.83) / $2.83
57.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Rite Aid is available for.
Intrinsic value
>50%
Share price is $1.21 vs Future cash flow value of $2.83
Current Discount Checks
For Rite Aid to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Rite Aid's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Rite Aid's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rite Aid's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rite Aid's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RAD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-01) in USD $-0.85
NYSE:RAD Share Price ** NYSE (2018-11-16) in USD $1.21
United States of America Consumer Retailing Industry PE Ratio Median Figure of 23 Publicly-Listed Consumer Retailing Companies 14.42x
United States of America Market PE Ratio Median Figure of 2,977 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rite Aid.

NYSE:RAD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RAD Share Price ÷ EPS (both in USD)

= 1.21 ÷ -0.85

-1.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rite Aid is loss making, we can't compare its value to the US Consumer Retailing industry average.
  • Rite Aid is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Rite Aid's expected growth come at a high price?
Raw Data
NYSE:RAD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
64.6%per year
United States of America Consumer Retailing Industry PEG Ratio Median Figure of 15 Publicly-Listed Consumer Retailing Companies 2.31x
United States of America Market PEG Ratio Median Figure of 2,096 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Rite Aid, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rite Aid's assets?
Raw Data
NYSE:RAD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-01) in USD $1.38
NYSE:RAD Share Price * NYSE (2018-11-16) in USD $1.21
United States of America Consumer Retailing Industry PB Ratio Median Figure of 32 Publicly-Listed Consumer Retailing Companies 2.61x
United States of America Market PB Ratio Median Figure of 4,980 Publicly-Listed Companies 1.85x
NYSE:RAD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RAD Share Price ÷ Book Value per Share (both in USD)

= 1.21 ÷ 1.38

0.88x

* Primary Listing of Rite Aid.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rite Aid is good value based on assets compared to the US Consumer Retailing industry average.
X
Value checks
We assess Rite Aid's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Rite Aid has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Rite Aid expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
64.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rite Aid expected to grow at an attractive rate?
  • Rite Aid's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Rite Aid's earnings growth is expected to exceed the United States of America market average.
  • Rite Aid's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RAD Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RAD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 64.6%
NYSE:RAD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 3.9%
United States of America Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 11.6%
United States of America Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:RAD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RAD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-02-28 27,107 719 85 1
2022-02-28 24,244 607 35 2
2021-02-28 22,743 543 14 5
2020-02-29 22,177 429 -7 7
2019-02-28 21,800 420 -303 7
NYSE:RAD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-01 21,557 -394 -896
2018-06-02 21,481 83 -355
2018-03-03 21,529 266 -350
2017-12-02 31,956 416 109
2017-09-02 22,354 511 151
2017-06-03 20,180 165 -27
2017-03-04 22,928 232 4
2016-11-26 25,294 500 95
2016-08-27 27,779 675 131
2016-05-28 32,273 790 142
2016-02-27 20,770 1,015 102
2015-11-28 29,314 845 1,935

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rite Aid's earnings are expected to grow significantly at over 20% yearly.
  • Rite Aid's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:RAD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Rite Aid Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RAD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-02-28 0.08 0.08 0.08 1.00
2022-02-28 0.03 0.04 0.02 2.00
2021-02-28 0.01 0.03 0.00 3.00
2020-02-29 -0.04 0.01 -0.12 5.00
2019-02-28 -0.34 -0.16 -0.45 5.00
NYSE:RAD Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-01 -0.85
2018-06-02 -0.34
2018-03-03 -0.33
2017-12-02 0.10
2017-09-02 0.14
2017-06-03 -0.03
2017-03-04 0.00
2016-11-26 0.09
2016-08-27 0.13
2016-05-28 0.14
2016-02-27 0.10
2015-11-28 1.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Rite Aid will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Rite Aid's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rite Aid has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Rite Aid performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rite Aid's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rite Aid does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Rite Aid's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Rite Aid's 1-year growth to the US Consumer Retailing industry average as it is not currently profitable.
Earnings and Revenue History
Rite Aid's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rite Aid Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RAD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-01 21,557.29 -895.93 4,637.10
2018-06-02 21,480.94 -355.22 4,642.95
2018-03-03 21,528.97 -349.53 4,651.26
2017-12-02 31,955.62 109.06 7,187.81
2017-09-02 22,354.03 150.88 4,730.58
2017-06-03 20,179.88 -27.37 4,144.69
2017-03-04 22,927.54 4.08 4,777.00
2016-11-26 25,294.29 94.75 5,306.66
2016-08-27 27,779.36 130.68 5,909.66
2016-05-28 32,273.28 142.04 7,079.53
2016-02-27 20,770.24 102.09 4,581.17
2015-11-28 29,314.45 1,934.88 6,905.94
2015-08-29 27,852.60 1,980.18 6,820.73
2015-05-30 26,710.41 2,086.56 6,735.43
2015-02-28 26,528.38 2,109.17 6,680.20
2014-11-29 26,277.91 329.52 6,693.99
2014-08-30 25,943.31 267.78 6,633.85
2014-05-31 25,698.89 169.96 6,596.26
2014-03-01 25,526.41 215.42 6,561.16
2013-11-30 25,384.20 280.41 6,526.82
2013-08-31 25,264.31 296.50 6,545.72
2013-06-01 25,217.03 225.07 6,560.96
2013-03-02 25,392.26 107.48 6,618.87
2012-12-01 26,083.77 -176.71 6,694.86
2012-09-01 26,158.51 -290.41 6,626.76
2012-06-02 26,198.72 -343.75 6,612.34
2012-03-03 26,121.22 -378.59 6,531.41
2011-11-26 25,430.93 -422.89 6,403.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Rite Aid has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Rite Aid has efficiently used its assets last year compared to the US Consumer Retailing industry average (Return on Assets) as it is loss-making.
  • Rite Aid's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Rite Aid's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rite Aid has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Rite Aid's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rite Aid's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rite Aid is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rite Aid's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Rite Aid's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rite Aid Company Filings, last reported 2 months ago.

NYSE:RAD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-01 1,455.95 3,526.95 132.47
2018-06-02 1,812.31 3,182.60 147.09
2018-03-03 1,601.01 3,391.64 447.33
2017-12-02 825.14 3,037.71 169.80
2017-09-02 733.61 7,142.93 238.98
2017-06-03 560.63 7,240.27 221.47
2017-03-04 614.07 3,290.80 252.28
2016-11-26 646.13 7,274.91 226.92
2016-08-27 616.67 7,244.70 142.29
2016-05-28 591.50 6,974.40 144.84
2016-02-27 581.43 6,994.14 124.47
2015-11-28 500.83 7,367.48 226.25
2015-08-29 429.70 7,444.31 152.65
2015-05-30 152.73 7,234.87 1,922.13
2015-02-28 57.06 5,559.12 115.90
2014-11-29 -1,792.66 5,850.69 232.95
2014-08-30 -1,906.53 5,752.29 185.76
2014-05-31 -2,046.35 5,704.39 166.00
2014-03-01 -2,113.70 5,757.14 146.41
2013-11-30 -2,228.83 5,952.43 183.21
2013-08-31 -2,317.87 6,051.56 144.17
2013-06-01 -2,357.52 5,911.67 108.90
2013-03-02 -2,459.43 6,033.53 129.45
2012-12-01 -2,576.11 6,152.41 263.64
2012-09-01 -2,643.32 6,158.91 94.33
2012-06-02 -2,609.33 6,163.41 214.77
2012-03-03 -2,586.76 6,348.78 162.29
2011-11-26 -2,405.85 6,311.67 148.47
  • Rite Aid's level of debt (242.2%) compared to net worth is high (greater than 40%).
  • Rite Aid had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 0.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Rite Aid's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rite Aid has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Rite Aid dividends. Estimated to be 0% next year.
If you bought $2,000 of Rite Aid shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Rite Aid's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Rite Aid's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:RAD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1977 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:RAD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-02-28
2022-02-28
2021-02-28 0.00 1.00
2020-02-29 0.00 1.00
2019-02-28 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Rite Aid has not reported any payouts.
  • Unable to verify if Rite Aid's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Rite Aid's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Rite Aid has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Rite Aid's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Rite Aid's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rite Aid afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rite Aid has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Rite Aid's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Standley
COMPENSATION $9,320,462
AGE 55
TENURE AS CEO 8.4 years
CEO Bio

Mr. John T. Standley has been the Chief Executive Officer of Rite Aid Corporation since June 24, 2010. Mr. Standley served as the President of Rite Aid Corporation from September 25, 2008 to June 2013 and its Chief Operating Officer from September 2008 to June 2010. He served as the Chief Executive Officer of Pathmark Stores Inc. from August 29, 2005 to December 2007. Mr. Standley served as the Chief Financial Officer of Rite Aid Corp. from January 9, 2004 to August 2005 and served as its Senior Executive Vice President and Chief Administrative Officer from June 2002 to August 2005. He also served as a Consultant to Rite Aid from July 2008 to September 2008. He served as Senior Executive Vice President and Chief Financial Officer of Rite Aid Corporation from September 2000 to June 2002 and served as its Executive Vice President and Chief Financial Officer from December 1999 to September 2000. Mr. Standley served as an Executive Vice President and Chief Financial Officer of Fleming Companies Inc., a food marketing and distribution company from May 1999 to December 1999. Mr. Standley worked with The Yucaipa Companies to combine several regional grocery companies into Fred Meyer, Inc., from 1994 to 1999. From July 1998 to May 1999, he served as Senior Vice President and Chief Financial Officer of Fred Meyer, Inc. He served as Senior Vice President and Chief Financial Officer of Ralphs Grocery Company (Food 4 Less Holdings, Inc.) from January 1997 to July 1998. He has more than 30 years of retail, financial and executive experience and has an in-depth understanding of the food and drug retailing industries. Mr. Standley has spent the past 20 years in executive leadership roles in the grocery and pharmacy retail business. He served as Senior Vice President of Administration of Smith's Food & Drug Stores, Inc., from May 1996 to February 1997 and as Chief Financial Officer of Smitty's Supervalue, Inc., from December 1994 to May 1996. He has been the Chairman of National Association of Chain Drug Stores, Inc. since April 28, 2014 and serves as its Director. He served as a Vice Chairman of National Association of Chain Drug Stores, Inc. from April 2013 to April 28, 2014. He has been a Director of Rite Aid Corp. since June 2009. He served as a Director of CarMax Inc., from August 1, 2016 to January 29, 2018. He served as a Director of SUPERVALU Inc. from April 2013 to July 22, 2015. He was Chairman of Rite Aid Corporation from June 21, 2012 to October 30, 2018. He served as a Director of Pathmark Stores Inc. from August 2005 to December 2007. Mr. Standley is a Graduate of Pepperdine University.

CEO Compensation
  • John's compensation has increased whilst company is loss making.
  • John's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Rite Aid management team in years:

3.3
Average Tenure
58
Average Age
  • The tenure for the Rite Aid management team is about average.
Management Team

John Standley

TITLE
CEO & Director
COMPENSATION
$9M
AGE
55
TENURE
8.4 yrs

Kermit Crawford

TITLE
President & COO
COMPENSATION
$6M
AGE
59
TENURE
1.1 yrs

Darren Karst

TITLE
Senior EVP
COMPENSATION
$4M
AGE
58
TENURE
4.3 yrs

Jocelyn Konrad

TITLE
Executive Vice President of Pharmacy
COMPENSATION
$1M
AGE
48
TENURE
3.3 yrs

Bryan Everett

TITLE
Chief Operating Officer of Rite Aid Stores
COMPENSATION
$3M
AGE
45
TENURE
3.3 yrs

Matt Schroeder

TITLE
Senior VP
AGE
48
TENURE
1 yrs

Jim Comitale

TITLE
Senior VP
TENURE
3 yrs

Susan Henderson

TITLE
Chief Communications Officer & Senior VP
AGE
65
TENURE
7.3 yrs

Frank Vitrano

TITLE
Chief Strategic Business Development Officer
COMPENSATION
$5M
AGE
63
TENURE
3.1 yrs

David Abelman

TITLE
Executive Vice President of Marketing
AGE
59
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Rite Aid board of directors in years:

5
Average Tenure
66
Average Age
  • The tenure for the Rite Aid board of directors is about average.
Board of Directors

Bruce Bodaken

TITLE
Chairman of the Board
COMPENSATION
$220K
AGE
66
TENURE
0.1 yrs

John Standley

TITLE
CEO & Director
COMPENSATION
$9M
AGE
55
TENURE
9.4 yrs

Marcy Syms

TITLE
Independent Director
COMPENSATION
$230K
AGE
67
TENURE
13.2 yrs

Joe Anderson

TITLE
Independent Director
COMPENSATION
$230K
AGE
75
TENURE
13.2 yrs

Mike Regan

TITLE
Lead Independent Director
COMPENSATION
$255K
AGE
70
TENURE
7.4 yrs

Kevin Lofton

TITLE
Independent Director
COMPENSATION
$230K
AGE
63
TENURE
5 yrs

Bob Knowling

TITLE
Independent Director
AGE
63
TENURE
0.1 yrs

Lou Miramontes

TITLE
Independent Director
AGE
63
TENURE
0.1 yrs

Arun Nayar

TITLE
Independent Director
AGE
67
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Rite Aid's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rite Aid has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Should You Have Rite Aid Corporation's (NYSE:RAD) In Your Portfolio?

Generally, an investor should consider two types of risk that impact the market value of RAD. … The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market. … Not all stocks are expose to the same level of market risk.

Simply Wall St -

Rite Aid Corporation (NYSE:RAD): Time For A Financial Health Check

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Rite Aid Corporation (NYSE:RAD), with a market cap of US$2.23b, are often out of the spotlight. … RAD’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

Is Rite Aid Corporation (NYSE:RAD) A Financially Sound Company?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Rite Aid Corporation (NYSE:RAD), with a market cap of US$2.03b, are often out of the spotlight. … Don’t forget that this is a general and concentrated examination of Rite Aid’s financial health, so you should conduct further analysis. … Check out our latest analysis for Rite Aid

Simply Wall St -

Why Rite Aid Corporation (NYSE:RAD) Could Be A Buy

Rite Aid Corporation (NYSE:RAD), a consumer retailing company based in United States,. … Today I will analyse the most recent data on Rite Aid’s outlook and valuation to see if the opportunity still exists? … View out our latest analysis for Rite Aid!

Simply Wall St -

Should You Buy Rite Aid Corporation (NYSE:RAD) At $1.78?

Let’s take a look at Rite Aid’s outlook and value based on the most recent financial data to see if the opportunity still exists. … This is because Rite Aid’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Is Rite Aid Corporation (NYSE:RAD) Cheap And High Growth?

Retail analysts are forecasting for the entire industry, a fairly unexciting growth rate of 9.70% in the upcoming year , and a whopping growth of 34.47% over the next couple of years. … Check out our latest analysis for Rite Aid What’s the catalyst for Rite Aid's sector growth? … If Rite Aid has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the food retail industry.

Simply Wall St -

How Financially Strong Is Rite Aid Corporation (NYSE:RAD)?

Additionally, RAD has generated US$266.34M in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 7.85%, meaning that RAD’s operating cash is not sufficient to cover its debt. … Looking at RAD’s most recent US$3.46B liabilities, the company has been able to meet these obligations given the level of current assets of US$4.74B, with a current ratio of 1.37x. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: RAD’s debt and cash flow levels indicate room for improvement.

Simply Wall St -

Rite Aid Corporation's (NYSE:RAD) Poor Growth Outlook Brings Concerns

The biggest risks I see are around the sustainability of its future growth, the opportunity cost of investing in the stock accounting for the returns I could have gotten in other peers, and its cash-to-debt management. … At 1.06 billion shares, that's a US$1.74B market cap - quite low for a business that has a 5-year free cash flow cumulative average growth rate (CAGR) of 5.82% (source: analyst consensus). … With an upcoming 2018 free cash flow figure of US$1.70B, the target price for RAD is US$3.52.

Simply Wall St -

Is It Time To Buy Rite Aid Corporation (NYSE:RAD) Based Off Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for RAD Price per share = $1.54 Earnings per share = $0.104 ∴ Price-Earnings Ratio = $1.54 ÷ $0.104 = 14.8x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared higher growth firms with RAD, then RAD’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with RAD, RAD’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.

Simply Wall St -

Rite Aid Corporation (NYSE:RAD): Time For A Financial Health Check

Moreover, RAD has produced US$225.86M in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 3.08%, signalling that RAD’s debt is not appropriately covered by operating cash. … Since total debt levels have outpaced equities, RAD is a highly leveraged company. … Next Steps: RAD’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

Company Info

Map
Description

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. It operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products. It also operates retail clinics that provide treatment for common conditions; and a range of preventive services comprising screenings, medical tests, immunizations, and basic physical exams. In addition, this segment offers healthcare coaching and disease management services. The Pharmacy Services segment provides pharmacy benefit management (PBM) services and a range of pharmacy-related services. This segment also performs prescription adjudication services for other PBMs; and offers integrated mail-order, specialty and compounding pharmacy, and infertility treatment services, as well as drug benefits under the federal government's Medicare Part D program. As of April 12, 2018, the company operated approximately 2,548 stores in 19 states. Rite Aid Corporation was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.

Details
Name: Rite Aid Corporation
RAD
Exchange: NYSE
Founded: 1927
$1,274,401,865
1,053,224,682
Website: http://www.riteaid.com
Address: Rite Aid Corporation
30 Hunter Lane,
Camp Hill,
Pennsylvania, 17011,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RAD Common Stock New York Stock Exchange US USD 07. Oct 1968
DB RTA Common Stock Deutsche Boerse AG DE EUR 07. Oct 1968
LSE 0KX4 Common Stock London Stock Exchange GB USD 07. Oct 1968
Number of employees
Current staff
Staff numbers
48,410
Rite Aid employees.
Industry
Drug Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/19 00:54
End of day share price update: 2018/11/16 00:00
Last estimates confirmation: 2018/11/13
Last earnings filing: 2018/10/04
Last earnings reported: 2018/09/01
Last annual earnings reported: 2018/03/03


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.