OTCPK:RADL.Y

Stock Analysis Report

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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.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

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: RADL.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.7%

RADL.Y

1.2%

US Consumer Retailing

1.2%

US Market


1 Year Return

-3.9%

RADL.Y

16.2%

US Consumer Retailing

16.8%

US Market

Return vs Industry: RADL.Y underperformed the US Consumer Retailing industry which returned 15.3% over the past year.

Return vs Market: RADL.Y underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

RADL.YIndustryMarket
7 Day-6.7%1.2%1.2%
30 Day9.3%3.2%4.9%
90 Dayn/a9.0%20.0%
1 Year-3.7%-3.9%18.0%16.2%19.3%16.8%
3 Year7.6%6.1%55.2%46.7%43.7%34.4%
5 Yearn/a68.2%51.5%75.5%56.6%

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

No news available

Valuation

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

47.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RADL.Y ($22.58) is trading above our estimate of fair value ($7.93)

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


Price To Earnings Ratio

PE vs Industry: RADL.Y is poor value based on its PE Ratio (47.3x) compared to the US Consumer Retailing industry average (20.5x).

PE vs Market: RADL.Y is poor value based on its PE Ratio (47.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RADL.Y is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: RADL.Y is overvalued based on its PB Ratio (9.3x) compared to the US Consumer Retailing industry average (1.8x).


Next Steps

Future Growth

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

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RADL.Y's forecast earnings growth (23.5% per year) is above the savings rate (2.2%).

Earnings vs Market: RADL.Y's earnings (23.5% per year) are forecast to grow slower than the US market (23.7% per year).

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

Revenue vs Market: RADL.Y's revenue (14% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: RADL.Y's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RADL.Y's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has Raia Drogasil performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RADL.Y has a large one-off gain of R$201.0M impacting its March 31 2020 financial results.

Growing Profit Margin: RADL.Y's current net profit margins (4.3%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: RADL.Y's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: RADL.Y's earnings growth over the past year (71.7%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: RADL.Y earnings growth over the past year (71.7%) exceeded the Consumer Retailing industry 20.8%.


Return on Equity

High ROE: RADL.Y's Return on Equity (19.8%) is considered low.


Next Steps

Financial Health

How is Raia Drogasil's financial position?


Financial Position Analysis

Short Term Liabilities: RADL.Y's short term assets (R$6.4B) exceed its short term liabilities (R$4.5B).

Long Term Liabilities: RADL.Y's short term assets (R$6.4B) exceed its long term liabilities (R$4.4B).


Debt to Equity History and Analysis

Debt Level: RADL.Y's debt to equity ratio (34%) is considered satisfactory.

Reducing Debt: RADL.Y's debt to equity ratio has increased from 10.2% to 34% over the past 5 years.

Debt Coverage: RADL.Y's debt is well covered by operating cash flow (83.9%).

Interest Coverage: RADL.Y's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RADL.Y's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: RADL.Y's dividend (0.55%) is low compared to the top 25% of dividend payers in the US market (4.35%).


Stability and Growth of Payments

Stable Dividend: RADL.Y is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: RADL.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RADL.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RADL.Y'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?

18.6yrs

Average board tenure


CEO

Marcílio Pousada (55 yo)

7.08yrs

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 data0.76%
R$ 53.8m
Jairo Loureiro
Independent Director13.58yrsno datano data
Plínio Musetti
Directorno datano datano data
Carlos Oliveira Dias
Director26.58yrsno datano data
José Correa Sobrinho
Alternate Directorno datano data7.76%
R$ 549.0m
Antonio de Freitas
Alternate Directorno datano datano data
Renato Oliveira Dias
Director18.58yrsno datano data
Paulo Coutinho Galvão Filho
Director26.58yrsno data0.77%
R$ 54.4m
Antonio Pipponzi
Chairman of the Boardno datano data3.45%
R$ 244.3m
Cristiana Pipponzi
Director7.33yrsno data1.19%
R$ 84.1m
Marco Ambrogio Bonomi
Independent Directorno datano datano data
Marcelo José E Silva
Independent Directorno datano datano data

18.6yrs

Average Tenure

Experienced Board: RADL.Y's board of directors are seasoned and experienced ( 18.6 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: RADL.Y
  • Exchange: OTCPK
  • Founded: 1905
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: R$38.233b
  • Listing Market Cap: R$7.076b
  • Shares outstanding: 329.88m
  • 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 December 31, 2017, it operated ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:34
End of Day Share Price2020/08/05 00:00
Earnings2020/03/31
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.