Rite Aid Corporation [NYSE: RAD] shares went lower by -1.85% from its previous closing of $7.02, now trading at the price of $6.89, also adding -0.13 points. Is RAD stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.4 million contracts. Compared to the average trading volume of RAD shares, the company saw a far better performance. Moreover, the stock has a 52.69M float and a +1.03% run over in the last seven days. RAD share price has been hovering between $29.80 and $6.12 lately, and is definitely worthy of attention.
Rite Aid Corporation [NYSE:RAD]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Rite Aid Corporation [RAD], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in February. On average, stock market experts give RAD an Underperform rating. Its stock price has been found in the range of 6.12 to 29.80. This is compared to its latest closing price of $7.02.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Rite Aid Corporation [RAD] is sitting at 4.00. This is compared to 1 month ago, when its average rating was 4.00.
For the quarter ending in May-19 Rite Aid Corporation [RAD] generated $5.37 billion in sales. That’s 0.17% lower than the average estimate of $5.38 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Thu 26 Sep (In 44 Days).
Fundamental Analysis of Rite Aid Corporation [RAD]
Now let’s turn to look at profitability: with a current Operating Margin for Rite Aid Corporation [RAD] sitting at +0.39 and its Gross Margin at +21.61, this company’s Net Margin is now -3.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 1.74, and its Return on Invested Capital has reached -10.20%. Its Return on Equity is -47.85, and its Return on Assets is -8.04. These metrics suggest that this Rite Aid Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Rite Aid Corporation [RAD] has generated a Total Debt to Total Equity ratio of 294.50. Similarly, its Total Debt to Total Capital is 74.65, while its Total Debt to Total Assets stands at 46.04. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 293.14, and its Long-Term Debt to Total Capital is 74.31. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 8.46 and its Total Debt to EBITDA Value is 7.91. The Enterprise Value to Sales for this firm is now 0.17, and its Total Debt to Enterprise Value stands at 0.85. Rite Aid Corporation [RAD] has a Price to Book Ratio of 0.66.
Shifting the focus to workforce efficiency, Rite Aid Corporation [RAD] earns $407,525 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 11.83 and its Total Asset Turnover is 2.61. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.91 and its Current Ratio is 1.68. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Rite Aid Corporation [RAD] has 55.38M shares outstanding, amounting to a total market cap of $388.77M. Its stock price has been found in the range of 6.12 to 29.80. At its current price, it has moved down by -76.88% from its 52-week high, and it has moved up 12.58% from its 52-week low.
This stock’s Beta value is currently 1.64, which indicates that it is 6.59% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.13. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Rite Aid Corporation [RAD] a Reliable Buy?
Rite Aid Corporation [RAD] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.