The share price of Rite Aid Corporation [NYSE: RAD] inclined by $16.26, presently trading at $15.31. The company’s shares saw 203.77% gains compared to the lowest price in the period of the last 52 weeks, set at 5.04 recorded on 03/24/20. The last few days have been tough to the share price as RAD fall by -4.07% during the last week, even though the stock is still up by 19.93 compared to -2.93 of all time high it touched on 03/19/20. However, the stock had a strong performance during the past 3 months, roughly gaining 7.40%, while additionally gaining 24.56% during the last 12 months. Rite Aid Corporation is said to have a 12-month price target set at $8.00. That means that the stock has a strong potential to acquire -7.31% decrease from the current trading price.
Rite Aid Corporation [NYSE:RAD]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Rite Aid Corporation [RAD], the latest average analyst recommendation we can see is from the quarter closing in lastQuarterMonth. On average, stock market experts give RAD an Underweight rating. This is compared to its latest closing price of $16.26.
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 2.33. This is compared to 1 month ago, when its average rating was 1.67.
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 0.20% and its Gross Margin at 21.40%, this company’s Net Margin is now -1.90. 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 -13.84. Its Return on Equity is -38.20%, and its Return on Assets is -4.10%. 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.
What about valuation? This company’s Enterprise Value to EBITDA is 9.77 and its Total Debt to EBITDA Value is 7.91. The Enterprise Value to Sales for this firm is now 0.20, and its Total Debt to Enterprise Value stands at 0.85. Rite Aid Corporation [RAD] has a Price to Book Ratio of 0.66.
Rite Aid Corporation [RAD] has 59.26M shares outstanding, amounting to a total market cap of 963.57M. Its stock price has been found in the range of 5.04 to 23.88. At its current price, it has moved down by -35.89% from its 52-week high, and it has moved up 203.77% from its 52-week low.
This stock’s Beta value is currently 0.38, which indicates that it is 16.21% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 50.63. 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.