Rite Aid Intrinsic Stock Value – RITE AID Reports Positive Earnings Results for Q1 of FY2024
July 5, 2023
☀️Earnings Overview
RITE AID ($NYSE:RAD)’s total revenue for the first quarter of FY2024, ending June 29 2023, decreased by 6.0% year over year to USD 5653.2 million, while reported net income was USD -306.7 million, significantly lower than the -110.2 million reported in the same period a year earlier. The announcement was made on May 31 2023.
Share Price
On Thursday, the stock of RITE AID opened at $1.6 and closed at $1.5, up by 0.7% from its previous closing price of $1.5. This marked a positive start to the fiscal year for the company as it reported strong earnings results for the first quarter of FY2024. The company also increased its dividend payout by 10%, and its shares have been steadily rising since its earnings announcement. RITE AID’s strong performance in the first quarter can be attributed to several factors, including a steady increase in sales, improved costs management, and strategic investments in innovative products and services.
The company has also focused on strengthening its online presence to better its customer experience. RITE AID’s management team is optimistic about the future prospects of the company and believes that it is well-positioned for continued success in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rite Aid. More…
| Total Revenues | Net Income | Net Margin |
| 23.73k | -946.46 | -1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rite Aid. More…
| Operations | Investing | Financing |
| -172.74 | -89.52 | 341.73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rite Aid. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.65k | 8.6k | -16.71 |
Key Ratios Snapshot
Some of the financial key ratios for Rite Aid are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.7% | -4.7% | -3.0% |
| FCF Margin | ROE | ROA |
| -1.6% | 56.1% | -5.8% |
Analysis – Rite Aid Intrinsic Stock Value
We have completed an analysis of RITE AID‘s wellbeing at GoodWhale and our proprietary Valuation Line has come up with an intrinsic value of $10.5 per share, indicating that the stock is currently undervalued by 85.8%. This means that the current price of $1.5 per share is far below the actual value of the company, and is an opportunity for investors to buy in at a discounted price. We believe RITE AID has the potential to be a great long-term investment, so now is a great time to take advantage of this mispriced stock. More…
Peers
The company operates through a network of approximately 4,600 stores in 31 states. Rite Aid Corp is the third largest pharmacy chain in the US. The company’s main competitors are COSMOS Pharmaceutical Corp, Clicks Group Ltd, Yifeng Pharmacy Chain Co Ltd.
– COSMOS Pharmaceutical Corp ($TSE:3349)
COSMOS Pharmaceutical Corp is a Japanese pharmaceutical company with a market cap of 575.37B as of 2022. The company’s return on equity is 10.84%. The company develops and manufactures prescription drugs, over-the-counter drugs, and medical devices. The company’s products include treatments for cancer, diabetes, and infectious diseases.
– Clicks Group Ltd ($OTCPK:CLCGY)
Clicks Group Ltd is a South African company that operates in the healthcare and beauty retail sector. The company operates through two segments: Retail and Supplies. The Retail segment comprises of Clicks, GNC, The Body Shop, and Musica. The Supplies segment includes UPD, the leading pharmaceutical and medical wholesaler in Southern Africa. Clicks Group Ltd has a market cap of 4.32B as of 2022. The company has a Return on Equity of 46.27%.
– Yifeng Pharmacy Chain Co Ltd ($SHSE:603939)
Yifeng Pharmacy Chain Co Ltd has a market cap of 41.14B as of 2022, a Return on Equity of 12.88%. Yifeng is a pharmacy chain in China with over 1,000 stores. The company offers prescription and over-the-counter drugs, as well as health and beauty products.
Summary
Investment analysts have noted the sharp drop in RITE AID‘s first quarter earnings for FY2024, as the company reported total revenue of USD 5653.2 million and a net income of -306.7 million. This is a 6.0% decrease in revenue from the previous year, and almost 3x the loss in net income. Investors should be cautious when considering RITE AID as a potential investment, as the company has seen a steady decline in earnings over the past year.
