Rite Aid Intrinsic Value – RITE AID Reports First Quarter FY2024 Earnings Results for Period Ending May 31, 2023
July 1, 2023
🌥️Earnings Overview
RITE AID ($NYSE:RAD) announced their financial results for the first quarter of FY2024 on June 29 2023, which ended on May 31 2023. The total revenue was recorded at USD 5653.2 million, a decrease of 6.0% in comparison to the same period of the previous year. The net income for this period was USD -306.7 million, which is worse than the loss of -110.2 million seen in the prior year.
Price History
On Thursday, RITE AID released its first quarter FY2024 earnings results for the period ending May 31, 2023. The stock opened at $1.6 and closed at $1.5, up 0.7% from the previous closing price of $1.5. The report contained changes in revenue, expenses, and net income compared to the same period in the previous year. RITE AID reported a slight increase in revenue for the quarter compared to the same period in FY2023. Overall, RITE AID’s first quarter earnings report showed a mixed performance with changes in both revenue and expenses.
However, the increase in cash and cash equivalents is likely to be a positive indicator for the company’s future performance. Investors will continue to track RITE AID’s progress 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 | -16.79 |
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 Value
At GoodWhale, we have conducted an analysis of RITE AID‘s wellbeing and our proprietary Valuation Line has determined that the fair value of RITE AID share is around $10.6. This means, however, that RITE AID stock is currently being traded at $1.5, which is undervalued by an astonishing 85.8%. This presents a potentially lucrative opportunity for investors. More…
Peers
The company operates through a network of approximately 4,600 stores in 31 states. Rite Aid Corp is the third largest pharmacy chain in the US. The company’s main competitors are COSMOS Pharmaceutical Corp, Clicks Group Ltd, Yifeng Pharmacy Chain Co Ltd.
– COSMOS Pharmaceutical Corp ($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
Rite Aid reported disappointing first quarter earnings for FY2024, with total revenue down 6% and net income at a loss of -306.7 million. This is a significant decrease from the prior year’s loss of -110.2 million. Investors will be looking at future quarters to see if Rite Aid can turn things around. Cost cutting measures and an improved competitive landscape are two possible catalysts that could help drive future growth and profitability.
However, investors should weigh the risks carefully, as any unexpected events could further impede Rite Aid’s recovery.
