Profitability Ratios Proving Vital for Investment: Rite Aid Corporation (NYSE:RAD)

Rite Aid Corporation (NYSE:RAD) kept active in technical ratio analysis, on current situation shares price rose 2.96% to $4.87. The total volume of 28.78 Million shares held in the session, while on average its shares change hands 25481.64 shares.

Efficiency Evaluation in Focus

Entering into profitability analysis, the co has noticeable returns on equity ratio of 14.90%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at 8.20%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margin of Rite Aid Corporation (NYSE:RAD) stands at positive 0.30%; that indicates a firm actually every dollar of sales keeps in earnings. The 0.80% returns on assets present notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

Analysts Recommendation

Finally to see some strong financial remarks by WSJ over RAD performance. Out of the pool of analysts 3 gave their BUY ratings on the stock in previous month as 3 analysts having BUY in current month. The stock was ranked as Underweight by 1 analyst while 1 analyst gave SELL rank. Majority ranked Overweight from the pool of analysts.

The next year first quarter EPS estimates trend for current period shows $0.03 while one month ago this estimate trend was for $0.03. EPS indicator shows the robustness of the stock and its analysis opens up the clear picture of company’s profitability. On annual basis of EPS, FY 2017 Estimate Trends at current were for $0.09 and for the one month was for $0.12 as compared to three months ago was for $0.15. RAD received highest price target of 6.75 and low target of 6.25. The stock price target chart showed average price target of 6.54 as compared to current price of 4.87.

Following previous ticker characteristics, Rite Aid Corporation (NYSE:RAD) also run on active notice, stock price rose 2.96% after traded at $4.87 in most recent trading session.

RAD has price to earnings ratio of 56.63 and the price to current year EPS stands at -92.40%. Whereas the traders who further want to see about this, may be interested to see Price to next year’s EPS that would be 27.27%. Moving toward ratio analysis, it has current ratio of 1.60 and quick ratio was calculated as 0.70. The debt to equity ratio appeared as 11.26 for seeing its liquidity position.

To find out the technical position of RAD, Rite Aid Corporation (NYSE:RAD) holds price to book ratio of 7.85 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 57.98. RAD is presenting price to cash flow of 23.13.

Taking notice on volatility measures, price volatility of stock was 6.08% for a week and 3.81% for a month. The price volatility’s Average True Range for 14 days was 0.22. On these bases, analysts would recommend this stock as an “Active Revolving Stocks.” The firm attains analyst recommendation of 2.60 out of 1-5 scale with week’s performance of -2.79%. Rite Aid Corporation (NYSE:RAD) ‘s institutional ownership was registered as 63.30%, while insider ownership was 0.70%.

 

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