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Is this Large Market Cap Stock target price reasonable for Rite Aid Corporation (NYSE:RAD)?

The company in question is, Rite Aid Corporation (NYSE:RAD) currently with a stock price of 7.05 (-2.13% today). The market cap for Rite Aid Corporation is 7534.44, and is in the sector Services, and Drug Stores industry. The target price for Rite Aid Corporation is 8.86. Currently Rite Aid Corporation is trading with a P/E of 56.25, and a forward P/E of 30. Average volume for Rite Aid Corporation is 15031.6 and so far today it is 38859388.

Performance in the last year for Rite Aid Corporation has been 19.01%. For EPS growth, Rite Aid Corporation has seen a growth of -92.40%, and is looking to grow in the next year to 66.67%. More long term stats show that EPS growth has been 17.60% over the last five years and could be *TBA for the next five years. Rite Aid Corporation has seen sales growth quarter over quarter at 4.80%, with EPS growth quarter over quarter at -32.00%. The 20-day simple moving average is -7.88%, with the 200-day simple moving average coming to -8.81%.

Since the IPO date for Rite Aid Corporation on the 12/17/1984, Rite Aid Corporation has seen performance year to date to be -8.16%. With Rite Aid Corporation trading at 7.05, the dividend yield is *TBA, and the EPS is 0.13.

So could Rite Aid Corporation, be undervalued? Well as said before P/E is 56.25. The PEG is *TBA, P/S is 0.23 and the P/B is at 12.2. The P/cash is 55.36, with P/free cash flow at 127.06.

Rite Aid Corporation ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 0.7. This is with long term debt/equity at 11.71, and total debt/equity at 11.75.

In terms of margins, Rite Aid Corporation has a gross margin of 24.10%, an operating margin of 2.00% and a profit margin of 0.40%.Payout ratio for Rite Aid Corporation is 0.00%. Return on assets come to 1.20% with return on investment coming to 8.20%.

Insider ownership for Rite Aid Corporation, is at 0.60% and institutional ownership comes to 64.50%. Outstanding shares are at 1046.45. While shares float is 1044.38. The float short is currently 2.31%, and short ratio is 1.61.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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