Redcare Pharmacy (RDC) AI Stock Analysis

• Market Cap: €1.91B
• Dividend Yield: N/A
• Average Volume (3M): 145.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 25.78%
• EPS Growth: -266.48%
• Country: DE
• Employees: 1,827
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 0.43
• Shares Outstanding: 20,578,390
• 10 Day Avg. Volume: 96,924
• 30 Day Avg. Volume: 145,101
• PEG Ratio: -0.22
• Price to Book (P/B): 5.46
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 197.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €157.14
• Price Target Upside: 66.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 50 Neutral
• Price Target: €97.00 ▲(2.81% Upside)

Redcare Pharmacy's overall stock score is primarily influenced by its financial performance and technical analysis. While the company benefits from low financial leverage, its profitability and cash flow issues are significant concerns. The technical indicators suggest a neutral market sentiment, and the negative valuation metrics further weigh down the score.

Positive Factors

Financial Performance

A 15% beat on adj. EBITDA as the Q2 margin surprises positively with 2.6%, coming out above the full year target corridor of 2.0-2.5%.

Market Expansion

The company's market share increased to 0.87%.

Sales Growth

Sales were up 28% to €717 million, driven by growth in the OTC segment and strong German Rx sales.

Negative Factors

Growth Investments

Slowing top line momentum coupled with lower margins due to ongoing growth investments, especially in marketing, would be taken negatively.

Profitability Concerns

The intensified marketing efforts for Rx also came at a cost of slightly lower profitability in FY24.

Sales Performance

German Rx sales showed a sequential slowdown, with only €6m incremental sales.

Redcare Pharmacy Business Overview & Revenue Model

Company Description

Redcare Pharmacy NV owns and operates online pharmacies in Germany, Austria, Switzerland, France, Belgium, Italy, and the Netherlands. It provides prescription medications, over-the-counter medications, and pharmacy-related beauty and personal care products, as well as food supplements. The company was formerly known as Shop Apotheke Europe N.V. and changed its name to Redcare Pharmacy NV in June 2023. The company was founded in 2001 and is headquartered in Sevenum, the Netherlands.

How the Company Makes Money

Redcare Pharmacy generates revenue primarily through the sale of prescription medications and over-the-counter products. The company operates a retail model where customers purchase these products directly from their stores or through an online platform. Key revenue streams include prescription sales, which are often reimbursed by insurance providers, as well as sales of health supplements, personal care items, and wellness products. Additionally, RDC may engage in partnerships with healthcare providers and insurance companies to facilitate medication management services and health programs, further enhancing its revenue opportunities. Seasonal promotions, loyalty programs, and community health initiatives also contribute to increased customer footfall and sales.

Redcare Pharmacy Financial Statement Overview

Summary

Redcare Pharmacy shows strong revenue growth and improving gross margins but struggles with profitability. A stable balance sheet with moderate leverage is offset by high net debt in some years. Cash flows are improving but remain inconsistent, indicating cash management challenges.

Income Statement

The company shows consistent revenue growth over the years, with a notable increase in gross profit margin. However, the persistent negative EBIT and net income indicate profitability challenges. The TTM data shows slight improvement in EBITDA margin, but overall profitability remains a concern.

Balance Sheet

The balance sheet reflects a stable equity base with a favorable equity ratio. The debt-to-equity ratio is moderate, and the company has maintained a consistent stockholders’ equity. However, the high net debt in some years indicates potential risk if not managed well.

Cash Flow

The cash flow statement reveals fluctuating free cash flow, with significant improvement in recent periods. Operating cash flow is growing, but the free cash flow to net income ratio is volatile due to negative net income, indicating cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.37B	1.80B	1.20B	1.06B	968.06M
Gross Profit	619.80M	545.78M	440.38M	331.79M	266.53M	219.53M
EBITDA	37.37M	28.03M	58.18M	-30.64M	-37.41M	14.66M
Net Income	-34.86M	-45.46M	-12.04M	-77.65M	-74.19M	-16.77M
Balance Sheet
Total Assets	1.24B	1.00B	1.02B	729.47M	783.08M	536.91M
Cash, Cash Equivalents and Short-Term Investments	315.71M	177.56M	204.16M	184.00M	283.46M	127.89M
Total Debt	1.06M	247.38M	244.84M	255.19M	236.43M	38.23M
Total Liabilities	713.50M	493.31M	469.56M	374.84M	367.66M	111.77M
Stockholders Equity	508.70M	483.98M	522.19M	354.63M	415.41M	425.14M
Cash Flow
Free Cash Flow	-25.52M	13.38M	23.23M	-82.64M	-31.52M	-35.53M
Operating Cash Flow	43.81M	22.13M	61.46M	-29.11M	11.63M	17.80M
Investing Cash Flow	-178.67M	8.38M	-59.96M	-138.01M	-84.30M	-40.26M
Financing Cash Flow	117.35M	-17.94M	15.05M	-13.52M	229.59M	50.29M

Redcare Pharmacy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RDC, the sentiment is Negative. The current price of 94.35 is below the 20-day moving average (MA) of 101.44, below the 50-day MA of 96.63, and below the 200-day MA of 121.50, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 10.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:RDC.

Redcare Pharmacy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSG	75 Outperform	€345.60M	17.19	48.46%	0.17%	13.80%	10.94%
M12	72 Outperform	€263.36M	16.33	14.61%	3.66%	7.23%	58.37%
DMP	66 Neutral	€1.74B	16.84	16.97%	2.73%	6.24%	83.05%
Sector *	50 Neutral	AU$2.58B	3.16	5.87%	2.68%	36.95%	13.61%
RDC	50 Neutral	€1.91B	―	-7.50%	―	25.78%	-266.48%
0N6Z	―	€1.42B	61.76	-4.72%	―	―	―
MEDOF	―	$430.93M	21.28	3.56%	―	―	―