Redcare Pharmacy (RDC) AI Stock Analysis

• Market Cap: €2.16B
• Dividend Yield: N/A
• Average Volume (3M): 143.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 27.21%
• EPS Growth: -383.17%
• Country: DE
• Employees: 1,827
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.52
• Shares Outstanding: 20,578,390
• 10 Day Avg. Volume: 173,690
• 30 Day Avg. Volume: 143,401
• PEG Ratio: 5.80
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -403.07
• 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: €172.71
• Price Target Upside: 53.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 56 Neutral
• Price Target: €109.00 ▼(-3.02%Downside)

Redcare Pharmacy's overall stock score is influenced by strong revenue growth and stable balance sheet metrics, but hindered by ongoing profitability challenges and a bearish technical outlook. The negative P/E ratio further weighs down the evaluation, with no dividends to offer immediate investor returns.

Positive Factors

Earnings Guidance

The guidance for FY25 is a clear positive surprise with adj. EBITDA sitting 20% ahead of the street at mid-point.

Market Share

The company's market share increased to 0.87%.

Sales Growth

Group sales were boosted by a 191% year-over-year growth in German Rx sales.

Negative Factors

Profitability

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

Sales Trajectory

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 pharmaceutical products, over-the-counter medicines, and health-related items via its online platform. The company's key revenue streams include direct consumer sales, subscription services for regular medication deliveries, and partnerships with healthcare providers and insurance companies. Additionally, RDC may engage in affiliate marketing and promotions, leveraging strategic alliances with other health and wellness brands to enhance its product offerings and customer base. These partnerships and a focus on efficient supply chain management contribute significantly to its profitability and market presence.

Redcare Pharmacy Financial Statement Overview

Summary

Redcare Pharmacy demonstrates strong revenue growth and improving gross margins, but profitability remains a significant hurdle. The balance sheet is stable with moderate leverage, but the high net debt in certain years requires attention. Cash flows show improvement but remain inconsistent, necessitating better cash management strategies.

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

Redcare Pharmacy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 112.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:RDC, the sentiment is Positive. The current price of 112.4 is above the 20-day moving average (MA) of 97.81, above the 50-day MA of 102.07, and below the 200-day MA of 124.72, indicating a neutral trend. The MACD of 2.32 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 86.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:RDC.

Redcare Pharmacy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDC	56 Neutral	€2.16B	―	-9.80%	―	27.21%	-383.17%
Sector *	52 Neutral	$7.60B	0.11	-62.95%	2.07%	16.16%	0.31%
0N6Z	―	€1.42B	61.76	-4.72%	0.16%	―	―
DMP	65 Neutral	€1.90B	18.35	16.97%	2.57%	6.24%	83.05%
MEDOF	―	$366.02M	22.76	2.99%	―	―	―
PSG	75 Outperform	€343.20M	16.95	48.46%	0.17%	13.80%	10.94%
M12	68 Neutral	€255.89M	15.80	14.61%	3.64%	7.23%	58.37%