Redcare Pharmacy (RDC) AI Stock Analysis

• Market Cap: €709.95M
• Dividend Yield: N/A
• Average Volume (3M): 132.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 26.68%
• EPS Growth: -41.83%
• Country: DE
• Employees: 1,827
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -1.44
• Shares Outstanding: 20,578,390
• 10 Day Avg. Volume: 128,637
• 30 Day Avg. Volume: 132,758
• PEG Ratio: 1.97
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -23.25
• 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: €106.50
• Price Target Upside: 183.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.08
• Revenue Forecast (FY): €3.40B

• Rating: 47 Neutral
• Price Target: €34.00 ▼(-9.62% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is primarily held back by weak financial quality (ongoing losses and sharply negative TTM free cash flow) and a strongly bearish technical setup (price far below major moving averages with negative MACD). Revenue growth and improving margins provide some support, but valuation remains constrained by lack of profitability.

Positive Factors

Revenue scaling

Redcare shows durable top-line expansion, scaling revenue nearly threefold since 2020. Persistent revenue growth reflects growing market share in online pharmacy across markets, supporting long-term unit economics, supplier negotiating power, and platform leverage that can drive margin improvement as scale persists.

Stable gross margin

A stable ~23% gross margin indicates resilient unit economics across its product mix. With scale, stable gross margins provide a base for operating leverage: incremental revenue can flow more quickly to operating profit if marketing and fulfillment efficiencies continue to improve.

Positive operating cash generation

Positive operating cash flow (~€27M TTM) shows the core business can generate cash as volumes scale, reducing sole reliance on external financing. Combined with a meaningful equity base, this supports reinvestment in fulfillment and digital capability and helps fund incremental growth if cash conversion stabilizes.

Negative Factors

Ongoing net losses

The company remains unprofitable on both operating and net income lines despite revenue scale. Persistent negative margins limit retained earnings and internal funding, meaning management must prove sustainable margin conversion to justify continued reinvestment and reduce dependence on external capital.

Volatile free cash flow

Large swings in free cash flow, with a sharp TTM deficit (~-€81M), highlight volatile cash conversion likely from working-capital swings or heavy reinvestment. This unpredictability undermines the company's ability to self-finance growth and raises refinancing and liquidity planning risks over the medium term.

Rising leverage

Debt has grown materially relative to equity, raising leverage without sustained profitability. Higher leverage increases fixed financing costs and reduces strategic flexibility, making the business more sensitive to cash-flow volatility and potentially constraining investments if margins or cash generation falter.

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 primarily makes money by selling pharmacy and health-related products online. Its core revenue stream is product sales to end customers (B2C), which generally includes (1) prescription medications (where permitted and depending on market-specific reimbursement and dispensing rules) and (2) non-prescription/OTC medicines and a wider front-shop assortment such as vitamins, personal care, and wellness items. Revenue is recognized largely from the value of goods sold; gross profit is generated from the spread between retail selling prices and procurement costs from manufacturers/wholesalers, influenced by product mix (OTC/front-shop products typically carry different margins than prescription products) and scale efficiencies in fulfillment and marketing. The company may also generate ancillary revenue from shipping and handling fees in certain cases, and from commercial terms with suppliers (e.g., purchasing conditions, discounts, or promotional/marketing contributions), but if market- or contract-specific details are not publicly available they are null. Significant external factors affecting earnings include regulatory frameworks for online pharmacy operations in each country, competitive pricing dynamics in e-commerce, customer acquisition/retention costs, and the rollout/adoption of digital prescription workflows (e.g., e-prescriptions) where applicable. Specific named partnerships and their financial contribution: null.

Redcare Pharmacy Financial Statement Overview

Summary

Strong revenue scale-up and narrowing losses support the score, but profitability remains negative (EBIT and net income still below zero) and free cash flow swung sharply negative in the TTM period, indicating execution risk. Rising leverage also increases financial risk while returns remain negative.

Income Statement

Top-line momentum is a clear positive, with revenue scaling from ~€0.97B (2020) to €2.94B in TTM (Trailing-Twelve-Months), including strong recent growth (TTM revenue growth ~4.26 vs ~0.32 in 2024). Profitability, however, remains the key drag: EBIT and net income are still negative in every period shown, and TTM net margin is slightly negative (~-1.25%), though improved versus 2024 (~-1.92%) and far better than 2021–2022 losses. Gross margin is stable (~23% TTM), but operating profitability has not consistently translated from scale yet.

Balance Sheet

The company maintains a meaningful equity base (TTM equity ~€459M on assets ~€1.25B), but leverage has risen notably: total debt increased to ~€416M TTM and debt-to-equity moved up to ~0.78 (from ~0.47 in 2023). Returns on equity are still negative (TTM ~-7.15%), reflecting ongoing losses. Overall, the balance sheet is not distressed, but the trend toward higher leverage without sustained profitability increases financial risk.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in TTM (~€27M) and improved from the 2022 outflow, but it remains relatively small versus the scale of revenue and has not strengthened consistently. The bigger concern is free cash flow volatility: positive in 2023–2024, but sharply negative in TTM (~-€81M), indicating heavier reinvestment and/or working-capital pressure. With net income still negative, the path to consistently self-funded growth is not yet demonstrated.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.94B	2.37B	1.80B	1.20B	1.06B
Gross Profit	593.70M	545.78M	440.38M	331.79M	266.53M
EBITDA	45.60M	28.03M	50.94M	-30.64M	-37.41M
Net Income	-37.70M	-45.46M	-12.04M	-77.65M	-74.19M
Balance Sheet
Total Assets	1.25B	1.00B	1.02B	729.47M	783.08M
Cash, Cash Equivalents and Short-Term Investments	203.50M	177.56M	204.16M	184.00M	283.46M
Total Debt	415.60M	247.38M	244.84M	255.19M	236.43M
Total Liabilities	767.30M	493.31M	469.56M	374.84M	367.66M
Stockholders Equity	459.20M	483.98M	522.19M	354.63M	415.41M
Cash Flow
Free Cash Flow	-56.30M	13.38M	23.23M	-82.64M	-31.52M
Operating Cash Flow	23.00M	22.13M	61.46M	-29.11M	11.63M
Investing Cash Flow	-151.40M	8.38M	-59.96M	-138.01M	-84.30M
Financing Cash Flow	124.10M	-17.94M	15.05M	-13.52M	229.59M

Redcare Pharmacy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 37.62 is below the 20-day moving average (MA) of 50.82, below the 50-day MA of 58.80, and below the 200-day MA of 75.40, indicating a bearish trend. The MACD of -6.63 indicates Positive momentum. The RSI at 21.05 is Positive, neither overbought nor oversold. The STOCH value of 7.41 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
M12	74 Outperform	€271.21M	6.07	15.61%	2.80%	6.52%	7.17%
DMP	71 Outperform	€2.22B	10.63	18.56%	2.34%	0.11%	28.09%
ILM1	70 Outperform	€350.45M	11.47	4.26%	―	9.27%	65.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.35B	-58.47	4.98%	―	-18.82%	-113.85%
RDC	47 Neutral	€709.95M	-34.72	-7.76%	―	26.68%	-41.83%