Redcare Pharmacy (RDC) AI Stock Analysis

• Market Cap: €1.29B
• Dividend Yield: N/A
• Average Volume (3M): 132.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 26.68%
• EPS Growth: -41.83%
• Country: DE
• Employees: 1,827
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.33
• Shares Outstanding: 20,578,390
• 10 Day Avg. Volume: 128,637
• 30 Day Avg. Volume: 132,758
• 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: €142.07
• Price Target Upside: 127.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €61.00 ▼(-2.48% Downside)

Redcare Pharmacy's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces significant challenges in profitability and cash flow, reflected in its financial performance score. The technical analysis indicates a bearish trend, further impacting the overall score. Valuation concerns, including a negative P/E ratio, also weigh on the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for RDC's products and services, supporting long-term business expansion and market presence.

Debt Management

Improved debt management enhances financial stability, reducing risk and providing more flexibility for future investments and growth initiatives.

Digital Healthcare Solutions

Emphasizing digital solutions positions RDC to capitalize on the growing trend of telehealth, potentially expanding its customer base and improving service accessibility.

Negative Factors

Profitability Challenges

Ongoing profitability issues hinder RDC's ability to reinvest in growth and innovation, potentially affecting long-term competitiveness and financial health.

Cash Flow Issues

Negative free cash flow indicates challenges in covering capital expenditures, which could limit RDC's ability to fund new projects and reduce financial risk.

Operational Efficiency

Inefficiencies in cost management affect RDC's profitability and ability to generate returns, potentially impacting its competitive position and financial sustainability.

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 through multiple channels. The primary revenue stream comes from the sale of prescription and over-the-counter medications. The company also profits from the sale of health and wellness products, including vitamins, supplements, and personal care items. Additionally, RDC has developed a robust online presence, allowing it to reach a wider customer base through e-commerce sales. The company may also generate income from telepharmacy services, where customers pay for virtual consultations and medication management. Furthermore, strategic partnerships with healthcare providers and insurance companies can enhance revenue through referral programs and insurance reimbursements. Overall, RDC's earnings are supported by its diverse product offerings and its commitment to integrating technology in healthcare delivery.

Redcare Pharmacy Financial Statement Overview

Summary

Redcare Pharmacy shows modest revenue growth and improved debt management, but faces significant challenges in profitability and cash flow generation. The company needs to enhance operational efficiency and cash flow management to improve financial stability.

Income Statement

Redcare Pharmacy shows a modest revenue growth rate of 5.41% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively stable at 23.16% TTM, but the persistent negative net income highlights ongoing challenges in cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.002 TTM, suggesting a strong equity position relative to debt. However, the return on equity remains negative, reflecting ongoing profitability issues. The equity ratio is healthy, indicating a solid capital structure, but the negative ROE points to inefficiencies in generating returns from equity.

Cash Flow

Operating cash flow has improved, but free cash flow remains negative, indicating challenges in generating sufficient cash after capital expenditures. The free cash flow to net income ratio is negative, highlighting cash flow issues despite improvements in operating cash flow. The company needs to focus on enhancing free cash flow generation to support growth and reduce financial risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.82B	2.37B	1.80B	1.20B	1.06B	968.06M
Gross Profit	645.38M	545.78M	440.38M	331.79M	266.53M	219.53M
EBITDA	43.17M	28.03M	50.94M	-30.64M	-37.41M	10.89M
Net Income	-35.19M	-45.46M	-12.04M	-77.65M	-74.19M	-16.77M
Balance Sheet
Total Assets	1.22B	1.00B	1.02B	729.47M	783.08M	536.91M
Cash, Cash Equivalents and Short-Term Investments	271.29M	177.56M	204.16M	184.00M	283.46M	127.89M
Total Debt	392.40M	247.38M	244.84M	255.19M	236.43M	38.23M
Total Liabilities	697.84M	493.31M	469.56M	374.84M	367.66M	111.77M
Stockholders Equity	502.30M	483.98M	522.19M	354.63M	415.41M	425.14M
Cash Flow
Free Cash Flow	-51.55M	13.38M	23.23M	-82.64M	-31.52M	-35.53M
Operating Cash Flow	32.81M	22.13M	61.46M	-29.11M	11.63M	17.80M
Investing Cash Flow	-103.32M	8.38M	-59.96M	-138.01M	-84.30M	-40.26M
Financing Cash Flow	115.91M	-17.94M	15.05M	-13.52M	229.59M	50.29M

Redcare Pharmacy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 62.55 is below the 20-day moving average (MA) of 63.65, below the 50-day MA of 63.42, and below the 200-day MA of 86.52, indicating a bearish trend. The MACD of -1.66 indicates Positive momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 40.65 is Neutral, 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	€342.93M	17.66	15.61%	2.80%	6.52%	7.17%
DMP	71 Outperform	€1.88B	16.38	18.82%	2.34%	0.11%	28.09%
ILM1	70 Outperform	€408.09M	18.33	4.18%	―	9.27%	65.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.35B	-59.12	―	―	-18.82%	-113.85%
RDC	46 Neutral	€1.29B	-35.85	-6.98%	―	26.68%	-41.83%