Redcare Pharmacy (RDC) AI Stock Analysis

• Market Cap: €1.33B
• Dividend Yield: N/A
• Average Volume (3M): 132.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 26.68%
• EPS Growth: -41.83%
• Country: DE
• Employees: 1,827
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.36
• 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: €151.43
• Price Target Upside: 145.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: €62.00 ▲(0.40% Upside)

The overall stock score is primarily impacted by weak financial performance and bearish technical indicators. The lack of profitability and negative P/E ratio further weigh down the valuation score, making the stock less attractive.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Low Financial Leverage

Low financial leverage provides stability and reduces risk, allowing the company to navigate economic fluctuations more effectively.

Operating Cash Flow Improvement

Improved operating cash flow suggests better cash management, enhancing the company's ability to fund operations and growth initiatives.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, potentially hindering long-term financial health and shareholder returns.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to invest in growth opportunities and may necessitate external financing.

Inefficient Use of Equity

Inefficient use of equity can lead to lower investor confidence and restrict the company's ability to raise capital in the future.

Redcare Pharmacy Business Overview & Revenue Model

Company Description

Redcare Pharmacy (RDC) is a leading retail pharmacy chain that specializes in providing a wide range of pharmaceutical products, health and wellness items, and personal care products. The company operates in the healthcare sector, focusing on delivering high-quality prescription medications, over-the-counter drugs, and health-related services. RDC is committed to enhancing community health through accessible healthcare solutions and personalized customer service.

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 revenue growth but struggles with profitability and cash flow management. The company has low financial leverage, providing stability, but needs to improve operational efficiency to enhance margins and cash flow conversion.

Income Statement

Redcare Pharmacy shows a consistent revenue growth trajectory, with a TTM growth rate of 5.88%. However, profitability remains a concern as evidenced by negative net profit margins and EBIT margins, indicating ongoing operational challenges. The gross profit margin is stable but not sufficient to offset other expenses, leading to overall losses.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio of 0.002 in the TTM period, suggesting low financial leverage. However, the negative return on equity indicates that the company is not generating sufficient returns on its equity base, reflecting inefficiencies in utilizing shareholder funds.

Cash Flow

Operating cash flow has improved, but free cash flow remains negative, indicating cash flow challenges. The significant free cash flow growth in the TTM period is a positive sign, yet the negative free cash flow to net income ratio suggests that the company is not converting its earnings into cash effectively.

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: 61.75
• 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 61.75 is below the 20-day moving average (MA) of 79.29, below the 50-day MA of 78.11, and below the 200-day MA of 103.63, indicating a bearish trend. The MACD of -4.05 indicates Positive momentum. The RSI at 24.33 is Positive, neither overbought nor oversold. The STOCH value of 8.27 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	76 Outperform	€384.00M	19.73	52.68%	0.16%	15.20%	6.77%
M12	72 Outperform	€273.82M	15.33	15.61%	3.30%	6.52%	7.17%
DMP	67 Neutral	€1.78B	16.57	18.49%	2.73%	3.98%	29.10%
ILM1	67 Neutral	$312.70M	16.61	3.56%	―	7.02%	10.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.35B	-61.38	―	0.11%	-18.82%	-113.85%
RDC	44 Neutral	€1.33B	-37.14	-6.98%	―	26.68%	-41.83%