Raia Drogasil S.A. Fundamental Analysis
Raia Drogasil S.A. (RADLY) shows moderate financial fundamentals with a PE ratio of 22.52, profit margin of 2.88%, and ROE of 18.31%. The company generates $47.7B in annual revenue with strong year-over-year growth of 13.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RADLY's fundamental strength across five key dimensions:
Efficiency Score
WeakRADLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRADLY trades at attractive valuation levels.
Growth Score
ModerateRADLY shows steady but slowing expansion.
Financial Health Score
ModerateRADLY shows balanced financial health with some risks.
Profitability Score
ModerateRADLY maintains healthy but balanced margins.
Key Financial Metrics
Is RADLY Expensive or Cheap?
P/E Ratio
RADLY trades at 22.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RADLY's PEG of 0.44 indicates potential undervaluation.
Price to Book
The market values Raia Drogasil S.A. at 3.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.82 times EBITDA. This is generally considered low.
How Well Does RADLY Make Money?
Net Profit Margin
For every $100 in sales, Raia Drogasil S.A. keeps $2.88 as profit after all expenses.
Operating Margin
Core operations generate 6.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.31 in profit for every $100 of shareholder equity.
ROA
Raia Drogasil S.A. generates $5.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Raia Drogasil S.A. generates limited operating cash flow of $2.86B, signaling weaker underlying cash strength.
Free Cash Flow
Raia Drogasil S.A. generates weak or negative free cash flow of $1.38B, restricting financial flexibility.
FCF Per Share
Each share generates $0.79 in free cash annually.
FCF Yield
RADLY converts 4.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How RADLY Stacks Against Its Sector Peers
| Metric | RADLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.52 | 29.20 | Better (Cheaper) |
| ROE | 18.31% | 729.00% | Weak |
| Net Margin | 2.88% | -52856.00% (disorted) | Weak |
| Debt/Equity | 1.18 | 0.49 | Weak (High Leverage) |
| Current Ratio | 1.47 | 4.43 | Neutral |
| ROA | 5.13% | -20711.00% (disorted) | Weak |
RADLY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Raia Drogasil S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
130.23%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
179.49%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
71.79%
Industry Style: Defensive, Growth, Innovation
High Growth