Redcare Pharmacy (RDC) AI Stock Analysis

• Market Cap: €1.89B
• Dividend Yield: N/A
• Average Volume (3M): 147.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 27.21%
• EPS Growth: -383.17%
• Country: DE
• Employees: 1,827
• Sector: Healthcare
• Sector Strength: 59
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.50
• Shares Outstanding: 20,578,390
• 10 Day Avg. Volume: 259,605
• 30 Day Avg. Volume: 147,084
• PEG Ratio: 43.72
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.60
• 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: €169.89
• Price Target Upside: 84.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 47 Neutral
• Price Target: €99.00 ▲(7.61%Upside)

The overall stock score is primarily driven by financial performance, which is undermined by ongoing profitability challenges and cash flow management issues. Technical analysis indicates bearish momentum, further affecting the score. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, indicating potential financial instability.

Positive Factors

Financial Performance

The EBITDA margin showed a significant improvement from the previous quarter's low.

Market Share

The company's market share increased to 0.87%.

Sales Growth

Sales were up 28% to €717 million, driven by growth in the OTC segment and strong German Rx sales.

Negative Factors

Incremental Rx Sales

The incremental Rx sales of €11m QoQ has slowed however sequentially.

Profitability

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

Top Line Momentum

Slowing top line momentum coupled with lower margins due to ongoing growth investments, especially in marketing, would be taken negatively.

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 and health-related items via its online platform. The company's revenue streams include direct sales of prescription and over-the-counter medications, health supplements, and personal care products. Additionally, RDC may earn income from partnerships with healthcare providers, insurance companies, or pharmaceutical manufacturers, which can involve collaborative marketing efforts, bulk purchasing agreements, or exclusive product offerings. The company's revenue is further supported by value-added services such as subscription models for regular medication deliveries, which encourage customer retention and consistent sales. Operational efficiency and strategic partnerships are key contributors to RDC's profitability, allowing the company to maintain competitive pricing while ensuring quality and compliance.

Redcare Pharmacy Financial Statement Overview

Summary

Redcare Pharmacy shows strong revenue growth and a stable balance sheet. However, persistent net losses and negative EBIT margins highlight operational inefficiencies. Cash flow management needs improvement despite viable cash generation from operations.

Income Statement

Redcare Pharmacy has demonstrated consistent revenue growth over the years, increasing from €701 million in 2019 to €2.37 billion in 2024. However, profitability remains a concern as the company has consistently reported net losses, with a net profit margin of -1.92% in 2024. The gross profit margin improved slightly to 23.02% in 2024, indicating stable cost management. Despite revenue growth, the persistent negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet shows a relatively stable financial position with a debt-to-equity ratio of 0.51 in 2024, suggesting moderate leverage. Stockholders' equity has increased over time, reaching €483.98 million in 2024. The equity ratio stands at 48.23%, indicating a balanced capital structure. While total assets have grown, the company's reliance on debt financing has increased, which could pose risks if not managed carefully.

Cash Flow

The cash flow statement reveals mixed performance. In 2024, Redcare Pharmacy generated a positive operating cash flow of €22.13 million, yet free cash flow declined to €13.38 million from €23.24 million in 2023, reflecting increased capital expenditures. The operating cash flow to net income ratio is positive, indicating that despite net losses, cash generation from operations remains viable. However, free cash flow to net income remains a concern, highlighting the need for improved cash flow management.

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
	EBIT
-38.99M	-17.30M	-69.17M	-65.70M	-866.00K
	EBITDA
28.03M	58.18M	-30.64M	-37.41M	14.66M
	Net Income Common Stockholders
-45.46M	-12.04M	-77.65M	-74.19M	-16.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
177.56M	204.16M	184.00M	283.46M	127.89M
	Total Assets
1.00B	1.02B	729.47M	783.08M	536.91M
	Total Debt
247.38M	244.84M	255.19M	236.43M	38.23M
	Net Debt
150.77M	161.06M	188.75M	-10.61M	-51.88M
	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: Negative
• Last Price: 92.00
• 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 92 is below the 20-day moving average (MA) of 111.88, below the 50-day MA of 119.78, and below the 200-day MA of 129.23, indicating a bearish trend. The MACD of -8.46 indicates Positive momentum. The RSI at 23.68 is Positive, neither overbought nor oversold. The STOCH value of 8.03 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
DMP	72 Outperform	€1.92B	18.35	16.97%	2.49%	6.24%	83.05%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
RDC	47 Neutral	€1.89B	―	-9.80%	―	27.21%	-383.17%
0N6Z		€1.38B	61.76	-4.72%	0.16%	―	―
MEDOF		$333.63M	20.69	2.99%	―	―	―
PSG		€340.80M	17.19	48.46%	4.72%	―	―
M12		€281.29M	17.44	14.61%	3.32%	―	―