- Rite Aid has struggled for about two decades with inconsistent cash flow and profit margins due to growing retail competition.
- The company's leverage is extremely high, cash flow around zero, and credit rating in the ultra-high-risk territory.
- Rite Aid's turnaround strategy consists of growing its PBM business and training pharmacists to encourage greater sales.
- Still, Rite Aid continues to make acquisitions in the face of a poor financial situation, potentially making a bad situation worse.
- It is still possible that a strategic buyer for Rite Aid shows renewed buyout interest given its low price.
For further details see:
Assessing Survival Potential: Rite Aid Corporation