Why Rite Aid Is Poised to Keep Plunging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail drugstore operator Rite Aid (NYSE: RAD  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Rite Aid and see what CAPS investors are saying about the stock right now.

Rite Aid facts

Headquarters (Founded)

Camp Hill, Pa. (1927)

Market Cap

$944.4 million

Industry

Drug retail

Trailing-12-Month Revenue

$26.2 billion

Management

Chairman/CEO John Standley
CFO Frank Vitrano

Return on Capital (Average, Past 3 Years)

4%

Cash/Debt

$94.3 million / $6.2 billion

Competitors

CVS Caremark (NYSE: CVS  )
Walgreen (NYSE: WAG  )
Wal-Mart Stores (NYSE: WMT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 17% of the 979 members who have rated Rite Aid believe the stock will underperform the S&P 500 going forward.

Just last week, one of those bulls, PrototypeZ, brought a few of Rite Aid's worrisome stats to our community's attention:

Debt > $6B Dollars
No profit
Operating Margin ~1%
Shrinking Sales
Burning Cash

Bankruptcy candidate, liquidation

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