The average target price of RDC.DE is 159 and suggests 66% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 214.0. This translates into 123% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 94.0. This is equivalent to 2% downside potential in the worst case. 

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.

Netherlands

Redcare Pharmacy N.V.

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

RDC.DE reported revenue of EUR 2 371mn in the last 12 months, up 32% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 241% from FY23 to EUR -2.25. Market expects EPS to reach EUR -1.82 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 26ppts and its growth decelerated by 21ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is slightly unfavourable.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 1.1% in the last 12 months, a decline from 2.7% in FY23. 

Historically, RDC.DE has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -1.9%, down from -0.7% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to -5.8%, below the peers. The consensus estimate for FY24 for RoCE is -3.1%, again behind the peers. 

Redcare Pharmacy N.V. reported a return on equity (RoE) of -9.3% in the last 12 months, down from -2.8% in FY23. The market consensus projects an RoE of -7.2% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -4.4% in the last 12 months, a decrease from -1.4% in FY23. The market analysts predict that RoA will be -3.4% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.9 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

RDC.DE has above average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually stable and remains favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, poor working capital management, and inadequate interest coverage. We note resilient historical revenue growth, low margin volatility, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, RDC.DE is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, RDC.DE is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from significant to immense. 

From both historical and forecast perspectives, the stock is slightly overpriced compared to similar stocks. In particular, the stock is 'expensive' on EV/EBITDA. 

Redcare Pharmacy N.V.

€ 93.9

3

Redcare Pharmacy N.V.

€ 93.9

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 93.9

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