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 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
Walgreen

Wal-Mart Stores


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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The article Why Rite Aid Is Poised to Keep Plunging originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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