Raia Drogasil S.A. (RADL3.SA) stock analysis

In our weekly check, Raia Drogasil S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 7, red flags: 1.

About Raia Drogasil S.A.

Raia Drogasil S.A. is a Healthcare company (Medical - Pharmaceuticals) based in Brazil, listed on SAO as RADL3.SA.

What our checks show for RADL3.SA

Red flags

• The net margin is only 3%: little room if costs rise.

Warning signs

• Net debt is 1.6x a year of EBITDA (debt/equity 1.18). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.5 times: a weak year could make the payments hard.
• The gross margin fell by 2.3 points, to 27.6%: costs are rising faster than prices.
• Free cash flow is only 3.6% of revenue.
• The price swings a lot: 36.6% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 55% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 2.25x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 25.9% a year over the next years.
• Revenue grew 15.7% a year over the last 3 years.
• Net profit grew 10.5% a year over the last 3 years.
• The dividend takes 44% of profit: there is a cushion.
• Beta 0.01: the stock usually moves less than the market.

Next earnings report: 2026-11-03

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Questions

What grade does Raia Drogasil S.A. (RADL3.SA) have?

In our weekly check, Raia Drogasil S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 7, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RADL3.SA stock?

This week's biggest flags for Raia Drogasil S.A.: Thin margins, High debt, Weak interest cover. In total 8 of 25 checks show a warning or a red flag.

What does Raia Drogasil S.A. do?

Raia Drogasil S.A. is a Healthcare company (Medical - Pharmaceuticals) based in Brazil, listed on SAO as RADL3.SA.

When does Raia Drogasil S.A. report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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