# Raia Drogasil (RADL3.SA)

Canonical: https://gigainvestors.com/s/RADL3.SA

Analysis as of: 2026-10-16T07:36:37.879Z. Financial observations: FY2000–FY2025.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 20.59 per share; close as of 2026-10-15.

Estimated value: low BRL 3.41 per share, central BRL 4.43 per share, high BRL 4.79 per share. Buy at or below the central value BRL 4.43 per share. Valuation as of 2026-10-16T07:36:37.879Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 17.0%). required return 17.0% a year (BR 10-year bond 13.0% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.06×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.04×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.06×

### moat: fail

- Recent gross margin fell 5.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 16.1%

- ROIC, second-lowest year: 12.4%

- Typical minus recent gross margin: 5.2 pp

- Typical gross margin (annual median): 30.0%

- Recent gross margin (lower of latest and 3-year median): 24.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.7%

- ROIC including acquisitions, ten-year median: 5.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 24.1%

- FY2017: 21.6%

- FY2018: 17.6%

- FY2019: 12.4%

- FY2020: 9.3%

- FY2021: 12.4%

- FY2022: 15.7%

- FY2023: 16.1%

- FY2024: 16.1%

- FY2025: 16.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.54×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 2.9B

- Net income, five-year total: BRL 5.3B

- Return on incremental invested capital: 45.0%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 2.0 pp

- Working capital / revenue, final three-year average: 15.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.65×

- FY2022: 0.53×

- FY2023: 0.59×

- FY2024: 0.27×

- FY2025: 0.70×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 21.6% vs 16.1%

- Per-share earnings: 0.26 to 0.70 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.3%

- Market cap gain: BRL 21B

- Cumulative retained earnings: BRL 1.4B

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.1%

- Per-share value change: BRL 0.44

- Per-share value, starting three-year median: BRL 0.26

- Per-share value, ending three-year median: BRL 0.70

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.2%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 885M

- Cumulative net income, 10 years: BRL 8.0B

- ROIC, first three-year median: 21.6%

- ROIC, last three-year median: 16.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 0.26

- FY2017: BRL 0.30

- FY2018: BRL 0.29

- FY2019: BRL 0.44

- FY2020: BRL 0.28

- FY2021: BRL 0.44

- FY2022: BRL 0.58

- FY2023: BRL 0.62

- FY2024: BRL 0.70

- FY2025: BRL 0.74

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -4.5%

- Receivables to sales index (DSRI): 1.52×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.87×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.28×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.9%

- FY2017: -1.8%

- FY2018: -2.5%

- FY2019: 0.2%

- FY2020: -7.2%

- FY2021: -5.4%

- FY2022: -4.0%

- FY2023: -3.6%

- FY2024: -3.2%

- FY2025: -4.5%

## Holders

## Price story

Down 29% since Jun 2023 · sales +13.9%

Story as of 2026-10-16T10:00:07.812Z; price observation 2026-10-15.

Price needs cash profits to grow 28.9% a year for ten years

### Sales · FY2024–2025

sales +13.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: BRL 11B 

- FY2017: BRL 13B 

- FY2018: BRL 15B 

- FY2019: BRL 18B 

- FY2020: BRL 20B 

- FY2021: BRL 24B 

- FY2022: BRL 29B 

- FY2023: BRL 34B 

- FY2024: BRL 39B 

- FY2025: BRL 44B 

### Gross margin · FY2025

gross margin 24.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 31.1% 

- FY2017: 30.2% 

- FY2018: 30.0% 

- FY2019: 29.6% 

- FY2020: 29.4% 

- FY2021: 29.9% 

- FY2022: 30.3% 

- FY2023: 30.0% 

- FY2024: 29.7% 

- FY2025: 24.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in pharmaceutical retailers; annual sales are BRL 44.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2025: revenue 44250449000; grossProfit 10951844000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RADL3.SA: Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics and dermocosmetics and specialty medicines in Brazil. The company sells its products through stores, telesales, and call centers. Raia Drogasil S.A. was founded in 1905 and is headquartered in São Paulo, Brazil.

### Why customers stay

Margins ranged from 24.7% to 30% during 2023–25; it earns 16.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2023: grossProfit / revenue = 30%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2024: grossProfit / revenue = 29.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2025: grossProfit / revenue = 24.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); 10-year return on capital observations [[2016,0.24076947820484323],[2017,0.21575679768290013],[2018,0.17558724792128924],[2019,0.12358596387006558],[2020,0.0929156077101755],[2021,0.12447052530008237],[2022,0.15724645049865715],[2023,0.16088639852284367],[2024,0.16144456283751546],[2025,0.1628657826840088]]; median 0.16116548068017955. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 30% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); Gross margin observations: [[2021,0.29867647874360853],[2022,0.30307058978139756],[2023,0.30044819844945175]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2016: growth capex 206712523.37402856; upkeep 283456476.62597144; owner earnings 438662523.37402856. Growth capex / owner earnings = 0.47123360752150173.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2017: growth capex 176171393.8894744; upkeep 464158606.1105256; owner earnings 384918393.8894744. Growth capex / owner earnings = 0.4576850487952008.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2018: growth capex 148968804.40576196; upkeep 554016195.594238; owner earnings 362564804.40576196. Growth capex / owner earnings = 0.41087497350968605.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2019: growth capex 0; upkeep 286646000; owner earnings 889700400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2020: growth capex 0; upkeep 676421000; owner earnings 299120000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2021: growth capex 0; upkeep 855596000; owner earnings 488868400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2022: growth capex 0; upkeep 1188782000; owner earnings 532678400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2023: growth capex 0; upkeep 1304581000; owner earnings 624385800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2024: growth capex 371688000; upkeep 911965000; owner earnings 317437000. Growth capex / owner earnings = 1.1709032028402486.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); FY2025: growth capex 0; upkeep 1402977000; owner earnings 913665600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); Dividend observations: [[2016,153342000],[2017,170847000],[2018,173622000],[2019,186601000],[2020,190518000],[2021,265025000],[2022,324082000],[2023,465901000],[2024,474573000],[2025,652764000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 25.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RADL3.SA SharesStats.PercentInsiders = 25.274 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 28.9% yearly over ten years; actual growth was 10.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:37.879Z); Ten-year compound average after fade. Initial solved rate 0.4111652860253. Price 20.59; FX 1; discount 0.1695; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.19415043274342658 → FY2025 0.5229121943170691. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2016-11: BRL 12.16 per share

- 2016-12: BRL 11.54 per share

- 2017-01: BRL 12.35 per share

- 2017-02: BRL 11.20 per share

- 2017-03: BRL 11.06 per share

- 2017-04: BRL 12.72 per share

- 2017-05: BRL 13.57 per share

- 2017-06: BRL 13.22 per share

- 2017-07: BRL 13.01 per share

- 2017-08: BRL 13.08 per share

- 2017-09: BRL 14.14 per share

- 2017-10: BRL 14.75 per share

- 2017-11: BRL 16.59 per share

- 2017-12: BRL 17.31 per share

- 2018-01: BRL 15.92 per share

- 2018-02: BRL 14.66 per share

- 2018-03: BRL 14.10 per share

- 2018-04: BRL 12.97 per share

- 2018-05: BRL 11.74 per share

- 2018-06: BRL 12.52 per share

- 2018-07: BRL 14.02 per share

- 2018-08: BRL 14.52 per share

- 2018-09: BRL 13.66 per share

- 2018-10: BRL 11.84 per share

- 2018-11: BRL 11.71 per share

- 2018-12: BRL 10.77 per share

- 2019-01: BRL 11.69 per share

- 2019-02: BRL 12.33 per share

- 2019-03: BRL 12.31 per share

- 2019-04: BRL 13.04 per share

- 2019-05: BRL 13.09 per share

- 2019-06: BRL 14.35 per share

- 2019-07: BRL 15.65 per share

- 2019-08: BRL 17.35 per share

- 2019-09: BRL 18.06 per share

- 2019-10: BRL 20.74 per share

- 2019-11: BRL 21.30 per share

- 2019-12: BRL 21.05 per share

- 2020-01: BRL 23.42 per share

- 2020-02: BRL 22.61 per share

- 2020-03: BRL 19.20 per share

- 2020-04: BRL 19.75 per share

- 2020-05: BRL 20.63 per share

- 2020-06: BRL 20.86 per share

- 2020-07: BRL 23.40 per share

- 2020-08: BRL 20.32 per share

- 2020-09: BRL 22.08 per share

- 2020-10: BRL 22.68 per share

- 2020-11: BRL 24.37 per share

- 2020-12: BRL 23.60 per share

- 2021-01: BRL 23.49 per share

- 2021-02: BRL 21.90 per share

- 2021-03: BRL 23.62 per share

- 2021-04: BRL 24.79 per share

- 2021-05: BRL 26.56 per share

- 2021-06: BRL 23.29 per share

- 2021-07: BRL 23.79 per share

- 2021-08: BRL 24.10 per share

- 2021-09: BRL 22.03 per share

- 2021-10: BRL 21.92 per share

- 2021-11: BRL 21.10 per share

- 2021-12: BRL 22.91 per share

- 2022-01: BRL 21.83 per share

- 2022-02: BRL 22.02 per share

- 2022-03: BRL 22.57 per share

- 2022-04: BRL 19.73 per share

- 2022-05: BRL 19.47 per share

- 2022-06: BRL 18.10 per share

- 2022-07: BRL 19.78 per share

- 2022-08: BRL 20.51 per share

- 2022-09: BRL 21.43 per share

- 2022-10: BRL 24.80 per share

- 2022-11: BRL 21.73 per share

- 2022-12: BRL 22.36 per share

- 2023-01: BRL 23.41 per share

- 2023-02: BRL 21.38 per share

- 2023-03: BRL 23.05 per share

- 2023-04: BRL 24.77 per share

- 2023-05: BRL 27.77 per share

- 2023-06: BRL 29.02 per share

- 2023-07: BRL 28.40 per share

- 2023-08: BRL 26.94 per share

- 2023-09: BRL 27.08 per share

- 2023-10: BRL 25.29 per share

- 2023-11: BRL 27.53 per share

- 2023-12: BRL 28.82 per share

- 2024-01: BRL 24.80 per share

- 2024-02: BRL 26.12 per share

- 2024-03: BRL 26.83 per share

- 2024-04: BRL 25.08 per share

- 2024-05: BRL 24.58 per share

- 2024-06: BRL 25.18 per share

- 2024-07: BRL 27.06 per share

- 2024-08: BRL 27.02 per share

- 2024-09: BRL 24.99 per share

- 2024-10: BRL 23.86 per share

- 2024-11: BRL 23.57 per share

- 2024-12: BRL 21.57 per share

- 2025-01: BRL 20.68 per share

- 2025-02: BRL 17.04 per share

- 2025-03: BRL 18.68 per share

- 2025-04: BRL 19.45 per share

- 2025-05: BRL 14.56 per share

- 2025-06: BRL 14.82 per share

- 2025-07: BRL 13.21 per share

- 2025-08: BRL 17.21 per share

- 2025-09: BRL 18.06 per share

- 2025-10: BRL 19.61 per share

- 2025-11: BRL 23.54 per share

- 2025-12: BRL 23.45 per share

- 2026-01: BRL 24.50 per share

- 2026-02: BRL 25.08 per share

- 2026-03: BRL 23.53 per share

- 2026-04: BRL 21.94 per share

- 2026-05: BRL 18.69 per share

- 2026-06: BRL 16.81 per share

- 2026-07: BRL 18.48 per share

- 2026-08: BRL 19.60 per share

- 2026-09: BRL 18.37 per share

- 2026-10: BRL 20.68 per share

## Annual estimated value (BRL per share)

- FY2016: low BRL 1.46 per share, central BRL 1.88 per share, high BRL 2.03 per share

- FY2017: low BRL 1.67 per share, central BRL 2.17 per share, high BRL 2.35 per share

- FY2018: low BRL 1.87 per share, central BRL 2.43 per share, high BRL 2.63 per share

- FY2019: low BRL 2.72 per share, central BRL 3.53 per share, high BRL 3.82 per share

- FY2020: low BRL 2.74 per share, central BRL 3.47 per share, high BRL 3.73 per share

- FY2021: low BRL 2.48 per share, central BRL 3.21 per share, high BRL 3.48 per share

- FY2022: low BRL 2.48 per share, central BRL 3.21 per share, high BRL 3.48 per share

- FY2023: low BRL 2.63 per share, central BRL 3.41 per share, high BRL 3.69 per share

- FY2024: low BRL 2.71 per share, central BRL 3.16 per share, high BRL 3.41 per share

- FY2025: low BRL 3.36 per share, central BRL 4.36 per share, high BRL 4.72 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:21.251Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.