Walgreens Boots Alliance Inc (W8A.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:W8A - US9314271084 - Common Stock
10.282 EUR
+0.06 (+0.55%)
Taking everything into account, W8A scores 3 out of 10 in our fundamental rating. W8A was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of W8A have multiple concerns. W8A is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year W8A was profitable.
W8A had a positive operating cash flow in the past year.
In multiple years W8A reported negative net income over the last 5 years.
In the past 5 years W8A always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -9.07%, W8A is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
The Return On Equity of W8A (-87.68%) is worse than 95.45% of its industry peers.
The Return On Invested Capital of W8A (5.54%) is comparable to the rest of the industry.
W8A had an Average Return On Invested Capital over the past 3 years of 3.55%. This is significantly below the industry average of 8.82%.
The 3 year average ROIC (3.55%) for W8A is below the current ROIC(5.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.07% | ||
| ROE | -87.68% | ||
| ROIC | 5.54% |
ROA(3y)-3.01%
ROA(5y)-1.08%
ROE(3y)-26.97%
ROE(5y)-13.57%
ROIC(3y)3.55%
ROIC(5y)4.17%
1.3 Margins
Looking at the Operating Margin, with a value of 2.21%, W8A is doing worse than 72.73% of the companies in the same industry.
W8A's Operating Margin has declined in the last couple of years.
The Gross Margin of W8A (17.13%) is worse than 72.73% of its industry peers.
W8A's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.21% | ||
| PM (TTM) | N/A | ||
| GM | 17.13% |
OM growth 3Y-19.96%
OM growth 5Y-19.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-5.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so W8A is destroying value.
The number of shares outstanding for W8A remains at a similar level compared to 1 year ago.
The number of shares outstanding for W8A has been reduced compared to 5 years ago.
The debt/assets ratio for W8A is higher compared to a year ago.
2.2 Solvency
W8A has an Altman-Z score of 2.71. This is not the best score and indicates that W8A is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.71, W8A perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
The Debt to FCF ratio of W8A is 14.38, which is on the high side as it means it would take W8A, 14.38 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 14.38, W8A is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
W8A has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
W8A's Debt to Equity ratio of 1.09 is in line compared to the rest of the industry. W8A outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 14.38 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.83
WACC6.66%
2.3 Liquidity
A Current Ratio of 0.60 indicates that W8A may have some problems paying its short term obligations.
With a Current ratio value of 0.60, W8A is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
W8A has a Quick Ratio of 0.60. This is a bad value and indicates that W8A is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.32, W8A is doing worse than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The earnings per share for W8A have decreased strongly by -39.56% in the last year.
The earnings per share for W8A have been decreasing by -13.65% on average. This is quite bad
The Revenue has been growing slightly by 6.22% in the past year.
Measured over the past years, W8A shows a small growth in Revenue. The Revenue has been growing by 4.22% on average per year.
EPS 1Y (TTM)-39.56%
EPS 3Y-16.96%
EPS 5Y-13.65%
EPS Q2Q%-39.68%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%7.25%
3.2 Future
W8A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.88% yearly.
W8A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.96% yearly.
EPS Next Y-38.04%
EPS Next 2Y-26.34%
EPS Next 3Y-17.69%
EPS Next 5Y-4.88%
Revenue Next Year6.29%
Revenue Next 2Y3.88%
Revenue Next 3Y3.56%
Revenue Next 5Y1.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.31, the valuation of W8A can be described as very cheap.
W8A's Price/Earnings ratio is rather cheap when compared to the industry. W8A is cheaper than 95.45% of the companies in the same industry.
When comparing the Price/Earnings ratio of W8A to the average of the S&P500 Index (26.51), we can say W8A is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.70, the valuation of W8A can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of W8A indicates a rather cheap valuation: W8A is cheaper than 90.91% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. W8A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, W8A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of W8A is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.98 | ||
| EV/EBITDA | 3.05 |
4.3 Compensation for Growth
A cheap valuation may be justified as W8A's earnings are expected to decrease with -17.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.34%
EPS Next 3Y-17.69%
5. Dividend
5.1 Amount
No dividends for W8A!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:W8A (8/27/2025, 7:00:00 PM)
10.282
+0.06 (+0.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners61.25%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap8.90B
Revenue(TTM)154.58B
Net Income(TTM)-6.30B
Analysts49.09
Price Target10.21 (-0.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.25
Dividend Growth(5Y)-3.89%
DP-10.29%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.62%
Min EPS beat(2)10.66%
Max EPS beat(2)18.59%
EPS beat(4)4
Avg EPS beat(4)18.04%
Min EPS beat(4)7.95%
Max EPS beat(4)34.95%
EPS beat(8)6
Avg EPS beat(8)14.1%
EPS beat(12)9
Avg EPS beat(12)9.44%
EPS beat(16)13
Avg EPS beat(16)10.5%
Revenue beat(2)2
Avg Revenue beat(2)2.66%
Min Revenue beat(2)0.55%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)3.47%
Min Revenue beat(4)0.55%
Max Revenue beat(4)4.78%
Revenue beat(8)8
Avg Revenue beat(8)2.68%
Revenue beat(12)12
Avg Revenue beat(12)2.29%
Revenue beat(16)16
Avg Revenue beat(16)2.04%
PT rev (1m)-0.58%
PT rev (3m)-1.98%
EPS NQ rev (1m)11.54%
EPS NQ rev (3m)10.69%
EPS NY rev (1m)1.9%
EPS NY rev (3m)4.35%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.07 | ||
| P/FCF | 17.98 | ||
| P/OCF | 6.61 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.05 |
EPS(TTM)1.63
EY15.85%
EPS(NY)1.34
Fwd EY12.99%
FCF(TTM)0.57
FCFY5.56%
OCF(TTM)1.56
OCFY15.14%
SpS152.68
BVpS7.09
TBVpS-15.35
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.07% | ||
| ROE | -87.68% | ||
| ROCE | 7.87% | ||
| ROIC | 5.54% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 12.1% | ||
| OM | 2.21% | ||
| PM (TTM) | N/A | ||
| GM | 17.13% | ||
| FCFM | 0.37% |
ROA(3y)-3.01%
ROA(5y)-1.08%
ROE(3y)-26.97%
ROE(5y)-13.57%
ROIC(3y)3.55%
ROIC(5y)4.17%
ROICexc(3y)3.68%
ROICexc(5y)4.28%
ROICexgc(3y)8.14%
ROICexgc(5y)8.37%
ROCE(3y)5.04%
ROCE(5y)5.96%
ROICexgc growth 3Y-3.22%
ROICexgc growth 5Y-21.91%
ROICexc growth 3Y-13.35%
ROICexc growth 5Y-18.88%
OM growth 3Y-19.96%
OM growth 5Y-19.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-5.19%
F-Score4
Asset Turnover2.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 14.38 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 41.01% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 2.71 |
F-Score4
WACC6.66%
ROIC/WACC0.83
Cap/Depr(3y)79.03%
Cap/Depr(5y)75.66%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-39.56%
EPS 3Y-16.96%
EPS 5Y-13.65%
EPS Q2Q%-39.68%
EPS Next Y-38.04%
EPS Next 2Y-26.34%
EPS Next 3Y-17.69%
EPS Next 5Y-4.88%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%7.25%
Revenue Next Year6.29%
Revenue Next 2Y3.88%
Revenue Next 3Y3.56%
Revenue Next 5Y1.96%
EBIT growth 1Y69.88%
EBIT growth 3Y-17.02%
EBIT growth 5Y-16.16%
EBIT Next Year41.78%
EBIT Next 3Y15.03%
EBIT Next 5Y27.82%
FCF growth 1Y170.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.86%
OCF growth 3Y-43.2%
OCF growth 5Y-28.88%
Walgreens Boots Alliance Inc / W8A.DE FAQ
What is the fundamental rating for W8A stock?
ChartMill assigns a fundamental rating of 3 / 10 to W8A.DE.
What is the valuation status of Walgreens Boots Alliance Inc (W8A.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to Walgreens Boots Alliance Inc (W8A.DE). This can be considered as Fairly Valued.
How profitable is Walgreens Boots Alliance Inc (W8A.DE) stock?
Walgreens Boots Alliance Inc (W8A.DE) has a profitability rating of 2 / 10.
What are the PE and PB ratios of Walgreens Boots Alliance Inc (W8A.DE) stock?
The Price/Earnings (PE) ratio for Walgreens Boots Alliance Inc (W8A.DE) is 6.31 and the Price/Book (PB) ratio is 1.45.
Can you provide the expected EPS growth for W8A stock?
The Earnings per Share (EPS) of Walgreens Boots Alliance Inc (W8A.DE) is expected to decline by -38.04% in the next year.