WALGREENS BOOTS ALLIANCE INC (W8A.DE) Stock Fundamental Analysis
FRA:W8A - Deutsche Boerse Ag - US9314271084 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to W8A. W8A was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. W8A has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past year W8A had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: W8A reported negative net income in multiple years.
In the past 5 years W8A always reported a positive cash flow from operatings.
1.2 Ratios
W8A has a worse Return On Assets (-8.23%) than 91.67% of its industry peers.
With a Return On Equity value of -81.27%, W8A is not doing good in the industry: 95.83% of the companies in the same industry are doing better.
The Return On Invested Capital of W8A (5.92%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for W8A is significantly below the industry average of 8.77%.
The last Return On Invested Capital (5.92%) for W8A is above the 3 year average (3.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.23% | ||
| ROE | -81.27% | ||
| ROIC | 5.92% |
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 2.41%, W8A is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of W8A has declined.
W8A has a worse Gross Margin (17.39%) than 70.83% of its industry peers.
In the last couple of years the Gross Margin of W8A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.41% | ||
| PM (TTM) | N/A | ||
| GM | 17.39% |
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.
W8A has about the same amout of shares outstanding than it did 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 2.65. 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.
W8A has a Altman-Z score (2.65) which is comparable to the rest of the industry.
W8A has a debt to FCF ratio of 15.71. This is a negative value and a sign of low solvency as W8A would need 15.71 years to pay back of all of its debts.
The Debt to FCF ratio of W8A (15.71) is worse than 79.17% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that W8A has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.06, W8A is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 15.71 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.86
WACC6.85%
2.3 Liquidity
W8A has a Current Ratio of 0.61. 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 Current ratio, with a value of 0.61, W8A is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that W8A may have some problems paying its short term obligations.
W8A has a worse Quick ratio (0.32) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
W8A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.81%.
Measured over the past years, W8A shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.65% on average per year.
W8A shows a small growth in Revenue. In the last year, the Revenue has grown by 5.08%.
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)-38.81%
EPS 3Y-16.96%
EPS 5Y-13.65%
EPS Q2Q%-47.5%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%4.15%
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.
Based on estimates for the next years, W8A will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
EPS Next Y-40.58%
EPS Next 2Y-28.11%
EPS Next 3Y-14.9%
EPS Next 5Y-4.88%
Revenue Next Year4.46%
Revenue Next 2Y2.95%
Revenue Next 3Y3.69%
Revenue Next 5Y2.54%
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 5.09, the valuation of W8A can be described as very cheap.
100.00% of the companies in the same industry are more expensive than W8A, based on the Price/Earnings ratio.
W8A is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.38, the valuation of W8A can be described as very cheap.
W8A's Price/Forward Earnings ratio is rather cheap when compared to the industry. W8A is cheaper than 95.83% of the companies in the same industry.
W8A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 7.38 |
4.2 Price Multiples
W8A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. W8A is cheaper than 100.00% of the companies in the same industry.
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 | 16.62 | ||
| EV/EBITDA | 2.76 |
4.3 Compensation for Growth
W8A's earnings are expected to decrease with -14.90% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.11%
EPS Next 3Y-14.9%
5. Dividend
5.1 Amount
W8A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:W8A (4/25/2025, 7:00:00 PM)
9.678
+0.02 (+0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners63.64%
Inst Owner ChangeN/A
Ins Owners0.74%
Ins Owner ChangeN/A
Market Cap8.37B
Analysts66
Price Target10.68 (10.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.28
Dividend Growth(5Y)-3.89%
DP-14.95%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.77%
Min EPS beat(2)18.59%
Max EPS beat(2)34.95%
EPS beat(4)3
Avg EPS beat(4)13.33%
Min EPS beat(4)-8.17%
Max EPS beat(4)34.95%
EPS beat(8)5
Avg EPS beat(8)11.87%
EPS beat(12)9
Avg EPS beat(12)8.8%
EPS beat(16)13
Avg EPS beat(16)10.91%
Revenue beat(2)2
Avg Revenue beat(2)2.57%
Min Revenue beat(2)0.55%
Max Revenue beat(2)4.59%
Revenue beat(4)4
Avg Revenue beat(4)2.31%
Min Revenue beat(4)0.14%
Max Revenue beat(4)4.59%
Revenue beat(8)8
Avg Revenue beat(8)2.37%
Revenue beat(12)12
Avg Revenue beat(12)1.94%
Revenue beat(16)15
Avg Revenue beat(16)1.72%
PT rev (1m)-4.68%
PT rev (3m)13.78%
EPS NQ rev (1m)11.51%
EPS NQ rev (3m)4.57%
EPS NY rev (1m)5.46%
EPS NY rev (3m)10.57%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 7.38 | ||
| P/S | 0.06 | ||
| P/FCF | 16.62 | ||
| P/OCF | 5.95 | ||
| P/B | 1.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.76 |
EPS(TTM)1.9
EY19.63%
EPS(NY)1.31
Fwd EY13.54%
FCF(TTM)0.58
FCFY6.02%
OCF(TTM)1.63
OCFY16.81%
SpS154.72
BVpS7.24
TBVpS-15.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.23% | ||
| ROE | -81.27% | ||
| ROCE | 8.4% | ||
| ROIC | 5.92% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 12.92% | ||
| OM | 2.41% | ||
| PM (TTM) | N/A | ||
| GM | 17.39% | ||
| FCFM | 0.38% |
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%
ROICexcg growth 3Y-3.22%
ROICexcg 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 Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 15.71 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 41.62% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 2.65 |
F-Score4
WACC6.85%
ROIC/WACC0.86
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)-38.81%
EPS 3Y-16.96%
EPS 5Y-13.65%
EPS Q2Q%-47.5%
EPS Next Y-40.58%
EPS Next 2Y-28.11%
EPS Next 3Y-14.9%
EPS Next 5Y-4.88%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%4.15%
Revenue Next Year4.46%
Revenue Next 2Y2.95%
Revenue Next 3Y3.69%
Revenue Next 5Y2.54%
EBIT growth 1Y86.05%
EBIT growth 3Y-17.02%
EBIT growth 5Y-16.16%
EBIT Next Year20.65%
EBIT Next 3Y7.61%
EBIT Next 5Y27.82%
FCF growth 1Y-41.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-45.87%
OCF growth 3Y-43.2%
OCF growth 5Y-28.88%