Walgreens Boots Alliance Inc (W8A.DE) Stock Fundamental Analysis
Europe - FRA:W8A - US9314271084 - Common Stock
10.282 EUR
+0.06 (+0.55%)
Overall W8A gets a fundamental rating of 3 out of 10. We evaluated W8A against 22 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of W8A have multiple concerns. W8A has a valuation in line with the averages, 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.
W8A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
W8A has a worse Return On Assets (-9.07%) than 90.91% of its industry peers.
With a Return On Equity value of -87.68%, W8A is not doing good in the industry: 95.45% of the companies in the same industry are doing better.
W8A has a Return On Invested Capital (5.54%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for W8A is significantly below the industry average of 9.17%.
The last Return On Invested Capital (5.54%) for W8A is above the 3 year average (3.55%), which is a sign of increasing profitability.
| 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
With a Operating Margin value of 2.21%, W8A is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
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
W8A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for W8A remains at a similar level compared to 1 year ago.
Compared to 5 years ago, W8A has less shares outstanding
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.
W8A has a Altman-Z score (2.71) which is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 14.38, W8A is doing worse than 72.73% of the companies in the same industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that W8A has dependencies on debt financing.
The Debt to Equity ratio of W8A (1.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 14.38 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.83
WACC6.66%
2.3 Liquidity
W8A has a Current 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 Current ratio, with a value of 0.60, W8A is doing worse than 90.91% of the companies in the same industry.
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.
W8A has a Quick ratio of 0.32. This is amonst the worse of the industry: W8A underperforms 86.36% of its industry peers.
| 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
W8A shows a small growth in Revenue. In the last year, the Revenue has grown by 6.22%.
The Revenue has been growing slightly by 4.22% on average over the past years.
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.
The Revenue is expected to grow by 1.96% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.20, W8A is valued rather cheaply.
The Price/Forward Earnings ratio is 7.70, which indicates a rather cheap valuation of W8A.
Based on the Price/Forward Earnings ratio, W8A is valued cheaper than 90.91% 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 22.70.
| 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 cheaper than 100.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as W8A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.98 | ||
| EV/EBITDA | 3.05 |
4.3 Compensation for Growth
W8A's earnings are expected to decrease with -17.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.34%
EPS Next 3Y-17.69%
5. Dividend
5.1 Amount
W8A does not give a dividend.
| 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
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
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%
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 Turnover2.23
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%