WALGREENS BOOTS ALLIANCE INC (W8A.DE) Stock Fundamental Analysis
FRA:W8A - Deutsche Boerse Ag - US9314271084 - Common Stock - Currency: EUR
Taking everything into account, W8A scores 3 out of 10 in our fundamental rating. W8A was compared to 26 industry peers in the Consumer Staples Distribution & Retail industry. W8A may be in some trouble as it scores bad on both profitability and health. 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.
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.
W8A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
W8A has a Return On Assets of -11.25%. This is amonst the worse of the industry: W8A underperforms 88.46% of its industry peers.
W8A has a worse Return On Equity (-88.88%) than 92.31% of its industry peers.
W8A's Return On Invested Capital of 5.40% is on the low side compared to the rest of the industry. W8A is outperformed by 65.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for W8A is significantly below the industry average of 9.21%.
The 3 year average ROIC (3.55%) for W8A is below the current ROIC(5.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.25% | ||
| ROE | -88.88% | ||
| ROIC | 5.4% |
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 2.61%, W8A is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
W8A's Operating Margin has declined in the last couple of years.
W8A has a worse Gross Margin (17.64%) than 69.23% of its industry peers.
In the last couple of years the Gross Margin of W8A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.61% | ||
| PM (TTM) | N/A | ||
| GM | 17.64% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), W8A 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 2.41. 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 of 2.41. This is in the lower half of the industry: W8A underperforms 69.23% of its industry peers.
W8A has a Debt/Equity ratio of 0.86. This is a neutral value indicating W8A is somewhat dependend on debt financing.
W8A has a Debt to Equity ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.41 |
ROIC/WACC0.81
WACC6.69%
2.3 Liquidity
A Current Ratio of 0.64 indicates that W8A may have some problems paying its short term obligations.
W8A has a Current ratio of 0.64. This is amonst the worse of the industry: W8A underperforms 92.31% of its industry peers.
A Quick Ratio of 0.30 indicates that W8A may have some problems paying its short term obligations.
W8A has a worse Quick ratio (0.30) than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The earnings per share for W8A have decreased strongly by -21.78% in the last year.
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.
Looking at the last year, W8A shows a small growth in Revenue. The Revenue has grown by 5.62% in the last year.
The Revenue has been growing slightly by 4.22% on average over the past years.
EPS 1Y (TTM)-21.78%
EPS 3Y-16.96%
EPS 5Y-13.65%
EPS Q2Q%-22.73%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%7.5%
3.2 Future
The Earnings Per Share is expected to decrease by -4.17% on average over the next years.
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-43.65%
EPS Next 2Y-28.11%
EPS Next 3Y-16.38%
EPS Next 5Y-4.17%
Revenue Next Year4.52%
Revenue Next 2Y3.18%
Revenue Next 3Y2.77%
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.
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 3.77, the valuation of W8A can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of W8A indicates a rather cheap valuation: W8A is cheaper than 100.00% of the companies listed in the same industry.
W8A is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
W8A is valuated cheaply with a Price/Forward Earnings ratio of 6.92.
W8A's Price/Forward Earnings ratio is rather cheap when compared to the industry. W8A is cheaper than 88.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. W8A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of W8A indicates a rather cheap valuation: W8A is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.57 |
4.3 Compensation for Growth
A cheap valuation may be justified as W8A's earnings are expected to decrease with -16.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.11%
EPS Next 3Y-16.38%
5. Dividend
5.1 Amount
W8A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:W8A (2/21/2025, 7:00:00 PM)
9.842
-0.33 (-3.23%)
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 Cap8.50B
Analysts56.15
Price Target11.13 (13.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.46
Dividend Growth(5Y)-3.89%
DP-12.01%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.45%
Min EPS beat(2)7.95%
Max EPS beat(2)34.95%
EPS beat(4)3
Avg EPS beat(4)20.06%
Min EPS beat(4)-8.17%
Max EPS beat(4)45.52%
EPS beat(8)5
Avg EPS beat(8)10.05%
EPS beat(12)9
Avg EPS beat(12)8.31%
EPS beat(16)13
Avg EPS beat(16)10.53%
Revenue beat(2)2
Avg Revenue beat(2)4.28%
Min Revenue beat(2)3.97%
Max Revenue beat(2)4.59%
Revenue beat(4)4
Avg Revenue beat(4)2.75%
Min Revenue beat(4)0.14%
Max Revenue beat(4)4.59%
Revenue beat(8)8
Avg Revenue beat(8)2.67%
Revenue beat(12)12
Avg Revenue beat(12)1.9%
Revenue beat(16)14
Avg Revenue beat(16)1.15%
PT rev (1m)18.54%
PT rev (3m)12.84%
EPS NQ rev (1m)1.95%
EPS NQ rev (3m)-38.5%
EPS NY rev (1m)4.84%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 6.92 | ||
| P/S | 0.06 | ||
| P/FCF | N/A | ||
| P/OCF | 7.69 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.57 |
EPS(TTM)2.61
EY26.52%
EPS(NY)1.42
Fwd EY14.45%
FCF(TTM)0
FCFYN/A
OCF(TTM)1.28
OCFY13.01%
SpS166.32
BVpS10.99
TBVpS-19.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.25% | ||
| ROE | -88.88% | ||
| ROCE | 7.67% | ||
| ROIC | 5.4% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 12.61% | ||
| OM | 2.61% | ||
| PM (TTM) | N/A | ||
| GM | 17.64% | ||
| FCFM | N/A |
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 Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 46.96% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 18.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 2.41 |
F-Score4
WACC6.69%
ROIC/WACC0.81
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)-21.78%
EPS 3Y-16.96%
EPS 5Y-13.65%
EPS Q2Q%-22.73%
EPS Next Y-43.65%
EPS Next 2Y-28.11%
EPS Next 3Y-16.38%
EPS Next 5Y-4.17%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%7.5%
Revenue Next Year4.52%
Revenue Next 2Y3.18%
Revenue Next 3Y2.77%
Revenue Next 5Y2.54%
EBIT growth 1Y94.35%
EBIT growth 3Y-17.02%
EBIT growth 5Y-16.16%
EBIT Next Year20.42%
EBIT Next 3Y8.68%
EBIT Next 5Y27.82%
FCF growth 1Y-100.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-64.82%
OCF growth 3Y-43.2%
OCF growth 5Y-28.88%