WALGREENS BOOTS ALLIANCE INC (W8A.DE) Stock Fundamental Analysis
FRA:W8A - Deutsche Boerse Ag - US9314271084 - Common Stock - Currency: EUR
W8A gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 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.
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
W8A has a Return On Assets of -8.23%. This is amonst the worse of the industry: W8A underperforms 92.00% of its industry peers.
With a Return On Equity value of -81.27%, W8A is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
W8A's Return On Invested Capital of 5.92% is in line compared to the rest of the industry. W8A outperforms 48.00% 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 9.19%.
The 3 year average ROIC (3.55%) for W8A is below the current ROIC(5.92%), indicating increased profibility in the last year.
| 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
W8A has a Operating Margin of 2.41%. This is in the lower half of the industry: W8A underperforms 72.00% of its industry peers.
In the last couple of years the Operating Margin of W8A has declined.
Looking at the Gross Margin, with a value of 17.39%, W8A is doing worse than 76.00% of the companies in the same industry.
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
W8A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
W8A has about the same amout of shares outstanding than it did 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 2.65. 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.
The Debt to FCF ratio of W8A is 15.71, which is on the high side as it means it would take W8A, 15.71 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 15.71, W8A is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.06 is on the high side and indicates that W8A has dependencies on debt financing.
The Debt to Equity ratio of W8A (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 15.71 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.85
WACC6.94%
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.
W8A's Current ratio of 0.61 is on the low side compared to the rest of the industry. W8A is outperformed by 92.00% of its industry peers.
A Quick Ratio of 0.32 indicates that W8A may have some problems paying its short term obligations.
W8A has a Quick ratio of 0.32. This is amonst the worse of the industry: W8A underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| 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.
W8A shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.65% yearly.
The Revenue has been growing slightly by 6.17% 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)6.17%
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 2.54% yearly.
EPS Next Y-39.2%
EPS Next 2Y-27.15%
EPS Next 3Y-19.36%
EPS Next 5Y-4.88%
Revenue Next Year5.79%
Revenue Next 2Y3.92%
Revenue Next 3Y3.94%
Revenue Next 5Y2.54%
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
W8A is valuated cheaply with a Price/Earnings ratio of 6.03.
Based on the Price/Earnings ratio, W8A is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.52. W8A is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.52, 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 96.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, W8A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 7.52 |
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.
W8A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.39 | ||
| EV/EBITDA | 2.84 |
4.3 Compensation for Growth
A cheap valuation may be justified as W8A's earnings are expected to decrease with -19.36% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.15%
EPS Next 3Y-19.36%
5. Dividend
5.1 Amount
W8A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:W8A (7/14/2025, 7:00:00 PM)
9.834
-0.03 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners61.56%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap8.51B
Analysts65.56
Price Target10.24 (4.13%)
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-14.95%
Div Incr Years0
Div Non Decr Years0
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)-1.61%
PT rev (3m)-9.83%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)8.63%
EPS NY rev (1m)2.41%
EPS NY rev (3m)7.91%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)1.39%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 7.52 | ||
| P/S | 0.07 | ||
| P/FCF | 17.39 | ||
| P/OCF | 6.22 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.84 |
EPS(TTM)1.63
EY16.58%
EPS(NY)1.31
Fwd EY13.3%
FCF(TTM)0.57
FCFY5.75%
OCF(TTM)1.58
OCFY16.07%
SpS150.26
BVpS7.03
TBVpS-15.24
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
WACC6.94%
ROIC/WACC0.85
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-39.2%
EPS Next 2Y-27.15%
EPS Next 3Y-19.36%
EPS Next 5Y-4.88%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%7.25%
Revenue Next Year5.79%
Revenue Next 2Y3.92%
Revenue Next 3Y3.94%
Revenue Next 5Y2.54%
EBIT growth 1Y86.05%
EBIT growth 3Y-17.02%
EBIT growth 5Y-16.16%
EBIT Next Year41.71%
EBIT Next 3Y10.57%
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%