Walgreens Boots Alliance Inc (W8A.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:W8A • US9314271084
10.282 EUR
+0.06 (+0.55%)
Last: Aug 27, 2025, 07:00 PM
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
- W8A had positive earnings in the past year.
- In the past year W8A had a positive cash flow from operations.
- 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's Return On Assets of -9.07% is on the low side compared to the rest of the industry. W8A is outperformed by 90.91% of its industry peers.
- The Return On Equity of W8A (-87.68%) is worse than 95.45% of its industry peers.
- W8A has a Return On Invested Capital (5.54%) which 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 9.11%.
- 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.
- In the last couple of years the Operating Margin of W8A has declined.
- With a Gross Margin value of 17.13%, W8A is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- 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.
- Compared to 5 years ago, W8A has less shares outstanding
- Compared to 1 year ago, W8A has a worse debt to assets ratio.
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.
- W8A has a worse Debt to FCF ratio (14.38) than 72.73% of its industry peers.
- W8A has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.09, W8A is in line with its industry, outperforming 54.55% of the companies in the same 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.
- 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.
- A Quick Ratio of 0.32 indicates that W8A may have some problems paying its short term obligations.
- The Quick ratio of W8A (0.32) is worse than 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
- Looking at the last year, W8A shows a small growth in Revenue. The Revenue has grown by 6.22% in the last year.
- W8A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.22% yearly.
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
- The Earnings Per Share is expected to decrease by -4.88% on average over the next years.
- 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
- 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
- Based on the Price/Earnings ratio of 6.31, the valuation of W8A can be described as very cheap.
- Based on the Price/Earnings ratio, W8A is valued 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 (28.32), we can say W8A is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.70, 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 90.91% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. W8A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than W8A, based on the Enterprise Value to EBITDA ratio.
- 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
- W8A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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.