WALGREENS BOOTS ALLIANCE INC (WBA)
US9314271084 - Common Stock
Overall WBA gets a fundamental rating of 4 out of 10. We evaluated WBA against 41 industry peers in the Consumer Staples Distribution & Retail industry. While WBA is still in line with the averages on profitability rating, there are concerns on its financial health. WBA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WBA had positive earnings in the past year.
WBA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WBA reported negative net income in multiple years.
WBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WBA (-10.66%) is worse than 82.93% of its industry peers.
Looking at the Return On Equity, with a value of -82.69%, WBA is doing worse than 87.80% of the companies in the same industry.
WBA's Return On Invested Capital of 23.43% is amongst the best of the industry. WBA outperforms 97.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WBA is in line with the industry average of 9.18%.
The last Return On Invested Capital (23.43%) for WBA is above the 3 year average (10.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.66% | ||
| ROE | -82.69% | ||
| ROIC | 23.43% |
ROA(3y)-3.01%
ROA(5y)-1.08%
ROE(3y)-26.97%
ROE(5y)-13.57%
ROIC(3y)10.16%
ROIC(5y)8.39%
1.3 Margins
With an excellent Operating Margin value of 10.86%, WBA belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
In the last couple of years the Operating Margin of WBA has grown nicely.
The Gross Margin of WBA (17.96%) is worse than 63.41% of its industry peers.
WBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | N/A | ||
| GM | 17.96% |
OM growth 3Y45.58%
OM growth 5Y15.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-5.19%
2. Health
2.1 Basic Checks
WBA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WBA has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, WBA has less shares outstanding
The debt/assets ratio for WBA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.81 indicates that WBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
WBA has a Altman-Z score of 2.81. This is in the lower half of the industry: WBA underperforms 63.41% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that WBA is somewhat dependend on debt financing.
The Debt to Equity ratio of WBA (0.86) is worse than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.81 |
ROIC/WACC3.68
WACC6.36%
2.3 Liquidity
A Current Ratio of 0.68 indicates that WBA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, WBA is doing worse than 87.80% of the companies in the same industry.
WBA has a Quick Ratio of 0.68. This is a bad value and indicates that WBA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.37, WBA is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
WBA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.82%.
Measured over the past years, WBA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.65% on average per year.
WBA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.17%.
Measured over the past years, WBA shows a small growth in Revenue. The Revenue has been growing by 4.22% on average per year.
EPS 1Y (TTM)-27.82%
EPS 3Y-16.96%
EPS 5Y-13.65%
EPS Q2Q%-41.79%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%6%
3.2 Future
The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
Based on estimates for the next years, WBA will show a small growth in Revenue. The Revenue will grow by 5.73% on average per year.
EPS Next Y-44.19%
EPS Next 2Y-28.27%
EPS Next 3Y-16.84%
EPS Next 5Y10.3%
Revenue Next Year2.3%
Revenue Next 2Y2.03%
Revenue Next 3Y2.07%
Revenue Next 5Y5.73%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.88, which indicates a rather cheap valuation of WBA.
Based on the Price/Earnings ratio, WBA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. WBA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.16 indicates a rather cheap valuation of WBA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WBA indicates a rather cheap valuation: WBA is cheaper than 97.56% of the companies listed in the same industry.
WBA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.88 | ||
| Fwd PE | 5.16 |
4.2 Price Multiples
95.12% of the companies in the same industry are more expensive than WBA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 0.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as WBA's earnings are expected to decrease with -16.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.27%
EPS Next 3Y-16.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.35%, WBA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.55, WBA pays a better dividend. On top of this WBA pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, WBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
5.2 History
The dividend of WBA decreases each year by -3.89%.
WBA has been paying a dividend for at least 10 years, so it has a reliable track record.
WBA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.89%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
WBA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-14.59%
EPS Next 2Y-28.27%
EPS Next 3Y-16.84%
WALGREENS BOOTS ALLIANCE INC
NASDAQ:WBA (11/21/2024, 8:01:14 PM)
Premarket: 8.32 +0.02 (+0.24%)8.3
+0.06 (+0.73%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap7.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.88 | ||
| Fwd PE | 5.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.66% | ||
| ROE | -82.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.86% | ||
| PM (TTM) | N/A | ||
| GM | 17.96% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-27.82%
EPS 3Y-16.96%
EPS 5Y
EPS Q2Q%
EPS Next Y-44.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.17%
Revenue growth 3Y3.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y