WALGREENS BOOTS ALLIANCE INC (WBA) Stock Fundamental Analysis
NASDAQ:WBA - Nasdaq - US9314271084 - Common Stock - Currency: USD
WBA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 41 industry peers in the Consumer Staples Distribution & Retail industry. WBA may be in some trouble as it scores bad on both profitability and health. WBA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WBA had positive earnings in the past year.
In the past year WBA had a positive cash flow from operations.
In multiple years WBA reported negative net income over the last 5 years.
Each year in the past 5 years WBA had a positive operating cash flow.
1.2 Ratios
WBA has a worse Return On Assets (-11.25%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of -88.88%, WBA is doing worse than 87.50% of the companies in the same industry.
The Return On Invested Capital of WBA (6.06%) is comparable to the rest of the industry.
WBA had an Average Return On Invested Capital over the past 3 years of 3.98%. This is below the industry average of 8.38%.
The 3 year average ROIC (3.98%) for WBA is below the current ROIC(6.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.25% | ||
| ROE | -88.88% | ||
| ROIC | 6.06% |
ROA(3y)-3.01%
ROA(5y)-1.08%
ROE(3y)-26.97%
ROE(5y)-13.57%
ROIC(3y)3.98%
ROIC(5y)4.68%
1.3 Margins
The Operating Margin of WBA (2.61%) is comparable to the rest of the industry.
WBA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 17.64%, WBA is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
WBA's Gross Margin has declined in the last couple of years.
| 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), WBA is destroying value.
Compared to 1 year ago, WBA has about the same amount of shares outstanding.
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
WBA has an Altman-Z score of 2.42. This is not the best score and indicates that WBA is in the grey zone with still only limited risk for bankruptcy at the moment.
WBA's Altman-Z score of 2.42 is on the low side compared to the rest of the industry. WBA is outperformed by 65.00% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that WBA is somewhat dependend on debt financing.
WBA has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: WBA underperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.42 |
ROIC/WACC0.86
WACC7.04%
2.3 Liquidity
WBA has a Current Ratio of 0.64. This is a bad value and indicates that WBA is not financially healthy enough and could expect problems in meeting its short term obligations.
WBA has a Current ratio of 0.64. This is amonst the worse of the industry: WBA underperforms 90.00% of its industry peers.
WBA has a Quick Ratio of 0.64. This is a bad value and indicates that WBA is not financially healthy enough and could expect problems in meeting its short term obligations.
WBA has a worse Quick ratio (0.30) than 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
WBA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.78%.
WBA 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 5.62% in the past 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
Based on estimates for the next years, WBA will show a decrease in Earnings Per Share. The EPS will decrease by -1.27% on average per year.
The Revenue is expected to grow by 1.63% on average over the next years.
EPS Next Y-46.26%
EPS Next 2Y-28.07%
EPS Next 3Y-16.78%
EPS Next 5Y-1.27%
Revenue Next Year4.53%
Revenue Next 2Y3.04%
Revenue Next 3Y2.85%
Revenue Next 5Y1.63%
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.
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
A Price/Earnings ratio of 4.09 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 28.58. WBA is valued rather cheaply when compared to this.
WBA is valuated cheaply with a Price/Forward Earnings ratio of 7.50.
WBA's Price/Forward Earnings ratio is rather cheap when compared to the industry. WBA is cheaper than 97.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.47, WBA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.09 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
97.50% 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 | 2.78 |
4.3 Compensation for Growth
WBA's earnings are expected to decrease with -16.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.07%
EPS Next 3Y-16.78%
5. Dividend
5.1 Amount
WBA has a Yearly Dividend Yield of 8.52%, which is a nice return.
WBA's Dividend Yield is rather good when compared to the industry average which is at 2.51. WBA pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, WBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.52% |
5.2 History
The dividend of WBA decreases each year by -3.89%.
WBA has paid a dividend for at least 10 years, which is 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.
The Dividend Rate of WBA has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-12.01%
EPS Next 2Y-28.07%
EPS Next 3Y-16.78%
WALGREENS BOOTS ALLIANCE INC
NASDAQ:WBA (1/27/2025, 11:41:08 AM)
11.17
-0.7 (-5.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners61.57%
Inst Owner Change0.19%
Ins Owners0.59%
Ins Owner Change26.64%
Market Cap9.65B
Analysts54.62
Price Target9.91 (-11.28%)
Short Float %10.87%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.52% |
Yearly Dividend1.46
Dividend Growth(5Y)-3.89%
DP-12.01%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.55%
Min EPS beat(2)7.95%
Max EPS beat(2)35.14%
EPS beat(4)3
Avg EPS beat(4)20.11%
Min EPS beat(4)-8.17%
Max EPS beat(4)45.52%
EPS beat(8)5
Avg EPS beat(8)10.07%
EPS beat(12)9
Avg EPS beat(12)8.33%
EPS beat(16)13
Avg EPS beat(16)10.55%
Revenue beat(2)2
Avg Revenue beat(2)4.33%
Min Revenue beat(2)3.97%
Max Revenue beat(2)4.69%
Revenue beat(4)4
Avg Revenue beat(4)2.77%
Min Revenue beat(4)0.14%
Max Revenue beat(4)4.69%
Revenue beat(8)8
Avg Revenue beat(8)2.68%
Revenue beat(12)12
Avg Revenue beat(12)1.91%
Revenue beat(16)14
Avg Revenue beat(16)1.16%
PT rev (1m)-2.86%
PT rev (3m)-10.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.09 | ||
| Fwd PE | 7.5 | ||
| P/S | 0.06 | ||
| P/FCF | N/A | ||
| P/OCF | 8.33 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.78 |
EPS(TTM)2.73
EY24.44%
EPS(NY)1.49
Fwd EY13.34%
FCF(TTM)0
FCFYN/A
OCF(TTM)1.34
OCFY12.01%
SpS174.19
BVpS11.51
TBVpS-20.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.25% | ||
| ROE | -88.88% | ||
| ROCE | 7.67% | ||
| ROIC | 6.06% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 14.15% | ||
| 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)3.98%
ROIC(5y)4.68%
ROICexc(3y)4.13%
ROICexc(5y)4.8%
ROICexgc(3y)9.14%
ROICexgc(5y)9.39%
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 | 2.42 |
F-Score4
WACC7.04%
ROIC/WACC0.86
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-46.26%
EPS Next 2Y-28.07%
EPS Next 3Y-16.78%
EPS Next 5Y-1.27%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%7.5%
Revenue Next Year4.53%
Revenue Next 2Y3.04%
Revenue Next 3Y2.85%
Revenue Next 5Y1.63%
EBIT growth 1Y94.35%
EBIT growth 3Y-17.02%
EBIT growth 5Y-16.16%
EBIT Next Year33.13%
EBIT Next 3Y11.93%
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%