WALGREENS BOOTS ALLIANCE INC (1WBA.MI) Stock Fundamental Analysis
BIT:1WBA - Euronext Milan - US9314271084 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to 1WBA. 1WBA was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of 1WBA have multiple concerns. 1WBA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1WBA had positive earnings in the past year.
1WBA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1WBA reported negative net income in multiple years.
Each year in the past 5 years 1WBA had a positive operating cash flow.
1.2 Ratios
1WBA has a worse Return On Assets (-11.25%) than 92.31% of its industry peers.
The Return On Equity of 1WBA (-88.88%) is worse than 96.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.76%, 1WBA is in line with its industry, outperforming 46.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1WBA is significantly below the industry average of 9.40%.
The 3 year average ROIC (3.78%) for 1WBA is below the current ROIC(5.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.25% | ||
| ROE | -88.88% | ||
| ROIC | 5.76% |
ROA(3y)-3.01%
ROA(5y)-1.08%
ROE(3y)-26.97%
ROE(5y)-13.57%
ROIC(3y)3.78%
ROIC(5y)4.44%
1.3 Margins
1WBA's Operating Margin of 2.61% is on the low side compared to the rest of the industry. 1WBA is outperformed by 61.54% of its industry peers.
1WBA's Operating Margin has declined in the last couple of years.
1WBA has a Gross Margin of 17.64%. This is in the lower half of the industry: 1WBA underperforms 69.23% of its industry peers.
In the last couple of years the Gross Margin of 1WBA 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1WBA is destroying value.
Compared to 1 year ago, 1WBA has about the same amount of shares outstanding.
The number of shares outstanding for 1WBA has been reduced compared to 5 years ago.
Compared to 1 year ago, 1WBA has a worse debt to assets ratio.
2.2 Solvency
1WBA has an Altman-Z score of 2.42. This is not the best score and indicates that 1WBA is in the grey zone with still only limited risk for bankruptcy at the moment.
1WBA has a Altman-Z score of 2.42. This is in the lower half of the industry: 1WBA underperforms 65.38% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that 1WBA is somewhat dependend on debt financing.
The Debt to Equity ratio of 1WBA (0.86) is better than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.42 |
ROIC/WACC0.85
WACC6.74%
2.3 Liquidity
1WBA has a Current Ratio of 0.64. This is a bad value and indicates that 1WBA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.64, 1WBA is doing worse than 88.46% of the companies in the same industry.
1WBA has a Quick Ratio of 0.64. This is a bad value and indicates that 1WBA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.30, 1WBA is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The earnings per share for 1WBA have decreased strongly by -21.78% in the last year.
Measured over the past years, 1WBA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.65% on average per year.
1WBA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.62%.
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 -3.03% on average over the next years.
1WBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y-43.65%
EPS Next 2Y-28.13%
EPS Next 3Y-16.48%
EPS Next 5Y-3.03%
Revenue Next Year4.21%
Revenue Next 2Y3.15%
Revenue Next 3Y2.88%
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
Based on the Price/Earnings ratio of 4.17, the valuation of 1WBA can be described as very cheap.
Based on the Price/Earnings ratio, 1WBA is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
1WBA is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.65, the valuation of 1WBA can be described as very cheap.
Based on the Price/Forward Earnings ratio, 1WBA is valued cheaper than 88.46% of the companies in the same industry.
1WBA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.17 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1WBA is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.72 |
4.3 Compensation for Growth
A cheap valuation may be justified as 1WBA's earnings are expected to decrease with -16.48% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.13%
EPS Next 3Y-16.48%
5. Dividend
5.1 Amount
1WBA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1WBA (3/24/2025, 7:00:00 PM)
10.296
-0.25 (-2.41%)
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 Cap8.90B
Analysts66
Price Target11.34 (10.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.32
Dividend Growth(5Y)-3.89%
DP-12.01%
Div Incr Years0
Div Non Decr Years0
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)12.97%
PT rev (3m)12.97%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)0%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.17 | ||
| Fwd PE | 7.65 | ||
| P/S | 0.07 | ||
| P/FCF | N/A | ||
| P/OCF | 8.5 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.72 |
EPS(TTM)2.47
EY23.99%
EPS(NY)1.35
Fwd EY13.07%
FCF(TTM)0
FCFYN/A
OCF(TTM)1.21
OCFY11.76%
SpS157.31
BVpS10.39
TBVpS-18.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.25% | ||
| ROE | -88.88% | ||
| ROCE | 7.67% | ||
| ROIC | 5.76% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 13.44% | ||
| 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)3.78%
ROIC(5y)4.44%
ROICexc(3y)3.92%
ROICexc(5y)4.56%
ROICexgc(3y)8.68%
ROICexgc(5y)8.92%
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
WACC6.74%
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)-21.78%
EPS 3Y-16.96%
EPS 5Y-13.65%
EPS Q2Q%-22.73%
EPS Next Y-43.65%
EPS Next 2Y-28.13%
EPS Next 3Y-16.48%
EPS Next 5Y-3.03%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%7.5%
Revenue Next Year4.21%
Revenue Next 2Y3.15%
Revenue Next 3Y2.88%
Revenue Next 5Y2.54%
EBIT growth 1Y94.35%
EBIT growth 3Y-17.02%
EBIT growth 5Y-16.16%
EBIT Next Year20.65%
EBIT Next 3Y7.61%
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%