WALGREENS BOOTS ALLIANCE INC (W8A.DE) Stock Fundamental Analysis
FRA:W8A - Deutsche Boerse Ag - US9314271084 - Common Stock - Currency: EUR
Overall W8A gets a fundamental rating of 3 out of 10. We evaluated W8A against 23 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of W8A have multiple concerns. W8A has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
W8A had positive earnings in the past year.
W8A had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: W8A reported negative net income in multiple years.
W8A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
W8A has a worse Return On Assets (-8.23%) than 91.30% of its industry peers.
With a Return On Equity value of -81.27%, W8A is not doing good in the industry: 95.65% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 5.92%, W8A perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for W8A is significantly below the industry average of 9.38%.
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
Looking at the Operating Margin, with a value of 2.41%, W8A is doing worse than 69.57% of the companies in the same industry.
W8A's Operating Margin has declined in the last couple of years.
W8A has a Gross Margin of 17.39%. This is in the lower half of the industry: W8A underperforms 73.91% of its industry peers.
W8A's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so W8A is destroying value.
Compared to 1 year ago, W8A has about the same amount of shares outstanding.
The number of shares outstanding for W8A has been reduced compared to 5 years ago.
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.
The Altman-Z score of W8A (2.65) is comparable to the rest of the industry.
W8A has a debt to FCF ratio of 15.71. This is a negative value and a sign of low solvency as W8A would need 15.71 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.71, W8A is doing worse than 73.91% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that W8A has dependencies on debt financing.
With a Debt to Equity ratio value of 1.06, W8A perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 15.71 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.85
WACC6.93%
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.
The Current ratio of W8A (0.61) is worse than 91.30% 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 82.61% 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.
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 6.17% 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)6.17%
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
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 6.05, the valuation of W8A can be described as very cheap.
Based on the Price/Earnings ratio, W8A is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
W8A is valuated cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.54, 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 86.96% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.36, W8A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 7.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, W8A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as W8A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.45 | ||
| EV/EBITDA | 2.84 |
4.3 Compensation for Growth
W8A's earnings are expected to decrease with -19.36% in the coming years. This may justify a cheaper valuation.
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 (7/23/2025, 7:00:00 PM)
9.857
-0.02 (-0.16%)
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 Cap8.53B
Analysts65.56
Price Target10.26 (4.09%)
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)-1.4%
PT rev (3m)-9.64%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-3.2%
EPS NY rev (1m)2.05%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 7.54 | ||
| P/S | 0.07 | ||
| P/FCF | 17.45 | ||
| P/OCF | 6.25 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.84 |
EPS(TTM)1.63
EY16.54%
EPS(NY)1.31
Fwd EY13.25%
FCF(TTM)0.56
FCFY5.73%
OCF(TTM)1.58
OCFY16.01%
SpS150.05
BVpS7.02
TBVpS-15.22
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
WACC6.93%
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%