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
Overall W8A gets a fundamental rating of 3 out of 10. We evaluated W8A against 25 industry peers in the Consumer Staples Distribution & Retail industry. W8A may be in some trouble as it scores bad on both profitability and health. W8A has a valuation in line with the averages, 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.
- The reported net income has been mixed in the past 5 years: W8A reported negative net income in multiple years.
- In the past 5 years W8A always reported a positive cash flow from operatings.
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 in line with its industry peers.
- 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 last Return On Invested Capital (5.54%) for W8A is above the 3 year average (3.55%), which is a sign of increasing profitability.
| 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.
- W8A has a worse Gross Margin (17.13%) than 72.73% of its industry peers.
- In the last couple of years the Gross Margin of W8A has declined.
| 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
- W8A has a worse debt/assets ratio than last year.
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.
- With a Altman-Z score value of 2.71, W8A perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
- W8A has a debt to FCF ratio of 14.38. This is a negative value and a sign of low solvency as W8A would need 14.38 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 14.38, W8A is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that W8A has dependencies on debt 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.
- W8A's Current ratio of 0.60 is on the low side compared to the rest of the industry. W8A is outperformed by 90.91% of its industry peers.
- A Quick Ratio of 0.32 indicates that W8A may have some problems paying its short term obligations.
- W8A's Quick ratio of 0.32 is on the low side compared to the rest of the industry. W8A is outperformed by 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.
- Measured over the past years, W8A shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.65% on average per year.
- The Revenue has been growing slightly by 6.22% in the past year.
- The Revenue has been growing slightly by 4.22% on average over the past years.
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
- Based on estimates for the next years, W8A will show a decrease in Earnings Per Share. The EPS will decrease by -4.88% on average per year.
- Based on estimates for the next years, W8A will show a small growth in Revenue. The Revenue will grow by 1.96% on average per year.
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
- A Price/Earnings ratio of 6.31 indicates a rather cheap valuation of W8A.
- Based on the Price/Earnings ratio, W8A is valued cheaper than 95.45% of the companies in the same industry.
- W8A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.41.
- Based on the Price/Forward Earnings ratio of 7.70, the valuation of W8A can be described as very cheap.
- Based on the Price/Forward Earnings ratio, W8A is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, W8A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of W8A indicates a rather cheap valuation: W8A is cheaper than 100.00% of the companies listed in the same industry.
- W8A's Price/Free Cash Flow is on the same level as the industry average.
| 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
- No dividends for W8A!.
| 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.