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WALGREENS BOOTS ALLIANCE INC (WBA) Stock Fundamental Analysis

NASDAQ:WBA - Nasdaq - US9314271084 - Common Stock - Currency: USD

11.59  +0.06 (+0.52%)

After market: 11.59 0 (0%)

Fundamental Rating

3

Taking everything into account, WBA scores 3 out of 10 in our fundamental rating. WBA was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of WBA have multiple concerns. WBA is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year WBA was profitable.
WBA had a positive operating cash flow in the past year.
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.
WBA Yearly Net Income VS EBIT VS OCF VS FCFWBA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B

1.2 Ratios

WBA has a worse Return On Assets (-8.23%) than 77.50% of its industry peers.
WBA has a Return On Equity of -81.27%. This is amonst the worse of the industry: WBA underperforms 87.50% of its industry peers.
The Return On Invested Capital of WBA (6.64%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for WBA is below the industry average of 8.23%.
The last Return On Invested Capital (6.64%) for WBA is above the 3 year average (3.98%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -8.23%
ROE -81.27%
ROIC 6.64%
ROA(3y)-3.01%
ROA(5y)-1.08%
ROE(3y)-26.97%
ROE(5y)-13.57%
ROIC(3y)3.98%
ROIC(5y)4.68%
WBA Yearly ROA, ROE, ROICWBA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

WBA has a Operating Margin (2.41%) which is comparable to the rest of the industry.
WBA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 17.39%, WBA is doing worse than 67.50% of the companies in the same industry.
WBA's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
WBA Yearly Profit, Operating, Gross MarginsWBA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WBA is destroying value.
WBA has about the same amout of shares outstanding than it did 1 year ago.
WBA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WBA is higher compared to a year ago.
WBA Yearly Shares OutstandingWBA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
WBA Yearly Total Debt VS Total AssetsWBA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

WBA has an Altman-Z score of 2.65. 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 has a Altman-Z score of 2.65. This is in the lower half of the industry: WBA underperforms 67.50% of its industry peers.
The Debt to FCF ratio of WBA is 15.71, which is on the high side as it means it would take WBA, 15.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.71, WBA is doing worse than 62.50% of the companies in the same industry.
WBA has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
WBA's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. WBA is outperformed by 67.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 15.71
Altman-Z 2.65
ROIC/WACC0.9
WACC7.38%
WBA Yearly LT Debt VS Equity VS FCFWBA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

2.3 Liquidity

WBA has a Current Ratio of 0.61. 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 Current ratio value of 0.61, WBA is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.32 indicates that WBA may have some problems paying its short term obligations.
WBA has a worse Quick ratio (0.32) than 70.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.61
Quick Ratio 0.32
WBA Yearly Current Assets VS Current LiabilitesWBA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

3

3. Growth

3.1 Past

WBA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.56%.
WBA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.65% yearly.
Looking at the last year, WBA shows a small growth in Revenue. The Revenue has grown by 6.17% in the last year.
WBA 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

Based on estimates for the next years, WBA 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, WBA will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
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.
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.
WBA Yearly Revenue VS EstimatesWBA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B
WBA Yearly EPS VS EstimatesWBA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

7

4. Valuation

4.1 Price/Earnings Ratio

WBA is valuated cheaply with a Price/Earnings ratio of 6.07.
Based on the Price/Earnings ratio, WBA is valued cheaper than 95.00% of the companies in the same industry.
WBA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.69.
With a Price/Forward Earnings ratio of 7.58, the valuation of WBA can be described as very cheap.
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.
When comparing the Price/Forward Earnings ratio of WBA to the average of the S&P500 Index (37.36), we can say WBA is valued rather cheaply.
Industry RankSector Rank
PE 6.07
Fwd PE 7.58
WBA Price Earnings VS Forward Price EarningsWBA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WBA is valued cheaper than 92.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WBA is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 17.54
EV/EBITDA 2.84
WBA Per share dataWBA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

WBA'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

5. Dividend

5.1 Amount

WBA has a Yearly Dividend Yield of 4.35%, which is a nice return.
Compared to an average industry Dividend Yield of 2.05, WBA pays a better dividend. On top of this WBA pays more dividend than 97.50% of the companies listed in the same industry.
WBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 4.35%

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.
Dividend Growth(5Y)-3.89%
Div Incr Years0
Div Non Decr Years0
WBA Yearly Dividends per shareWBA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

WBA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
WBA's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-14.95%
EPS Next 2Y-27.15%
EPS Next 3Y-19.36%
WBA Yearly Income VS Free CF VS DividendWBA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B

WALGREENS BOOTS ALLIANCE INC

NASDAQ:WBA (7/24/2025, 4:20:03 PM)

After market: 11.59 0 (0%)

11.59

+0.06 (+0.52%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)06-26 2025-06-26/bmo
Earnings (Next)10-13 2025-10-13/amc
Inst Owners61.56%
Inst Owner Change-0.22%
Ins Owners0.64%
Ins Owner Change-9.83%
Market Cap10.03B
Analysts65.56
Price Target11.9 (2.67%)
Short Float %2.98%
Short Ratio2.43
Dividend
Industry RankSector Rank
Dividend Yield 4.35%
Yearly Dividend1.46
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)0.89%
PT rev (3m)-3.1%
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 RankSector Rank
PE 6.07
Fwd PE 7.58
P/S 0.07
P/FCF 17.54
P/OCF 6.28
P/B 1.41
P/tB N/A
EV/EBITDA 2.84
EPS(TTM)1.91
EY16.48%
EPS(NY)1.53
Fwd EY13.19%
FCF(TTM)0.66
FCFY5.7%
OCF(TTM)1.85
OCFY15.93%
SpS175.55
BVpS8.22
TBVpS-17.8
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -8.23%
ROE -81.27%
ROCE 8.4%
ROIC 6.64%
ROICexc 6.82%
ROICexgc 14.5%
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)3.98%
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 Turnover2.16
Health
Industry RankSector 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
WACC7.38%
ROIC/WACC0.9
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%