WALGREENS BOOTS ALLIANCE INC (WBA) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:WBA • US9314271084

11.98 USD
+0.06 (+0.5%)
At close: Aug 27, 2025
12.04 USD
+0.06 (+0.5%)
After Hours: 8/27/2025, 10:21:31 PM
Fundamental Rating

3

Overall WBA gets a fundamental rating of 3 out of 10. We evaluated WBA against 38 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 has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year WBA was profitable.
  • 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.
  • In the past 5 years WBA always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B

1.2 Ratios

  • WBA has a worse Return On Assets (-9.07%) than 80.49% of its industry peers.
  • WBA has a worse Return On Equity (-87.68%) than 87.80% of its industry peers.
  • The Return On Invested Capital of WBA (6.21%) 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 significantly below the industry average of 28.25%.
  • The 3 year average ROIC (3.98%) for WBA is below the current ROIC(6.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -9.07%
ROE -87.68%
ROIC 6.21%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

  • WBA has a Operating Margin of 2.21%. This is comparable to the rest of the industry: WBA outperforms 53.66% of its industry peers.
  • In the last couple of years the Operating Margin of WBA has declined.
  • WBA has a Gross Margin of 17.13%. This is in the lower half of the industry: WBA underperforms 73.17% of its industry peers.
  • WBA's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
WBA Yearly Profit, Operating, Gross MarginsWBA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

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1

2. Health

2.1 Basic Checks

  • WBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for WBA remains at a similar level compared to 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 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

  • An Altman-Z score of 2.71 indicates that WBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • WBA has a worse Altman-Z score (2.71) than 60.98% of its industry peers.
  • WBA has a debt to FCF ratio of 14.38. This is a negative value and a sign of low solvency as WBA would need 14.38 years to pay back of all of its debts.
  • WBA has a worse Debt to FCF ratio (14.38) than 63.41% of its industry peers.
  • WBA has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
  • WBA's Debt to Equity ratio of 1.09 is on the low side compared to the rest of the industry. WBA is outperformed by 70.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 14.38
Altman-Z 2.71
ROIC/WACC0.88
WACC7.07%
WBA Yearly LT Debt VS Equity VS FCFWBA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B

2.3 Liquidity

  • A Current Ratio of 0.60 indicates that WBA may have some problems paying its short term obligations.
  • WBA's Current ratio of 0.60 is on the low side compared to the rest of the industry. WBA is outperformed by 90.24% of its industry peers.
  • A Quick Ratio of 0.32 indicates that WBA may have some problems paying its short term obligations.
  • The Quick ratio of WBA (0.32) is worse than 70.73% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.32
WBA Yearly Current Assets VS Current LiabilitesWBA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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3

3. Growth

3.1 Past

  • The earnings per share for WBA have decreased strongly by -39.56% in the last year.
  • WBA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.65% yearly.
  • WBA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.22%.
  • 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

  • The Earnings Per Share is expected to decrease by -4.88% on average over the next years.
  • WBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.96% yearly.
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.
  • 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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7

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 6.27, the valuation of WBA can be described as very cheap.
  • WBA's Price/Earnings ratio is rather cheap when compared to the industry. WBA is cheaper than 92.68% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.41, WBA is valued rather cheaply.
  • A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of WBA.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WBA indicates a rather cheap valuation: WBA is cheaper than 97.56% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of WBA to the average of the S&P500 Index (25.64), we can say WBA is valued rather cheaply.
Industry RankSector Rank
PE 6.27
Fwd PE 7.67
WBA Price Earnings VS Forward Price EarningsWBA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, WBA is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, WBA is valued a bit cheaper than 68.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.91
EV/EBITDA 3.04
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 -17.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.34%
EPS Next 3Y-17.69%

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0

5. Dividend

5.1 Amount

  • WBA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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WALGREENS BOOTS ALLIANCE INC

NASDAQ:WBA (8/27/2025, 10:21:31 PM)

After market: 12.04 +0.06 (+0.5%)

11.98

+0.06 (+0.5%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)06-26
Earnings (Next)10-13
Inst Owners61.25%
Inst Owner Change-67.63%
Ins Owners0.64%
Ins Owner Change-137.06%
Market Cap10.37B
Revenue(TTM)154.58B
Net Income(TTM)-6.30B
Analysts49.09
Price Target10.81 (-9.77%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend1.46
Dividend Growth(5Y)-3.89%
DP-10.29%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.62%
Min EPS beat(2)10.66%
Max EPS beat(2)18.59%
EPS beat(4)4
Avg EPS beat(4)18.04%
Min EPS beat(4)7.95%
Max EPS beat(4)34.95%
EPS beat(8)6
Avg EPS beat(8)14.1%
EPS beat(12)9
Avg EPS beat(12)9.44%
EPS beat(16)13
Avg EPS beat(16)10.5%
Revenue beat(2)2
Avg Revenue beat(2)2.66%
Min Revenue beat(2)0.55%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)3.47%
Min Revenue beat(4)0.55%
Max Revenue beat(4)4.78%
Revenue beat(8)8
Avg Revenue beat(8)2.68%
Revenue beat(12)12
Avg Revenue beat(12)2.29%
Revenue beat(16)16
Avg Revenue beat(16)2.04%
PT rev (1m)-9.16%
PT rev (3m)-8.36%
EPS NQ rev (1m)11.54%
EPS NQ rev (3m)10.69%
EPS NY rev (1m)1.9%
EPS NY rev (3m)4.35%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.87%
Valuation
Industry RankSector Rank
PE 6.27
Fwd PE 7.67
P/S 0.07
P/FCF 17.91
P/OCF 6.58
P/B 1.44
P/tB N/A
EV/EBITDA 3.04
EPS(TTM)1.91
EY15.94%
EPS(NY)1.56
Fwd EY13.04%
FCF(TTM)0.67
FCFY5.58%
OCF(TTM)1.82
OCFY15.2%
SpS178.59
BVpS8.3
TBVpS-17.96
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -9.07%
ROE -87.68%
ROCE 7.87%
ROIC 6.21%
ROICexc 6.34%
ROICexgc 13.58%
OM 2.21%
PM (TTM) N/A
GM 17.13%
FCFM 0.37%
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%
ROICexgc growth 3Y-3.22%
ROICexgc 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 Turnover2.23
Health
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 14.38
Debt/EBITDA 1.34
Cap/Depr 41.01%
Cap/Sales 0.64%
Interest Coverage 250
Cash Conversion 26.94%
Profit Quality N/A
Current Ratio 0.6
Quick Ratio 0.32
Altman-Z 2.71
F-Score4
WACC7.07%
ROIC/WACC0.88
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-38.04%
EPS Next 2Y-26.34%
EPS Next 3Y-17.69%
EPS Next 5Y-4.88%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y3.67%
Revenue growth 5Y4.22%
Sales Q2Q%7.25%
Revenue Next Year6.29%
Revenue Next 2Y3.88%
Revenue Next 3Y3.56%
Revenue Next 5Y1.96%
EBIT growth 1Y69.88%
EBIT growth 3Y-17.02%
EBIT growth 5Y-16.16%
EBIT Next Year41.78%
EBIT Next 3Y15.03%
EBIT Next 5Y27.82%
FCF growth 1Y170.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.86%
OCF growth 3Y-43.2%
OCF growth 5Y-28.88%

WALGREENS BOOTS ALLIANCE INC / WBA FAQ

What is the ChartMill fundamental rating of WALGREENS BOOTS ALLIANCE INC (WBA) stock?

ChartMill assigns a fundamental rating of 3 / 10 to WBA.


What is the valuation status of WALGREENS BOOTS ALLIANCE INC (WBA) stock?

ChartMill assigns a valuation rating of 7 / 10 to WALGREENS BOOTS ALLIANCE INC (WBA). This can be considered as Undervalued.


How profitable is WALGREENS BOOTS ALLIANCE INC (WBA) stock?

WALGREENS BOOTS ALLIANCE INC (WBA) has a profitability rating of 3 / 10.


What is the valuation of WALGREENS BOOTS ALLIANCE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for WALGREENS BOOTS ALLIANCE INC (WBA) is 6.27 and the Price/Book (PB) ratio is 1.44.


What is the financial health of WALGREENS BOOTS ALLIANCE INC (WBA) stock?

The financial health rating of WALGREENS BOOTS ALLIANCE INC (WBA) is 1 / 10.