11.98 USD
+0.06 (+0.5%)
12.04 USD
+0.06 (+0.5%)
Taking everything into account, WBA scores 3 out of 10 in our fundamental rating. WBA was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. WBA has a bad profitability rating. Also its financial health evaluation is rather negative. WBA is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WBA had positive earnings in the past year.
WBA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WBA reported negative net income in multiple years.
Each year in the past 5 years WBA had a positive operating cash flow.
1.2 Ratios
WBA's Return On Assets of -9.07% is on the low side compared to the rest of the industry. WBA is outperformed by 80.49% of its industry peers.
WBA has a Return On Equity of -87.68%. This is amonst the worse of the industry: WBA underperforms 87.80% of its industry peers.
WBA has a Return On Invested Capital of 6.21%. This is comparable to the rest of the industry: WBA outperforms 56.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WBA is below the industry average of 8.85%.
The last Return On Invested Capital (6.21%) for WBA is above the 3 year average (3.98%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
The Operating Margin of WBA (2.21%) 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 17.13%, WBA is doing worse than 73.17% of the companies in the same industry.
WBA's Gross Margin has declined in the last couple of years.
| 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 WBA 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.
Compared to 1 year ago, WBA has a worse debt to assets ratio.
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.
The Altman-Z score of WBA (2.71) is worse 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.
Looking at the Debt to FCF ratio, with a value of 14.38, WBA is doing worse than 63.41% of the companies in the same industry.
WBA has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WBA (1.09) is worse than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 14.38 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.88
WACC7.07%
2.3 Liquidity
WBA has a Current Ratio of 0.60. This is a bad value and indicates that WBA is not financially healthy enough and could expect problems in meeting its short term obligations.
WBA has a worse Current ratio (0.60) than 90.24% of its industry peers.
WBA has a Quick Ratio of 0.60. This is a bad value and indicates that WBA is not financially healthy enough and could expect problems in meeting its short term obligations.
WBA has a Quick ratio of 0.32. This is in the lower half of the industry: WBA underperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.32 |
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%.
The earnings per share for WBA have been decreasing by -13.65% on average. This is quite bad
Looking at the last year, WBA shows a small growth in Revenue. The Revenue has grown by 6.22% in the last year.
Measured over the past years, WBA shows a small growth in Revenue. The Revenue has been growing by 4.22% on average per year.
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
WBA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.88% yearly.
Based on estimates for the next years, WBA 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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 6.27, the valuation of WBA can be described as very cheap.
92.68% of the companies in the same industry are more expensive than WBA, based on the Price/Earnings ratio.
WBA is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.67, which indicates a rather cheap valuation of WBA.
97.56% of the companies in the same industry are more expensive than WBA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WBA to the average of the S&P500 Index (23.78), we can say WBA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WBA indicates a rather cheap valuation: WBA is cheaper than 90.24% of the companies listed in the same industry.
WBA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WBA is cheaper than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.91 | ||
| EV/EBITDA | 3.04 |
4.3 Compensation for Growth
A cheap valuation may be justified as WBA'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 WBA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.98
+0.06 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners61.25%
Inst Owner Change-97.47%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.
Can you provide the valuation status for WALGREENS BOOTS ALLIANCE INC?
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 earnings growth outlook for WALGREENS BOOTS ALLIANCE INC?
The Earnings per Share (EPS) of WALGREENS BOOTS ALLIANCE INC (WBA) is expected to decline by -38.04% in the next year.
Is the dividend of WALGREENS BOOTS ALLIANCE INC sustainable?
The dividend rating of WALGREENS BOOTS ALLIANCE INC (WBA) is 3 / 10 and the dividend payout ratio is -10.29%.