WALGREENS BOOTS ALLIANCE INC (WBA) Fundamental Analysis & Valuation

NASDAQ:WBA • US9314271084

Current stock price

11.98 USD
+0.06 (+0.5%)
At close:
12.04 USD
+0.06 (+0.5%)
After Hours:

This WBA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. WBA Profitability Analysis

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.
  • WBA had a positive operating cash flow in each of the past 5 years.
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'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.
  • The Return On Equity of WBA (-87.68%) is worse than 87.80% of its industry peers.
  • WBA has a Return On Invested Capital (6.21%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WBA is significantly below the industry average of 34.56%.
  • 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

  • Looking at the Operating Margin, with a value of 2.21%, WBA is in line with its industry, outperforming 53.66% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WBA has declined.
  • 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.
  • In the last couple of years the Gross Margin of WBA has declined.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. WBA Health Analysis

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.
  • Compared to 5 years ago, WBA has less shares outstanding
  • 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

  • WBA has an Altman-Z score of 2.71. 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.
  • The Altman-Z score of WBA (2.71) is worse than 60.98% of its industry peers.
  • The Debt to FCF ratio of WBA is 14.38, which is on the high side as it means it would take WBA, 14.38 years of fcf income to pay off all of its debts.
  • WBA's Debt to FCF ratio of 14.38 is on the low side compared to the rest of the industry. WBA is outperformed by 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.
  • With a Debt to Equity ratio value of 1.09, WBA is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
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 has a Current ratio of 0.60. This is amonst the worse of the industry: WBA underperforms 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.
  • 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. WBA Growth Analysis

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 6.22% 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)6.22%
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 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.
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. WBA Valuation Analysis

4.1 Price/Earnings Ratio

  • WBA is valuated cheaply with a Price/Earnings ratio of 6.27.
  • 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.
  • WBA is valuated cheaply when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 7.67, the valuation of WBA can be described as very cheap.
  • 97.56% of the companies in the same industry are more expensive than WBA, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.84. WBA is valued rather cheaply when compared to this.
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

  • 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.
  • 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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. WBA Dividend Analysis

5.1 Amount

  • No dividends for WBA!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

WBA Fundamentals: All Metrics, Ratios and Statistics

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-96.94%
Ins Owners0.64%
Ins Owner Change0%
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 Fundamental Analysis 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.


Can you provide the profitability details for WALGREENS BOOTS ALLIANCE INC?

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


What is the expected EPS growth for WALGREENS BOOTS ALLIANCE INC (WBA) stock?

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%.