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WALGREENS BOOTS ALLIANCE INC (WBA) Stock Fundamental Analysis

USA - NASDAQ:WBA - US9314271084 - Common Stock

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

3

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 has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

WBA had positive earnings in the past year.
In the past year WBA had a positive cash flow from operations.
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 2015 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.
With a Return On Equity value of -87.68%, WBA is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
The Return On Invested Capital of WBA (6.21%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for WBA is below the industry average of 8.60%.
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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

With a Operating Margin value of 2.21%, WBA perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
In the last couple of years the Operating Margin of WBA has declined.
WBA has a worse Gross Margin (17.13%) than 73.17% of its industry peers.
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 2015 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.
Compared to 1 year ago, WBA has about the same amount of shares outstanding.
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 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 2.71. 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.
WBA's Altman-Z score of 2.71 is on the low side compared to the rest of the industry. WBA is outperformed by 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 0.60 indicates that WBA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.60, WBA is doing worse than 90.24% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.32, WBA is doing worse than 70.73% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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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%.
The earnings per share for WBA have been decreasing by -13.65% on average. This is quite bad
The Revenue has been growing slightly by 6.22% in the past 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

WBA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.88% yearly.
The Revenue is expected to grow by 1.96% on average over the next years.
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.
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

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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.
Based on the Price/Earnings ratio, WBA is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.86. WBA is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.67, the valuation of WBA can be described as very cheap.
Based on the Price/Forward Earnings ratio, WBA is valued cheaper than 97.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. 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

Based on the Enterprise Value to EBITDA ratio, WBA is valued cheaper than 90.24% 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 68.29% of the companies are valued more expensively.
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 2025-06-26/bmo
Earnings (Next)10-13 2025-10-13/amc
Inst Owners61.25%
Inst Owner Change-7.32%
Ins Owners0.64%
Ins Owner Change-158.36%
Market Cap10.37B
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
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%
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 Turnover2.23
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%