11.98 USD
+0.06 (+0.5%)
12.04 USD
+0.06 (+0.5%)
We assign a fundamental rating of 3 out of 10 to WBA. WBA was compared to 39 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 is cheap, but on the other hand it scores bad on growth.
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.
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 worse Return On Equity (-87.68%) than 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.
WBA had an Average Return On Invested Capital over the past 3 years of 3.98%. This is below the industry average of 8.84%.
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
WBA has a Operating Margin (2.21%) which is in line with its industry peers.
In the last couple of years the Operating Margin of WBA has declined.
WBA's Gross Margin of 17.13% is on the low side compared to the rest of the industry. WBA is outperformed by 73.17% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WBA is destroying value.
The number of shares outstanding for WBA remains at a similar level compared to 1 year ago.
The number of shares outstanding for WBA has been reduced compared to 5 years ago.
WBA has a worse debt/assets ratio than last year.
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.
WBA has a worse Debt to FCF ratio (14.38) than 63.41% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that WBA has dependencies on debt 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The earnings per share for WBA have decreased strongly by -39.56% in the last year.
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.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.27, which indicates a rather cheap valuation of WBA.
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 26.59, WBA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of WBA.
WBA's Price/Forward Earnings ratio is rather cheap when compared to the industry. WBA is cheaper than 97.56% of the companies in the same industry.
WBA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| 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.
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 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
WBA does not give a dividend.
| 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%.