WALGREENS BOOTS ALLIANCE INC (WBA) Stock Fundamental Analysis
USA - NASDAQ:WBA - US9314271084 - Common Stock
11.98 USD
+0.06 (+0.5%)
12.04 USD
+0.06 (+0.5%)
Overall WBA gets a fundamental rating of 3 out of 10. We evaluated WBA against 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 valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WBA was profitable.
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.
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's Return On Equity of -87.68% is on the low side compared to the rest of the industry. WBA is outperformed by 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 below the industry average of 8.72%.
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.
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 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.
Compared to 1 year ago, WBA has about the same amount of shares outstanding.
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
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.
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.
With a Debt to FCF ratio value of 14.38, WBA is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
WBA has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
WBA has a Debt to Equity ratio of 1.09. This is in the lower half of the industry: WBA underperforms 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 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.
WBA has a worse Quick ratio (0.32) than 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
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
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.
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
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
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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.47.
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 cheaply inside the industry as 97.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WBA to the average of the S&P500 Index (35.42), we can say WBA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 7.67 |
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 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-96.83%
Ins Owners0.64%
Ins Owner Change-212.8%
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%.