Walgreens Boots Alliance, Inc.

Consumer Staples
Retail-Drug Stores and Proprietary Stores
www.walgreensbootsalliance.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.39B
PE -0
Debt $11.09B
Cash $3.22B
EV $15.26B
FCF -$363.00M

Earnings

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Sales & Net Margins

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Earnings	-$15.45B
EBIT	-$14.08B
ROE	-129%
ROA	-17%
FCF	-$363.00M
Equity	$12.01B
Growth Stability	-2K%
PE	-0.48
PEG	0.06
PB	0.62
P/FCF	-20.35
P/S	0.05
Price/Cash	0.44
Debt/Equity	0.92
Debt/FCF	-30.54
Net Margins	-10%
Gross Margins	18%
Op. Margins	-10%
Earnings CAGR	-5%
Sales Growth YoY	6%
Sales Growth QoQ	3%
Sales CAGR	2%
FCF CAGR	-7%
Equity CAGR	-4%
Earnings Stability	0.03
Earnings Growth YoY	1K%
Earnings Growth QoQ	-1K%
Earnings CAGR 5Y	-9%

Sales CAGR 5Y	1%
FCF CAGR 5Y	-13%
Equity CAGR 5Y	-4%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	-18%
Equity CAGR 3Y	-26%
Market Cap	$7.39B
Revenue	$147.66B
Dividend Yield	17%
Payout Ratio	-8%
Assets	$81.04B
Total Debt	$11.09B
Cash	$3.22B
Shares Outstanding	863.1M
EV	15.26B
Earnings Score	6%
Moat Score	4%
Safety Score	37%
Final Score	16%
Working Capital	-8.62B
Current Ratio	0.68
Gross Profit	$26.52B
Shares Growth 3y	1%
Equity Growth QoQ	-21%
Equity Growth YoY	-58%

Assets & ROA

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Stockholders Equity & ROE

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Walgreens Boots Alliance is a leading retail pharmacy chain with about 13,000 stores in the U.S. and internationally. Walgreens' core strategy involves brick-and-mortar retail pharmacy locations in high-traffic areas, with nearly 80% of the U.S. population living within 5 miles of a store. Currently, the company has a leading share of the domestic prescription drug market at about 20%. In 2021, the company sold a majority of its Alliance Healthcare wholesale business to AmerisourceBergen for $6.5 billion, doubling down on its core pharmacy efforts and ventures in strategic growth areas in primary care (VillageMD) and digital offerings. The company also has equity stakes in AmerisourceBergen (29%) and Sinopharm Holding Guoda Drugstore (40%).

SEC Filings

Direct access to Walgreens Boots Alliance, Inc. (WBA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Aug 31
- 10-Q May 31
- 10-Q Feb 29
2023
- 10-Q Nov 30
- 10-K Aug 31
- 10-Q May 31
- 10-Q Feb 28
2022
- 10-Q Nov 30
- 10-K Aug 31
- 10-Q May 31
- 10-Q Feb 28

Sector Comparison

How does Walgreens Boots Alliance, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Walgreens Boots Alliance, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -5%

Stability 3%

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Walgreens Boots Alliance, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Walgreens Boots Alliance, Inc..

Years

Calculation mode

= -$2.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$363M	-$337M	-$313M	-$290M	-$269M	-$250M	-$232M	-$215M	-$200M	-$185M	-$172M	-$1.7B
DCF		-$306M	-$258M	-$218M	-$184M	-$155M	-$131M	-$110M	-$93M	-$79M	-$66M	-$664M
Value	-$2.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	08/2015	08/2016	08/2017	08/2018	08/2019	08/2020	08/2021	08/2022	08/2023	08/2024	TTM
Net Margins	4%	4%	3%	4%	3%	0%	2%	3%	-3%	-10%	-10%
ROA	-	9%	9%	11%	9%	2%	5%	5%	-6%	-17%	-17%
ROE	-	14%	14%	19%	16%	2%	11%	14%	-12%	-129%	-129%

Bad Net Margins (-10.46%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	08/2015	08/2016	08/2017	08/2018	08/2019	08/2020	08/2021	08/2022	08/2023	08/2024	TTM
Debt over FCF	-	2.99	2.25	2.38	5.82	4.71	2.47	5.9	70.99	-30.54	-30.54
Debt over Equity	0.43	0.64	0.47	0.62	0.94	0.92	0.43	0.43	0.35	0.92	0.92
Growth Stability	-	-	-	100%	90%	10%	80%	100%	-151%	-2K%	-2K%

Good Debt/FCF ratio (-30.54)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.92)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-2K%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	08/2015	08/2016	08/2017	08/2018	08/2019	08/2020	08/2021	08/2022	08/2023	08/2024	CAGR 5Y
Revenue YoY growth	-	13%	1%	11%	4%	2%	-5%	0%	5%	6%	1%
Earnings YoY growth	-	-1%	-2%	23%	-21%	-89%	492%	62%	-187%	338%	-9%
Equity YoY growth	-	-3%	-7%	-6%	-10%	-12%	13%	23%	-4%	-58%	-4%
FCF YoY growth	-	48%	-10%	17%	-44%	6%	2%	-48%	-93%	-357%	-13%