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Walgreens Boots Alliance

Nasdaq:WBA
Snowflake Description

Outstanding track record, undervalued and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WBA
Nasdaq
$48B
Market Cap
  1. Home
  2. US
  3. Consumer Retailing
Company description

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The last earnings update was 78 days ago. More info.


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WBA Share Price and Events
7 Day Returns
1.5%
NasdaqGS:WBA
1.1%
US Consumer Retailing
1.2%
US Market
1 Year Returns
-22.2%
NasdaqGS:WBA
17.9%
US Consumer Retailing
2.3%
US Market
WBA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Walgreens Boots Alliance (WBA) 1.5% 1.2% -16.8% -22.2% -36.8% -28.7%
US Consumer Retailing 1.1% 5.6% 7.1% 17.9% 27.9% 37%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • WBA underperformed the Consumer Retailing industry which returned 17.9% over the past year.
  • WBA underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
WBA
Industry
5yr Volatility vs Market
Related Companies

WBA Value

 Is Walgreens Boots Alliance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Walgreens Boots Alliance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Walgreens Boots Alliance.

NasdaqGS:WBA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:WBA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.468 (1 + (1- 21%) (37.33%))
0.736
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:WBA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Walgreens Boots Alliance is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:WBA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 4,461.40 Analyst x5 4,150.22
2020 5,458.25 Analyst x4 4,723.38
2021 5,030.00 Analyst x2 4,049.18
2022 4,993.00 Analyst x1 3,739.04
2023 5,703.00 Analyst x1 3,972.84
2024 5,802.30 Est @ 1.74% 3,760.09
2025 5,920.54 Est @ 2.04% 3,569.10
2026 6,053.49 Est @ 2.25% 3,394.71
2027 6,198.22 Est @ 2.39% 3,233.43
2028 6,352.71 Est @ 2.49% 3,082.87
Present value of next 10 years cash flows $37,674.85
NasdaqGS:WBA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $6,352.71 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$136,873.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $136,873.75 ÷ (1 + 7.5%)10
$66,422.67
NasdaqGS:WBA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $37,674.85 + $66,422.67
$104,097.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $104,097.52 / 914.30
$113.86
NasdaqGS:WBA Discount to Share Price
Calculation Result
Value per share (USD) From above. $113.86
Current discount Discount to share price of $52.90
= -1 x ($52.90 - $113.86) / $113.86
53.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Walgreens Boots Alliance is available for.
Intrinsic value
>50%
Share price is $52.9 vs Future cash flow value of $113.86
Current Discount Checks
For Walgreens Boots Alliance to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Walgreens Boots Alliance's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Walgreens Boots Alliance's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Walgreens Boots Alliance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Walgreens Boots Alliance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WBA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-28) in USD $5.34
NasdaqGS:WBA Share Price ** NasdaqGS (2019-06-19) in USD $52.9
United States of America Consumer Retailing Industry PE Ratio Median Figure of 22 Publicly-Listed Consumer Retailing Companies 19.99x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Walgreens Boots Alliance.

NasdaqGS:WBA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WBA Share Price ÷ EPS (both in USD)

= 52.9 ÷ 5.34

9.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Walgreens Boots Alliance is good value based on earnings compared to the US Consumer Retailing industry average.
  • Walgreens Boots Alliance is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Walgreens Boots Alliance's expected growth come at a high price?
Raw Data
NasdaqGS:WBA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
1.5%per year
United States of America Consumer Retailing Industry PEG Ratio Median Figure of 14 Publicly-Listed Consumer Retailing Companies 2.8x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:WBA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.9x ÷ 1.5%

6.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Walgreens Boots Alliance is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Walgreens Boots Alliance's assets?
Raw Data
NasdaqGS:WBA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-28) in USD $27.10
NasdaqGS:WBA Share Price * NasdaqGS (2019-06-19) in USD $52.9
United States of America Consumer Retailing Industry PB Ratio Median Figure of 30 Publicly-Listed Consumer Retailing Companies 2.36x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NasdaqGS:WBA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WBA Share Price ÷ Book Value per Share (both in USD)

= 52.9 ÷ 27.10

1.95x

* Primary Listing of Walgreens Boots Alliance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Walgreens Boots Alliance is good value based on assets compared to the US Consumer Retailing industry average.
X
Value checks
We assess Walgreens Boots Alliance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Walgreens Boots Alliance has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WBA Future Performance

 How is Walgreens Boots Alliance expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Walgreens Boots Alliance expected to grow at an attractive rate?
  • Walgreens Boots Alliance's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Walgreens Boots Alliance's earnings growth is positive but not above the United States of America market average.
  • Walgreens Boots Alliance's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WBA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WBA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 1.5%
NasdaqGS:WBA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 2.5%
United States of America Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 5.3%
United States of America Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:WBA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WBA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-08-31 150,777 7,447 4,874 1
2022-08-31 146,149 6,655 4,178 1
2021-08-31 144,275 7,646 5,051 10
2020-08-31 140,112 7,391 4,818 20
2019-08-31 136,799 6,482 4,528 20
NasdaqGS:WBA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-02-28 136,097 6,252 5,133
2018-11-30 134,590 7,722 5,326
2018-08-31 131,537 8,265 5,024
2018-05-31 128,244 7,431 4,314
2018-02-28 124,028 7,077 4,134
2017-11-30 120,453 7,729 3,845
2017-08-31 118,214 7,251 4,078
2017-05-31 116,701 7,895 4,306
2017-02-28 116,081 8,144 4,247
2016-11-30 116,819 7,640 4,117
2016-08-31 117,351 7,847 4,173
2016-05-31 117,237 6,694 3,169

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Walgreens Boots Alliance's earnings are expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).
  • Walgreens Boots Alliance's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:WBA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Walgreens Boots Alliance Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WBA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-08-31 6.19 6.19 6.19 1.00
2022-08-31 5.08 5.08 5.08 1.00
2021-08-31 5.80 6.61 4.79 5.00
2020-08-31 5.38 6.08 4.54 13.00
2019-08-31 4.93 5.52 4.36 11.00
NasdaqGS:WBA Past Financials Data
Date (Data in USD Millions) EPS *
2019-02-28 5.34
2018-11-30 5.45
2018-08-31 5.07
2018-05-31 4.27
2018-02-28 4.00
2017-11-30 3.65
2017-08-31 3.80
2017-05-31 3.99
2017-02-28 3.93
2016-11-30 3.81
2016-08-31 3.85
2016-05-31 2.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Walgreens Boots Alliance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Walgreens Boots Alliance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Walgreens Boots Alliance has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WBA Past Performance

  How has Walgreens Boots Alliance performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Walgreens Boots Alliance's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Walgreens Boots Alliance's year on year earnings growth rate has been positive over the past 5 years.
  • Walgreens Boots Alliance's 1-year earnings growth exceeds its 5-year average (24.2% vs 12.5%)
  • Walgreens Boots Alliance's earnings growth has exceeded the US Consumer Retailing industry average in the past year (24.2% vs -5%).
Earnings and Revenue History
Walgreens Boots Alliance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Walgreens Boots Alliance Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WBA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-28 136,097.00 5,133.00 24,724.00
2018-11-30 134,590.00 5,326.00 24,836.00
2018-08-31 131,537.00 5,024.00 24,429.00
2018-05-31 128,244.00 4,314.00 23,721.00
2018-02-28 124,028.00 4,134.00 23,520.00
2017-11-30 120,453.00 3,845.00 23,067.00
2017-08-31 118,214.00 4,078.00 22,916.00
2017-05-31 116,701.00 4,306.00 23,115.00
2017-02-28 116,081.00 4,247.00 23,046.00
2016-11-30 116,819.00 4,117.00 23,302.00
2016-08-31 117,351.00 4,173.00 23,425.00
2016-05-31 117,237.00 3,169.00 23,409.00
2016-02-29 116,534.00 3,368.00 23,433.00
2015-11-30 112,923.00 4,480.00 22,996.00
2015-08-31 103,444.00 4,220.00 21,669.00
2015-05-31 93,979.00 3,973.00 20,224.00
2015-02-28 84,585.00 3,385.00 18,611.00
2014-11-30 77,617.00 2,059.00 17,661.00
2014-08-31 76,392.00 1,932.00 17,691.00
2014-05-31 75,276.00 2,810.00 17,684.00
2014-02-28 74,188.00 2,720.00 17,579.00
2013-11-30 73,230.00 2,760.00 17,473.00
2013-08-31 72,217.00 2,548.00 17,470.00
2013-05-31 71,349.00 2,146.00 17,393.00
2013-02-28 70,788.00 2,059.00 17,183.00
2012-11-30 70,792.00 1,986.00 17,019.00
2012-08-31 71,633.00 2,127.00 16,851.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Walgreens Boots Alliance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Walgreens Boots Alliance used its assets more efficiently than the US Consumer Retailing industry average last year based on Return on Assets.
  • Walgreens Boots Alliance has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Walgreens Boots Alliance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Walgreens Boots Alliance has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WBA Health

 How is Walgreens Boots Alliance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Walgreens Boots Alliance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Walgreens Boots Alliance's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Walgreens Boots Alliance's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Walgreens Boots Alliance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Walgreens Boots Alliance Company Filings, last reported 3 months ago.

NasdaqGS:WBA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-28 25,413.00 18,057.00 818.00
2018-11-30 26,263.00 15,992.00 980.00
2018-08-31 26,689.00 14,398.00 785.00
2018-05-31 28,470.00 15,045.00 1,818.00
2018-02-28 28,178.00 15,674.00 1,749.00
2017-11-30 26,756.00 14,006.00 1,830.00
2017-08-31 28,274.00 12,935.00 3,301.00
2017-05-31 31,484.00 19,210.00 12,253.00
2017-02-28 30,421.00 18,912.00 11,822.00
2016-11-30 29,692.00 18,872.00 9,598.00
2016-08-31 30,281.00 19,028.00 9,807.00
2016-05-31 31,314.00 13,525.00 3,326.00
2016-02-29 29,918.00 14,026.00 3,620.00
2015-11-30 31,154.00 14,277.00 2,603.00
2015-08-31 31,300.00 14,383.00 3,036.00
2015-05-31 31,929.00 17,161.00 4,533.00
2015-02-28 31,026.00 19,521.00 3,082.00
2014-11-30 20,767.00 15,317.00 12,861.00
2014-08-31 20,617.00 4,534.00 2,646.00
2014-05-31 21,485.00 5,047.00 2,126.00
2014-02-28 20,833.00 5,530.00 1,777.00
2013-11-30 20,056.00 5,475.00 969.00
2013-08-31 19,454.00 5,047.00 2,106.00
2013-05-31 18,980.00 6,536.00 3,007.00
2013-02-28 18,973.00 6,525.00 2,444.00
2012-11-30 18,379.00 6,538.00 1,854.00
2012-08-31 18,236.00 5,392.00 1,321.00
  • Walgreens Boots Alliance's level of debt (71.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.5% vs 71.1% today).
  • Debt is well covered by operating cash flow (34.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.7x coverage).
X
Financial health checks
We assess Walgreens Boots Alliance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Walgreens Boots Alliance has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WBA Dividends

 What is Walgreens Boots Alliance's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.33%
Current annual income from Walgreens Boots Alliance dividends. Estimated to be 3.57% next year.
If you bought $2,000 of Walgreens Boots Alliance shares you are expected to receive $67 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Walgreens Boots Alliance's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Walgreens Boots Alliance's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:WBA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United States of America Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:WBA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-08-31
2022-08-31
2021-08-31 2.03 6.00
2020-08-31 1.90 10.00
2019-08-31 1.80 10.00
NasdaqGS:WBA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-18 1.760 3.351
2019-01-25 1.760 2.762
2018-10-24 1.760 2.310
2018-06-28 1.760 2.555
2018-04-11 1.600 2.481
2018-01-18 1.600 2.300
2017-10-24 1.600 2.250
2017-07-12 1.600 2.057
2017-04-20 1.500 1.839
2017-01-26 1.500 1.790
2016-10-12 1.500 1.808
2016-07-13 1.500 1.846
2016-04-12 1.440 1.789
2016-01-28 1.440 1.798
2015-10-14 1.440 1.722
2015-07-09 1.440 1.604
2015-04-09 1.350 1.567
2014-10-08 1.350 1.839
2014-08-06 1.350 2.198
2014-04-09 1.260 1.788
2014-01-09 1.260 1.989
2013-10-09 1.260 2.159
2013-07-10 1.260 2.461
2013-04-10 1.100 2.271
2013-01-10 1.100 2.611
2012-10-10 1.100 3.119
2012-06-19 1.100 3.244
2012-04-09 0.900 2.754
2012-01-12 0.900 2.671
2011-10-12 0.900 2.707
2011-07-13 0.900 2.489
2011-04-11 0.700 1.623
2011-01-13 0.700 1.687
2010-10-13 0.700 1.934
2010-07-14 0.700 2.372
2010-04-12 0.550 1.728
2010-01-15 0.550 1.553
2009-10-15 0.550 1.437
2009-07-08 0.550 1.674

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Walgreens Boots Alliance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Walgreens Boots Alliance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Walgreens Boots Alliance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Walgreens Boots Alliance has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WBA Management

 What is the CEO of Walgreens Boots Alliance's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stefano Pessina
COMPENSATION $13,542,260
AGE 77
TENURE AS CEO 3.9 years
CEO Bio

Mr. Stefano Pessina has been an Executive Vice Chairman of Walgreens Boots Alliance, Inc. since January 2015 and has been its Chief Executive Officer since July 9, 2015. Mr. Pessina previously served as Acting Chief Executive Officer of Walgreens Boots Alliance, Inc from January 2015 to July 9, 2015. He served as the Chief Executive Officer of Alliance Boots GmbH since March 2011. He served as the Chief Executive Officer of Alliance Unichem PLC from September 2001 to December 2004. He served as the Chief Executive of Alliance Boots Holdings Limited until July 2009. He served as an Independent Business Consultant of AC Nielson. He served as the Executive Chairman of Alliance Boots GMBH and Alliance Boots Holdings Limited since July 2007 until December 2014. He served as an Executive Deputy Chairman of Alliance Boots GMBH since July 2006. He served as an Executive Deputy Chairman of Alliance UniChem PLC since July 2004. Mr. Pessina also serves on the Board of Directors of a number of private companies, including Sprint Acquisitions Holdings Limited. He served as an Executive Deputy Chairman of Alliance Boots Holdings Limited since July 2006. He has been a Director of Walgreens Boots Alliance, Inc., since August 2, 2012. He serves as a Board Member of Weybridge, UK/IFPW, Fairfaix, Virginia, USA. He served as a Director at Alliance UniChem PLC since 1997. He served as a Director at Vifor Pharma AG (formerly Galenica Ltd.) since 2000 until May 11, 2017. He served as a Director of Alliance Boots Holdings Limited since July 2006. He served as a Director of Hedef Alliance Holding A.S. and Alliance Boots GmbH. Former management consultant; he has been active as an entrepreneur in various pharmaceutical distribution companies since 1976. He is an Engineer. He obtained a B.Sc in Nuclear Engineering from Milan Polytechnic.

CEO Compensation
  • Stefano's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Stefano's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Walgreens Boots Alliance management team in years:

3.2
Average Tenure
59
Average Age
  • The tenure for the Walgreens Boots Alliance management team is about average.
Management Team

Jim Skinner

TITLE
Executive Chairman of the Board
COMPENSATION
$7M
AGE
74

Stefano Pessina

TITLE
Executive Vice Chairman & CEO
COMPENSATION
$14M
AGE
77
TENURE
3.9 yrs

James Kehoe

TITLE
Executive VP & Global CFO
COMPENSATION
$7M
AGE
56
TENURE
1 yrs

Alex Gourlay

TITLE
Co-Chief Operating Officer
COMPENSATION
$7M
AGE
58
TENURE
3 yrs

Ornella Barra

TITLE
Co-Chief Operating Officer
COMPENSATION
$7M
AGE
65
TENURE
3 yrs

Heather Dixon

TITLE
Senior VP
AGE
46
TENURE
0.3 yrs

Marco Patrick Pagni

TITLE
Executive VP
AGE
56
TENURE
3.3 yrs

Gerald Gradwell

TITLE
Senior Vice President of Investor Relations

Chuck Greener

TITLE
Senior vice president of global communications & corporate affairs
AGE
59
TENURE
9.4 yrs

Kathleen Wilson-Thompson

TITLE
Executive VP & Global Chief Human Resources Officer
COMPENSATION
$5M
AGE
61
TENURE
4.5 yrs
Board of Directors Tenure

Average tenure and age of the Walgreens Boots Alliance board of directors in years:

5.6
Average Tenure
63
Average Age
  • The tenure for the Walgreens Boots Alliance board of directors is about average.
Board of Directors

Stefano Pessina

TITLE
Executive Vice Chairman & CEO
COMPENSATION
$14M
AGE
77
TENURE
4.4 yrs

William Foote

TITLE
Lead Independent Director
COMPENSATION
$440K
AGE
67
TENURE
4.4 yrs

Jim Skinner

TITLE
Executive Chairman of the Board
COMPENSATION
$7M
AGE
74
TENURE
4.4 yrs

Nancy Schlichting

TITLE
Independent Director
COMPENSATION
$410K
AGE
64
TENURE
12.7 yrs

David Brailer

TITLE
Independent Director
COMPENSATION
$366K
AGE
59
TENURE
8.7 yrs

Jan Babiak

TITLE
Independent Director
COMPENSATION
$350K
AGE
60
TENURE
7.2 yrs

Ginger Graham

TITLE
Independent Director
COMPENSATION
$342K
AGE
62
TENURE
9.2 yrs

Dominic Murphy

TITLE
Independent Director
COMPENSATION
$329K
AGE
51
TENURE
6.8 yrs

John Lederer

TITLE
Independent Director
COMPENSATION
$315K
AGE
62
TENURE
4.2 yrs

Leonard Schaeffer

TITLE
Independent Director
COMPENSATION
$309K
AGE
72
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • Walgreens Boots Alliance insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. May 19 Sell Marco Patrick Pagni Individual 09. May 19 09. May 19 -20,000 $53.05 $-1,061,000
05. Apr 19 Buy Ornella Barra Individual 03. Apr 19 03. Apr 19 18,000 $54.56 $982,080
23. Nov 18 Sell Nancy Schlichting Individual 20. Nov 18 20. Nov 18 -7,050 $78.81 $-555,611
02. Nov 18 Sell Kimberly Scardino Individual 01. Nov 18 01. Nov 18 -3,735 $79.81 $-298,090
17. Jul 18 Buy Stefano Pessina Individual 16. Jul 18 16. Jul 18 1,697,438 $63.92 $108,500,237
17. Jul 18 Sell Ornella Barra Individual 16. Jul 18 16. Jul 18 -1,697,438 $63.92 $-108,500,237
17. Jul 18 Buy Ornella Barra Individual 16. Jul 18 16. Jul 18 1,700,000 $65.15 $110,755,000
X
Management checks
We assess Walgreens Boots Alliance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Walgreens Boots Alliance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WBA News

Simply Wall St News

Why Dividend Hunters Love Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

The company currently pays out a dividend yield of 2.8% to shareholders, making it a relatively attractive dividend stock. … Let's take a look at Walgreens Boots Alliance in more detail. … Check out our latest analysis for Walgreens Boots Alliance

Simply Wall St -

Shareholders Should Look Hard At Walgreens Boots Alliance, Inc.’s (NASDAQ:WBA) 14% Return On Capital

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Was Walgreens Boots Alliance Inc's (NASDAQ:WBA) Earnings Growth Better Than The Industry's?

Assessing Walgreens Boots Alliance Inc's (NASDAQ:WBA) past track record of performance is an insightful exercise for investors. … Today I will assess WBA's recent performance announced on 31 August 2018 and evaluate these figures to its long-term trend and industry movements. … WBA's trailing twelve-month earnings (from 31 August 2018) of US$5.0b has.

Simply Wall St -

Walgreens Boots Alliance Inc (NASDAQ:WBA): The Return Story

and want to better understand how you can grow your money by investing in Walgreens Boots Alliance Inc (NASDAQ:WBA). … Your return is tied to WBA’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Thus, to understand how your money can grow by investing in Walgreens Boots Alliance, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

How Walgreens Boots Alliance Inc (NASDAQ:WBA) Can Add Value To Your Portfolio

I've been keeping an eye on Walgreens Boots Alliance Inc (NASDAQ:WBA) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe WBA has a lot to offer. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

Does Walgreens Boots Alliance Inc's (NASDAQ:WBA) PE Ratio Signal A Buying Opportunity?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between Walgreens Boots Alliance Inc (NASDAQ:WBA)’s fundamentals and stock market performance. … Walgreens Boots Alliance Inc (NASDAQ:WBA) trades with a trailing P/E of 16.8x, which is lower than the industry average of 21.2x.

Simply Wall St -

What Do Analysts Think About Walgreens Boots Alliance Inc's (NASDAQ:WBA) Profit Growth?

Walgreens Boots Alliance Inc's (NASDAQ:WBA) … growth of 8.64% annualised … but it's critical to take a step back

Simply Wall St -

Top Undervalued Stocks This Week

Walgreens Boots Alliance and Owens & Minor are two of the companies on my list that I consider are undervalued. … In addition to this, OMI’s PE ratio is currently around 16.44x relative to its Healthcare peer level of, 21.34x indicating that relative to its competitors, OMI can be bought at a cheaper price right now. … ANFI's shares are currently floating at around -74% less than its intrinsic level of $8.51, at a price tag of US$2.22, according to my discounted cash flow model.

Simply Wall St -

Only 3 Days Left To Cash In On Walgreens Boots Alliance Inc (NASDAQ:WBA) Dividend, Is It Worth Buying?

On the 12 June 2018, Walgreens Boots Alliance Inc (NASDAQ:WBA) will be paying shareholders an upcoming dividend amount of $0.4 per share. … View our latest analysis for Walgreens Boots Alliance 5 questions I ask before picking a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is its annual yield among the top 25% of dividend-paying companies? … NasdaqGS:WBA Historical Dividend Yield May 13th 18 How does Walgreens Boots Alliance fare?

Simply Wall St -

Is Walgreens Boots Alliance Inc (NASDAQ:WBA) Undervalued After Accounting For Its Future Growth?

But, since Walgreens Boots Alliance is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 16.01x and expected year-on-year earnings growth of 11.52% give Walgreens Boots Alliance a higher PEG ratio of 1.39x. … This means that, when we account for Walgreens Boots Alliance's growth, the stock can be viewed as slightly overvalued , based on fundamental analysis.

Simply Wall St -

WBA Company Info

Description

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of retail products, including health, beauty, personal care, consumable, and general merchandise products through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services and mail services; and manages in-store clinics. As of August 31, 2018, this segment operated 9,560 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacies, as well as approximately 400 in-store clinic locations. The Retail Pharmacy International segment sells prescription drugs; and health, beauty, personal care, and other consumer products through its pharmacy-led health and beauty stores and optical practices, as well as through boots.com and an integrated mobile application. This segment operated 4,767 retail stores under the Boots, Benavides, and Ahumada in the United Kingdom, Thailand, Norway, the Republic of Ireland, the Netherlands, Mexico, and Chile; and 618 optical practices, including 167 on a franchise basis. The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment, as well as provides related services to pharmacies and other healthcare providers. This segment operates in the United Kingdom, Germany, France, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, the Czech Republic, and Lithuania. The company has a strategic partnership with Microsoft Corporation. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

Details
Name: Walgreens Boots Alliance, Inc.
WBA
Exchange: NasdaqGS
Founded: 1901
$48,366,415,936
914,298,978
Website: http://www.walgreensbootsalliance.com
Address: Walgreens Boots Alliance, Inc.
108 Wilmot Road,
Deerfield,
Illinois, 60015,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WBA Common Stock Nasdaq Global Select US USD 02. Jan 1968
DB W8A Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0LSZ Common Stock London Stock Exchange GB USD 02. Jan 1968
SWX WBA Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG WBA Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
BMV WBA * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BOVESPA WGBA34 BDR EACH 1 REP 0.5 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 17. May 2019
Number of employees
Current staff
Staff numbers
299,000
Walgreens Boots Alliance employees.
Industry
Drug Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 23:47
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/04/02
Last earnings reported: 2019/02/28
Last annual earnings reported: 2018/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.