Walgreens Boots Profitability Analysis

WBA Stock  USD 21.69  0.67  3.19%   
Based on Walgreens Boots' profitability indicators, Walgreens Boots Alliance may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Walgreens Boots' ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
1989-11-30
Previous Quarter
-67 M
Current Value
-12.2 B
Quarterly Volatility
1.2 B
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of March 29, 2024, Price To Sales Ratio is expected to decline to 0.17. In addition to that, Operating Cash Flow Sales Ratio is expected to decline to 0.01. At present, Walgreens Boots' Total Other Income Expense Net is projected to increase significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 580.5 M, whereas Accumulated Other Comprehensive Income is projected to grow to (2.6 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.30.22
Significantly Up
Slightly volatile
For Walgreens Boots profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Walgreens Boots to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Walgreens Boots Alliance utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Walgreens Boots's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Walgreens Boots Alliance over time as well as its relative position and ranking within its peers.
  
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Is Walgreens Boots' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Walgreens Boots. If investors know Walgreens will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Walgreens Boots listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.59)
Dividend Share
1.92
Earnings Share
0.66
Revenue Per Share
165.003
Quarterly Revenue Growth
0.1
The market value of Walgreens Boots Alliance is measured differently than its book value, which is the value of Walgreens that is recorded on the company's balance sheet. Investors also form their own opinion of Walgreens Boots' value that differs from its market value or its book value, called intrinsic value, which is Walgreens Boots' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Walgreens Boots' market value can be influenced by many factors that don't directly affect Walgreens Boots' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Walgreens Boots' value and its price as these two are different measures arrived at by different means. Investors typically determine if Walgreens Boots is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walgreens Boots' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Walgreens Boots Alliance Revenue vs. Cash Flow From Operations Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Walgreens Boots's current stock value. Our valuation model uses many indicators to compare Walgreens Boots value to that of its competitors to determine the firm's financial worth.
Walgreens Boots Alliance is rated second in cash flow from operations category among related companies. It is rated first in revenue category among related companies totaling about  61.59  of Revenue per Cash Flow From Operations. At present, Walgreens Boots' Current Deferred Revenue is projected to increase significantly based on the last few years of reporting. The current year's Total Revenue is expected to grow to about 167.9 B, whereas Ebit Per Revenue is projected to grow to (0.05).. Comparative valuation analysis is a catch-all model that can be used if you cannot value Walgreens Boots by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Walgreens Boots' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Walgreens Boots' earnings, one of the primary drivers of an investment's value.

Walgreens Revenue vs. Cash Flow From Operations

Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

Walgreens Boots

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
2.26 B
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Walgreens Boots

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
139.08 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Walgreens Revenue vs Competition

Walgreens Boots Alliance is rated first in revenue category among related companies. Market size based on revenue of Consumer Staples industry is at this time estimated at about 198.54 Billion. Walgreens Boots totals roughly 139.08 Billion in revenue claiming about 70% of stocks in Consumer Staples industry.

Walgreens Boots Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Walgreens Boots, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Walgreens Boots will eventually generate negative long term returns. The profitability progress is the general direction of Walgreens Boots' change in net profit over the period of time. It can combine multiple indicators of Walgreens Boots, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-2.7 B-2.6 B
Operating Income-7.9 B-7.5 B
Income Before Tax-6.2 B-5.9 B
Total Other Income Expense Net2.6 B2.8 B
Net Loss-4.1 B-3.9 B
Income Tax Expense-2.1 B-2 B
Net Loss-3.5 B-3.4 B
Net Loss-3.2 B-3 B
Interest Income564.3 M580.5 M
Non Operating Income Net Other3.4 B3.6 B
Net Interest Income-667 M-700.4 M
Change To Netincome-3.9 B-3.7 B
Net Income Per E B T 0.51  0.52 

Walgreens Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Walgreens Boots. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Walgreens Boots position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Walgreens Boots' important profitability drivers and their relationship over time.

Walgreens Boots Profitability Trends

Walgreens Boots profitability trend refers to the progression of profit or loss within a business. An upward trend means that Walgreens Boots' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Walgreens Boots' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Walgreens Boots Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Walgreens Boots different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Walgreens Boots in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Walgreens Boots' future profitability.

Use Walgreens Boots in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Walgreens Boots position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Walgreens Boots will appreciate offsetting losses from the drop in the long position's value.

Walgreens Boots Pair Trading

Walgreens Boots Alliance Pair Trading Analysis

The ability to find closely correlated positions to Walgreens Boots could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Walgreens Boots when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Walgreens Boots - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Walgreens Boots Alliance to buy it.
The correlation of Walgreens Boots is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Walgreens Boots moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Walgreens Boots Alliance moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Walgreens Boots can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Walgreens Boots position

In addition to having Walgreens Boots in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Internet Service Providers (ISP) companies and IT providers specializing in internet technologies. The ISP theme has 43 constituents at this time.
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When determining whether Walgreens Boots Alliance offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Walgreens Boots' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Walgreens Boots Alliance Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Walgreens Boots Alliance Stock:
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Note that the Walgreens Boots Alliance information on this page should be used as a complementary analysis to other Walgreens Boots' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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When running Walgreens Boots' price analysis, check to measure Walgreens Boots' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walgreens Boots is operating at the current time. Most of Walgreens Boots' value examination focuses on studying past and present price action to predict the probability of Walgreens Boots' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Walgreens Boots' price. Additionally, you may evaluate how the addition of Walgreens Boots to your portfolios can decrease your overall portfolio volatility.
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To fully project Walgreens Boots' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Walgreens Boots Alliance at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Walgreens Boots' income statement, its balance sheet, and the statement of cash flows.
Potential Walgreens Boots investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Walgreens Boots investors may work on each financial statement separately, they are all related. The changes in Walgreens Boots's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Walgreens Boots's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.