Walgreens fundamental analysis

**Walgreens Boots Alliance (WBA) exhibits a mixed fundamental profile**, with a strong revenue growth rate, but negative net income and diluted EPS, and a reasonable valuation compared to its sales.

1. **Revenue Growth Rate and Valuation**:
- Walgreens has a revenue growth rate of 4.15% over the last quarter, with a total revenue of $38.59 billion. This indicates a stable revenue base with some growth potential.
- The company's P/E ratio is 0.06, which is relatively low, suggesting that the stock may be undervalued compared to its earnings. However, the P/S ratio is 1.36, which is relatively high, indicating that the market is valuing Walgreens' sales at a premium.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|WBA|WBA.O|Walgreens Boots|2024 Q3|579.1666666666667|2.6429479034307497|185.7142857142857|185|
|WBA|WBA.O|Walgreens Boots|2024 Q4|-1379.8076923076924|5.999096606628649||185|
|WBA|WBA.O|Walgreens Boots|2025 Q1|-117.62589928057554|7.4972076170757616|-287.49999999999994|185|
|WBA|WBA.O|Walgreens Boots|2025 Q2|67.25369258237299|4.145525207816042|51.82481751824818|185|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|WBA|WBA.O|Walgreens Boots|2024 Q3|2.6429479034307497|3.6351E10|185|
|WBA|WBA.O|Walgreens Boots|2024 Q4|5.999096606628649|3.7547E10|185|
|WBA|WBA.O|Walgreens Boots|2025 Q1|7.4972076170757616|3.9459E10|185|
|WBA|WBA.O|Walgreens Boots|2025 Q2|4.145525207816042|3.8588E10|185|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|WBA|WBA.O|Walgreens Boots|2024 Q3|579.1666666666667|2.3E8|185|
|WBA|WBA.O|Walgreens Boots|2024 Q4|-1379.8076923076924|-3.078E9|185|
|WBA|WBA.O|Walgreens Boots|2025 Q1|-117.62589928057554|-6.05E8|185|
|WBA|WBA.O|Walgreens Boots|2025 Q2|67.25369258237299|-4.035E9|185|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|WBA|WBA.O|Walgreens Boots|2024 Q3|185.7142857142857|0.4|185|
|WBA|WBA.O|Walgreens Boots|2025 Q1|-287.49999999999994|-0.31|185|
|WBA|WBA.O|Walgreens Boots|2025 Q2|51.82481751824818|-3.3|185|

|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|WBA|WBA.O|Walgreens Boots|20240605|-2.368026|0.09372772082112596|1.0198495293711065|185|
|WBA|WBA.O|Walgreens Boots|20240606|-2.356142|0.09325731820721818|1.0147310875674873|185|
|WBA|WBA.O|Walgreens Boots|20240607|-2.35317|0.09313971755374123|1.0134514771165826|185|
|WBA|WBA.O|Walgreens Boots|20240610|-2.368026|0.09372772082112596|1.0198495293711065|185|
|WBA|WBA.O|Walgreens Boots|20240611|-2.366541|0.09366892049438749|1.0192097241456541|185|
|WBA|WBA.O|Walgreens Boots|20240612|-2.308603|0.09137570775158704|0.994257320353011|185|
|WBA|WBA.O|Walgreens Boots|20240613|-2.295233|0.09084650481094078|0.9884990733239394|185|
|WBA|WBA.O|Walgreens Boots|20240614|-2.310088|0.09143450807832551|0.9948971255784634|185|
|WBA|WBA.O|Walgreens Boots|20240617|-2.250665|0.0890824950087866|0.9693049165603678|185|
|WBA|WBA.O|Walgreens Boots|20240618|-2.393281|0.09472732637568|1.030726218203797|185|

2. **Financial Performance and Profitability**:
- Walgreens has a negative net income of $4.04 billion and a negative diluted EPS of $3.3. This indicates that the company is currently unprofitable.
- The company's net margin is -10.82%, which is negative and suggests that Walgreens is not generating profits from its operations.
3. **Cash Flow and Financial Health**:
- Walgreens has a negative free cash flow of $4.04 billion, which is a red flag regarding the company's liquidity and financial stability.
- The company's debt-to-equity ratio is not provided, but a high ratio would suggest a higher financial risk.
4. **Dividend Yield and Analyst Ratings**:
- Walgreens has a dividend yield of 4.44%, which is attractive for income-seeking investors.
- The consensus rating for Walgreens is "Hold", with an average price target of $12.38, indicating a neutral to positive outlook from analysts.
5. **Recent Performance and Market Sentiment**:
- Walgreens' stock has been lagging the S&P 500 in terms of performance, which may reflect market concerns about the company's financial health and profitability.
- The company's stock has recently crossed above the average analyst 12-month target price, which could be a signal to investors about the company's potential for future price appreciation.

In conclusion, while Walgreens has a strong revenue growth rate and a reasonable valuation compared to its sales, the negative net income and diluted EPS, along with the lack of profitability, raise concerns about the company's financial health and ability to generate sustainable profits. The negative free cash flow and the lack of information on the company's debt levels also suggest potential financial risks. However, the high dividend yield and the fact that the stock has crossed above its average analyst target price may attract some investors.