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Walgreens Boots Alliance Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Walgreens Boots Alliance has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Walgreens Boots Alliance's Piotroski F-Score or its related term are showing as below:

WBA' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of Walgreens Boots Alliance was 9. The lowest was 1. And the median was 6.


Walgreens Boots Alliance Piotroski F-Score Historical Data

The historical data trend for Walgreens Boots Alliance's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Walgreens Boots Alliance Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 6.00 5.00 8.00

Walgreens Boots Alliance Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 8.00 7.00 7.00 6.00

Competitive Comparison

For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Walgreens Boots Alliance Piotroski F-Score Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Walgreens Boots Alliance's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (May22) TTM:Last Year (May21) TTM:
Net Income was 627 + 3580 + 883 + 289 = $5,379 Mil.
Cash Flow from Operations was 1245 + 1099 + 1085 + 1629 = $5,058 Mil.
Revenue was 34262 + 33901 + 33756 + 32597 = $134,516 Mil.
Gross Profit was 7503 + 7574 + 7708 + 6572 = $29,357 Mil.
Average Total Assets from the begining of this year (May21)
to the end of this year (May22) was
(91920 + 81285 + 96507 + 92683 + 92759) / 5 = $91030.8 Mil.
Total Assets at the begining of this year (May21) was $91,920 Mil.
Long-Term Debt & Capital Lease Obligation was $32,220 Mil.
Total Current Assets was $18,872 Mil.
Total Current Liabilities was $24,067 Mil.
Net Income was 373 + -308 + 1026 + 1197 = $2,288 Mil.

Revenue was 30370 + 31438 + 32779 + 34030 = $128,617 Mil.
Gross Profit was 6325 + 6630 + 6781 + 7153 = $26,889 Mil.
Average Total Assets from the begining of last year (May20)
to the end of last year (May21) was
(86444 + 87174 + 89167 + 90920 + 91920) / 5 = $89125 Mil.
Total Assets at the begining of last year (May20) was $86,444 Mil.
Long-Term Debt & Capital Lease Obligation was $29,820 Mil.
Total Current Assets was $26,607 Mil.
Total Current Liabilities was $34,475 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Walgreens Boots Alliance's current Net Income (TTM) was 5,379. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Walgreens Boots Alliance's current Cash Flow from Operations (TTM) was 5,058. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (May21)
=5379/91920
=0.05851828

ROA (Last Year)=Net Income/Total Assets (May20)
=2288/86444
=0.026468

Walgreens Boots Alliance's return on assets of this year was 0.05851828. Walgreens Boots Alliance's return on assets of last year was 0.026468. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Walgreens Boots Alliance's current Net Income (TTM) was 5,379. Walgreens Boots Alliance's current Cash Flow from Operations (TTM) was 5,058. ==> 5,058 <= 5,379 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: May22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from May21 to May22
=32220/91030.8
=0.35394614

Gearing (Last Year: May21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from May20 to May21
=29820/89125
=0.33458626

Walgreens Boots Alliance's gearing of this year was 0.35394614. Walgreens Boots Alliance's gearing of last year was 0.33458626. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: May22)=Total Current Assets/Total Current Liabilities
=18872/24067
=0.78414426

Current Ratio (Last Year: May21)=Total Current Assets/Total Current Liabilities
=26607/34475
=0.77177665

Walgreens Boots Alliance's current ratio of this year was 0.78414426. Walgreens Boots Alliance's current ratio of last year was 0.77177665. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Walgreens Boots Alliance's number of shares in issue this year was 865.3. Walgreens Boots Alliance's number of shares in issue last year was 867. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=29357/134516
=0.2182417

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=26889/128617
=0.20906257

Walgreens Boots Alliance's gross margin of this year was 0.2182417. Walgreens Boots Alliance's gross margin of last year was 0.20906257. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (May21)
=134516/91920
=1.46340296

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (May20)
=128617/86444
=1.48786498

Walgreens Boots Alliance's asset turnover of this year was 1.46340296. Walgreens Boots Alliance's asset turnover of last year was 1.48786498. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+1+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Walgreens Boots Alliance has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Walgreens Boots Alliance  (NAS:WBA) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Walgreens Boots Alliance Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Walgreens Boots Alliance's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Walgreens Boots Alliance Business Description

Walgreens Boots Alliance logo
Address
108 Wilmot Road, Deerfield, IL, USA, 60015
Walgreens Boots Alliance is a leading retail pharmacy chain, with over 13,000 stores in 50 states and 9 countries. 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 market share of the domestic prescription drug market at about 20%. In 2021, the company sold off 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 Drugstores (40%).
Executives
Shulman Steven J director 1564 NE EXPRESSWAY ATTN: BJ PURCELL ATLANTA GA 30329
May Holly officer: EVP, Global Chief HR Officer 6301 FITCH PATH NEW ALBANY OH 43054
Gray Danielle officer: EVP and Global CLO C/O WALGREENS BOOTS ALLIANCE, INC. 108 WILMOT ROAD DEERFIELD IL 60015
Mahajan Manmohan officer: SVP, Global Controller and CAO C/O WALGREENS BOOTS ALLIANCE, INC. 108 WILMOT ROAD DEERFIELD IL 60015
Brewer Rosalind G director, officer: CEO C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202
Puryear Pamela officer: EVP and Global Chief HRO 253 DOLPHIN COVE QUAY STAMFORD CT 06902
Jarrett Valerie B director USG CORPORATION 125 SOUTH FRANKLIN STREET CHICAGO IL 60606
Standley John T officer: EVP and President, Walgreen Co
Ashworth Richard M officer: SVP, President of Walgreen Co. 200 WILMOT ROAD DEERFIELD IL 60015
Dixon Heather Brianne officer: SVP, Global Controller and CAO AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Kehoe James officer: EVP and Global CFO KRAFT FOODS GROUP, INC. THREE LAKES DRIVE NORTHFIELD IL 60093
Almeida Jose E director ONE BAXTER PARKWAY DEERFIELD IL 60015
Roberts Simon John officer: EVP and President, Boots SEDLEY PLACE, 4TH FLOOR 361 OXFORD STREET LONDON X0 W1C 2LJ
Rosenstein Barry director C/O JANA PARTNERS LLC 767 FIFTH AVENUE, 8TH FLOOR NEW YORK NY 10153
Jana Partners Llc director 767 FIFTH AVENUE 8TH FLOOR NEW YORK NY 10153

Walgreens Boots Alliance Headlines

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