This report analyses the financial performance of Walgreens Boots for the 2019. You will find all the necessary details regarding company's profitability, volume growth, indebtedness and a comparison with selected peers.
Walgreens Boots announced a net profit of USD 3,703 mil in 2019, down 30.5% when compared to the last year. Sales increased 2.1% yoy to USD 137,412 mil, EBITDA fell 8.53% to USD 7,312 mil and net margin amounted to 2.69%. Walgreens Boots stock depreciated 23.1% in 2019 to USD 49.8 per share and the stock traded at 12-month trailing PE of 11.6 and EV/EBITDA of 11.9x at the end of 2019.
The key highlights are:
Sales increased 2.10% yoy to USD 137,412 mil in 2019. That’s compared to average growth of 5.56% in the last three years and 7.81% when compared to the average annual increase in the last decade.
EBITDA amounted to USD 7,312 mil and fell -8.53% when compared to last year. EBITDA margin reached 5.32%, down 0.840 pp when compared to 5-year average.
Company’s indebtedness rose when measured by Net Debt/Equity and reached 170% at the end of the year. When compared to EBITDA, net debt rose to 5.64x.
Walgreens Boots netted USD 3,703 mil to its shareholders in the last year, down 13.8% when compared to the average seen in the last five years. The company produced a return on capital of 5.83% and return on equity of 14.6% in the last year.
Walgreens Boots stock traded at USD 49.8 per share at the end of 2019 implying a market capitalization of USD 45,835 mil and enterprise value of USD 87,079 mil. This puts the stock at the 12-month trailing price to earnings of 11.6x and EV/EBITDA of 11.9x as of the end of 2019. Over the last five years, the stock price has decreased by 1.2% a year on average and the firm generated its shareholders an average return on equity of 15.8%.
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