Walgreens Beneish M Score

WBA
 Stock
  

USD 38.99  0.01  0.0257%   

This module uses fundamental data of Walgreens Boots to approximate the value of its Beneish M Score. Walgreens Boots M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Walgreens Boots Piotroski F Score and Walgreens Boots Altman Z Score analysis.
  
The current year Total Debt is expected to grow to about 18.5 B. The current year Debt Current is expected to grow to about 363.6 M. Walgreens Boots Interest Coverage is projected to drop slightly based on the last few years of reporting. The past year's Interest Coverage was at 4.42. The current year Long Term Debt to Equity is expected to grow to 0.34, whereas PPandE Turnover is forecasted to decline to 8.73.
At this time, it appears that Walgreens Boots Alliance is an unlikely manipulator. The earnings manipulation may begin if Walgreens Boots' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Walgreens Boots executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Walgreens Boots' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.4
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.16Focus
Asset Quality0.94Focus
Expense Coverage0.85Focus
Gross Margin Strengs1.11Focus
Accruals Factor0.85Focus
Depreciation Resistance0.8Focus
Net Sales Growth0.93Focus
Financial Leverage Condition1.0Focus

Walgreens Boots Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Walgreens Boots' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues111 B119.3 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense17 B21.5 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations5.2 BB
Sufficiently Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion1.7 B1.5 B
Significantly Up
Increasing
Slightly volatile
Total Assets67.3 B73.2 B
Significantly Down
Increasing
Slightly volatile
Investments4.6 B5.6 B
Significantly Down
Increasing
Stable
Investments Current434.7 M450 M
Sufficiently Down
Decreasing
Slightly volatile
Investments Non Current5.7 B5.6 B
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net10.7 B12.9 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables6.1 B5.6 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities45.4 B52.1 B
Fairly Down
Increasing
Slightly volatile
Current Assets20.4 B18.2 B
Moderately Up
Decreasing
Slightly volatile
Assets Non Current45.5 B42.1 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities18.7 B19.8 B
Notably Down
Increasing
Slightly volatile
Liabilities Non Current24.7 B22.9 B
Significantly Up
Increasing
Slightly volatile
Total Debt18.5 B17.1 B
Significantly Up
Increasing
Slightly volatile
Debt Current363.6 M290.7 M
Significantly Up
Decreasing
Slightly volatile
Debt Non Current18.2 B16.8 B
Significantly Up
Increasing
Slightly volatile
Operating Income4.6 BB
Fairly Up
Decreasing
Slightly volatile
Gross Margin27.024.36
Significantly Up
Decreasing
Stable

Walgreens Boots Alliance Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Walgreens Boots' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Walgreens Boots in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Walgreens Boots' degree of accounting gimmicks and manipulations.

About Walgreens Boots Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

16.97 Billion

Walgreens Boots Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 21.49 Billion

Walgreens Boots Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Walgreens Boots. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues131.54 B136.87 B139.54 B132.51 B119.26 B111.03 B
Total Assets68.12 B67.6 B87.17 B81.28 B73.16 B67.27 B
Current Assets17.85 B18.7 B18.07 B15.81 B18.19 B20.36 B
Total Liabilities42.12 B44.09 B66.54 B57.87 B52.08 B45.43 B
Current Liabilities21.67 B25.77 B27.07 B22.05 B19.85 B18.69 B
Operating Income6.22 B4.83 B972 M3.48 B4 B4.64 B
Gross Margin23.4121.9720.0821.1824.3627.0

Walgreens Boots ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Walgreens Boots' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Walgreens Boots' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Walgreens Boots Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Walgreens Boots Alliance's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Walgreens Boots using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Walgreens Boots Alliance based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and beauty retail company. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois. Walgreens Boots operates under Pharmaceutical Retailers classification in the United States and is traded on NASDAQ Exchange. It employs 315000 people.

Walgreens Boots Investors Sentiment

The influence of Walgreens Boots' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Walgreens. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Walgreens Boots' public news can be used to forecast risks associated with investment in Walgreens. The trend in average sentiment can be used to explain how an investor holding Walgreens can time the market purely based on public headlines and social activities around Walgreens Boots Alliance. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Walgreens Boots' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Walgreens Boots' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Walgreens Boots' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Walgreens Boots.

Walgreens Boots Implied Volatility

    
  24.46  
Walgreens Boots' implied volatility exposes the market's sentiment of Walgreens Boots Alliance stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Walgreens Boots' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Walgreens Boots stock will not fluctuate a lot when Walgreens Boots' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Walgreens Boots in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Walgreens Boots' short interest history, or implied volatility extrapolated from Walgreens Boots options trading.

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Check out Walgreens Boots Piotroski F Score and Walgreens Boots Altman Z Score analysis. 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 Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

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When running Walgreens Boots Alliance 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 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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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 YOY
-0.76
Market Capitalization
33.7 B
Quarterly Revenue Growth YOY
-0.042
Return On Assets
0.0195
Return On Equity
0.18
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 Walgreens Boots value 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.