Price to Operating Profit (P/OP)
since 2005
Calculation
Walgreens Boots Alliance Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 28, 2019 | 9.96 | = | 55.80 | ÷ | 5.60 | 5.60 | = | 4,998 | ÷ | 892,541,146 | |
| Oct 11, 2018 | 10.49 | = | 70.90 | ÷ | 6.76 | 6.76 | = | 6,414 | ÷ | 949,164,514 | |
| Oct 25, 2017 | 12.60 | = | 69.36 | ÷ | 5.50 | 5.50 | = | 5,557 | ÷ | 1,009,549,218 | |
| Oct 20, 2016 | 14.63 | = | 81.02 | ÷ | 5.54 | 5.54 | = | 6,001 | ÷ | 1,083,282,661 | |
| Oct 28, 2015 | 19.81 | = | 84.95 | ÷ | 4.29 | 4.29 | = | 4,668 | ÷ | 1,088,793,571 | |
| Oct 20, 2014 | 13.64 | = | 60.20 | ÷ | 4.41 | 4.41 | = | 4,194 | ÷ | 950,386,889 | |
| Oct 21, 2013 | 14.03 | = | 58.38 | ÷ | 4.16 | 4.16 | = | 3,940 | ÷ | 946,595,578 | |
| Oct 19, 2012 | 9.75 | = | 35.79 | ÷ | 3.67 | 3.67 | = | 3,464 | ÷ | 944,055,334 | |
| Oct 25, 2011 | 6.89 | = | 33.82 | ÷ | 4.91 | 4.91 | = | 4,365 | ÷ | 889,294,130 | |
| Oct 26, 2010 | 9.18 | = | 34.14 | ÷ | 3.72 | 3.72 | = | 3,458 | ÷ | 929,744,049 | |
| Oct 26, 2009 | 11.85 | = | 38.90 | ÷ | 3.28 | 3.28 | = | 3,247 | ÷ | 988,826,319 | |
| Oct 30, 2008 | 7.25 | = | 25.20 | ÷ | 3.48 | 3.48 | = | 3,441 | ÷ | 989,364,303 | |
| Oct 26, 2007 | 12.65 | = | 40.18 | ÷ | 3.18 | 3.18 | = | 3,151 | ÷ | 991,615,851 | |
| Nov 7, 2006 | 16.20 | = | 43.61 | ÷ | 2.69 | 2.69 | = | 2,702 | ÷ | 1,003,442,336 | |
| Nov 4, 2005 | 19.24 | = | 46.09 | ÷ | 2.40 | 2.40 | = | 2,424 | ÷ | 1,012,080,363 |
Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Walgreens Boots Alliance Inc. Annual Report.
The analyzed financial data reveals several trends over the observed periods. The share price exhibited significant variability, initially declining from approximately 46.09 US dollars in late 2005 to a low of 25.2 US dollars in 2008. Subsequently, the share price experienced a recovery, peaking near 84.95 US dollars in 2015 before generally declining in the latter years to 55.8 US dollars by late 2019.
Operating profit per share generally demonstrated an upward trend across the timeline. It rose steadily from 2.4 US dollars in 2005 to a peak of 6.76 US dollars in 2018, with minor fluctuations along the way. This indicates an overall improvement in profitability per share, despite intermittent decreases in some years.
The price-to-operating-profit (P/OP) ratio fluctuated considerably during the same period. Starting near 19.24 in 2005, it dropped to a low of 6.89 in 2011, suggesting periods where the share price was relatively low compared to operating profit, potentially indicating undervaluation or higher earnings. After 2011, the ratio increased, peaking near 19.81 in 2015, coinciding with the share price peak and a stable operating profit, and then declined steadily to below 10 by 2019. This decline in the P/OP ratio towards the end of the period reflects a lower market valuation relative to operating profit.
Overall, the data suggest that despite fluctuations in market valuation as reflected by the share price and P/OP ratio, the operating profit per share consistently improved, indicating strengthening operational performance over the observed years.
Comparison to Competitors
Walgreens Boots Alliance Inc., P/OP, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Oct 28, 2019 | 9.96 | 27.62 | 9.69 | 12.70 |
| Oct 11, 2018 | 10.49 | 21.34 | 8.83 | 12.85 |
| Oct 25, 2017 | 12.60 | 16.75 | 6.12 | 9.61 |
| Oct 20, 2016 | 14.63 | 17.91 | 8.88 | 8.97 |
| Oct 28, 2015 | 19.81 | 18.09 | 11.20 | 9.59 |
| Oct 20, 2014 | 13.64 | 16.90 | 8.89 | 9.15 |
| Oct 21, 2013 | 14.03 | 16.80 | 8.18 | 8.85 |
| Oct 19, 2012 | 9.75 | 14.86 | 7.38 | 7.83 |
| Oct 25, 2011 | 6.89 | 14.53 | 6.80 | 7.16 |
| Oct 26, 2010 | 9.18 | 13.16 | 8.40 | 8.78 |
| Oct 26, 2009 | 11.85 | 14.35 | 5.12 | 9.07 |
| Oct 30, 2008 | 7.25 | 12.67 | 7.80 | 9.47 |
| Oct 26, 2007 | 12.65 | 17.49 | 10.09 | 9.56 |
| Nov 7, 2006 | 16.20 | 15.05 | 10.40 | 10.81 |
| Nov 4, 2005 | 19.24 | 16.03 | 12.23 | 12.41 |
Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).