WBA

Walgreens Boots Alliance BASE:WBA Stock Report

Last Price

US$3.16k

Market Cap

US$4.5t

7D

13.1%

1Y

15.6%

Updated

25 Apr, 2022

Data

Company Financials +
WBA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends5/6

WBA Stock Overview

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and beauty retail company.

Walgreens Boots Alliance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Walgreens Boots Alliance
Historical stock prices
Current Share PriceUS$3,162.50
52 Week HighUS$3,994.50
52 Week LowUS$2,552.00
Beta0.55
1 Month Change1.02%
3 Month Change-19.94%
1 Year Change15.63%
3 Year Changen/a
5 Year Changen/a
Change since IPO25.57%

Recent News & Updates

Shareholder Returns

WBAAR Consumer RetailingAR Market
7D13.1%-2.5%0.6%
1Y15.6%6.4%86.8%

Return vs Industry: WBA exceeded the AR Consumer Retailing industry which returned 6.4% over the past year.

Return vs Market: WBA underperformed the AR Market which returned 86.8% over the past year.

Price Volatility

Is WBA's price volatile compared to industry and market?
WBA volatility
WBA Average Weekly Movement6.1%
Consumer Retailing Industry Average Movement4.6%
Market Average Movement5.5%
10% most volatile stocks in AR Market8.0%
10% least volatile stocks in AR Market3.4%

Stable Share Price: WBA is not significantly more volatile than the rest of AR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WBA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1901258,500Roz Brewerhttps://www.walgreensbootsalliance.com

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and beauty retail company. It operates through two segments, the United States and International. The United States segment sells prescription drugs and an assortment of retail products, including health, wellness, beauty, personal care, consumable, and general merchandise products through its retail drugstores.

Walgreens Boots Alliance Fundamentals Summary

How do Walgreens Boots Alliance's earnings and revenue compare to its market cap?
WBA fundamental statistics
Market CapUS$39.34b
Earnings (TTM)US$5.93b
Revenue (TTM)US$135.95b

6.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WBA income statement (TTM)
RevenueUS$135.95b
Cost of RevenueUS$106.01b
Gross ProfitUS$29.94b
Other ExpensesUS$24.01b
EarningsUS$5.93b

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.86
Gross Margin22.02%
Net Profit Margin4.36%
Debt/Equity Ratio42.1%

How did WBA perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is Walgreens Boots Alliance undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WBA (ARS3162.5) is trading below our estimate of fair value (ARS7425.82)

Significantly Below Fair Value: WBA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WBA is good value based on its PE Ratio (6.6x) compared to the South American Consumer Retailing industry average (15.6x).

PE vs Market: WBA is good value based on its PE Ratio (6.6x) compared to the AR market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: WBA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WBA is good value based on its PB Ratio (1.5x) compared to the XS Consumer Retailing industry average (1.6x).


Future Growth

How is Walgreens Boots Alliance forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WBA's earnings are forecast to decline over the next 3 years (-10.1% per year).

Earnings vs Market: WBA's earnings are forecast to decline over the next 3 years (-10.1% per year).

High Growth Earnings: WBA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WBA's revenue (2.5% per year) is forecast to grow slower than the AR market (16.2% per year).

High Growth Revenue: WBA's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WBA's Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has Walgreens Boots Alliance performed over the past 5 years?

-13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WBA has high quality earnings.

Growing Profit Margin: WBA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WBA's earnings have declined by 13.7% per year over the past 5 years.

Accelerating Growth: WBA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WBA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (31.7%).


Return on Equity

High ROE: WBA's Return on Equity (18.2%) is considered low.


Financial Health

How is Walgreens Boots Alliance's financial position?


Financial Position Analysis

Short Term Liabilities: WBA's short term assets ($16.8B) do not cover its short term liabilities ($22.7B).

Long Term Liabilities: WBA's short term assets ($16.8B) do not cover its long term liabilities ($38.3B).


Debt to Equity History and Analysis

Debt Level: WBA's net debt to equity ratio (36.1%) is considered satisfactory.

Reducing Debt: WBA's debt to equity ratio has increased from 28.1% to 42.1% over the past 5 years.

Debt Coverage: WBA's debt is well covered by operating cash flow (38.9%).

Interest Coverage: WBA's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Dividend

What is Walgreens Boots Alliance current dividend yield, its reliability and sustainability?

4.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WBA's dividend (4.21%) is higher than the bottom 25% of dividend payers in the AR market (1.09%).

High Dividend: WBA's dividend (4.21%) is low compared to the top 25% of dividend payers in the AR market (4.92%).


Stability and Growth of Payments

Stable Dividend: WBA's dividends per share have been stable in the past 10 years.

Growing Dividend: WBA's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.7%), WBA's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (45.5%), WBA's dividend payments are well covered by cash flows.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Roz Brewer (59 yo)

1.08yrs

Tenure

US$28,333,498

Compensation

Ms. Rosalind Gates Brewer, also known as Roz, has been Director at Village Practice Management Company, LLC since March 2022. Ms. Brewer has been Chief Executive Officer and Director at Walgreens Boots All...


CEO Compensation Analysis

Compensation vs Market: Roz's total compensation ($USD28.33M) is above average for companies of similar size in the AR market ($USD6.34M).

Compensation vs Earnings: Insufficient data to compare Roz's compensation with company performance.


Leadership Team

Experienced Management: WBA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: WBA's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Walgreens Boots Alliance, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Walgreens Boots Alliance, Inc.
  • Ticker: WBA
  • Exchange: BASE
  • Founded: 1901
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Implied Market Cap: US$39.336b
  • Listing Market Cap: US$4.512t
  • Shares outstanding: 863.77m
  • Website: https://www.walgreensbootsalliance.com

Number of Employees


Location

  • Walgreens Boots Alliance, Inc.
  • 108 Wilmot Road
  • Deerfield
  • Illinois
  • 60015
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/04/25 00:00
End of Day Share Price2022/04/25 00:00
Earnings2022/02/28
Annual Earnings2021/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.