Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and beauty retail company.
No risks detected for WBA from our risk checks.
Walgreens Boots Alliance Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$49.14|
|52 Week High||US$33.36|
|52 Week Low||US$57.05|
|1 Month Change||2.33%|
|3 Month Change||5.61%|
|1 Year Change||31.01%|
|3 Year Change||-35.12%|
|5 Year Change||-40.19%|
|Change since IPO||1,542.28%|
Recent News & Updates
Walgreens Aims For Rapid Growth
Walgreens is becoming a healthcare provider. Guidance for post-2024 is 11% to 13% per year EPS growth. Expanded profits will be dependent on expansion of primary health care offerings.
Walgreens: Good Bye Vs. Good Buy
With 9,000 stores in the US, Walgreens is able to reach 80% of U.S. consumers. Despite its large scale and a variety of cost advantages, the company’s gross margin has declined markedly over the last seven years. Continued reimbursement pressure in the U.S. and UK pharmacy businesses could drive margins lower. Management has a number of initiatives in place, but it remains to be seen if they will prove effective.
Walgreens (NASDAQ:WBA) has High Debt, but Here is Why They Can Successfully Manage It
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a US$42b market cap company with a very stable income. Some investors might be concerned by the debt portfolio of the company, and that is why we will analyze if both sort term and long term debt or liabilities should be a cause for anxiety.
4 Reasons Walgreens Is Set To Soar And Too Cheap To Ignore
There are many investing strategies that disciplined investors can use to get rich on Wall Street. "Catching falling blue-chips with conviction" is my favorite strategy for my retirement portfolio, which has achieved 30% CAGR total returns with modestly growing deep value blue-chips like Walgreens. Today WBA is trading at a 25% discount, just 10.1X earnings, and pricing in 0.8% CAGR growth. Analysts and management expect 4% to 6% long-term growth. WBA is a speculative 11/12 Super SWAN quality aristocrat that could deliver 24% CAGR returns through 2023 and 14% CAGR through 2026, smashing the aristocrats and S&P 500 in the medium-term. Over the long-term WBA is expected to deliver about 8.9% CAGR returns, which is attractive for a future defensive dividend king. WBA is a potential 94% A excellent investment idea for anyone comfortable with its risk profile.
|WBA||US Consumer Retailing||US Market|
Return vs Industry: WBA exceeded the US Consumer Retailing industry which returned 11.6% over the past year.
Return vs Market: WBA matched the US Market which returned 31.5% over the past year.
Stable Share Price: WBA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WBA's weekly volatility (4%) has been stable over the past year.
About the Company
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
|WBA fundamental statistics|
Is WBA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WBA income statement (TTM)|
|Cost of Revenue||US$104.44b|
Last Reported Earnings
Aug 31, 2021
Next Earnings Date
|Earnings per share (EPS)||2.30|
|Net Profit Margin||1.50%|
How did WBA perform over the long term?See historical performance and comparison
3.9%Current Dividend Yield
Is Walgreens Boots Alliance undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WBA ($49.14) is trading below our estimate of fair value ($127.15)
Significantly Below Fair Value: WBA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WBA is poor value based on its PE Ratio (21.3x) compared to the US Consumer Retailing industry average (21.1x).
PE vs Market: WBA is poor value based on its PE Ratio (21.3x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: WBA is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: WBA is good value based on its PB Ratio (1.8x) compared to the US Consumer Retailing industry average (2.3x).
How is Walgreens Boots Alliance forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WBA's forecast earnings growth (23% per year) is above the savings rate (2%).
Earnings vs Market: WBA's earnings (23% per year) are forecast to grow faster than the US market (15% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WBA's revenue (2.7% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: WBA's revenue (2.7% 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 (18.4%).
How has Walgreens Boots Alliance performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WBA has high quality earnings.
Growing Profit Margin: WBA's current net profit margins (1.5%) are higher than last year (0.1%).
Past Earnings Growth Analysis
Earnings Trend: WBA's earnings have declined by 24.9% per year over the past 5 years.
Accelerating Growth: WBA's earnings growth over the past year (1014%) exceeds its 5-year average (-24.9% per year).
Earnings vs Industry: WBA earnings growth over the past year (1014%) exceeded the Consumer Retailing industry 25%.
Return on Equity
High ROE: WBA's Return on Equity (8.1%) is considered low.
How is Walgreens Boots Alliance's financial position?
Financial Position Analysis
Short Term Liabilities: WBA's short term assets ($15.8B) do not cover its short term liabilities ($22.1B).
Long Term Liabilities: WBA's short term assets ($15.8B) do not cover its long term liabilities ($35.1B).
Debt to Equity History and Analysis
Debt Level: WBA's debt to equity ratio (37.3%) is considered satisfactory.
Reducing Debt: WBA's debt to equity ratio has reduced from 37.4% to 37.3% over the past 5 years.
Debt Coverage: WBA's debt is well covered by operating cash flow (61.6%).
Interest Coverage: WBA's interest payments on its debt are well covered by EBIT (8.1x coverage).
What is Walgreens Boots Alliance current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WBA's dividend (3.89%) is higher than the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: WBA's dividend (3.89%) is in the top 25% of dividend payers in the US market (3.48%)
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.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (81.5%), WBA's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WBA's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Roz Brewer (59 yo)
Ms. Rosalind Gates Brewer, also known as Roz, has been Chief Executive Officer and Director at Walgreens Boots Alliance, Inc. since March 15, 2021. She serves as a Member of The Diversified Advisory Group...
Experienced Management: WBA's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.
Experienced Board: WBA's board of directors are considered experienced (8 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Walgreens Boots Alliance, Inc.'s employee growth, exchange listings and data sources
- Name: Walgreens Boots Alliance, Inc.
- Ticker: WBA
- Exchange: NasdaqGS
- Founded: 1901
- Industry: Drug Retail
- Sector: Consumer Retailing
- Market Cap: US$42.536b
- Shares outstanding: 865.61m
- Website: https://www.walgreensbootsalliance.com
Number of Employees
- Walgreens Boots Alliance, Inc.
- 108 Wilmot Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/21 22:51|
|End of Day Share Price||2021/10/21 00:00|
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.