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WBA

Walgreens Boots AllianceNasdaqGS:WBA Stock Report

Market Cap

US$42.5b

7D

-3.2%

1Y

31.0%

Updated

21 Oct, 2021

Data

Company Financials +
WBA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends6/6

WBA Overview

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

Walgreens Boots Alliance Competitors

Rite Aid

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US$770.7m

Amazon.com

NasdaqGS:AMZN

US$1.7t

McDonald's

NYSE:MCD

US$179.0b

TJX Companies

NYSE:TJX

US$76.8b

Price History & Performance

Summary of all time highs, changes and price drops for Walgreens Boots Alliance
Historical stock prices
Current Share PriceUS$49.14
52 Week HighUS$33.36
52 Week LowUS$57.05
Beta0.50
1 Month Change2.33%
3 Month Change5.61%
1 Year Change31.01%
3 Year Change-35.12%
5 Year Change-40.19%
Change since IPO1,542.28%

Recent News & Updates

Oct 19

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.

Oct 07

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.

Sep 21
Walgreens (NASDAQ:WBA) has High Debt, but Here is Why They Can Successfully Manage It

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.

Sep 19

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.

Shareholder Returns

WBAUS Consumer RetailingUS Market
7D-3.2%4.3%3.8%
1Y31.0%11.6%31.5%

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.

Price Volatility

Is WBA's price volatile compared to industry and market?
WBA volatility
WBA Beta0.50
Industry Beta0.62
Market Beta1

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

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$42.54b
Earnings (TTM)US$1.99b
Revenue (TTM)US$132.51b

21.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WBA income statement (TTM)
RevenueUS$132.51b
Cost of RevenueUS$104.44b
Gross ProfitUS$28.07b
ExpensesUS$26.07b
EarningsUS$1.99b

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.30
Gross Margin21.18%
Net Profit Margin1.50%
Debt/Equity Ratio37.3%

How did WBA perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

82%

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 ($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).


Future Growth

How is Walgreens Boots Alliance forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

23.0%

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%).


Past Performance

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

-24.9%

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.


Financial Health

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).


Balance Sheet


Dividend

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

3.89%

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).


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Roz Brewer (59 yo)

0.58

Tenure

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...


Leadership Team

Experienced Management: WBA's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: WBA's board of directors are considered experienced (8 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.


Recent Insider Transactions

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: 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


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 Analysis2021/10/21 22:51
End of Day Share Price2021/10/21 00:00
Earnings2021/08/31
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.