NasdaqGS:WBA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Walgreens Boots Alliance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

WBA

1.8%

US Consumer Retailing

1.3%

US Market


1 Year Return

-27.7%

WBA

17.8%

US Consumer Retailing

5.9%

US Market

Return vs Industry: WBA underperformed the US Consumer Retailing industry which returned 17.8% over the past year.

Return vs Market: WBA underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

WBAIndustryMarket
7 Day2.3%1.8%1.3%
30 Day-3.6%0.8%-1.9%
90 Day-3.3%4.7%-1.8%
1 Year-25.6%-27.7%20.1%17.8%8.3%5.9%
3 Year-25.7%-30.8%57.6%47.6%45.6%36.2%
5 Year-0.2%-10.3%72.1%53.4%66.1%47.9%

Price Volatility Vs. Market

How volatile is Walgreens Boots Alliance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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

Undervalued: WBA ($53.99) is trading below our estimate of fair value ($112.47)

Significantly Undervalued: 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 (10.5x) compared to the Consumer Retailing industry average (20.9x).

PE vs Market: WBA is good value based on its PE Ratio (10.5x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low 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 (2x) compared to the US Consumer Retailing industry average (2x).


Next Steps

Future Growth

How is Walgreens Boots Alliance forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

-1.0%

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 (-1% per year).

Earnings vs Market: WBA's earnings are forecast to decline over the next 3 years (-1% per year).

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

Revenue vs Market: WBA's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WBA's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WBA's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

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

11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WBA's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: WBA's earnings growth over the past year (11.7%) is below its 5-year average (11.8% per year).

Earnings vs Industry: WBA earnings growth over the past year (11.7%) exceeded the Consumer Retailing industry -14.2%.


Return on Equity

High ROE: WBA's Return on Equity (19.3%) is considered low.


Return on Assets

ROA vs Industry: WBA has a higher Return on Assets than the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: WBA has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Walgreens Boots Alliance's financial position?


Financial Position Analysis

Short Term Liabilities: WBA's short term assets ($19.0B) do not cover its short term liabilities ($25.1B)

Long Term Liabilities: WBA's short term assets (19.0B) exceeds its long term liabilities (18.8B)


Debt to Equity History and Analysis

Debt Level: WBA's debt to equity ratio (71.1%) is considered high

Reducing Debt: WBA's debt to equity ratio has increased from 21.1% to 71.1% over the past 5 years.

Debt Coverage: WBA's debt is well covered by operating cash flow (34.3%).

Interest Coverage: WBA's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet

Inventory Level: WBA has a high level of physical assets or inventory.

Debt Coverage by Assets: WBA's debt is covered by short term assets (assets are 1.080180x debt).


Next Steps

Dividend

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

3.39%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WBA's dividend (3.39%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: WBA's dividend (3.39%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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: With its reasonably low payout ratio (34.4%), WBA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WBA's dividends in 3 years are forecast to be well covered by earnings (31.5% payout ratio).


Next Steps

Management

What is the CEO of Walgreens Boots Alliance's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Stefano Pessina (78yo)

4.3yrs

Tenure

US$13,542,260

Compensation

Mr. Stefano Pessina has been an Executive Vice Chairman of Walgreens Boots Alliance, Inc. since January 2015 and has been its Chief Executive Officer since July 9, 2015. Mr. Pessina previously served as Ac ...


CEO Compensation Analysis

Compensation vs. Market: Stefano's total compensation ($USD13.54M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Stefano's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: WBA's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: WBA's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: WBA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$10,868,50516 Aug 19
Marco Patrick Pagni
EntityIndividual
Role
Chief Administrative Officer
Executive VP
Shares215,323
Max PriceUS$51.04
SellUS$1,061,00009 May 19
Marco Patrick Pagni
EntityIndividual
Role
Chief Administrative Officer
Executive VP
Shares20,000
Max PriceUS$53.05
BuyUS$982,08005 Apr 19
Ornella Barra
EntityIndividual
Role
Co-Chief Operating Officer
Co-Chief Operating Officer
Shares18,000
Max PriceUS$54.56
SellUS$555,61123 Nov 18
Nancy Schlichting
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,050
Max PriceUS$78.81
SellUS$298,09002 Nov 18
Kimberly Scardino
EntityIndividual
Shares3,735
Max PriceUS$79.81

Ownership Breakdown


Management Team

  • Jim Skinner (75yo)

    Executive Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$6.81m
  • Stefano Pessina (78yo)

    Executive Vice Chairman & CEO

    • Tenure: 4.3yrs
    • Compensation: US$13.54m
  • Ornella Barra (66yo)

    Co-Chief Operating Officer

    • Tenure: 3.3yrs
    • Compensation: US$6.65m
  • Marco Patrick Pagni (57yo)

    Executive VP

    • Tenure: 3.7yrs
  • Gerald Gradwell

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Alex Gourlay (59yo)

    Co-Chief Operating Officer

    • Tenure: 3.3yrs
    • Compensation: US$6.88m
  • James Kehoe (57yo)

    Executive VP & Global CFO

    • Tenure: 1.3yrs
    • Compensation: US$6.56m
  • Chuck Greener (60yo)

    Senior vice president of global communications & corporate affairs

    • Tenure: 9.8yrs
  • Heather Dixon (47yo)

    Senior VP

    • Tenure: 0.6yrs
  • Francesco Tinto

    Global Chief Information Officer & Senior VP

    • Tenure: 0.08yrs

Board Members

  • Dominic Murphy (52yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$328.95k
  • Jim Skinner (75yo)

    Executive Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$6.81m
  • William Foote (68yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$440.48k
  • Ginger Graham (63yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$342.11k
  • David Brailer (60yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$366.01k
  • Joe Almeida (57yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$199.98k
  • Nancy Schlichting (65yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$409.63k
  • John Lederer (63yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$314.61k
  • Stefano Pessina (78yo)

    Executive Vice Chairman & CEO

    • Tenure: 4.3yrs
    • Compensation: US$13.54m
  • Jan Babiak (61yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$349.93k

Company Information

Walgreens Boots Alliance, Inc.'s company bio, 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$48.761b
  • Shares outstanding: 903.14m
  • Website: https://www.walgreensbootsalliance.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1968
W8ADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
WBA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
WBASWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0LSZLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
WBAWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
WGBA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD0.01BRBRLMay 2019

Biography

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:27
End of Day Share Price2019/10/11 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.