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Walgreens Boots Alliance, Inc. (WBA) Stock Guide

September 19, 2020
55
Bull Case
  • Company’s profitability is improving
  • Forward dividend yield higher than the industry and sector averages
  • Forward P/E ratio low relative to industry peers
  • Forward P/B ratio low relative to industry peers
  • Buy analyst rating
  • Average analyst stock price above current stock price
Bear Case
  • Revenue growth lower than the industry and sector averages
  • Forward P/S ratio high relative to industry peers
  • High short interest
  • Cash/Debt ratio is lower than the industry and sector averages
  • Enterprise Value/Revenue ratio low relative to industry peers

Before we start: if you're looking for WBA stock price, you can quickly find it out by visiting Finny and typing "WBA quote". If you're looking for a quick scoop on WBA stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "WBA". You'll get all this info in one place. Or you can just type "WBA news" to get the latest stock news.

Looking to buy or sell Walgreens Boots Alliance, Inc. (WBA)? Interested in getting the full scoop on WBA, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this WBA stock guide, we'll address key questions about WBA, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are WBA earnings?
2. What is WBA dividend?
3. What is WBA dividend yield?
4. What is WBA stock forecast (i.e., prediction)?
5. WBA buy or sell? What is WBA Finny Score?
6. What are the reasons to buy WBA? Why should I buy WBA stock?
7. What are the reasons to sell WBA? Why should I sell WBA stock?
8. What are WBA key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are WBA earnings?

WBA trailing 12-month earnings per share (EPS) is $0.85.

2. What is WBA dividend?

WBA forward dividend is $1.87.

3. What is WBA dividend yield?

WBA forward dividend yield is 4.92%.

Analyst Predictions

4. What is WBA stock forecast (i.e., prediction)?

Based on WBA analyst price targets, WBA stock forecast is $41.56 (for a year from now). That means the average analyst price target for WBA stock is $41.56. The prediction is based on 24 analyst estimates.

The low price target for WBA is $37.00, while the high price target is $46.00.

WBA analyst rating is Buy.

Analysis

5. WBA buy or sell? What is WBA Finny Score?

Our quantitative analysis shows 6 reasons to buy and 5 reasons to sell WBA, resulting in Finny Score of 55.

6. What are the reasons to buy WBA? Why should I buy WBA stock?

Here are the reasons to buy WBA stock:

  • Walgreens is one of the largest retail pharmacies, with more than 8,100 stores located throughout the U.S. This vast network gives the firm the ability to reach 75% of U.S. consumers, giving it excellent scale and convenience advantages.
  • Pharmaceutical spending will grow solidly during the next several years, given demographic shifts and the expansion of medical insurance coverage to the uninsured, driving demand for Walgreens' core back-of-the-store pharmaceutical products.
  • Recent partnerships have the potential to provide improved results for the retail pharmacy.
  • WBA profitability is improving. The YoY profit margin change was 0.37 percentage points. See WBA profitability chart.
  • WBA forward dividend yield is 4.92%, higher than the industry (0.51%) and sector (0.62%) forward dividend yields. See WBA forward dividend chart.
  • WBA forward P/E ratio is 7.15, which is low compared to its industry peers’ P/E ratios. See WBA forward P/E ratio chart.
  • WBA Price/Book ratio is 1.54, which is low compared to its industry peers’ P/B ratios. See WBA forward Price/Book ratio chart.
  • WBA average analyst rating is Buy. See WBA analyst rating chart.
  • WBA average analyst price target ($41.56) is above its current price ($36.93). See WBA price target chart.

7. What are the reasons to sell WBA? Why should I sell WBA stock?

Let's look at the reasons to sell WBA stock (i.e., the bear case):

  • The confluence of pricing pressure from customers, greater competition from mass grocers and retailers, and heavy dependence on nonpharmaceutical products for profitability has steadily pushed the firm's ROICs downward.
  • Walgreens contends with a payer customer base that has enormous pricing power thanks to the powerful position of major PBMs.
  • The firm has faced increasing and direct competition from mass grocers and retailers. We believe this heightened competition lessens Walgreens' competitive advantages that rely on convenience and mild customer stickiness.
  • WBA quarterly revenue growth was 0.10%, lower than the industry and sector average revenue growth (0.69% and 1.12%, respectively). See WBA revenue growth chart.
  • WBA Price/Sales ratio is 0.23, which is high compared to its industry peers’ P/S ratios. See WBA forward Price/Sales ratio chart.
  • WBA short interest (days to cover the shorts) ratio is 3.16. The stock garners more short interest than the average industry, sector or S&P 500 stock. See WBA short interest ratio chart.
  • WBA cash to debt ratio is 0.02, lower than the average industry (0.11) and sector (0.11) cash to debt ratio. See WBA cash to debt chart.
  • WBA Enterprise Value/Revenue multiple is 0.54, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See WBA Enterprise Value/Revenue chart.

Key Stats

8. What are WBA key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for WBA:

Metrics WBA
Price $37.30
Average Price Target / Upside $40.72 / 9.17%
Average Analyst Rating Buy
Forward Dividend Yield 5.17%
Industry Pharmaceutical Retailers
Sector Consumer Defensive
Number of Employees 354,000
Market Cap $31.12B
Forward P/E Ratio 7.48
Price/Book Ratio 0.22
Revenue (TTM) $138.75B
YoY Quarterly Revenue Growth 0.10%
Profit Margin 0.55%

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