Walgreens Boots Alliance Inc
Exchange: NASDAQSector: Consumer DefensiveIndustry: Pharmaceutical Retailers
Founded in 1901, Walgreens ( www.walgreens.com ) has a storied heritage of caring for communities for generations, and proudly serves nearly 9 million customers and patients each day across its approximately 8,500 stores throughout the U.S. and Puerto Rico, and leading omni-channel platforms. Walgreens has approximately 220,000 team members, including nearly 90,000 healthcare service providers, and is committed to being the first choice for retail pharmacy and health services, building trusted relationships that create healthier futures for customers, patients, team members and communities. Walgreens is the flagship U.S. brand of Walgreens Boots Alliance, Inc., an integrated healthcare, pharmacy and retail leader. Its retail locations are a critical point of access and convenience in thousands of communities, with Walgreens pharmacists playing a greater role as part of the healthcare system and patients’ care teams than ever before. Walgreens Specialty Pharmacy provides critical care and pharmacy services to millions of patients with rare disease states and complex, chronic conditions.
Did you know?
Earnings per share grew at a -3.6% CAGR.
Current Price
$11.98
+0.00%GoodMoat Value
$369.25
2982.3% undervaluedProfile
Valuation (TTM)
Market Cap$10.36B
P/E-1.64
EV$38.56B
P/B0.99
Shares Out864.74M
P/Sales0.07
Revenue$154.58B
EV/EBITDA—
Walgreens Boots Alliance Inc (WBA) Stock Analysis
GoodMoat Analysis
Walgreens Boots Alliance is a global pharmaceutical retailer facing severe financial distress, with negative profitability and a high debt load. The provided GoodMoat Target of $369.25 is an extreme outlier that cannot be reconciled with the current data, suggesting a critical error. The stock fails the initial quality gate of the investment framework.
Read full analysis
Walgreens Boots Alliance (WBA) operates a global chain of pharmacy-led health and beauty retail stores. Applying the GoodMoat framework, the business fails the initial Moat & Quality Gate (Step 1 of the Decision Framework) and does not qualify for valuation analysis. The financial data shows multiple critical weaknesses: a negative ROE of -60.3%, a negative operating margin of -9.5%, and a debt-to-equity ratio of 3.15, which indicates a highly leveraged balance sheet. The negative free cash flow yield of -3.5% and negative EPS of -$10.01 further confirm the company is not generating quality owner earnings. A high dividend yield of 12.16% under these conditions is unsustainable and a potential red flag. The provided GoodMoat Target price of $369.25, implying a 30x upside from the current $11.98, is an extraordinary outlier that contradicts all standard valuation metrics and the company's distressed financial profile. This discrepancy is so severe it invalidates the target for analytical purposes. For a value investor, the fundamental picture is unfavourable, as the company lacks the financial strength and quality indicators required to proceed with a moat-based assessment. The extreme valuation signal should be treated as a data anomaly rather than an investment thesis. Analysis based on data as of 2024-05-15.
Market Cap$10.36B
Current Price$11.98
P/E Ratio-1.64
Forward P/E—
PEG Ratio0.01
EPS$-10.01
Book Value$12.08
P/B Ratio0.99
WBA Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 31.5B
Revenue
131.5B
FY18
120.1B
FY19
122.0B
FY20
132.5B
FY21
132.7B
FY22
139.1B
FY23
147.7B
FY24
Net Income
5.0B
FY18
4.0B
FY19
456M
FY20
2.5B
FY21
4.3B
FY22
—
FY23
—
FY24
WBA 52-Week Range
$10.99
$12.20
50-Day MA: $11.67200-Day MA: —
Did you know?
Earnings per share grew at a -3.6% CAGR.
Walgreens Boots Alliance Inc (WBA) Financial Summary
Walgreens Boots Alliance Inc (WBA) is a Consumer Defensive company in the Pharmaceutical Retailers industry, listed on NASDAQ. The stock currently trades at $11.98 with a market capitalization of $10.36B.
Key valuation metrics include a P/E ratio of -1.64, price-to-book ratio of 0.99, and EPS of $-10.01. The company reports a profit margin of -4.1% and return on equity of -60.3%.
WBA Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $10.36B |
| P/E Ratio | -1.64 |
| EPS | $-10.01 |
| P/B Ratio | 0.99 |
| P/S Ratio | 0.07 |
| Dividend Yield | 12.16% |
| Profit Margin | -4.1% |
| Return on Equity | -60.3% |
| Debt/Equity | 3.15 |
WBA Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY18 | $131.54B | $5.02B |
| FY19 | $120.07B | $3.98B |
| FY20 | $121.98B | $456.00M |
| FY21 | $132.51B | $2.54B |
| FY22 | $132.70B | $4.34B |
| FY23 | $139.08B | $-3.08B |
| FY24 | $147.66B | $-8.64B |
Walgreens Boots Alliance Inc (WBA) Valuation
Based on GoodMoat's DCF model, Walgreens Boots Alliance Inc has a fair value estimate of $369.25. At the current price of $11.98, the stock appears 96.8% undervalued relative to our intrinsic value estimate.
WBA Quality Indicators
Walgreens Boots Alliance Inc maintains a profit margin of -4.1% and an operating margin of -9.5%. Return on equity stands at -60.3%. The current ratio is 0.68. Debt-to-equity ratio is 3.15.
About Walgreens Boots Alliance Inc
Founded in 1901, Walgreens ( www.walgreens.com ) has a storied heritage of caring for communities for generations, and proudly serves nearly 9 million customers and patients each day across its approximately 8,500 stores throughout the U.S. and Puerto Rico, and leading omni-channel platforms. Walgreens has approximately 220,000 team members, including nearly 90,000 healthcare service providers, and is committed to being the first choice for retail pharmacy and health services, building trusted relationships that create healthier futures for customers, patients, team members and communities. Walgreens is the flagship U.S. brand of Walgreens Boots Alliance, Inc., an integrated healthcare, pharmacy and retail leader. Its retail locations are a critical point of access and convenience in thousands of communities, with Walgreens pharmacists playing a greater role as part of the healthcare system and patients’ care teams than ever before. Walgreens Specialty Pharmacy provides critical care and pharmacy services to millions of patients with rare disease states and complex, chronic conditions.
WBA Free Cash Flow
Walgreens Boots Alliance Inc generated $-363.00M in trailing twelve-month free cash flow, representing an FCF yield of -3.50%. This low FCF yield may reflect heavy reinvestment or growth spending.
WBA Shares Outstanding
Walgreens Boots Alliance Inc has 0.86 billion shares outstanding at a share price of $11.98, giving it a market capitalization of $10.36B.