Walgreens Boots Alliance Inc
NASDAQ:WBA
Intrinsic Value
Walgreens Boots Alliance, Inc. engages in the provision of drug store services. [ Read More ]
The intrinsic value of one
WBA
stock under the Base Case scenario is
48.96
USD.
Compared to the current market price of 18.22 USD,
Walgreens Boots Alliance Inc
is
Undervalued by 63%.
WBA could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Walgreens Boots Alliance Inc's market capitalization is 15.7B USD.
WBA stock price is 18.22 USD.
WBA stock price (18.22 USD) is 63% less than its Intrinsic Value (48.96 USD).
WBA has upside potential of 27% compared to the average analyst price target.
Open Wall St Estimates
WBA's Revenue has been growing by 3% per year for the last 3 years.
WBA's Revenue has grown by 8% over the past 12 months.
WBA's Revenue is forecast to grow at a rate of 4% per year over the next 3 years.
WBA's ROIC (Return on Invested Capital) has decreased in the last 3 years from 5% to 2%.
WBA has negative Free Cash Flow for the last twelve months.
WBA's long-term assets (84B USD) exceed its long-term liabilties (71B USD).
WBA's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 2%.
WBA has positive Gross Profit for the last twelve months.
WBA's Altman Z-Score is equal to 2.26.
WBA has positive Operating Income for the last twelve months.
WBA has negative Net Income for the last twelve months.
WBA has a very low three-year average ROIC (Return on Invested Capital): 3%. The company is not efficient at using invested capital to generate operating income.
WBA has a very low three-year average ROE (Return on Equity): 2%. The company is not efficient at transforming stockholders' equity into net income.
WBA's ROE (Return on Equity) has significantly decreased in the last 3 years from -3% to -35%, and is approaching profitability.
WBA's D/E (Debt to Equity) is very low and is equal to 0.63.
WBA's short-term liabilties (25B USD) exceed its short-term assets (17B USD).
WBA's ROE (Return on Equity) for the past 12 months is negative and is equal to -35%.
WBA has positive Net Debt. This means that the company has more debt (8B USD) than cash and short-term investments (668m USD).
WBA generates enough operating income (2B USD) to cover interest payments on its debt (619m USD).
Valuation Backtest
Walgreens Boots Alliance Inc
Run backtest to discover the historical profit from buying and selling
WBA
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Walgreens Boots Alliance Inc
Balance Sheet Decomposition
Walgreens Boots Alliance Inc
| Current Assets | 16.6B |
| Cash & Short-Term Investments | 668m |
| Receivables | 6.2B |
| Other Current Assets | 9.7B |
| Non-Current Assets | 67.6B |
| Long-Term Investments | 3.3B |
| PP&E | 31.5B |
| Intangibles | 28.8B |
| Other Non-Current Assets | 4.1B |
| Current Liabilities | 24.9B |
| Accounts Payable | 12.8B |
| Accrued Liabilities | 9.8B |
| Other Current Liabilities | 2.3B |
| Non-Current Liabilities | 45.8B |
| Long-Term Debt | 8.5B |
| Other Non-Current Liabilities | 37.3B |
Earnings Waterfall
Walgreens Boots Alliance Inc
|
Revenue
|
144.6B
USD
|
|
Cost of Revenue
|
-117.8B
USD
|
|
Gross Profit
|
26.8B
USD
|
|
Operating Expenses
|
-24.9B
USD
|
|
Operating Income
|
2B
USD
|
|
Other Expenses
|
-8B
USD
|
|
Net Income
|
-6B
USD
|
Free Cash Flow Analysis
Walgreens Boots Alliance Inc
What is Free Cash Flow?
WBA Profitability Score
Profitability Due Diligence
Walgreens Boots Alliance Inc's profitability score is 40/100. The higher the profitability score, the more profitable the company is.
Score
Walgreens Boots Alliance Inc's profitability score is 40/100. The higher the profitability score, the more profitable the company is.
WBA Solvency Score
Solvency Due Diligence
Walgreens Boots Alliance Inc's solvency score is 35/100. The higher the solvency score, the more solvent the company is.
Score
Walgreens Boots Alliance Inc's solvency score is 35/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
WBA Price Targets Summary
Walgreens Boots Alliance Inc
According to Wall Street analysts, the average 1-year price target for
WBA
is 23.16 USD
with a low forecast of 18.18 USD and a high forecast of 36.75 USD.
Ownership
WBA Insider Trading
Buy and sell transactions by insiders
| Period | Sold | Bought | Net |
|---|---|---|---|
| 3 Months |
|
|
|
| 6 Months |
|
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| 9 Months |
|
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| 12 Months |
|
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Shareholder Return
WBA Price
Walgreens Boots Alliance Inc
| Average Annual Return | -1.64% |
| Standard Deviation of Annual Returns | 30% |
| Max Drawdown | -67% |
| Market Capitalization | 15.7B USD |
| Shares Outstanding | 862 376 000 |
| Percentage of Shares Shorted | 5.6% |
WBA News
Last Important Events
Walgreens Boots Alliance Inc
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
Walgreens Boots Alliance Inc
Company Profile
Walgreens Boots Alliance Inc
Country
Industry
Market Cap
Dividend Yield
Description
Walgreens Boots Alliance, Inc. engages in the provision of drug store services. The company is headquartered in Deerfield, Illinois and currently employs 202,000 full-time employees. The company went IPO on 2014-12-31. The firm operates through three segments: Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Retail Pharmacy USA segment consists of the Walgreen Co. (Walgreens) business, which includes the operation of retail drugstores, care clinics and providing specialty pharmacy services. The Retail Pharmacy International segment consists primarily of the pharmacy-led health and beauty retail businesses and optical practices. The Pharmaceutical Wholesale segment consists of equity method investment in AmerisourceBergen. The firm's portfolio of retail and business brands includes Walgreens, Duane Reade, Boots, as well as global health and beauty product brands, including No7, NICE!, Soap & Glory, Liz Earle, Finest Nutrition, Botanics, Well Beginnings, Sleek MakeUP and YourGoodSkin.
Contact
IPO
Employees
Officers
The intrinsic value of one
WBA
stock under the Base Case scenario is
48.96
USD.
Compared to the current market price of 18.22 USD,
Walgreens Boots Alliance Inc
is
Undervalued by 63%.
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