Thinking of Investing in WBA? What Our Analysts Know.

Now trading at a price of $35.3, Walgreens Boots Alliance has moved -1.4% so far today.

Walgreens Boots Alliance shares moved -19.6% over the last 52 weeks, with a high of $47.28 and a low of $30.39. During this time, the stock lagged the S&P 500 index by -14.0%. As of January 2022, the company's 50-day average price is $35.16. Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and beauty retail company. The large-cap Consumer Staples company has 200,000 full time employees and is based in Deerfield, IL. Walgreens Boots Alliance has returned a 5.4% dividend yield over the last 12 months.

The Company Has a Steady Stream of Positive Cash Flows:

2019-08-31 2020-08-31 2021-08-31 2022-08-31
Revenue (MM) $136,866 $139,537 $132,509 $132,703
Revenue Growth n/a 1.95% -5.04% 0.15%
Gross Margins 22.0% 20.1% 21.2% 21.3%
Gross Margins Growth n/a -8.64% 5.47% 0.47%
Operating Margins 3.5% 0.7% 2.6% 0.7%
Operating Margins Growth n/a -80.0% 271.43% -73.08%
Net Margins 2.91% 0.33% 1.92% 3.27%
Net Margins Growth n/a -88.66% 481.82% 70.31%
Earnings Per Share $4.31 $0.52 $2.93 -$3.65
EPS Growth n/a -87.94% 463.46% -224.57%
Diluted Shares (MM) 924 880 866 863
Free Cash Flow (MM) $3,892 $4,110 $4,176 $2,165
FCF Growth n/a 5.6% 1.61% -48.16%
Capital Expenditures (MM) -$1,702 -$1,374 -$1,379 -$1,734
Net Debt / EBITDA 2.18 4.6 1.43 1.62

Walgreens Boots Alliance has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. But based on its EPS guidance of 4.81, the company has a forward P/E ratio of 7.3. In contrast, the Consumer Staples sector's average P/E ratio is 24.36.

On the other hand, Walgreens Boots Alliance is possibly undervalued in terms of its net assets because its P/B ratio is 1.4 compared to its sector average of 4.29.

Walgreens Boots Alliance Is the Subject of Mixed Market Indicators:

14 analysts are following Walgreens Boots Alliance and have set target prices ranging from $35.0 to $54.0 per share. On average, they have given the company a rating of hold. At the current price of $35.3, WBA is trading -12.87% away from its average analyst target price of $40.51 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 4.3% of the company's shares are tied to short positions. Institutions own 61.7% of Walgreens Boots Alliance's shares, while the insider ownership rate stands at 17.18%. The biggest shareholder is the Vanguard Group, Inc. with a 7% stake in the company worth approximately $2,171,347,122.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.