Home Sectors Consumer Defensive Stock Analysis: Walgreens Boots Alliance (NASDAQ: WBA)

Stock Analysis: Walgreens Boots Alliance (NASDAQ: WBA)


Walgreens Boots Alliance is part of the consumer defensive sector and is in the retail defensive industry. The company CEO is Stefano Pessina. Walgreens Boots Alliance Inc is a pharmacy led health and wellbeing company. It operates retail pharmacy store chain in the United States. The firm sells and markets its products under brands such as Walgreens, Duane Reade, Boots and Alliance Healthcare.

Previous Intraday Trading Performance:

The WBA stock showed a previous change of 0.50% with an open at 70.25 and a close of 70.47. It reached an intraday high of 70.54 and a low of 70.03.

SeekingAlpha:  FDA to bar certain Walgreens and Circle Ks from selling tobacco products


The stock has a market cap of $66.5b with 943.4m shares outstanding, of which the float is 935.0m shares. Trading volume reached 3,350,732 shares compared to its average volume of 5,138,478 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Walgreens Boots Alliance shares returned -1.18% and in the past 30 trading days it returned 3.56%. Over three months, it changed -13.86%. In one year it has changed 5.41% and within that year its 52-week high was 86.31 and its 52-week low was 59.07. WBA stock is 19.30% above its 52 Week Low.

Our calculations show a 200 day moving average of 70.06 and a 50 day moving average of 74.08. Currently WBA stock is trading 0.59% above its 200 day moving average and may be a good opportunity to buy.

CNBC:  FDA putting Walgreens ‘on notice,’ weighs enforcement action for illegal tobacco sales to minors


The last annual fiscal EPS for the company was reported at 5.06 that ended on 31st of August 2018, which according to the previous close, that is a PE of 13.93. Based on 11 analyst estimates, the consensus EPS for the next quarter is 1.44. The TTM EPS is 6.02, which comes to a TTM PE of 11.71. Historically, the PE high was 49.40 and the PE low was 11.71. WBA stock has set a new PE low record!

The following are the last four quarter reported earnings per share:
11-30-2018:  1.46
08-31-2018:  1.48
05-31-2018:  1.53
02-28-2018:  1.73

The dividend per share is currently 1.76, which is a dividend yield of 2.50%. Also, the payout ratio is 29.24%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 106.09, which means it is possibly undervalued and has a margin of safety of 33.58%

Indicators to Watch:

Based on the latest filings, there is 0.80% of insider ownership and 96.60% of institutional ownership. Short-interest is 0, which is 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 0.00.

The current calculated beta is 0.89

CNBC:  FDA putting Walgreens ‘on notice,’ weighs enforcement action for illegal tobacco sales to minors

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 20.67%, return on assets is 7.80%, profit margin is 3.94%, price-to-sales is 0.49 and price-to-book is 2.58.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 6  :Past Performance Score
 3  :Financial Strength Score
 2  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.