There Is Still Room For Walgreens Boots Alliance Inc. (WBA) to Improve Its Value – Let’s Wait for Clarity

The closing price of Walgreens Boots Alliance Inc. (NASDAQ: WBA) was 33.32 for the day, down -0.33% from the previous closing price of $33.43. In other words, the price has decreased by $-0.11 from its previous closing price. On the day, 4896816 shares were traded. WBA reached its highest trading level at $33.53 during the session, while it also had its lowest trading level at $32.93.

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Ratios:

Our analysis of WBA’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 6.45 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 16.14. For the most recent quarter (mrq), Quick Ratio is recorded 0.40 and its Current Ratio is at 0.80. In the meantime, Its Debt-to-Equity ratio is 0.55 whereas as Long-Term Debt/Eq ratio is at 0.44.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Robert W. Baird on April 01, 2022, Downgraded its rating to Neutral and sets its target price to $51 from $70 previously.

On December 16, 2021, Morgan Stanley Downgraded its rating to Underweight which previously was Equal-Weight and also lowered its target price recommendation from $56 to $49.

Deutsche Bank reiterated its Hold rating for the stock on March 25, 2021, while the target price for the stock was revised from $49 to $55.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Aug 16 when Walgreens Boots Alliance, Inc. sold 11,000,000 shares for $33.01 per share. The transaction valued at 363,110,000 led to the insider holds 26,247,092 shares of the business.

Walgreens Boots Alliance, Inc. sold 6,000,000 shares of WBA for $900,000,000 on May 11. The 10% Owner now owns 52,854,867 shares after completing the transaction at $150.00 per share. On Nov 19, another insider, SCHLICHTING NANCY M, who serves as the Director of the company, sold 2,725 shares for $47.16 each. As a result, the insider received 128,497 and left with 16,570 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, WBA now has a Market Capitalization of 28.89B and an Enterprise Value of 61.71B. As of this moment, Walgreens’s Price-to-Earnings (P/E) ratio for their current fiscal year is 5.65, and their Forward P/E ratio for the next fiscal year is 7.15. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 6.40. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.21 while its Price-to-Book (P/B) ratio in mrq is 1.10. Its current Enterprise Value per Revenue stands at 0.46 whereas that against EBITDA is 7.66.

Stock Price History:

The Beta on a monthly basis for WBA is 0.62, which has changed by -31.03% over the last 52 weeks, in comparison to a change of -15.65% over the same period for the S&P500. Over the past 52 weeks, WBA has reached a high of $55.00, while it has fallen to a 52-week low of $33.43. The 50-Day Moving Average of the stock is 37.47, while the 200-Day Moving Average is calculated to be 43.96.

Shares Statistics:

WBA traded an average of 6.87M shares per day over the past three months and 7.66M shares per day over the past ten days. A total of 864.00M shares are outstanding, with a floating share count of 714.61M. Insiders hold about 17.32% of the company’s shares, while institutions hold 59.70% stake in the company. Shares short for WBA as of Aug 30, 2022 were 27.18M with a Short Ratio of 3.96, compared to 26.51M on Jul 28, 2022. Therefore, it implies a Short% of Shares Outstanding of 3.14% and a Short% of Float of 3.79%.

Dividends & Splits

With its trailing 12-month dividend rate of 1.91, WBA has a forward annual dividend rate of 1.92. Against a Trailing Annual Dividend Yield of 5.71%, it implies a Forward Annual Dividend Yield of 5.74%. The stock’s 5-year Average Dividend Yield is 3.47. The current Payout Ratio is 30.60% for WBA, which recently paid a dividend on Sep 08, 2022 with an ex-dividend date of Aug 17, 2022. Stock splits for the company last occurred on Feb 15, 1999 when the company split stock in a 2:1 ratio.

Earnings Estimates

The firm’s stock currently is rated by 15 analysts. On average, analysts expect EPS of $0.78 for the current quarter, with a high estimate of $0.84 and a low estimate of $0.74, while EPS last year was $1.17. The consensus estimate for the next quarter is $1.2, with high estimates of $1.34 and low estimates of $0.98.

Analysts are recommending an EPS of between $5.06 and $4.97 for the fiscal current year, implying an average EPS of $5.01. EPS for the following year is $4.68, with 17 analysts recommending between $5.1 and $4.22.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 11 analysts. It ranges from a high estimate of $33.05B to a low estimate of $30.69B. As of the current estimate, Walgreens Boots Alliance Inc.’s year-ago sales were $34.26B, an estimated decrease of -6.20% from the year-ago figure.

Based on 16 analysts’ estimates, the company’s revenue will be $134.63B in the next fiscal year. The high estimate is $138.1B and the low estimate is $129.81B. The average revenue growth estimate for next year is up 1.60% from the average revenue estimate for this year.