WBA

Walgreens Boots Alliance Inc

Healthcare, Consumer


Presented:07/18/2018
Price:$66.16
Cap:$65.66B
Current Price:$10.42
Cap:$9.00B

Presented

Date07/18/2018
Price$66.16
Market Cap$65.66B
Ent Value$76.06B
P/E Ratio15.46x
Book Value$27.95
Div Yield2.42%
Shares O/S992.41M
Ave Daily Vol7,005,270
Short Int2.03%

Current

Price$10.42
Market Cap$9.00B
Walgreens Boots Alliance, Inc. engages in providing drug store services. The company operates through the following segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment engages in pharmacy-led health and beauty retail businesses, which sells its products under brand names Walgreens and Duane Reade. The Retail Pharmacy International segment offers retail stores, which sells products of brands No7, Boots Pharmaceuticals, Botanics, Liz Earle, and Soap & Glory. The Pharmaceutical Wholesale segment supplies medicines, other healthcare products and related services to pharmacies, doctors, health centers, and hospitals. The company was founded in December 2014 and is headquartered in Deerfield, IL.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), AmerisourceBergen (ABC), Best Buy Co Inc (BBY), Cigna Corp (CI), CVS Health Corp (CVS), Express Scripts Holding Co (ESRX), FedEx Corp (FXX), Target Corp (TGT), UnitedHealth Group Inc (UNH), Walgreens Boots Alliance Inc (WBA), Walmart Inc (WMT)

Highlights

Shares of Walgreens Boots Alliance (WBA) appear to be undervalued at this time (~$66). The presenter sees a favorable risk/reward with the stock trading at just 10x 2019 Street EPS estimates, and given WBA’s earnings trajectory, he sees a case to be made for $8 of EPS in 2020. While Amazon is a threat on the front-end today and could be a threat on the back-end in the future if it does successfully enter and disrupt the distribution channel, WBA management has a proven to be aggressive with capital deployment, and there are other levers that can be pulled in lieu of organic growth (i.e., M&A involving AmerisourceBergen, or other strategic initiatives). If earnings do continue to grow, revisions to expectations could be necessary, and modest multiple expansion would result in meaningful upside for shareholders looking two years out (i.e., 12x 2021 EPS of $8 = a $96 target).

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.