Last Updated: 14 Sep 2024
Executive Summary
Walgreens Boots Alliance Inc. (WBA) is a leading global pharmacy-led health and wellbeing enterprise. The company has a market capitalization of $76.31 billion and trades on the NASDAQ exchange under the ticker symbol WBA. WBA has a strong financial position with an EBITDA of $3.95 billion, but its recent financial performance has been impacted by macroeconomic headwinds and industry challenges. The stock is currently trading at $9.21, below its 52-week high of $25.76.
Company Overview
Walgreens Boots Alliance operates a network of over 13,000 retail pharmacies in the United States, Europe, and Latin America. The company also has a wholesale pharmaceutical distribution business and a pharmaceutical manufacturing business. WBA's mission is to help people live healthier and happier lives by providing convenient access to affordable healthcare products and services.
Fundamental Analysis
WBA's financial performance has been mixed in recent quarters. The company's revenue has grown modestly, but its earnings have declined due to rising costs and increased competition. WBA's profit margin is -0.0399%, and its operating margin is 0.003%. The company's return on assets is 0.013%, and its return on equity is -0.56%.
WBA's balance sheet is strong. The company has $15.8 billion in book value and $3.95 billion in EBITDA. WBA also has a manageable level of debt.
Technical Analysis
WBA's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is below 50, indicating that the stock is oversold.
Short Term Outlook
WBA's short-term outlook is uncertain. The company is facing challenges from rising costs and increased competition. The stock is also trading below its moving averages and is oversold. However, WBA has a strong balance sheet and a solid track record of financial performance.
Long Term Outlook
WBA's long-term outlook is positive. The company is a leader in the pharmacy-led health and wellbeing industry. WBA has a strong brand and a loyal customer base. The company is also well-positioned to benefit from the growing demand for healthcare products and services.
Analyst Recommendations
Analysts are mixed on WBA's stock. Two analysts rate the stock as a buy, 14 rate it as a hold, and four rate it as a sell. The average analyst target price is $11.59.
