Stock To Study: Walgreens Boots Alliance (WBA)

Jim2007

This is not a recommendation nor a stock pick, but a suggestion for further research.

Reasons why this one might be worth a further look:
- Yield 3.3%, above the market average.
- The company has a long history of returning cash to shareholders, paying its dividend since 1933 and raising this payment in each of the last 44 years.
- The company operates or has an equity interest in 18,500 pharmacies
- It is the largest retail pharmacy, health and daily living destination across the U.S. and Europe.
- Revenue has increased at a 12.7% annual rate of growth over the last five years
- Based on its current dividend yield and price-earnings ratio, the stock is trading at historically low valuation levels.
- During the first nine months of fiscal-year 2019, it has returned nearly $5.0 billion to shareholders (over $1.2 billion in dividends and $3.7 billion in share repurchases).

Observations and valuations....

Mach 3

This stock is getting a little bit of love the last few sessions. Early buyers laughing after today's news. Expect more as this gets pumped by MSM outlets(later). Takes out last month's high and then some. Imho.

Mach 3

Jim, I don't know if this is a stand alone thread or is it going to morph into a "Stock to study" thread (hopefully quality not quantity). Which jogged the mind to a stock that was earmarked a few years back.... Hugo Boss

https://group.hugoboss.com/en/investors/share/share-price-performance

As you can see a nice tasty return over the last twenty years. Valuations is far from my strong points so I'll leave that to others.(Only worth what people will pay for it).
Observations:
- strong historical dividend since inception.
- Products are affordable, respectable and liked by many.
- profit warnings .
- investment in upgrading stores. Ergo probability of lasting another 25 years.
- African, Asian, and Latino America still largely unexploited (back to affordability).
- Share price is like January sales - 40% off( back to yield to price ratio)!
Disclaimer in post #1 applies.

XMG

WBA along with several others have exposure to opioid litigation. The only consideration I’d give it and the likes of TEVA etc would be short biased until it’s all sorted out

Mach 3

XMG wrote: »

WBA along with several others have exposure to opioid litigation. The only consideration I’d give it and the likes of TEVA etc would be short biased until it’s all sorted out

Quarterly results out this evening.

Edit: Conference Call Script...
https://seekingalpha.com/article/4299611-walgreens-boots-alliance-inc-wba-ceo-stefano-pessina-q4-2019-results-earnings-call-transcript

Cute Hoor

Good call Jim, up around 15% since you posted, rumours today of it being taken private.

neris

Article on possible LBO

https://www.bloomberg.com/opinion/articles/2019-11-08/private-equity-sees-something-in-walgreens-that-you-ve-missed?srnd=premium-europe

Mach 3

Mach 3 wrote: »

Jim, I don't know if this is a stand alone thread or is it going to morph into a "Stock to study" thread (hopefully quality not quantity). Which jogged the mind to a stock that was earmarked a few years back.... Hugo Boss

https://group.hugoboss.com/en/investors/share/share-price-performance

As you can see a nice tasty return over the last twenty years. Valuations is far from my strong points so I'll leave that to others.(Only worth what people will pay for it).
Observations:
- strong historical dividend since inception.
- Products are affordable, respectable and liked by many.
- profit warnings .
- investment in upgrading stores. Ergo probability of lasting another 25 years.
- African, Asian, and Latino America still largely unexploited (back to affordability).
- Share price is like January sales - 40% off( back to yield to price ratio)!
Disclaimer in post #1 applies.

Up nearly 25% and rising since posting analysis. Fairly reliable when asked to deliver:cool:. Anyone else got a stock to study? No pressure...

Jim2007

Mach 3 wrote: »

Up nearly 25% and rising since posting analysis. Fairly reliable when asked to deliver:cool:. Anyone else got a stock to study? No pressure...

https://www.boards.ie/vbulletin/showthread.php?p=112243483

Mach 3

Jim2007 wrote: »

https://www.boards.ie/vbulletin/showthread.php?p=112243483

RE: Collins Foods Ltd. (CKF)

I find this a nice entry point, others may wait for confirmation on the weekly close.

Mach 3

Noble Midstream Partners LP (NBLX)

Worth a look if anyone wants exposure to the dip in the Oil market.

Mach 3

Walgreens Boots Alliance

Hugo Boss

Collins Foods Ltd.

Noble Midstream Partners LP

Small portfolio of four picks first started 2 and a half years ago.

Anyone that Dollar Cost Averaged in (while they could, Noble got taken over), would have done quit well for themselves (To be fair most DCA would have done well over the last 2.5 years).

Anymore to add to the list?

Mach 3

https://www.boards.ie/discussion/2058019571/stock-to-study-walgreens-boots-alliance-wba

Anyone still following (WBA)?

Currently trading at multi year lows @ $22ish.

CEO has resigned after 3 years.

Selling over 150 stores.

Moving more into health care.

Workers getting laid off as cost cutting measures.

Current Dividend yield of 8.5%

Is this the same old retail story of the like of JC Penny and Bed Bath & Beyond?

Or is this a market overreaction - where a strong dividend yield can be picked up on the cheap over the next couple of weeks?

daheff

i'm still watching this. Its one of the most oversold stocks in S&P500 at the moment.

results are still relatively stable. So not sure why its out of favour. I'm happy to hold it for the moment.

https://twitter.com/Barchart/status/1700965131469865314?t=VWA7TuCSmOLcN42u5eFunQ&s=08

Mach 3

WBA Share price up slightly today on the announcement of a new ceo.

Slightly higher than 3m average volume heading into tomorrow's earnings report.

It does seem most likely that they are going to leave the dividend as is, instead of the much watched dividend cut (they are hardly going to do a dividend cut one day after appointing a new ceo).

Will WBA still be a member of the Dow Jones?

Well with a new ceo, no dividend cut, a decent earnings report and a strong foward guidance - these might be enough to lift the share price enough to keep WBA in the Dow.

If the Share price does not rise enough and WBA does get kicked off the Dow then the Share price will go to basement bargain levels.

patsy_mccabe

Walgreens (WBA) is an interesting one alright. It's revenue still keeps rising year on year. Back in 2017, it's sales per share was $107. Share price was $68. How with sales per share at £161, it's stock price is down at $22. It just keeps eroding it's margin. I guess just a highly competitive business to be in, at the end of the day.

daheff

https://www.boards.ie/discussion/comment/121251140#Comment_121251140

Revenue per share isn't a great metric. I'll sell a lot more products at a low price than at a high price. If the price is low enough it'll have not profit margin.

Mach 3

"Walgreens Boots Alliance (WBA) declared a quarterly dividend of $0.48 per share, or $1.92 annualized.

The dividend will be payable on December 12, 2023, to stockholders of record on November 14, 2023, with an ex-dividend date of November 13, 2023.

The annual yield on the dividend is 8.8 percent."

Just to follow up:

New CEO.

No dividend cut.

Half decent earnings report.

Soft foward guidance.

It is a coin toss until further news/updates are released.

Risk is skewed to the downside until then, with some taking on the dividend yield play.

In my veiw this will be Range bound for the foreseeable, making it tradable rather than investable.

Just my opinion.

DUBLINIRL

Things seem to have gone pretty bad.

notsocutehoor

https://www.boards.ie/discussion/comment/121508100#Comment_121508100

Could be on the way back, up 20% in December, dead cat bounce?

Mach 3

Dividend cut from $1.92 to $1.00

patsy_mccabe

https://www.boards.ie/discussion/comment/121571982#Comment_121571982

That's huge as Walgreens dividends have been very consistent for years. All retail seems to be very competitive in the USA at the moment.

Mach 3

Walgreens Boots Alliance removed from the Dow (replaced by Amazon).