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Stock To Study: Walgreens Boots Alliance (WBA)

  • 01-10-2019 12:17pm
    #1
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,987 Mod ✭✭✭✭


    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....


Comments

  • #2
    Mach 3
    Registered Users Posts: 231 ✭✭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.


  • #3
    Mach 3
    Registered Users Posts: 231 ✭✭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.


  • #4
    XMG
    Registered Users Posts: 83 ✭✭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


  • #5
    Mach 3
    Registered Users Posts: 231 ✭✭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


  • #6
    Cute Hoor
    Registered Users Posts: 1,788 ✭✭✭Cute Hoor


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


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  • #7
    neris
    Registered Users Posts: 20,036 ✭✭✭✭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


  • #8
    Mach 3
    Registered Users Posts: 231 ✭✭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...


  • #9
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,987 Mod ✭✭✭✭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


  • #10
    Mach 3
    Registered Users Posts: 231 ✭✭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.


  • #11
    Mach 3
    Registered Users Posts: 231 ✭✭Mach 3


    Noble Midstream Partners LP (NBLX)

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


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  • #12
    Mach 3
    Registered Users Posts: 231 ✭✭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?



  • #13
    Mach 3
    Registered Users Posts: 231 ✭✭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?



  • #14
    daheff
    Registered Users Posts: 5,833 ✭✭✭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




  • #15
    Mach 3
    Registered Users Posts: 231 ✭✭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.



  • #16
    patsy_mccabe
    Registered Users Posts: 10,681 ✭✭✭✭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.

    'The Bishops blessed the Blueshirts in Galway, As they sailed beneath the Swastika to Spain'



  • #17
    daheff
    Registered Users Posts: 5,833 ✭✭✭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.



  • #18
    Mach 3
    Registered Users Posts: 231 ✭✭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.



  • #19
    DUBLINIRL
    Registered Users Posts: 158 ✭✭DUBLINIRL


    Screenshot_2023-12-17-21-56-25-629_com.android.chrome-edit.jpg

    Things seem to have gone pretty bad.



  • #20
    notsocutehoor
    Registered Users Posts: 433 ✭✭notsocutehoor


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

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



  • #21
    Mach 3
    Registered Users Posts: 231 ✭✭Mach 3


    Dividend cut from $1.92 to $1.00



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  • #22
    patsy_mccabe
    Registered Users Posts: 10,681 ✭✭✭✭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.

    'The Bishops blessed the Blueshirts in Galway, As they sailed beneath the Swastika to Spain'



  • #23
    Mach 3
    Registered Users Posts: 231 ✭✭Mach 3


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



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