WBA Stock Intrinsic Value – Investors: Ditch Walgreens and Invest in These 9% Yielding Alternatives!
December 1, 2023
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Investors looking for a higher return on their investments should consider alternatives to Walgreens Boots Alliance ($NASDAQ:WBA). For those looking to get a better return than what Walgreens Boots Alliance provides, there are several alternatives yielding 9% or more. These alternatives include real estate investment trusts (REITs), high-yield bonds, closed-end funds, and preferred stock. All of these options provide higher yields than Walgreens Boots Alliance stock, with the added benefit of diversifying your portfolio. REITs are investments in real estate that offer dividends that are backed by rental income. These investments offer higher yields with reduced volatility, as they are typically indexed to the performance of the real estate market. High-yield bonds offer even higher yields than REITs, although they are more volatile and riskier investments. Closed-end funds also offer higher yields than Walgreens Boots Alliance, but they tend to be more illiquid and require a longer-term commitment. Finally, preferred stock provides an even higher yield than the other options, but it also carries more risk. For investors looking to get a higher return on their investments than what Walgreens Boots Alliance provides, these 9% yielding alternatives provide a great option.
However, it is important to do your research and understand the risks associated with these investments before committing your money.
Analysis – WBA Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of WALGREENS BOOTS ALLIANCE’s financials and have determined its fair value to be approximately $38.3. This figure was calculated using our proprietary Valuation Line. Looking at the current market rate of WALGREENS BOOTS ALLIANCE stock, which is trading at $19.9, we can see that it is undervalued by 48.0%. This presents an opportunity for investors who are looking to purchase stocks at a discounted rate. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WBA. More…
| Total Revenues | Net Income | Net Margin |
| 139.08k | -3.08k | -2.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WBA. More…
| Operations | Investing | Financing |
| 2.26k | -3.09k | -887 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for WBA. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 96.63k | 68.14k | 23.18 |
Key Ratios Snapshot
Some of the financial key ratios for WBA are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.1% | -41.5% | -3.5% |
| FCF Margin | ROE | ROA |
| 0.1% | -14.7% | -3.1% |
Peers
Walgreens Boots Alliance Inc. operates in the retail pharmacy industry. The company’s main competitors are Clicks Group Ltd, Rite Aid Corp, and Hai-O Enterprise Bhd. Walgreens Boots Alliance Inc. is the largest retail pharmacy chain in the United States. The company operates over 9,000 stores in the United States and Puerto Rico.
– Clicks Group Ltd ($OTCPK:CLCGY)
Clicks Group Ltd is a South African company that owns the Clicks and Musica retail chains. It has a market capitalization of 3.74 billion as of 2022 and a return on equity of 41.88%. The company sells a variety of products including books, music, movies, and games. It also has a loyalty program called Clicks ClubCard.
– Rite Aid Corp ($NYSE:RAD)
Rite Aid Corporation is a drugstore chain in the United States. The company’s market cap is $228.4 million and its ROE is 240.91%. Rite Aid operates over 4,000 stores in 31 states and the District of Columbia. The company offers a wide variety of products and services, including prescriptions, health and wellness products, and photo finishing services.
– Hai-O Enterprise Bhd ($KLSE:7668)
Hai-O Enterprise Berhad is an investment holding company. The Company, through its subsidiaries, is engaged in the retail and direct selling of Chinese herbal products, Chinese proprietary medicines, health food, consumer products, and beauty and wellness products. It also provides management, marketing, and logistic services.
Summary
Walgreens Boots Alliance (WBA) is a leading global pharmaceuticals and health and beauty retailer. Despite this, WBA boasts a strong balance sheet and continues to pay a dividend yield of 9%. Going forward, investors should be aware of the potential for increased competition in the pharmacy space, including from online retailers.
On the flip side, WBA is well positioned to benefit from the growing demand for health and beauty products, as well as the aging population. Currently trading at an attractive valuation, the stock could be a good investment for those seeking to capitalize on the long-term potential of the company.
