Walgreens Boots Alliance (WBA) AI Stock Analysis

• Market Cap: $10.32B
• Dividend Yield: 8.35%
• Average Volume (3M): 8.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 6.22%
• EPS Growth: -8.21%
• Country: US
• Employees: 193,000
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 0.63
• Shares Outstanding: 865,560,670
• 10 Day Avg. Volume: 12,546,474
• 30 Day Avg. Volume: 8,350,425
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.81
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: -11.70
• 1Y Price Target: $11.73
• Price Target Upside: -2.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $12.00 ▲(0.17% Upside)

Walgreens Boots Alliance's overall score is influenced by its challenging financial performance and valuation concerns, though partially offset by positive technical indicators and the strategic potential of the Sycamore acquisition. The merger is the most significant factor, offering a potential pathway to improved operational efficiency and market positioning.

Positive Factors

Healthcare profitability

US Healthcare's profitability improved significantly, driven by contributions from VillageMD and Shields.

International growth

International was led by strengthened momentum in Germany and especially Boots, growing 6.8% and 5% respectively.

Private equity acquisition

A private equity takeover could provide WBA with additional flexibility to address operational challenges in the private market.

Negative Factors

Cash flow and debt concerns

There are concerns about WBA's lack of cash flow and upcoming debt challenges, which could complicate a potential deal.

Competitive market

CVS has been gaining share vs. the market, including WBA, for a few years.

Revenue challenges

Overall the revenue remains challenged, with store closings driving a total (5.3)% decline.

Walgreens Boots Alliance Business Overview & Revenue Model

Company Description

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and beauty retail company. It operates through two segments, the United States and International. The United States segment sells prescription drugs and an assortment of retail products, including health, wellness, beauty, personal care, consumable, and general merchandise products through its retail drugstores. It also provides central specialty pharmacy services and mail services. As of August 31, 2021, this segment operated 8,965 retail stores under the Walgreens and Duane Reade brands in the United States; and five specialty pharmacies. The International segment sells prescription drugs; and health and wellness, beauty, personal care, and other consumer products through its pharmacy-led health and beauty retail stores and optical practices, as well as through boots.com and an integrated mobile application. It also engages in pharmaceutical wholesaling and distribution business in Germany. As of August 31, 2021, this segment operated 4,031 retail stores under the Boots, Benavides, and Ahumada in the United Kingdom, Thailand, Norway, the Republic of Ireland, the Netherlands, Mexico, and Chile; and 548 optical practices, including 160 on a franchise basis. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

How the Company Makes Money

Walgreens Boots Alliance generates revenue through multiple key streams. The primary revenue source is the sale of prescription drugs, which is driven by customer demand and the number of prescriptions filled. Additionally, the company earns revenue from the sale of over-the-counter products and beauty products across its retail stores. The retail pharmacy segments also benefit from health services, which contribute to in-store traffic and additional sales. Furthermore, WBA's Pharmaceutical Wholesale segment generates revenue by distributing pharmaceutical products to healthcare providers and pharmacies. Strategic partnerships with healthcare providers, insurance companies, and pharmaceutical manufacturers enhance its supply chain and revenue opportunities. The company also leverages its loyalty programs and digital platforms to drive customer engagement and repeat business, impacting overall earnings positively.

Walgreens Boots Alliance Financial Statement Overview

Summary

Walgreens Boots Alliance faces significant financial challenges, with negative net margins and high leverage. Although there is revenue growth, the company struggles with profitability and consistent cash flow, indicating a need for strategic adjustments.

Income Statement

Walgreens Boots Alliance's income statement presents several challenges. Although revenues have been increasing annually, the company is experiencing negative EBIT and EBITDA, indicating operating inefficiencies or high expenses. The net profit margin is negative due to substantial net losses, raising concerns about sustainability and profitability.

Balance Sheet

The balance sheet shows a company with high leverage, as evidenced by a significant debt-to-equity ratio. Stockholders' equity has decreased over the years, which may limit financial flexibility. While the equity ratio is declining, it remains positive, suggesting some capacity to meet obligations, but overall financial stability is weakening.

Cash Flow

Walgreens Boots Alliance's cash flow statement highlights some positive aspects, with a significant increase in operating cash flow in the most recent period. However, free cash flow has been inconsistent, and cash flow ratios indicate challenges in translating net income into cash. The company's ability to generate consistent free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.58B	147.66B	139.08B	132.70B	132.51B	121.98B
Gross Profit	26.47B	26.52B	27.07B	28.27B	28.07B	26.08B
EBITDA	-3.36B	-11.28B	3.48B	4.96B	5.96B	2.84B
Net Income	-6.30B	-8.64B	-3.08B	4.34B	2.54B	456.00M
Balance Sheet
Total Assets	69.41B	81.04B	96.63B	90.12B	81.28B	87.17B
Cash, Cash Equivalents and Short-Term Investments	830.00M	3.11B	739.00M	2.47B	1.19B	516.00M
Total Debt	29.03B	32.85B	33.53B	35.48B	33.39B	40.14B
Total Liabilities	62.09B	68.86B	68.14B	59.72B	57.46B	66.04B
Stockholders Equity	7.18B	10.45B	20.02B	29.37B	23.82B	21.14B
Cash Flow
Free Cash Flow	580.00M	-363.00M	141.00M	2.17B	4.18B	4.11B
Operating Cash Flow	1.58B	1.02B	2.26B	3.90B	5.55B	5.48B
Investing Cash Flow	1.03B	1.88B	-3.09B	-1.06B	4.07B	-1.30B
Financing Cash Flow	-2.41B	-538.00M	-887.00M	-1.50B	-9.04B	-4.65B

Walgreens Boots Alliance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WBA, the sentiment is Positive. The current price of 11.98 is above the 20-day moving average (MA) of 11.92, above the 50-day MA of 11.66, and above the 200-day MA of 10.80, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WBA.

Walgreens Boots Alliance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COO	78 Outperform	$14.70B	35.73	5.15%	―	6.88%	21.11%
UHS	78 Outperform	$11.54B	9.69	18.66%	0.44%	9.61%	39.65%
QGEN	74 Outperform	$10.58B	28.62	10.81%	2.61%	5.15%	412.41%
VTRS	59 Neutral	$12.14B	―	-19.77%	4.61%	-7.47%	-438.39%
WBA	55 Neutral	$10.32B	―	-60.49%	8.35%	6.22%	-8.21%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
ROIV	48 Neutral	$8.09B	1.93	-15.84%	―	-85.32%	-111.82%

Walgreens Boots Alliance Corporate Events

Walgreens Boots Alliance Shareholders Approve Sycamore Acquisition

On July 11, 2025, Walgreens Boots Alliance announced that its shareholders approved the acquisition by Sycamore Partners Management, L.P., with approximately 96% of votes in favor. The merger will result in Walgreens Boots Alliance becoming a wholly owned subsidiary of Sycamore, ceasing to be publicly traded. The transaction is expected to close in the third or fourth quarter of 2025, subject to regulatory approvals. This merger aims to enhance Walgreens’ turnaround strategy and strengthen its position in the pharmacy, retail, and health services sectors.

The most recent analyst rating on (WBA) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Walgreens Boots Alliance stock, see the WBA Stock Forecast page.