Walgreens Boots Alliance (WBA) AI Stock Analysis

• Market Cap: $10.12B
• Dividend Yield: 8.59%
• Average Volume (3M): 6.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 6.22%
• EPS Growth: -8.21%
• Country: US
• Employees: 193,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 0.63
• Shares Outstanding: 865,560,670
• 10 Day Avg. Volume: 5,660,047
• 30 Day Avg. Volume: 6,045,902
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.89
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: -11.70
• 1Y Price Target: $11.45
• Price Target Upside: -2.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $12.00 ▲(2.65% 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

International Performance

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

Profitability Improvement

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

Negative Factors

Competition

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

Retail Sales Decline

Comp retail sales, down (2.4)%, were impacted by weaker sales in grocery and household, health and wellness, and beauty.

Revenue Decline

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. (WBA) is a global leader in retail pharmacy, health, and wellness. It operates through two primary divisions: Retail Pharmacy USA and Retail Pharmacy International. The company offers a wide range of pharmaceutical, health, and wellness products and services through its extensive network of retail drugstores, including Walgreens in the United States and Boots in the United Kingdom and other countries. WBA is committed to improving health outcomes through innovative pharmacy services and personalized care.

How the Company Makes Money

Walgreens Boots Alliance generates revenue primarily through the sale of prescription medications, over-the-counter health products, and general merchandise. In the Retail Pharmacy USA segment, WBA makes money from dispensing prescription drugs, front-end sales of consumer goods, and health services, including vaccinations and health consultations. The Retail Pharmacy International segment contributes earnings through similar sales channels in international markets, particularly in Europe. Additionally, WBA benefits from strategic partnerships with healthcare providers and pharmacy benefit managers, which enhance its service offerings and expand its customer base. The company also explores opportunities in digital health and e-commerce to further drive revenue growth.

Walgreens Boots Alliance Financial Statement Overview

Summary

Walgreens Boots Alliance faces significant challenges with profitability and leverage. While revenue has grown, profit margins are negative, and the balance sheet shows high debt levels. Cash flow metrics provide some positive signs of recovery, particularly in free cash flow, but overall financial stability remains a concern.

Income Statement

Walgreens Boots Alliance has faced recent financial challenges as reflected in its TTM (Trailing-Twelve-Months) results. The gross profit margin stands at 17.4%, but negative EBIT and net profit margins indicate profitability issues, with a net profit margin of -3.8%. Revenue growth over the last few years is present but fluctuating, indicating instability.

Balance Sheet

The company's balance sheet shows significant leverage with a debt-to-equity ratio of over 4.2, indicating high financial risk. The equity ratio is low at 10.1%, reflecting limited equity compared to assets. Negative return on equity further highlights profitability challenges.

Cash Flow

There is a moderate operating cash flow to net income ratio of -0.28, indicating cash flow constraints despite improving free cash flow. The free cash flow growth rate is positive, signaling some recovery in cash generation, though still not robust.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 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: 11.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 11.69 is above the 20-day moving average (MA) of 11.58, above the 50-day MA of 11.44, and above the 200-day MA of 10.60, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 73.93 is Negative, neither overbought nor oversold. The STOCH value of 86.08 is Negative, 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	74 Outperform	$13.88B	33.04	5.15%	―	6.88%	21.11%
UHS	73 Outperform	$10.61B	8.68	18.66%	0.49%	9.61%	39.65%
QGEN	69 Neutral	$10.82B	119.67	2.67%	2.51%	3.31%	-72.63%
VTRS	57 Neutral	$10.54B	―	-19.77%	5.45%	-6.88%	-6809.78%
WBA	55 Neutral	$10.12B	―	-60.49%	8.59%	6.22%	-8.21%
ROIV	54 Neutral	$7.91B	1.93	-8.56%	―	-38.94%	-104.46%
Sector *	51 Neutral	$7.39B	0.40	-62.86%	2.37%	15.56%	-1.99%

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.