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Walgreens Boots Alliance Inc WBA

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Walgreens Reports Strong Fourth Quarter and Increases VillageMD Investment

Dylan Finley, CFA Equity Analyst

Analyst Note

| Dylan Finley, CFA |

No-moat Walgreens reported strong fiscal fourth-quarter results, surpassing guidance for vaccinations administered during the quarter and exceeding EPS guidance. We are maintaining our fair value estimate for Walgreens but will adjust our valuation and DCF model as necessary after a more comprehensive review of the company's virtual investor conference on Oct. 14.

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Company Profile

Business Description

Walgreens Boots Alliance is a leading retail pharmacy chain, with over 21,000 stores in 50 states and 11 countries. Walgreens’ core strategy involves brick-and-mortar retail pharmacy locations in high-traffic areas, with nearly 80% of the U.S. population living within 5 miles of a store. Currently, the company has a leading market share of the domestic prescription drug market at about 20%. In 2021, the company sold off a majority of its Alliance Healthcare wholesale business to AmerisourceBergen for $6.5 billion, doubling down on its core pharmacy efforts and ventures in strategic growth areas in primary care (VillageMD) and digital offerings. The company also has equity stakes in AmerisourceBergen (29%) and Sinopharm Holding Guoda Drugstores (40%).

Contact
108 Wilmot Road
Deerfield, IL, 60015
T +1 847 315-3700
Sector Healthcare
Industry Pharmaceutical Retailers
Most Recent Earnings Aug 31, 2021
Fiscal Year End Aug 31, 2021
Stock Type High Yield
Employees 315,000

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