WBA - Embedded Expectations Analysis - 2020 11 19
Walgreens Boots Alliance, Inc. (WBA:USA) currently trades below recent averages relative to UAFRS-based (Uniform) earnings, with an 18.2x Uniform P/E. Even at these levels, the market has bullish expectations for the firm, but management may have concerns about 2021 EPS guidance, operating income declines, and coronavirus impactSpecifically, management may lack confidence in their ability to meet their 2021 EPS guidance and their ability to improve cash generation. Moreover, they may be concerned about their search for a new CEO, the coronavirus' impact on financials and their ability to effectively compete with grocery stores. Furthermore, they may lack confidence in their ability to mitigate adjusted operating income decline and sustain growth in the U.S. retail business. In addition, they may have concerns about further lockdowns and the growth of their joint venture business in China
Walgreens Boots Alliance is a holding company. Through its subsidiaries, the company is engaged in retail and wholesale pharmacy. The company's operations are organized into three divisions, which are also its reportable segments: Retail Pharmacy USA; Retail Pharmacy International; and Pharmaceutical Wholesale. The Retail Pharmacy USA division has pharmacy-led health and beauty retail offerings. The Retail Pharmacy International division has pharmacy-led health and beauty retail businesses. The Pharmaceutical Wholesale division, which mainly operates under the Alliance Healthcare brand, supplies medicines, other healthcare products and related services to pharmacies, doctors, health centers and hospitals.
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