Is It Time To Buy Walgreens Boots Alliance Stock?


Walgreens Boots Alliance (NASDAQ: WBA) yesterday released its first quarter Fiscal 2022 results yesterday. Adjusted EPS is up more than 50% and the company has an attractive valuation.

Walgreens Boots Alliance is an American company engaged in the drug retail industry. It operates thousands of retail stores and optical firms in the United States and around the world, and was founded in 1901.

The company announced its first quarter of fiscal 2022 yesterday and performed better than expected. EPS and revenues increased more than estimates for the quarter, and the free cash flow position reached $ 645 million. COVID-19 vaccinations and testing have boosted sales, and the company said revenue reflects strong growth in its core business. In addition, the company is managing a transformational cost management program on track to generate $ 3.3 billion in annual savings by fiscal 2024.

Here are three reasons to buy Walgreens Boots Alliance shares after the quarterly earnings release: Adjusted EPS is up 53%, valuation looks attractive, and a strong dividend policy.

Adjusted EPS up 53%

One of the first things that caught attention regarding the financial reports for the first quarter of fiscal 2022 is the performance of Adjusted EPS. It exceeded all expectations, up + 53.1% compared to the previous year. Additionally, the company raised the adjusted EPS growth forecast to low single-digit growth from previously stable growth. Net profit, operating profit and sales also increased.

Attractive valuation

The Walgreens Boots Alliance share price has risen + 21.87% over the past twelve months and valuation metrics look attractive. For example, the Non-GAAP (TTM) P / E ratio is 9.55 versus 19.84 in the industry median, a decrease of -51.86%. The company has a market capitalization of $ 46.65 billion and an enterprise value of $ 80.62 billion at current market price.

Strong dividend policy

Walgreens Boots Alliance pays a quarterly dividend and the term dividend yield is 3.64%. In addition, the payout rate is 38.28% and the five-year dividend growth rate is 5.15%.

The four-year average yield is 3.38% and the company has increased the dividend over the past six years.

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