This is a step-by-step stock review to answer the question, is Walgreens Boots Alliance (WBA) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Walgreens Boots Alliance (WBA) stock a good buy?
- Walgreens Boots Alliance Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Walgreens Boots Alliance stock a good buy?
1. Walgreens Boots Alliance Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founding: Walgreens was established in 1901 by Charles R. Walgreen in Chicago as a single drugstore.
- 1920s Expansion: Rapid growth, known for malted milkshakes and innovative marketing strategies.
- 1960s-1970s Growth: Introduced self-service stores and expanded across the U.S.
- 1980s-1990s Development: Launched drive-thru pharmacies and entered new markets.
- 2000s Acquisitions: Acquired several regional drugstore chains, enhancing market presence.
- 2012 Merger: Merged with Alliance Boots, a leading international pharmacy-led health and beauty group.
- 2014 Formation: Created Walgreens Boots Alliance, Inc., a global leader in pharmacy, health, and wellness.
- Global Presence: Operates in over 25 countries with more than 18,750 stores worldwide.
- Strategic Acquisitions: Strengthened U.S. market position through acquisitions like Duane Reade and Rite Aid.
- Health Services: Focused on expanding healthcare services, including in-store clinics and partnerships.
- Digital Transformation: Invested in digital health and e-commerce to enhance online services and customer engagement.
- Sustainability Initiatives: Committed to reducing environmental impact and promoting corporate social responsibility.
Walgreens Boots Alliance’s rich history of innovation, strategic growth, and commitment to health and wellness has made it a global leader in the pharmacy and retail sectors.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: overpriced
- Score: 22/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Walgreens Boots Alliance (WBA) makes money:
- Pharmacy Sales: Generates revenue from selling prescription medications and over-the-counter (OTC) products at its retail and wholesale pharmacies.
- Retail Sales: Earns from selling health and wellness products, including personal care items, beauty products, and convenience goods in its stores.
- Pharmacy Services: Profits from providing pharmaceutical services, including medication management and consulting services to healthcare providers.
- Health and Wellness Services: Provides additional services such as immunizations, health screenings, and walk-in clinic services, contributing to its revenue.
- Wholesale Distribution: Makes money from distributing pharmaceuticals and healthcare products to other retail and healthcare businesses through its wholesale operations.
- Global Retail Operations: Earns from operating a network of pharmacies and drugstores internationally, including Boots in the UK and other countries.
Here are a few of the other companies that Walgreens Boots Alliance has acquired over the years.
- Boots UK
- Alliance Healthcare
- Pharmacy First
- Zappos
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Walgreens Boots Alliance stacks up against other companies.
- LifeMD, Inc.(LFMD)– 61
- High Tide Inc.(HITI) – 61
- LifeMD, Inc.(LFMDP) – 61
- Harrow Health, Inc. 11.875% Senior Notes due 2027(HROWM) – 44
- Harrow Health, Inc. 8.625% Senior Notes due 2026.(HROWL) – 39
- Walgreens Boots Alliance, Inc.(WBA) – 22
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Digital Transformation: Tim Wentworth Spearheaded digital initiatives, enhancing the company’s online presence and improving customer experience through technology and data analytics.
- Operational Efficiency: Implemented strategies to streamline operations, reduce costs, and improve overall efficiency across Walgreens Boots Alliance.
- Strategic Partnerships: Formed key partnerships and alliances, strengthening Walgreens’ position in the healthcare and retail markets.
- Enhanced Health Services: Expanded Walgreens’ healthcare services, including the growth of its pharmacy and healthcare clinics, enhancing service offerings and customer access.
- Improved Financial Performance: Led efforts that resulted in improved financial performance, increasing profitability and shareholder value.
- Focus on Wellness: Advanced Walgreens’ focus on wellness and health, integrating more health-related products and services into its stores.
- Sustainability Initiatives: Promoted sustainability and corporate social responsibility, aligning Walgreens’ operations with environmental and community goals.
Tim Wentworth’s achievements at Walgreens Boots Alliance include digital transformation, operational efficiency, strategic partnerships, enhanced healthcare services, improved financial performance, a focus on wellness, and sustainability initiatives.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Walgreens Boots Alliance (WBA) is 32/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Walgreens Boots Alliance (WBA) stock a good buy?
Some of the top questions investors can have is Walgreens Boots Alliance (WBA) stock a good buy or should I buy Walgreens Boots Alliance (WBA) stock?
Enterprise Products Partners (EPD) is a promising investment due to its strong dividend yield, which attracts income-focused investors. As a leader in the energy sector, EPD operates an extensive network of pipelines and storage facilities, ensuring consistent cash flow. Its diverse operations lower risk by not relying on a single market segment.
With rising energy demand, EPD is well-positioned for growth. The company also maintains financial stability and low debt, enhancing its appeal as a long-term investment. However, investors should consider market volatility and regulatory risks. Overall, EPD’s track record and reliable dividends make it an attractive option for energy investment. Always conduct thorough research or consult a financial advisor
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To truly know if Walgreens Boots Alliance is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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