Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drugstore giant Walgreen
With that in mind, let's take a closer look at Walgreen's business and see what CAPS investors are saying about the stock right now.
Walgreen facts
Headquarters (Founded) |
Deerfield, Ill. (1901) |
Market Cap |
$36.56 billion |
Industry |
Drug retail |
Trailing-12-Month Revenue |
$67.42 billion |
Management |
CEO Gregory Wasson (since 2009) CFO Wade Miquelon (since 2008) |
Return on Equity (Average, Past 3 Years) |
15.7% |
Cash/Debt |
$1.88 billion / $2.5 billion |
Dividend Yield |
1.8% |
Competitors |
Wal-Mart
CVS Caremark
Rite Aid |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 2,059 members who have rated Walgreen believe the stock will outperform the S&P 500 going forward. These bulls include worktoretire and 702nitro.
Just last week, worktoretire prescribed Walgreen as a steady way to make some income:
The population is aging, and generic drugs are increasing. Walgreens would be a stable investment, with a dividend; company seems to be branching into other care areas with some stores having staffed mini-clinics, and an immunizations program which is fulfilling a needed service.
Walgreen's convenient store base and solid balance sheet continue to make it a favorite CAPS play on health-care spending growth. In fact, Walgreen even sports a lower total debt-to-capital ratio (14.3%) than its main rivals in the retail drugstore space, Wal-Mart (45.4%), CVS (23.3%), and Rite Aid (147.4%), as well as pharmacy benefit manager foes like Express Scripts
CAPS member 702nitro lists several reasons to stay bullish:
1. Aging Population -- Every year millions of people turn 65. They will go to the doctor and get a prescription and pick it up at a WalGreens near their home.
2. Convenience & Location -- Almost every corner. Short lines takes about 3-4 minutes to get what you want, and another 3-4 minutes to checkout on a busy day.
3. Products -- Carries the essential products we need every day. OTC drugs, toilet paper, personal care (toothpaste, tampons, shampoo).
4. Affordable -- Cheaper personal products than grocery store. Very competitive with Walmart on prices.
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