Money and Finance
I've been meaning to post some more stock analysis' so today we'll look at one of my recent buy's, Walgreen's. On Friday, November 2nd, Walgreen's closed at $34.88.
Company Background:
Walgreen Co., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. The company sells prescription and non-prescription drugs; and general merchandise, including household products, convenience and fresh foods, personal care, beauty care, photofinishing, and candy products, as well as home medical equipment, contact lenses, vitamins and supplements, and other health and wellness solutions. It also provides specialty pharmacy services for managing complex and chronic health conditions; customers infusion therapy services consisting of administration of intravenous medications for cancer treatments, chronic pain, heart failure, and other infections and disorders; and clinical services, such as laboratory monitoring, medication profile review, nutritional assessments, and patient and caregiver education. In addition, the company operates Take Care Clinics to treat patients, give prescriptions, and administer immunizations and other vaccines. As of October 30, 2012, it operated 7,944 drugstores in 50 states, the District of Columbia, and Puerto Rico, as well as approximately 700 worksite health and wellness centers, and in-store convenient care clinics in the United States.
DCF Valuation:
Analysts expect WAG to grow earnings 12.47% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, slightly above the long term inflation rate. Running these numbers through a DCF analysis with a 11% discount rate yields a fair value price of $64.03. This means that at $34.88 the shares are undervalued by 45.5%.
Read more »
- Baxter International (bax) - Dividend Stock Analysis
If you take a look at my portfolio I'm lacking in two major areas that I'd like to get more exposure too. One is the food industry, I only have KO and MCD that are direct plays on food and the other is healthcare. The demographics both in...
- Johnson And Johnson Dividend Stock Analysis
I've been meaning to revisit my analysis on Johnson and Johnson since it's been a year since I first looked at them. I've learned so much more about stock analysis in that time so this will be more thorough and hopefully more insightful....
- 3m Stock Analysis
It's time for another stock analysis report and this time I'll look at another dividend champion, 3M (MMM). 3M closed trading on Friday, January 11th at $96.28. Company Background: 3M Company operates as a diversified technology company worldwide....
- Becton Dickinson Stock Analysis
Since I'm really lacking on health care industry exposure it was time to start looking at some of the different companies, so today we'll look at Becton Dickinson and Company. Becton Dickinson closed trading on Monday, November 5th at $76.59....
- Emerson Stock Analysis
Last week was a slow week for the blog because work was really busy, so I figured I'd give y'all another stock analysis. This time I decided to take a look at Emerson Electric Company (EMR). Emerson closed on Friday 5/25/12 at $47.28. Company...
Money and Finance
Walgreen's Stock Analysis
I've been meaning to post some more stock analysis' so today we'll look at one of my recent buy's, Walgreen's. On Friday, November 2nd, Walgreen's closed at $34.88.
Company Background:
Walgreen Co., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. The company sells prescription and non-prescription drugs; and general merchandise, including household products, convenience and fresh foods, personal care, beauty care, photofinishing, and candy products, as well as home medical equipment, contact lenses, vitamins and supplements, and other health and wellness solutions. It also provides specialty pharmacy services for managing complex and chronic health conditions; customers infusion therapy services consisting of administration of intravenous medications for cancer treatments, chronic pain, heart failure, and other infections and disorders; and clinical services, such as laboratory monitoring, medication profile review, nutritional assessments, and patient and caregiver education. In addition, the company operates Take Care Clinics to treat patients, give prescriptions, and administer immunizations and other vaccines. As of October 30, 2012, it operated 7,944 drugstores in 50 states, the District of Columbia, and Puerto Rico, as well as approximately 700 worksite health and wellness centers, and in-store convenient care clinics in the United States.
DCF Valuation:
Analysts expect WAG to grow earnings 12.47% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, slightly above the long term inflation rate. Running these numbers through a DCF analysis with a 11% discount rate yields a fair value price of $64.03. This means that at $34.88 the shares are undervalued by 45.5%.
Read more »
- Baxter International (bax) - Dividend Stock Analysis
If you take a look at my portfolio I'm lacking in two major areas that I'd like to get more exposure too. One is the food industry, I only have KO and MCD that are direct plays on food and the other is healthcare. The demographics both in...
- Johnson And Johnson Dividend Stock Analysis
I've been meaning to revisit my analysis on Johnson and Johnson since it's been a year since I first looked at them. I've learned so much more about stock analysis in that time so this will be more thorough and hopefully more insightful....
- 3m Stock Analysis
It's time for another stock analysis report and this time I'll look at another dividend champion, 3M (MMM). 3M closed trading on Friday, January 11th at $96.28. Company Background: 3M Company operates as a diversified technology company worldwide....
- Becton Dickinson Stock Analysis
Since I'm really lacking on health care industry exposure it was time to start looking at some of the different companies, so today we'll look at Becton Dickinson and Company. Becton Dickinson closed trading on Monday, November 5th at $76.59....
- Emerson Stock Analysis
Last week was a slow week for the blog because work was really busy, so I figured I'd give y'all another stock analysis. This time I decided to take a look at Emerson Electric Company (EMR). Emerson closed on Friday 5/25/12 at $47.28. Company...