Long WBA here, too, just over 300 shares. Average cost $35-36. Having a hard time adding more at the current levels when I have other choices. Also long CAH, but mostly disappointed in that company's performance. Long-term dividend focus here.
also long around 400 shares at 47. Like the dividend. Believe "vaccine traffic" will remain 2 more years and older people need more medicine. Happy already if price stays at 50 but pays consistent dividend.
Thank you for sharing your thoughts and insight on WBA, I couldn't agree more on much of what you shared. As a long-term, value investor, WBA certainly makes the cut for my portfolio though I am not invested in it right now.. When going head-to-head with CVS, I feel WBA is the better play and will continue to deliver on their returns to shareholders. I know they have their clinics similar to CVS opening up and building out so I expect only more growth on the 2 to 5 year horizon!!
I find it helpful to take some of Chuck's templates/ forms and incorporate them into cheat sheets, since I made one, I'll share it From Chuck's video: Fast Fundamental Analysis | FAST Graphs 1. Earnings Growth 2. Valuation 3. Dividend Growth Trend (If Any) 4. Reasonable Return Expectations 5. Investment Grade Credit Rating (BBB- or better) 6. Free Cash Flow > Dividend 7. Cash Flow from Operations Growth Trend (3-5 Years Minimum) 8. Cash Flow from Operations (CFO) - Higher than Net Income Fun Graphs 9. Cash Flow from Operations (CFO) - Higher than Net Income 10. Net Income Growth Trend (3-5 Years Minimum) 11. Debt to Equity Ratio - 1 to 1 (Industry Norm) 12. Gross Margin Versus Net Margin (Industry Norm) 13. Asset Turnover (Assets/Sales) 14. Return On Assets > 10% or Better 15. Return on Equity > 15% or Better
Fantastic checklist great video. I find it tough to decide between WBA and CVS I would most likely put 50% in each if I wanted exposure. Thanks Chuck!!!
Another great video on WBA. Thanks for reinforcing your earlier video using your Fast Fundamental Analyst Tool. Fortunately, or unfortunately, I have a significant 2021 taxable liability from stock gains on stocks you have recommended over the years. I have been long WBA but with a loss over the last year I will be selling WBA to reduce my tax liability for a possible buy back in 2022. I see the errors in my ways and will be trying to do less profit taking next year. As you have said in the past, "Investments are like a bar of soap". Sometimes we just have to learn our lessons the hard way.
@@tassv5909 Tass, In most cases I would say you are correct, but you haven't seen my tax liability. I'm going to have to sell some profits early next year to pay 2021 taxes which will only set me up for more taxes in 2022. I just got too carried away skimming profits this year before I realized what I had done. I just love to have the Government as my silent partner when all my money is at risk and they have the printing press. Live and learn.
@@tonybrunet7762 if you own a small business consider a SEP IRA. Even matchkng everybody I max it out every year for myself and the I have tons of money to play with and nontax concerns on those gains. Between the SEP and the traditional putting away almost $70k yearly. Generations after me can retire if they play their cards right.
Long on WBA, no CVS. WBA is Consumer Staples, CVS is Health Care and I'm short in Consumer Staples, overloaded in Health Care. Always informative and appreciated!
MorningStar currently gives it a 5 star rating. The stock is gone down but the fundamentals appeared to be improving.I think the company represents an exceptional long-term investment. However, I believe short-term pain is still likely. Hope this helps, Chuck
Long WBA & CVS. I do consider, the fact that, they made some bad investments throughout the years, but we hope that their new initiatives will pay off. CVS is purely a safety pick from my perspective, great growth ahead of them, a lot of room for margin expansion until we get to those "overvaluated" 20+ p/e digits, I believe it is a buy & hold in the long run. WBA is as you described a "small" position, somewhere in the 1-2 percentile of the portfolio, and has underperformed since I acquired a few shares, but a decent dividend and a good outlook keep me still in the game. Waiting on your analysis of CVS & MCK. I know you're a big fan of both of them.
As always home-run video Chuck! I love WBA. I own a good sized position. I don't own CVS (because of the dividend) but looking forward to your review on CVS, I'm open to learning more about them. As always man - fantastic job.
I have Walgreens and CVS and they are doing, what they should do. What I like better is, that Walgreens has dividend growth and with 4% a nice yield. CVS ist better on the earnings, but I don´t like the frozen dividend. What I see , the healthcare sector is overall not strong, Cardinal Health is a similar example. You can buy the shares cheap, but I´m not too optimistic that they will get expensive the next time. CVS is regarding the market value the best of the three. If you look for the dividend Walgreen is a buy, same as Cardinal Health. CVS is more a growth stock.
I am finding retail duopolies. HD/LOW was my first. CVS/WBA is positioning itself to be the next. I buy both parts of a duopoly at fair price and hold long.
Hello Chuck. Thank you very much for this informative video it helps me get more out of fast graphs. Could you maybe in a next video also explain why some metrics especially in fun graphs are important? For example what does it mean if a company has higher net income as cashflow from operation? Why is this bad? What things do i have to look out for when i see this? Thank you very much for helping a beginning investor on his path to make sence of it all. :-)
Hello Chuck! Very interesting analysis. I was wondering if you can do a similar video about Visa and Mastercard. I'm thinking that they are fairly valued at today's current price. What do you think?
Nice presentation. A question though. I downloaded the latest Dividend Aristocrats list and note that MO, SYY NFG, & FRT all have payout ratios higher than 100%. How can that be? Thanks.
I have a small holding. One thing that US companies ignore is many are carrying excessive debt. Im not sure how they will fund their transition to medical/pharmacy dual located clinics. I know in Australia medical clinics if they are well run are a licence to print money. Lets hope they get it right. Its not rocket science opening & running clinics but its not cheap to do
No...I don´t like WBA; there´s no business plan. CVS is one of my largest positions. That management does a great job. Waiting for your next video... with greetings from Bavaria, Germany
if there is no business plan, why do revenues go up every year? I see a lot of potential from cost-savings via technology. Although CVS has better future prospects it is not valued quite as cheaply hence my WBA position is bigger than CVS. The opportunity I see for WBA is to sell more beauty products, like Boots in UK is doing very successfully. Also greetings from Bavaria.
@@tassv5909Revenue has gone up cause they’re inflating growth through store count. You can see this when you look at their EBITDA which has been flat the last decade. All the while their debt has ballooned in order for them to try to inflate growth and earnings has not caught up to the debt. On top of the fact that they’re paying a dividend they can’t afford. They’re in a really bad situation.
Chuck, could you explain the $8-9B in Real Debt vs the $40B inclusive of Operating Leases “which is a new accounting convention that is becoming common.” This strikes me as significant. I rejected WBA over my concern that the debt was too high. I’d like to understand the difference in the types of debt and how I might consider the difference in my analysis.
Steve: under recent FASB accounting standards operating leases are now required to be included on the balance sheet where previously they were not. Consequently, since operating leases are an obligation, this provides greater clarity on the debt obligations that the company faces. Here is a link to a Forbes article that may provide greater insight.: www.forbes.com/sites/greatspeculations/2018/05/01/impact-of-operating-leases-moving-to-balance-sheet/?sh=4a57da8b2c55 Our data provider FactSet is now including operating leases as part of total debt; therefore, I believe this is much more transparent than what was previously done. Here is how Zacks reports balance sheet using the previous methodology: Leveraged Balance Sheet with Heavy Payout Load: Walgreens Boots exited the fiscal 2021 with cash and cash equivalents of $1.19 billion compared with the $1.35 billion recorded at the end of the third quarter of fiscal 2021. Meanwhile, the company’s high level of debt on the balance sheet has pretty much to worry about, especially during the time when the coronavirus mayhem has forced the corporate sector halt their production and supply. Total debt was $8.98 billion at the end of the fiscal 2021, down from $15.70 billion at the end of the third quarter of fiscal 2021. Further, the current-year payable debt too is coming at $1.30 billion (current debt level was $7.96 billion at the end of the third quarter of fiscal 2021), much more than the short-term cash level. This is particularly worrisome in terms of the company’s solvency level as, during the year of economic downturn, the company is not holding sufficient cash for short-term debt repayment. The quarter’s total debt-to-capital of 24.4% indicates a moderately leveraged balance sheet. However, it represents a sequential decrease from 25.5% at the end of the third quarter of fiscal 2021. The overall data concludes that with respect to both solvency and the leverage level, the company's balance sheet looks disappointing. The current payout ratio stands at a moderately high level of 35.5%, representing a sequential decrease from 36.3% from the end of the third quarter of fiscal 2021. Amid the pandemic-led economic crisis, if production and supply halt along with lockdowns continue through the next few months, the company might find paying its regular quarterly dividends to be a burden. Regards, Chuck
@@FASTgraphs Thank you, Chuck. Excellent reply. I agree that we now have a better presentation of debt load and the difference between the two accounting systems is huge for WBA. When evaluating WBA’s debt I came to the same conclusion and this was a basis for me to unload my holdings at the recent 9.1% price spike. I add debt/share to the share price to get a “debt-adjusted” price to better reflect my idea of the true cost of a share. My read is your presentation was generally bullish on WBA in spite of the high-ish debt. Me, not so much at the current price. Thx again. - Steve
It hasn't "aged" yet. "Just because the stock price goes up does not mean you are right and just because the stock price goes down doesn't mean you were wrong." Peter Lynch one up on Wall Street."
@@FASTgraphs Thanks Chuck. I love your work and learned a lot. I figured maybe if they slide a hike in before the end of the year then maybe that counts for 2023 and keeps their status.
Great Video! I´m invested in Walgreens with 90 Shares.
Brewer is underestimated!! lets go!
I'm very long on Walgreens 400 shares, I've been selling calls against for 6 months so cost basis is getting pretty low which is good, great video
Nice I have about 145 around 47-48. It’s more of a safe bet. Also been buying BMY INTC Facebook and HPQ
Long WBA here, too, just over 300 shares. Average cost $35-36. Having a hard time adding more at the current levels when I have other choices. Also long CAH, but mostly disappointed in that company's performance. Long-term dividend focus here.
also long around 400 shares at 47. Like the dividend. Believe "vaccine traffic" will remain 2 more years and older people need more medicine. Happy already if price stays at 50 but pays consistent dividend.
An Update would be nice - earnings are still falling...
really interesting talking about WBA ! MCK just announced incredible numbers, I am interested in ABC and CAH aswell !
Thanks for content
I like your 15 step process, please keep it up
Love you analysis. What a great learning tool. Thanks for the 15 tools you describe here. Great stuff!
Chuck, could you please do an up-to-date analysis on Walgreens?
Very informative professor analysis!
Thank you uncle chuck
Thank you, kind sir! Long WBA.
Thank you for sharing your thoughts and insight on WBA, I couldn't agree more on much of what you shared. As a long-term, value investor, WBA certainly makes the cut for my portfolio though I am not invested in it right now.. When going head-to-head with CVS, I feel WBA is the better play and will continue to deliver on their returns to shareholders. I know they have their clinics similar to CVS opening up and building out so I expect only more growth on the 2 to 5 year horizon!!
I find it helpful to take some of Chuck's templates/
forms and incorporate them into cheat sheets, since I made one, I'll share it
From Chuck's video:
Fast Fundamental Analysis | FAST Graphs
1. Earnings Growth
2. Valuation
3. Dividend Growth Trend (If Any)
4. Reasonable Return Expectations
5. Investment Grade Credit Rating (BBB- or better)
6. Free Cash Flow > Dividend
7. Cash Flow from Operations Growth Trend (3-5 Years Minimum)
8. Cash Flow from Operations (CFO) - Higher than Net Income
Fun Graphs
9. Cash Flow from Operations (CFO) - Higher than Net Income
10. Net Income Growth Trend (3-5 Years Minimum)
11. Debt to Equity Ratio - 1 to 1 (Industry Norm)
12. Gross Margin Versus Net Margin (Industry Norm)
13. Asset Turnover (Assets/Sales)
14. Return On Assets > 10% or Better
15. Return on Equity > 15% or Better
Thanks a lot for typing and sharing! :-)
Thank you very much.
Very kind of you to share. Thank you!
Fantastic checklist great video. I find it tough to decide between WBA and CVS I would most likely put 50% in each if I wanted exposure. Thanks Chuck!!!
Another great video on WBA. Thanks for reinforcing your earlier video using your Fast Fundamental Analyst Tool. Fortunately, or unfortunately, I have a significant 2021 taxable liability from stock gains on stocks you have recommended over the years. I have been long WBA but with a loss over the last year I will be selling WBA to reduce my tax liability for a possible buy back in 2022. I see the errors in my ways and will be trying to do less profit taking next year. As you have said in the past, "Investments are like a bar of soap". Sometimes we just have to learn our lessons the hard way.
rather tax liability than loss ;)
@@tassv5909 Tass, In most cases I would say you are correct, but you haven't seen my tax liability. I'm going to have to sell some profits early next year to pay 2021 taxes which will only set me up for more taxes in 2022. I just got too carried away skimming profits this year before I realized what I had done. I just love to have the Government as my silent partner when all my money is at risk and they have the printing press. Live and learn.
@@tonybrunet7762 if you own a small business consider a SEP IRA. Even matchkng everybody I max it out every year for myself and the I have tons of money to play with and nontax concerns on those gains. Between the SEP and the traditional putting away almost $70k yearly. Generations after me can retire if they play their cards right.
Long on WBA, no CVS. WBA is Consumer Staples, CVS is Health Care and I'm short in Consumer Staples, overloaded in Health Care. Always informative and appreciated!
WBA also has a nice UK exposure via Boots Alliance
Thank you sir
Time for a review of this stock.
MorningStar currently gives it a 5 star rating. The stock is gone down but the fundamentals appeared to be improving.I think the company represents an exceptional long-term investment. However, I believe short-term pain is still likely. Hope this helps, Chuck
Love it.
Long WBA & CVS. I do consider, the fact that, they made some bad investments throughout the years, but we hope that their new initiatives will pay off. CVS is purely a safety pick from my perspective, great growth ahead of them, a lot of room for margin expansion until we get to those "overvaluated" 20+ p/e digits, I believe it is a buy & hold in the long run. WBA is as you described a "small" position, somewhere in the 1-2 percentile of the portfolio, and has underperformed since I acquired a few shares, but a decent dividend and a good outlook keep me still in the game. Waiting on your analysis of CVS & MCK. I know you're a big fan of both of them.
Nice video 😊 thank you
As always home-run video Chuck! I love WBA. I own a good sized position. I don't own CVS (because of the dividend) but looking forward to your review on CVS, I'm open to learning more about them. As always man - fantastic job.
Great channel. Keep up the good work!
WBA is a great Stock
No its not
Chuck FB would be great to analyze, thanks!
Thank you Sir. Could you please analize VITL stock, doesn't get much love lately.
I have Walgreens and CVS and they are doing, what they should do. What I like better is, that Walgreens has dividend growth and with 4% a nice yield. CVS ist better on the earnings, but I don´t like the frozen dividend. What I see , the healthcare sector is overall not strong, Cardinal Health is a similar example. You can buy the shares cheap, but I´m not too optimistic that they will get expensive the next time. CVS is regarding the market value the best of the three. If you look for the dividend Walgreen is a buy, same as Cardinal Health. CVS is more a growth stock.
I see CVS as a buy to help corner that market along with Walgreens.
Long on both 👍
Hi Chuck, would love to see an updated analysis of WBA now that it has fallen below 30. Thanks
Financial Education just entered the chat
WBA looks like it has a good outlook
great video, thanks.
what do think about NHI - they seem very cheap atm.
NHI have been cutting their dividend
@@winstonsmith2079 it's still quite high + low valuations
Please chuck 😎❤️ make a new update on WBA 🙏🏻 now in 8% dividend yield. And other stuff has happened for sure.
Forget WBA. Invest instead in the company that makes the paper for WBA's four-foot-long register receipts.😆
Ha!…You could wallpaper your kitchen with it
I've been betting on CVS but WBA is still very compelling. Might open a position sooner rather than later.
Do it squid
I am finding retail duopolies. HD/LOW was my first. CVS/WBA is positioning itself to be the next. I buy both parts of a duopoly at fair price and hold long.
@@AllenKrell I've had HD for a while and did well. Would love some LOW at a cheaper price.
Hello Chuck. Thank you very much for this informative video it helps me get more out of fast graphs. Could you maybe in a next video also explain why some metrics especially in fun graphs are important? For example what does it mean if a company has higher net income as cashflow from operation? Why is this bad? What things do i have to look out for when i see this? Thank you very much for helping a beginning investor on his path to make sence of it all. :-)
Hello Chuck! Very interesting analysis. I was wondering if you can do a similar video about Visa and Mastercard. I'm thinking that they are fairly valued at today's current price. What do you think?
Hi Chuck, thank you for the free education. Could you please do a short one about WU? Earnings yield > 10%, DivYield > 5%. Thanks a lot!
Nice presentation. A question though. I downloaded the latest Dividend Aristocrats list and note that MO, SYY NFG, & FRT all have payout ratios higher than 100%. How can that be? Thanks.
Great video. Love WBA..especially after a nice -3.5 % today. Would you consider how to analyze a company like CCL or LUV/DAL?
Not to forget their 30% stake in Amerisourcebergen
YEAH, WHAT A GREAT TRAP FOR SENILE INVESTORS. Down 66% last 5 years, ehi but it paid a dividend so you are really down on 55%...
Could you do a footlocker video it's been getting beaten down recently and i believe massively undervalued now
WBA and CVS have the pharmacy market somewhat cornered for the forseeable future. It's a no brainer. Must have it in the portfolio
how do you like your losses after 2 years …fool
I have a small holding. One thing that US companies ignore is many are carrying excessive debt. Im not sure how they will fund their transition to medical/pharmacy dual located clinics. I know in Australia medical clinics if they are well run are a licence to print money. Lets hope they get it right. Its not rocket science opening & running clinics but its not cheap to do
I have seen Parker for 110$ in the Flash Crash i had an order 98$ it missed bearly......
No...I don´t like WBA; there´s no business plan.
CVS is one of my largest positions. That management does a great job.
Waiting for your next video... with greetings from Bavaria, Germany
if there is no business plan, why do revenues go up every year? I see a lot of potential from cost-savings via technology. Although CVS has better future prospects it is not valued quite as cheaply hence my WBA position is bigger than CVS. The opportunity I see for WBA is to sell more beauty products, like Boots in UK is doing very successfully. Also greetings from Bavaria.
@@tassv5909Revenue has gone up cause they’re inflating growth through store count. You can see this when you look at their EBITDA which has been flat the last decade. All the while their debt has ballooned in order for them to try to inflate growth and earnings has not caught up to the debt. On top of the fact that they’re paying a dividend they can’t afford. They’re in a really bad situation.
Chuck, could you explain the $8-9B in Real Debt vs the $40B inclusive of Operating Leases “which is a new accounting convention that is becoming common.” This strikes me as significant. I rejected WBA over my concern that the debt was too high. I’d like to understand the difference in the types of debt and how I might consider the difference in my analysis.
Steve: under recent FASB accounting standards operating leases are now required to be included on the balance sheet where previously they were not. Consequently, since operating leases are an obligation, this provides greater clarity on the debt obligations that the company faces. Here is a link to a Forbes article that may provide greater insight.: www.forbes.com/sites/greatspeculations/2018/05/01/impact-of-operating-leases-moving-to-balance-sheet/?sh=4a57da8b2c55
Our data provider FactSet is now including operating leases as part of total debt; therefore, I believe this is much more transparent than what was previously done. Here is how Zacks reports balance sheet using the previous methodology: Leveraged Balance Sheet with Heavy Payout Load: Walgreens Boots exited the fiscal 2021 with cash and cash equivalents of $1.19 billion compared with the $1.35 billion recorded at the end of the third quarter of fiscal 2021. Meanwhile, the company’s high level of debt on the balance sheet has pretty much to worry about, especially during the time when the coronavirus mayhem has forced the corporate sector halt their production and supply.
Total debt was $8.98 billion at the end of the fiscal 2021, down from $15.70 billion at the end of the third quarter of fiscal 2021. Further, the current-year payable debt too is coming at $1.30 billion (current debt level was $7.96 billion at the end of the third quarter of fiscal 2021), much more than the short-term cash level. This is particularly worrisome in terms of the company’s solvency level as, during the year of economic downturn, the company is not holding sufficient cash for short-term debt repayment.
The quarter’s total debt-to-capital of 24.4% indicates a moderately leveraged balance sheet. However, it represents a sequential decrease from 25.5% at the end of the third quarter of fiscal 2021. The overall data concludes that with respect to both solvency and the leverage level, the company's balance sheet looks disappointing.
The current payout ratio stands at a moderately high level of 35.5%, representing a sequential decrease from 36.3% from the end of the third quarter of fiscal 2021. Amid the pandemic-led economic crisis, if production and supply halt along with lockdowns continue through the next few months, the company might find paying its regular quarterly dividends to be a burden. Regards, Chuck
@@FASTgraphs Thank you, Chuck. Excellent reply. I agree that we now have a better presentation of debt load and the difference between the two accounting systems is huge for WBA. When evaluating WBA’s debt I came to the same conclusion and this was a basis for me to unload my holdings at the recent 9.1% price spike. I add debt/share to the share price to get a “debt-adjusted” price to better reflect my idea of the true cost of a share. My read is your presentation was generally bullish on WBA in spite of the high-ish debt. Me, not so much at the current price. Thx again. - Steve
schade das YT nicht auf deutsch übersetzen kann
WBA keeps going down. I think the company needs to re-start buybacks to reduce the burden of the dividend.
This video did not age well...
It hasn't "aged" yet. "Just because the stock price goes up does not mean you are right and just because the stock price goes down doesn't mean you were wrong." Peter Lynch one up on Wall Street."
I see it still is paying 48 cents a share for the 5th straight quarter, how come it is still a dividend aristocrat?
You would have to ask the curator of the list Justin law. We do not keep those lists we just report them. Regards, Chuck
@@FASTgraphs Thanks Chuck. I love your work and learned a lot. I figured maybe if they slide a hike in before the end of the year then maybe that counts for 2023 and keeps their status.
An update maybe for people who bought last year?🫥
RIP