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0 sats \ 0 replies \ @Bell_curve 6 Sep 2024 \ on: Walgreens is Headed for Bankruptcy news
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Based on the provided search results, here is a summary of Walgreens' financial situation and potential bankruptcy risk:
Walgreens Boots Alliance Inc (WBA) has a Probability of Bankruptcy of 17.71% (according to one source).
The company's ESG (Environmental, Social, and Governance) ratings indicate a relatively high score (87.01) and strong governance practices.
Historical returns for Walgreens stock have been negative, with 5-day, MTD, YTD, 13-week, and 26-week returns ranging from -6.49% to -66.87%.
Market capitalization is around $7.55 billion, with a 52-week high of $27.05 and low of $8.62.
Beta is 0.80, indicating moderate volatility.
Average volume is around 9.51 million shares (10-day) and 6.05 million shares (3-month).
Price-to-Sales (P/S) ratio is 0.05.
EPS is -$6.74, and revenue CAGR (5-year) is 1.12%.
Current Ratio is 0.65, and Quick Ratio is 0.31, indicating some liquidity concerns.
Recent news and developments:
Walgreens announced plans to close a "significant" number of its approximately 8,600 US locations, citing underperformance and competition from larger retailers.
The company did not specify the exact number of closures, but stated it would focus on resetting its business.
Comparison to other retailers:
Rite Aid, another pharmacy chain, filed for Chapter 11 bankruptcy in October 2024, citing financial distress and competition.
- CVS and Target have also closed stores in recent years, primarily due to theft and organized crime.
Conclusion:
While Walgreens faces challenges, including declining sales and competition, its Probability of Bankruptcy is relatively high (17.71%). However, the company's strong governance practices and moderate financial metrics (e.g., market capitalization, beta) suggest it may not be as vulnerable to bankruptcy as some other retailers. The planned store closures are likely an effort to restructure and adapt to changing market conditions. Ultimately, the likelihood of Walgreens filing for bankruptcy remains uncertain and will depend on various factors, including its ability to execute its restructuring plans and adapt to ongoing market pressures.