Walgreens Boots Alliance (WBA) operates at the intersection of health care and retail. While it appears safer than many retailers, its performance has been familiarly poor. We look at the work of Trapping Value, who has been following the company for nearly two years with a focus on the bullish opportunity. We look at the changing thesis, the reimbursement pressures Walgreens faces, the pressures it's had holding on in face of a changing climate, and whether a low multiple makes up for that.
Topics covered:
2:20 - Overview of the bull case for Walgreens and the margin pressure they face. 11:20 - Cutting expenses to hold the fort down 17:00 - How the long case has evolved over time, and what multiple to put on it? 23:20 - The innovation in online pharmaceutical selling 28:20 - Walgreens scale as its moat, or are there no protections? 31:30 - Reimbursement pressure as a fact of life
