Shares of Walgreens Boots Alliance (NASDAQ: WBA) look incredibly inexpensive. Based on the midpoint of the retail pharmacy chain's full-year adjusted earnings guidance, the stock trades at a price-to-earnings ratio of just 7. Add in a dividend yield of about 6.7%, and there's a lot to like on the surface.

This rock-bottom valuation could be a sign that Walgreens is a value stock, but I'm not so sure. The company is facing serious issues, and the long-term picture doesn't look all that bright.

There's a good reason why Walgreens trades at such a depressed multiple of earnings: Earnings are in decline. The company's latest guidance calls for full-year adjusted earnings per share between $4 and $4.05, down from the previous range of $4.45 to $4.65. Both ranges represent a decline from 2022 when the company reported adjusted earnings per share (EPS) of $5.04.

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Source Fool.com