WALMART INC (WMT)
US9311421039 - Common Stock
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 41 industry peers in the Consumer Staples Distribution & Retail industry. While WMT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WMT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WMT had positive earnings in the past year.
In the past year WMT had a positive cash flow from operations.
In the past 5 years WMT has always been profitable.
In the past 5 years WMT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.11%, WMT is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
With a decent Return On Equity value of 18.42%, WMT is doing good in the industry, outperforming 78.05% of the companies in the same industry.
The Return On Invested Capital of WMT (12.25%) is better than 80.49% of its industry peers.
WMT had an Average Return On Invested Capital over the past 3 years of 12.57%. This is above the industry average of 9.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 18.42% | ||
| ROIC | 12.25% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)12.57%
ROIC(5y)11.73%
1.3 Margins
WMT's Profit Margin of 2.34% is fine compared to the rest of the industry. WMT outperforms 73.17% of its industry peers.
WMT's Profit Margin has improved in the last couple of years.
WMT has a Operating Margin of 4.25%. This is in the better half of the industry: WMT outperforms 75.61% of its industry peers.
In the last couple of years the Operating Margin of WMT has grown nicely.
The Gross Margin of WMT (24.63%) is better than 60.98% of its industry peers.
In the last couple of years the Gross Margin of WMT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.25% | ||
| PM (TTM) | 2.34% | ||
| GM | 24.63% |
OM growth 3Y-0.13%
OM growth 5Y2.38%
PM growth 3Y-0.32%
PM growth 5Y13.04%
GM growth 3Y-0.61%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WMT is still creating some value.
The number of shares outstanding for WMT has been reduced compared to 1 year ago.
The number of shares outstanding for WMT has been reduced compared to 5 years ago.
Compared to 1 year ago, WMT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.70 indicates that WMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.70, WMT is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
The Debt to FCF ratio of WMT is 3.92, which is a good value as it means it would take WMT, 3.92 years of fcf income to pay off all of its debts.
WMT has a better Debt to FCF ratio (3.92) than 68.29% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that WMT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, WMT perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.43
WACC8.59%
2.3 Liquidity
A Current Ratio of 0.80 indicates that WMT may have some problems paying its short term obligations.
WMT has a worse Current ratio (0.80) than 78.05% of its industry peers.
A Quick Ratio of 0.22 indicates that WMT may have some problems paying its short term obligations.
WMT's Quick ratio of 0.22 is on the low side compared to the rest of the industry. WMT is outperformed by 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.51% over the past year.
The Earnings Per Share has been growing slightly by 6.18% on average over the past years.
Looking at the last year, WMT shows a small growth in Revenue. The Revenue has grown by 5.43% in the last year.
WMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.73% yearly.
EPS 1Y (TTM)9.51%
EPS 3Y6.22%
EPS 5Y6.18%
EPS Q2Q%9.24%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%4.77%
3.2 Future
Based on estimates for the next years, WMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.21% on average per year.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.39% on average per year.
EPS Next Y11.73%
EPS Next 2Y11.4%
EPS Next 3Y11.4%
EPS Next 5Y10.21%
Revenue Next Year5.13%
Revenue Next 2Y4.63%
Revenue Next 3Y4.3%
Revenue Next 5Y4.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.47, which means the current valuation is very expensive for WMT.
The rest of the industry has a similar Price/Earnings ratio as WMT.
WMT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 30.51.
A Price/Forward Earnings ratio of 29.87 indicates a quite expensive valuation of WMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMT is on the same level as its industry peers.
WMT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 29.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 65.85% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WMT is valued a bit more expensive than the industry average as 63.41% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.03 | ||
| EV/EBITDA | 16.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.94
PEG (5Y)5.58
EPS Next 2Y11.4%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
With a yearly dividend of 1.00%, WMT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.49, WMT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.00, WMT pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of WMT has a limited annual growth rate of 1.75%.
WMT has been paying a dividend for at least 10 years, so it has a reliable track record.
WMT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.75%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
41.18% of the earnings are spent on dividend by WMT. This is a bit on the high side, but may be sustainable.
WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.18%
EPS Next 2Y11.4%
EPS Next 3Y11.4%
WALMART INC
NYSE:WMT (10/31/2024, 11:49:07 AM)
82.05
+0.66 (+0.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap659.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 29.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.94
PEG (5Y)5.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 18.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.25% | ||
| PM (TTM) | 2.34% | ||
| GM | 24.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.51%
EPS 3Y6.22%
EPS 5Y
EPS Q2Q%
EPS Next Y11.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.43%
Revenue growth 3Y5.05%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y