WALMART INC (WMT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WMT - US9311421039 - Common Stock
96.51 EUR
-3.02 (-3.03%)
Taking everything into account, WMT scores 5 out of 10 in our fundamental rating. WMT was compared to 24 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.
- Each year in the past 5 years WMT has been profitable.
- Each year in the past 5 years WMT had a positive operating cash flow.
1.2 Ratios
- WMT's Return On Assets of 7.94% is amongst the best of the industry. WMT outperforms 95.83% of its industry peers.
- WMT's Return On Equity of 23.84% is amongst the best of the industry. WMT outperforms 91.67% of its industry peers.
- WMT has a Return On Invested Capital of 12.07%. This is amongst the best in the industry. WMT outperforms 83.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WMT is above the industry average of 9.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 23.84% | ||
| ROIC | 12.07% |
ROA(3y)6.13%
ROA(5y)5.87%
ROE(3y)18.36%
ROE(5y)17.64%
ROIC(3y)12.73%
ROIC(5y)12.9%
1.3 Margins
- The Profit Margin of WMT (3.26%) is better than 91.67% of its industry peers.
- In the last couple of years the Profit Margin of WMT has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 4.12%, WMT is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
- WMT's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 24.91%, WMT is in line with its industry, outperforming 54.17% of the companies in the same industry.
- 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 | 4.12% | ||
| PM (TTM) | 3.26% | ||
| GM | 24.91% |
OM growth 3Y-4.61%
OM growth 5Y1.02%
PM growth 3Y6.13%
PM growth 5Y0.1%
GM growth 3Y-0.33%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WMT is creating some value.
- The number of shares outstanding for WMT has been reduced compared to 1 year ago.
- Compared to 5 years ago, WMT has less shares outstanding
- WMT has a better debt/assets ratio than last year.
2.2 Solvency
- WMT has an Altman-Z score of 6.09. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
- WMT's Altman-Z score of 6.09 is amongst the best of the industry. WMT outperforms 91.67% of its industry peers.
- The Debt to FCF ratio of WMT is 3.48, which is a good value as it means it would take WMT, 3.48 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 3.48, WMT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- WMT has a Debt/Equity ratio of 0.51. This is a neutral value indicating WMT is somewhat dependend on debt financing.
- WMT has a better Debt to Equity ratio (0.51) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.41
WACC8.57%
2.3 Liquidity
- WMT has a Current Ratio of 0.80. This is a bad value and indicates that WMT is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.80, WMT perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- A Quick Ratio of 0.24 indicates that WMT may have some problems paying its short term obligations.
- WMT's Quick ratio of 0.24 is on the low side compared to the rest of the industry. WMT is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.90% over the past year.
- WMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
- Looking at the last year, WMT shows a small growth in Revenue. The Revenue has grown by 4.34% in the last year.
- The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)4.9%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%6.9%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%5.84%
3.2 Future
- WMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.71% yearly.
- The Revenue is expected to grow by 4.96% on average over the next years.
EPS Next Y6.14%
EPS Next 2Y9.28%
EPS Next 3Y10.08%
EPS Next 5Y8.71%
Revenue Next Year4.73%
Revenue Next 2Y4.82%
Revenue Next 3Y4.78%
Revenue Next 5Y4.96%
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 stable.
- 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
- Based on the Price/Earnings ratio of 44.47, the valuation of WMT can be described as expensive.
- WMT's Price/Earnings ratio is a bit more expensive when compared to the industry. WMT is more expensive than 70.83% of the companies in the same industry.
- WMT is valuated expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 38.11 indicates a quite expensive valuation of WMT.
- Based on the Price/Forward Earnings ratio, WMT is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
- WMT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.47 | ||
| Fwd PE | 38.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than 70.83% of the companies in the same industry.
- 75.00% of the companies in the same industry are cheaper than WMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.65 | ||
| EV/EBITDA | 22.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of WMT may justify a higher PE ratio.
PEG (NY)7.24
PEG (5Y)5.06
EPS Next 2Y9.28%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
- WMT has a yearly dividend return of 0.79%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.82, WMT is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- The dividend of WMT has a limited annual growth rate of 3.32%.
Dividend Growth(5Y)3.32%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 31.92% of the earnings are spent on dividend by WMT. This is a low number and sustainable payout ratio.
- WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.92%
EPS Next 2Y9.28%
EPS Next 3Y10.08%
WALMART INC / WMT.DE FAQ
What is the fundamental rating for WMT stock?
ChartMill assigns a fundamental rating of 5 / 10 to WMT.DE.
What is the valuation status of WALMART INC (WMT.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to WALMART INC (WMT.DE). This can be considered as Overvalued.
What is the profitability of WMT stock?
WALMART INC (WMT.DE) has a profitability rating of 7 / 10.
How financially healthy is WALMART INC?
The financial health rating of WALMART INC (WMT.DE) is 6 / 10.
What is the expected EPS growth for WALMART INC (WMT.DE) stock?
The Earnings per Share (EPS) of WALMART INC (WMT.DE) is expected to grow by 6.14% in the next year.