WALMART INC (WMT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WMT - US9311421039 - Common Stock
100.32 EUR
-0.62 (-0.61%)
WMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Consumer Staples Distribution & Retail industry. WMT has an excellent profitability rating, but 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.
- WMT had a positive operating cash flow in the past year.
- Each year in the past 5 years WMT has been profitable.
- In the past 5 years WMT always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of WMT (7.94%) is better than 96.30% of its industry peers.
- Looking at the Return On Equity, with a value of 23.84%, WMT belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
- The Return On Invested Capital of WMT (12.07%) is better than 77.78% of its industry peers.
- WMT had an Average Return On Invested Capital over the past 3 years of 12.73%. This 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
- Looking at the Profit Margin, with a value of 3.26%, WMT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- In the last couple of years the Profit Margin of WMT has remained more or less at the same level.
- The Operating Margin of WMT (4.12%) is better than 74.07% of its industry peers.
- In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
- WMT's Gross Margin of 24.91% is in line compared to the rest of the industry. WMT outperforms 55.56% 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 | 4.12% | ||
| 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.
- Compared to 1 year ago, WMT has less shares outstanding
- The number of shares outstanding for WMT has been reduced compared to 5 years ago.
- Compared to 1 year ago, WMT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.09 indicates that WMT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of WMT (6.09) is better than 92.59% 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.
- Looking at the Debt to FCF ratio, with a value of 3.48, WMT belongs to the top of the industry, outperforming 85.19% 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 Debt to Equity ratio of 0.51. This is amongst the best in the industry. WMT outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.4
WACC8.6%
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.
- WMT has a Current ratio (0.80) which is in line with its industry peers.
- WMT has a Quick 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.
- WMT has a Quick ratio of 0.24. This is amonst the worse of the industry: WMT underperforms 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
- WMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.90%.
- WMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
- The Revenue has been growing slightly by 4.34% in the past year.
- Measured over the past years, WMT shows a small growth in Revenue. The Revenue has been growing by 5.38% on average per year.
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.
- Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
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 45.81, the valuation of WMT can be described as expensive.
- Based on the Price/Earnings ratio, WMT is valued a bit more expensive than 70.37% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, WMT is valued quite expensively.
- The Price/Forward Earnings ratio is 39.30, which means the current valuation is very expensive for WMT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 74.07% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, WMT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.81 | ||
| Fwd PE | 39.3 |
4.2 Price Multiples
- WMT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WMT is more expensive than 70.37% of the companies in the same industry.
- WMT's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WMT is more expensive than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.51 | ||
| 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)7.46
PEG (5Y)5.21
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.
- With a Dividend Yield of 0.79, WMT pays less dividend than the S&P500 average, which is at 1.81.
| 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
- WMT pays out 31.92% of its income as dividend. This is a sustainable payout ratio.
- The dividend of WMT is growing, but earnings are growing more, so the dividend growth is 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.