WALMART INC (WMT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WMT - US9311421039 - Common Stock
98.22 EUR
+1.71 (+1.77%)
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 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
- In the past year WMT was profitable.
- In the past year WMT had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 7.94%, WMT belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
- WMT has a better Return On Equity (23.84%) than 91.67% of its industry peers.
- The Return On Invested Capital of WMT (12.07%) is better than 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
- WMT has a better Profit Margin (3.26%) than 91.67% of its industry peers.
- WMT's Profit Margin has been stable in the last couple of years.
- With a decent Operating Margin value of 4.12%, WMT is doing good in the industry, outperforming 79.17% of the companies in the same industry.
- In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
- With a Gross Margin value of 24.91%, WMT perfoms like the industry average, 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
- WMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for WMT has been reduced compared to 1 year ago.
- WMT has less shares outstanding than it did 5 years ago.
- WMT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.02 indicates that WMT is not in any danger for bankruptcy at the moment.
- WMT's Altman-Z score of 6.02 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.
- Looking at the Debt to FCF ratio, with a value of 3.48, WMT belongs to the top 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's Debt to Equity ratio of 0.51 is amongst the best of the industry. WMT outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 6.02 |
ROIC/WACC1.41
WACC8.57%
2.3 Liquidity
- A Current Ratio of 0.80 indicates that WMT may have some problems paying its short term obligations.
- WMT's Current ratio of 0.80 is in line compared to the rest of the industry. WMT outperforms 41.67% of 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.
- Looking at the Quick ratio, with a value of 0.24, WMT is doing worse than 87.50% of the companies in the same industry.
| 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%.
- The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
- WMT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.34%.
- WMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
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
- WMT is valuated quite expensively with a Price/Earnings ratio of 45.68.
- Based on the Price/Earnings ratio, WMT is valued a bit more expensive than the industry average as 70.83% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, WMT is valued quite expensively.
- With a Price/Forward Earnings ratio of 39.09, WMT can be considered very expensive at the moment.
- 75.00% of the companies in the same industry are cheaper than WMT, based on the Price/Forward Earnings ratio.
- WMT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.68 | ||
| Fwd PE | 39.09 |
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 70.83% of the companies listed 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 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.18 | ||
| EV/EBITDA | 22.23 |
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)7.44
PEG (5Y)5.19
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.
- WMT's Dividend Yield is slightly below the industry average, which is at 2.82.
- 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
- 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.