WALMART INC (WMT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WMT - US9311421039 - Common Stock
99.02 EUR
-1.3 (-1.3%)
We assign a fundamental rating of 5 out of 10 to WMT. WMT was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. WMT scores excellent on profitability, 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.
- Each year in the past 5 years WMT had a positive operating cash flow.
1.2 Ratios
- WMT has a Return On Assets of 7.94%. This is amongst the best in 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
- WMT's Profit Margin of 3.26% is amongst the best of the industry. WMT outperforms 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.
- The Operating Margin of WMT (4.12%) is better than 79.17% 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 54.17% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WMT is still creating some value.
- WMT has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for WMT has been reduced compared to 5 years ago.
- The debt/assets ratio for WMT has been reduced compared to a year ago.
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.
- With an excellent Altman-Z score value of 6.09, WMT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- WMT has a debt to FCF ratio of 3.48. This is a good value and a sign of high solvency as WMT would need 3.48 years to pay back of all of its debts.
- WMT's Debt to FCF ratio of 3.48 is amongst the best of the industry. WMT outperforms 83.33% of its industry peers.
- 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 | 6.09 |
ROIC/WACC1.4
WACC8.6%
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.
- A Quick Ratio of 0.24 indicates that WMT may have some problems paying its short term obligations.
- With a Quick ratio value of 0.24, WMT is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| 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.
- The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 8.71% on average over the next years. This is quite good.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 45.21, which means the current valuation is very expensive for WMT.
- Compared to the rest of the industry, the Price/Earnings ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 70.83% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. WMT is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 38.79, WMT can be considered very expensive at the moment.
- WMT's Price/Forward Earnings 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, WMT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.21 | ||
| Fwd PE | 38.79 |
4.2 Price Multiples
- 70.83% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, WMT is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.71 | ||
| EV/EBITDA | 22.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WMT does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of WMT may justify a higher PE ratio.
PEG (NY)7.36
PEG (5Y)5.14
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.
- With a Dividend Yield of 0.79, WMT pays less dividend than the S&P500 average, which is at 1.82.
| 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.