WALMART INC (WMT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WMT - US9311421039 - Common Stock
98.02 EUR
-1.51 (-1.52%)
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. While WMT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, WMT is valued expensive at the moment.
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.
- WMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of WMT (7.94%) is better than 95.83% of its industry peers.
- The Return On Equity of WMT (23.84%) is better 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 Profit Margin of 3.26%. This is amongst the best in 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.
- 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
- WMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- WMT has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WMT has less shares outstanding
- The debt/assets ratio for WMT has been reduced compared to a year ago.
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 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.
- The Debt to FCF ratio of WMT (3.48) is better than 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 has a Debt to Equity ratio of 0.51. This is amongst the best in 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
- 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.
- 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
- WMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.90%.
- Measured over the past years, WMT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.80% on average per year.
- Looking at the last year, WMT shows a small growth in Revenue. The Revenue has grown by 4.34% in the last 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
- 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 45.17, which means the current valuation is very expensive for WMT.
- 70.83% of the companies in the same industry are cheaper than WMT, based on the Price/Earnings ratio.
- WMT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- WMT is valuated quite expensively with a Price/Forward Earnings ratio of 38.70.
- Based on the Price/Forward Earnings ratio, WMT is valued a bit more expensive than 75.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (25.98), we can say WMT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.17 | ||
| Fwd PE | 38.7 |
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 | 60.58 | ||
| 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.
- WMT has a very decent profitability rating, which 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.
- 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.
- 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.