WALMART INC (WMT.DE) Stock Fundamental Analysis
FRA:WMT - Deutsche Boerse Ag - US9311421039 - Common Stock - Currency: EUR
Taking everything into account, WMT scores 6 out of 10 in our fundamental rating. WMT was compared to 27 industry peers in the Consumer Staples Distribution & Retail industry. WMT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, WMT is valued expensive at the moment. With these ratings, WMT could be worth investigating further for quality investing!.
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
WMT has a better Return On Assets (7.47%) than 80.77% of its industry peers.
The Return On Equity of WMT (22.33%) is better than 73.08% of its industry peers.
With a decent Return On Invested Capital value of 12.31%, WMT is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WMT is above the industry average of 9.71%.
The last Return On Invested Capital (12.31%) for WMT is above the 3 year average (11.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 22.33% | ||
| ROIC | 12.31% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)11.97%
ROIC(5y)11.45%
1.3 Margins
WMT has a better Profit Margin (2.92%) than 73.08% of its industry peers.
WMT's Profit Margin has improved in the last couple of years.
WMT's Operating Margin of 4.27% is amongst the best of the industry. WMT outperforms 80.77% of its industry peers.
WMT's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 24.70%, WMT is in line with its industry, outperforming 57.69% of the companies in the same industry.
WMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.27% | ||
| PM (TTM) | 2.92% | ||
| GM | 24.7% |
OM growth 3Y-4.73%
OM growth 5Y-0.48%
PM growth 3Y-0.32%
PM growth 5Y13.04%
GM growth 3Y-0.61%
GM growth 5Y-0.58%
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.
Compared to 1 year ago, WMT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.10 indicates that WMT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.10, WMT belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
WMT has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as WMT would need 2.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.78, WMT belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that WMT is not too dependend on debt financing.
The Debt to Equity ratio of WMT (0.49) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 6.1 |
ROIC/WACC1.38
WACC8.89%
2.3 Liquidity
WMT has a Current Ratio of 0.85. 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 Current ratio, with a value of 0.85, WMT is doing worse than 65.38% of the companies in the same industry.
A Quick Ratio of 0.23 indicates that WMT may have some problems paying its short term obligations.
The Quick ratio of WMT (0.23) is worse than 96.15% of its industry peers.
WMT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.21% over the past year.
The Earnings Per Share has been growing slightly by 6.18% on average over the past years.
The Revenue has been growing slightly by 5.48% in the past year.
Measured over the past years, WMT shows a small growth in Revenue. The Revenue has been growing by 4.73% on average per year.
EPS 1Y (TTM)12.21%
EPS 3Y6.22%
EPS 5Y6.18%
EPS Q2Q%13.73%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%5.46%
3.2 Future
The Earnings Per Share is expected to grow by 11.96% on average over the next years. This is quite good.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y13.34%
EPS Next 2Y12.02%
EPS Next 3Y11.99%
EPS Next 5Y11.96%
Revenue Next Year5.56%
Revenue Next 2Y4.84%
Revenue Next 3Y4.64%
Revenue Next 5Y4.93%
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 accelerating.
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
A Price/Earnings ratio of 40.76 indicates a quite expensive valuation of WMT.
61.54% of the companies in the same industry are cheaper than WMT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.47. WMT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 35.94 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 76.92% of the companies are valued more cheaply.
WMT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.76 | ||
| Fwd PE | 35.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
WMT's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WMT is more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.17 | ||
| EV/EBITDA | 20.23 |
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 excellent profitability rating of WMT may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)6.6
EPS Next 2Y12.02%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.84%, which is pretty low.
WMT's Dividend Yield is slightly below the industry average, which is at 3.91.
With a Dividend Yield of 0.84, WMT pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of WMT has a limited annual growth rate of 1.75%.
Dividend Growth(5Y)1.75%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
WMT pays out 33.23% 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.
DP33.23%
EPS Next 2Y12.02%
EPS Next 3Y11.99%
WALMART INC
FRA:WMT (2/5/2025, 3:31:38 PM)
96.59
-0.37 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners35.07%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap775.95B
Analysts83.33
Price Target95.52 (-1.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend0.76
Dividend Growth(5Y)1.75%
DP33.23%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.28%
Min EPS beat(2)2.75%
Max EPS beat(2)7.81%
EPS beat(4)4
Avg EPS beat(4)8.09%
Min EPS beat(4)2.75%
Max EPS beat(4)13.47%
EPS beat(8)7
Avg EPS beat(8)7.61%
EPS beat(12)10
Avg EPS beat(12)5.79%
EPS beat(16)13
Avg EPS beat(16)7.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)0.11%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)0.57%
Revenue beat(8)5
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)0.54%
Revenue beat(16)12
Avg Revenue beat(16)1.01%
PT rev (1m)-2.95%
PT rev (3m)19.72%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.76 | ||
| Fwd PE | 35.94 | ||
| P/S | 1.19 | ||
| P/FCF | 47.17 | ||
| P/OCF | 20.24 | ||
| P/B | 9.1 | ||
| P/tB | 13.33 | ||
| EV/EBITDA | 20.23 |
EPS(TTM)2.37
EY2.45%
EPS(NY)2.69
Fwd EY2.78%
FCF(TTM)2.05
FCFY2.12%
OCF(TTM)4.77
OCFY4.94%
SpS81.16
BVpS10.61
TBVpS7.25
PEG (NY)3.06
PEG (5Y)6.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 22.33% | ||
| ROCE | 17.87% | ||
| ROIC | 12.31% | ||
| ROICexc | 13.11% | ||
| ROICexgc | 16.01% | ||
| OM | 4.27% | ||
| PM (TTM) | 2.92% | ||
| GM | 24.7% | ||
| FCFM | 2.52% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)11.97%
ROIC(5y)11.45%
ROICexc(3y)12.9%
ROICexc(5y)12.42%
ROICexgc(3y)16.03%
ROICexgc(5y)15.51%
ROCE(3y)17.06%
ROCE(5y)16.31%
ROICexcg growth 3Y-2.58%
ROICexcg growth 5Y1.6%
ROICexc growth 3Y-1.87%
ROICexc growth 5Y2.57%
OM growth 3Y-4.73%
OM growth 5Y-0.48%
PM growth 3Y-0.32%
PM growth 5Y13.04%
GM growth 3Y-0.61%
GM growth 5Y-0.58%
F-Score8
Asset Turnover2.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 177.95% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.59% | ||
| Profit Quality | 86.41% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 6.1 |
F-Score8
WACC8.89%
ROIC/WACC1.38
Cap/Depr(3y)150.28%
Cap/Depr(5y)128.06%
Cap/Sales(3y)2.74%
Cap/Sales(5y)2.42%
Profit Quality(3y)98.2%
Profit Quality(5y)116.68%
High Growth Momentum
Growth
EPS 1Y (TTM)12.21%
EPS 3Y6.22%
EPS 5Y6.18%
EPS Q2Q%13.73%
EPS Next Y13.34%
EPS Next 2Y12.02%
EPS Next 3Y11.99%
EPS Next 5Y11.96%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%5.46%
Revenue Next Year5.56%
Revenue Next 2Y4.84%
Revenue Next 3Y4.64%
Revenue Next 5Y4.93%
EBIT growth 1Y10.05%
EBIT growth 3Y0.08%
EBIT growth 5Y4.23%
EBIT Next Year59.56%
EBIT Next 3Y23.64%
EBIT Next 5Y16.35%
FCF growth 1Y142.57%
FCF growth 3Y-16.33%
FCF growth 5Y-2.78%
OCF growth 1Y68.01%
OCF growth 3Y-0.32%
OCF growth 5Y5.18%