WALMART INC (WMT.DE) Stock Fundamental Analysis
FRA:WMT - Deutsche Boerse Ag - US9311421039 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to WMT. WMT was compared to 25 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. While showing a medium growth rate, WMT is valued expensive at the moment.
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.
WMT had positive earnings in each of the past 5 years.
In the past 5 years WMT always reported a positive cash flow from operatings.
1.2 Ratios
WMT has a Return On Assets of 7.17%. This is in the better half of the industry: WMT outperforms 80.00% of its industry peers.
The Return On Equity of WMT (22.46%) is better than 84.00% of its industry peers.
WMT has a better Return On Invested Capital (13.57%) than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 9.88%.
The 3 year average ROIC (12.73%) for WMT is below the current ROIC(13.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 22.46% | ||
| ROIC | 13.57% |
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 2.75% is fine compared to the rest of the industry. WMT outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of WMT has remained more or less at the same level.
With a decent Operating Margin value of 4.33%, WMT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
WMT's Operating Margin has been stable in the last couple of years.
WMT has a Gross Margin of 24.88%. This is comparable to the rest of the industry: WMT outperforms 56.00% of its industry peers.
WMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.33% | ||
| PM (TTM) | 2.75% | ||
| GM | 24.88% |
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.
The number of shares outstanding for WMT has been reduced compared to 1 year ago.
Compared to 5 years ago, WMT has less shares outstanding
Compared to 1 year ago, WMT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.95 indicates that WMT is not in any danger for bankruptcy at the moment.
The Altman-Z score of WMT (5.95) is better than 88.00% of its industry peers.
The Debt to FCF ratio of WMT is 3.91, which is a good value as it means it would take WMT, 3.91 years of fcf income to pay off all of its debts.
WMT has a better Debt to FCF ratio (3.91) than 84.00% of its industry peers.
WMT has a Debt/Equity ratio of 0.57. This is a neutral value indicating WMT is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.57, WMT is doing good in the industry, outperforming 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.57
WACC8.64%
2.3 Liquidity
A Current Ratio of 0.78 indicates that WMT may have some problems paying its short term obligations.
WMT has a Current ratio of 0.78. This is in the lower half of the industry: WMT underperforms 76.00% of its industry peers.
A Quick Ratio of 0.22 indicates that WMT may have some problems paying its short term obligations.
WMT's Quick ratio of 0.22 is on the low side compared to the rest of the industry. WMT is outperformed by 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
WMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.47%, which is quite good.
WMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
Looking at the last year, WMT shows a small growth in Revenue. The Revenue has grown by 4.22% 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)8.47%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%1.67%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%2.54%
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 9.02% yearly.
The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y4.92%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
EPS Next 5Y9.02%
Revenue Next Year3.7%
Revenue Next 2Y4.08%
Revenue Next 3Y4.19%
Revenue Next 5Y4.53%
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
With a Price/Earnings ratio of 37.74, WMT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 68.00% of the companies listed in the same industry.
WMT is valuated rather expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.38, 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 76.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (21.76), we can say WMT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.74 | ||
| Fwd PE | 32.38 |
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 64.00% 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 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.26 | ||
| EV/EBITDA | 18.84 |
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)7.67
PEG (5Y)4.29
EPS Next 2Y8.13%
EPS Next 3Y9.07%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 3.85, WMT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.37, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
36.65% 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.
DP36.65%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
FRA:WMT (7/11/2025, 7:00:00 PM)
81.15
-1 (-1.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.1%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap649.27B
Analysts85.11
Price Target97.58 (20.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend0.71
Dividend Growth(5Y)3.32%
DP36.65%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)1.55%
Max EPS beat(2)4.88%
EPS beat(4)4
Avg EPS beat(4)4.25%
Min EPS beat(4)1.55%
Max EPS beat(4)7.81%
EPS beat(8)7
Avg EPS beat(8)5.63%
EPS beat(12)11
Avg EPS beat(12)7.33%
EPS beat(16)14
Avg EPS beat(16)5.65%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.24%
Revenue beat(12)7
Avg Revenue beat(12)0.32%
Revenue beat(16)10
Avg Revenue beat(16)0.57%
PT rev (1m)0.81%
PT rev (3m)-3.87%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)3.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.74 | ||
| Fwd PE | 32.38 | ||
| P/S | 1.11 | ||
| P/FCF | 56.26 | ||
| P/OCF | 20.22 | ||
| P/B | 9.07 | ||
| P/tB | 13.84 | ||
| EV/EBITDA | 18.84 |
EPS(TTM)2.15
EY2.65%
EPS(NY)2.51
Fwd EY3.09%
FCF(TTM)1.44
FCFY1.78%
OCF(TTM)4.01
OCFY4.95%
SpS73.13
BVpS8.94
TBVpS5.86
PEG (NY)7.67
PEG (5Y)4.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 22.46% | ||
| ROCE | 18.59% | ||
| ROIC | 13.57% | ||
| ROICexc | 14.38% | ||
| ROICexgc | 17.65% | ||
| OM | 4.33% | ||
| PM (TTM) | 2.75% | ||
| GM | 24.88% | ||
| FCFM | 1.97% |
ROA(3y)6.13%
ROA(5y)5.87%
ROE(3y)18.36%
ROE(5y)17.64%
ROIC(3y)12.73%
ROIC(5y)12.9%
ROICexc(3y)13.5%
ROICexc(5y)13.96%
ROICexgc(3y)16.63%
ROICexgc(5y)17.34%
ROCE(3y)17%
ROCE(5y)17.18%
ROICexcg growth 3Y-3.11%
ROICexcg growth 5Y4.63%
ROICexc growth 3Y-2.28%
ROICexc growth 5Y5.29%
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%
F-Score7
Asset Turnover2.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 182.33% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.75% | ||
| Profit Quality | 71.8% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 5.95 |
F-Score7
WACC8.64%
ROIC/WACC1.57
Cap/Depr(3y)170.4%
Cap/Depr(5y)145.24%
Cap/Sales(3y)3.14%
Cap/Sales(5y)2.71%
Profit Quality(3y)88.41%
Profit Quality(5y)110.16%
High Growth Momentum
Growth
EPS 1Y (TTM)8.47%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%1.67%
EPS Next Y4.92%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
EPS Next 5Y9.02%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%2.54%
Revenue Next Year3.7%
Revenue Next 2Y4.08%
Revenue Next 3Y4.19%
Revenue Next 5Y4.53%
EBIT growth 1Y7.35%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year51.17%
EBIT Next 3Y21.5%
EBIT Next 5Y14.74%
FCF growth 1Y-30.65%
FCF growth 3Y-0.68%
FCF growth 5Y-2.74%
OCF growth 1Y1%
OCF growth 3Y11.87%
OCF growth 5Y7.61%