WALMART INC (WMT) Stock Fundamental Analysis
NYSE:WMT - New York Stock Exchange, Inc. - US9311421039 - Common Stock - Currency: USD
Overall WMT gets a fundamental rating of 6 out of 10. We evaluated WMT against 40 industry peers in the Consumer Staples Distribution & Retail industry. WMT scores excellent on profitability, 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
WMT had positive earnings in the past year.
In the past year WMT had a positive cash flow from operations.
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
WMT has a Return On Assets of 7.45%. This is amongst the best in the industry. WMT outperforms 82.50% of its industry peers.
WMT has a Return On Equity of 21.36%. This is in the better half of the industry: WMT outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.25%, WMT belongs to the top of the industry, outperforming 92.50% 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 8.16%.
The last Return On Invested Capital (13.25%) for WMT is above the 3 year average (12.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 21.36% | ||
| ROIC | 13.25% |
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
The Profit Margin of WMT (2.85%) is better than 85.00% 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 an excellent Operating Margin value of 4.31%, WMT belongs to the best of the industry, outperforming 82.50% 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 (24.85%) which is in line with 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 | 4.31% | ||
| PM (TTM) | 2.85% | ||
| GM | 24.85% |
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.
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.
WMT has a better debt/assets ratio than last year.
2.2 Solvency
WMT has an Altman-Z score of 6.07. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
WMT's Altman-Z score of 6.07 is amongst the best of the industry. WMT outperforms 85.00% of its industry peers.
WMT has a debt to FCF ratio of 3.62. This is a good value and a sign of high solvency as WMT would need 3.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.62, WMT is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that WMT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, WMT is in line with its industry, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | 6.07 |
ROIC/WACC1.53
WACC8.68%
2.3 Liquidity
A Current Ratio of 0.82 indicates that WMT may have some problems paying its short term obligations.
WMT's Current ratio of 0.82 is on the low side compared to the rest of the industry. WMT is outperformed by 80.00% of its industry peers.
A Quick Ratio of 0.24 indicates that WMT may have some problems paying its short term obligations.
WMT has a worse Quick ratio (0.24) than 80.00% 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 | 0.82 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.40% 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 5.07% in the last year.
The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)13.4%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%10%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.13%
3.2 Future
The Earnings Per Share is expected to grow by 9.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.08% on average over the next years.
EPS Next Y5.67%
EPS Next 2Y8.86%
EPS Next 3Y9.81%
EPS Next 5Y9.3%
Revenue Next Year3.71%
Revenue Next 2Y4.08%
Revenue Next 3Y4.24%
Revenue Next 5Y4.08%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WMT is valuated quite expensively with a Price/Earnings ratio of 37.14.
WMT's Price/Earnings ratio is a bit more expensive when compared to the industry. WMT is more expensive than 62.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. WMT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 35.15 indicates a quite expensive valuation of WMT.
The rest of the industry has a similar Price/Forward Earnings ratio as WMT.
When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (21.08), we can say WMT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.14 | ||
| Fwd PE | 35.15 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.03 | ||
| EV/EBITDA | 18.45 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.55
PEG (5Y)4.22
EPS Next 2Y8.86%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, WMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of WMT has a limited annual growth rate of 3.32%.
WMT has been paying a dividend for at least 10 years, so it has a reliable track record.
WMT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.32%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
WMT pays out 34.41% of its income as dividend. This is a sustainable payout ratio.
WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.41%
EPS Next 2Y8.86%
EPS Next 3Y9.81%
93.22
+2.03 (+2.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners35.65%
Inst Owner Change0%
Ins Owners0.39%
Ins Owner Change-1.29%
Market Cap747.33B
Analysts83.83
Price Target111.3 (19.39%)
Short Float %0.93%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend0.83
Dividend Growth(5Y)3.32%
DP34.41%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.68%
Min EPS beat(2)1.55%
Max EPS beat(2)7.81%
EPS beat(4)4
Avg EPS beat(4)6.4%
Min EPS beat(4)1.55%
Max EPS beat(4)13.47%
EPS beat(8)7
Avg EPS beat(8)6.31%
EPS beat(12)10
Avg EPS beat(12)5.82%
EPS beat(16)14
Avg EPS beat(16)7.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-0.69%
Max Revenue beat(4)0.26%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)11
Avg Revenue beat(16)0.87%
PT rev (1m)-0.47%
PT rev (3m)10.18%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-10.35%
EPS NY rev (1m)-4.75%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.14 | ||
| Fwd PE | 35.15 | ||
| P/S | 1.1 | ||
| P/FCF | 59.03 | ||
| P/OCF | 20.51 | ||
| P/B | 8.21 | ||
| P/tB | 12.01 | ||
| EV/EBITDA | 18.45 |
EPS(TTM)2.51
EY2.69%
EPS(NY)2.65
Fwd EY2.85%
FCF(TTM)1.58
FCFY1.69%
OCF(TTM)4.55
OCFY4.88%
SpS84.94
BVpS11.35
TBVpS7.76
PEG (NY)6.55
PEG (5Y)4.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 21.36% | ||
| ROCE | 17.87% | ||
| ROIC | 13.25% | ||
| ROICexc | 14.01% | ||
| ROICexgc | 17.12% | ||
| OM | 4.31% | ||
| PM (TTM) | 2.85% | ||
| GM | 24.85% | ||
| FCFM | 1.86% |
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-Score8
Asset Turnover2.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.62 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 183.33% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.11% | ||
| Profit Quality | 65.14% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 6.07 |
F-Score8
WACC8.68%
ROIC/WACC1.53
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)13.4%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%10%
EPS Next Y5.67%
EPS Next 2Y8.86%
EPS Next 3Y9.81%
EPS Next 5Y9.3%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.13%
Revenue Next Year3.71%
Revenue Next 2Y4.08%
Revenue Next 3Y4.24%
Revenue Next 5Y4.08%
EBIT growth 1Y8.65%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year52.44%
EBIT Next 3Y21.5%
EBIT Next 5Y14.97%
FCF growth 1Y-16.27%
FCF growth 3Y-0.68%
FCF growth 5Y-2.74%
OCF growth 1Y2.01%
OCF growth 3Y11.87%
OCF growth 5Y7.61%