WALMART INC (WMT) Stock Fundamental Analysis
USA - NYSE:WMT - US9311421039 - Common Stock
107.14 USD
+0.92 (+0.87%)
107.28 USD
+0.14 (+0.13%)
WMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 industry peers in the Consumer Staples Distribution & Retail industry. While WMT has a great profitability rating, 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.
In the past 5 years WMT has always 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 (7.88%) is better than 82.05% of its industry peers.
WMT's Return On Equity of 23.69% is fine compared to the rest of the industry. WMT outperforms 74.36% of its industry peers.
WMT has a better Return On Invested Capital (12.80%) than 89.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 8.71%.
The last Return On Invested Capital (12.80%) for WMT is above the 3 year average (12.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 23.69% | ||
| ROIC | 12.8% |
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 (3.08%) is better than 79.49% of its industry peers.
In the last couple of years the Profit Margin of WMT has remained more or less at the same level.
WMT has a better Operating Margin (4.18%) than 74.36% of its industry peers.
In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
With a Gross Margin value of 24.90%, WMT perfoms like the industry average, outperforming 53.85% 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 | 4.18% | ||
| PM (TTM) | 3.08% | ||
| GM | 24.9% |
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.
Compared to 1 year ago, WMT has less shares outstanding
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 6.13. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
WMT's Altman-Z score of 6.13 is amongst the best of the industry. WMT outperforms 84.62% of its industry peers.
The Debt to FCF ratio of WMT is 3.65, which is a good value as it means it would take WMT, 3.65 years of fcf income to pay off all of its debts.
WMT's Debt to FCF ratio of 3.65 is fine compared to the rest of the industry. WMT outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that WMT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.50, WMT perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.53
WACC8.37%
2.3 Liquidity
A Current Ratio of 0.79 indicates that WMT may have some problems paying its short term obligations.
WMT has a worse Current ratio (0.79) than 84.62% of its industry peers.
A Quick Ratio of 0.23 indicates that WMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.23, WMT is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.30% over the past year.
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 4.23% 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)6.3%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%1.49%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.76%
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 9.19% yearly.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y5.01%
EPS Next 2Y8.66%
EPS Next 3Y9.74%
EPS Next 5Y9.19%
Revenue Next Year4.29%
Revenue Next 2Y4.47%
Revenue Next 3Y4.18%
Revenue Next 5Y4.31%
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
Based on the Price/Earnings ratio of 42.35, the valuation of WMT can be described as expensive.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than 64.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.57. WMT is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 36.15, WMT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (23.09), we can say WMT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.35 | ||
| Fwd PE | 36.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than the industry average as 66.67% 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 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.11 | ||
| EV/EBITDA | 20.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.46
PEG (5Y)4.81
EPS Next 2Y8.66%
EPS Next 3Y9.74%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.88%, which is pretty low.
WMT's Dividend Yield is a higher than the industry average which is at 1.94.
Compared to an average S&P500 Dividend Yield of 2.32, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.32%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
WMT pays out 33.30% 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.
DP33.3%
EPS Next 2Y8.66%
EPS Next 3Y9.74%
107.14
+0.92 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner Change-3.56%
Ins Owners0.37%
Ins Owner Change-2.91%
Market Cap854.21B
Revenue(TTM)693.15B
Net Income(TTM)21.34B
Analysts85.42
Price Target115.32 (7.63%)
Short Float %0.94%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.83
Dividend Growth(5Y)3.32%
DP33.3%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.14%
Min EPS beat(2)-9.16%
Max EPS beat(2)4.88%
EPS beat(4)3
Avg EPS beat(4)1.27%
Min EPS beat(4)-9.16%
Max EPS beat(4)7.81%
EPS beat(8)6
Avg EPS beat(8)3.63%
EPS beat(12)10
Avg EPS beat(12)5.89%
EPS beat(16)13
Avg EPS beat(16)4.32%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.26%
Revenue beat(12)6
Avg Revenue beat(12)0.27%
Revenue beat(16)9
Avg Revenue beat(16)0.43%
PT rev (1m)0.53%
PT rev (3m)2.25%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)5.07%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.35 | ||
| Fwd PE | 36.15 | ||
| P/S | 1.23 | ||
| P/FCF | 62.11 | ||
| P/OCF | 22.22 | ||
| P/B | 9.48 | ||
| P/tB | 13.99 | ||
| EV/EBITDA | 20.81 |
EPS(TTM)2.53
EY2.36%
EPS(NY)2.96
Fwd EY2.77%
FCF(TTM)1.72
FCFY1.61%
OCF(TTM)4.82
OCFY4.5%
SpS86.94
BVpS11.3
TBVpS7.66
PEG (NY)8.46
PEG (5Y)4.81
Graham Number25.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 23.69% | ||
| ROCE | 17.33% | ||
| ROIC | 12.8% | ||
| ROICexc | 13.54% | ||
| ROICexgc | 16.51% | ||
| OM | 4.18% | ||
| PM (TTM) | 3.08% | ||
| GM | 24.9% | ||
| FCFM | 1.98% |
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%
ROICexgc growth 3Y-3.11%
ROICexgc 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 Turnover2.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 182.99% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.49% | ||
| Profit Quality | 64.44% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 6.13 |
F-Score7
WACC8.37%
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)6.3%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%1.49%
EPS Next Y5.01%
EPS Next 2Y8.66%
EPS Next 3Y9.74%
EPS Next 5Y9.19%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.76%
Revenue Next Year4.29%
Revenue Next 2Y4.47%
Revenue Next 3Y4.18%
Revenue Next 5Y4.31%
EBIT growth 1Y2.66%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year50.5%
EBIT Next 3Y21.49%
EBIT Next 5Y14.69%
FCF growth 1Y-28.45%
FCF growth 3Y-0.68%
FCF growth 5Y-2.74%
OCF growth 1Y1.68%
OCF growth 3Y11.87%
OCF growth 5Y7.61%