WALMART INC (WMT) Stock Fundamental Analysis
NYSE:WMT - New York Stock Exchange, Inc. - US9311421039 - Common Stock - Currency: USD
Taking everything into account, WMT scores 5 out of 10 in our fundamental rating. WMT was compared to 40 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. WMT is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years WMT has always been profitable.
Each year in the past 5 years WMT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.17%, WMT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
WMT's Return On Equity of 22.46% is fine compared to the rest of the industry. WMT outperforms 77.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.57%, WMT belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
WMT had an Average Return On Invested Capital over the past 3 years of 12.73%. This is above the industry average of 8.23%.
The last Return On Invested Capital (13.57%) for WMT is above the 3 year average (12.73%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 2.75%, WMT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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 (4.33%) is better than 80.00% of its industry peers.
WMT's Operating Margin has been stable in the last couple of years.
WMT has a Gross Margin (24.88%) 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 | 4.33% | ||
| 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 5.93 indicates that WMT is not in any danger for bankruptcy at the moment.
WMT has a Altman-Z score of 5.93. This is amongst the best in the industry. WMT outperforms 82.50% 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.
The Debt to FCF ratio of WMT (3.91) is better than 67.50% 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.
WMT has a Debt to Equity ratio (0.57) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 5.93 |
ROIC/WACC1.55
WACC8.77%
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 amonst the worse of the industry: WMT underperforms 82.50% of its industry peers.
A Quick Ratio of 0.22 indicates that WMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.22, WMT is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.47% over the past year.
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.
WMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
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
Based on estimates for the next years, WMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.02% on average per year.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.53% yearly.
EPS Next Y4.95%
EPS Next 2Y8.13%
EPS Next 3Y9.14%
EPS Next 5Y9.02%
Revenue Next Year3.7%
Revenue Next 2Y4.04%
Revenue Next 3Y4.09%
Revenue Next 5Y4.53%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.85, 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 67.50% of the companies listed in the same industry.
WMT is valuated rather expensively when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
WMT is valuated quite expensively with a Price/Forward Earnings ratio of 32.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, WMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.85 | ||
| Fwd PE | 32.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than 67.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 67.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.34 | ||
| EV/EBITDA | 18.72 |
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)7.65
PEG (5Y)4.3
EPS Next 2Y8.13%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, WMT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.03, WMT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.99, WMT pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of WMT has a limited annual growth rate of 3.32%.
WMT has paid a dividend for at least 10 years, which is 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 Years21
Div Non Decr Years21
5.3 Sustainability
36.65% 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.
DP36.65%
EPS Next 2Y8.13%
EPS Next 3Y9.14%
95.39
-0.39 (-0.41%)
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 Change-0.01%
Ins Owners0.37%
Ins Owner Change-2.71%
Market Cap761.25B
Analysts85.11
Price Target112.23 (17.65%)
Short Float %0.84%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.83
Dividend Growth(5Y)3.32%
DP36.65%
Div Incr Years21
Div Non Decr Years21
Ex-Date
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)0.48%
PT rev (3m)0.84%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)4.25%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.85 | ||
| Fwd PE | 32.51 | ||
| P/S | 1.11 | ||
| P/FCF | 56.34 | ||
| P/OCF | 20.24 | ||
| P/B | 9.08 | ||
| P/tB | 13.86 | ||
| EV/EBITDA | 18.72 |
EPS(TTM)2.52
EY2.64%
EPS(NY)2.93
Fwd EY3.08%
FCF(TTM)1.69
FCFY1.77%
OCF(TTM)4.71
OCFY4.94%
SpS85.85
BVpS10.5
TBVpS6.88
PEG (NY)7.65
PEG (5Y)4.3
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 | 5.93 |
F-Score7
WACC8.77%
ROIC/WACC1.55
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 Y4.95%
EPS Next 2Y8.13%
EPS Next 3Y9.14%
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 2Y4.04%
Revenue Next 3Y4.09%
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%