WALMART INC (WMT)
US9311421039 - Common Stock
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 41 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. WMT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WMT was profitable.
WMT had a positive operating cash flow in the past year.
Each year in the past 5 years WMT has 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 6.11%, WMT is doing good in the industry, outperforming 73.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.42%, WMT is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
The Return On Invested Capital of WMT (12.25%) is better than 80.49% of its industry peers.
WMT had an Average Return On Invested Capital over the past 3 years of 12.57%. This is above the industry average of 9.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 18.42% | ||
| ROIC | 12.25% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)12.57%
ROIC(5y)11.73%
1.3 Margins
Looking at the Profit Margin, with a value of 2.34%, WMT is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
In the last couple of years the Profit Margin of WMT has grown nicely.
With a decent Operating Margin value of 4.25%, WMT is doing good in the industry, outperforming 73.17% of the companies in the same industry.
In the last couple of years the Operating Margin of WMT has grown nicely.
The Gross Margin of WMT (24.63%) is better than 60.98% of 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 | 4.25% | ||
| PM (TTM) | 2.34% | ||
| GM | 24.63% |
OM growth 3Y-0.13%
OM growth 5Y2.38%
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.
Compared to 1 year ago, WMT has less shares outstanding
WMT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WMT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.86 indicates that WMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.86, WMT belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
WMT has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as WMT would need 3.92 years to pay back of all of its debts.
WMT's Debt to FCF ratio of 3.92 is fine compared to the rest of the industry. WMT outperforms 68.29% of its industry peers.
WMT has a Debt/Equity ratio of 0.53. This is a neutral value indicating WMT is somewhat dependend on debt financing.
WMT has a Debt to Equity ratio (0.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 5.86 |
ROIC/WACC1.41
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.80 indicates that WMT may have some problems paying its short term obligations.
WMT's Current ratio of 0.80 is on the low side compared to the rest of the industry. WMT is outperformed by 78.05% of its industry peers.
WMT has a Quick Ratio of 0.80. This is a bad value and indicates that WMT is not financially healthy enough and could expect problems in meeting its short term obligations.
WMT has a worse Quick ratio (0.22) than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.21% over the past year.
Measured over the past 5 years, WMT shows a small growth in Earnings Per Share. The EPS has been growing by 6.18% on average per year.
WMT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.03%.
The Revenue has been growing slightly by 4.73% on average over the past years.
EPS 1Y (TTM)12.21%
EPS 3Y6.22%
EPS 5Y6.18%
EPS Q2Q%13.73%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%5.46%
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 10.21% yearly.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.39% on average per year.
EPS Next Y11.68%
EPS Next 2Y11.41%
EPS Next 3Y11.39%
EPS Next 5Y10.21%
Revenue Next Year5.12%
Revenue Next 2Y4.62%
Revenue Next 3Y4.38%
Revenue Next 5Y4.39%
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
With a Price/Earnings ratio of 36.11, 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 63.41% of the companies listed in the same industry.
WMT is valuated rather expensively when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.20, the valuation of WMT can be described as expensive.
WMT's Price/Forward Earnings is on the same level as the industry average.
WMT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 32.2 |
4.2 Price Multiples
65.85% 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 indicates a slightly more expensive valuation: WMT is more expensive than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.34 | ||
| EV/EBITDA | 18.09 |
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)3.09
PEG (5Y)5.84
EPS Next 2Y11.41%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, WMT is not a good candidate for dividend investing.
WMT's Dividend Yield is a higher than the industry average which is at 2.55.
With a Dividend Yield of 0.95, WMT pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of WMT has a limited annual growth rate of 1.75%.
WMT has paid a dividend for at least 10 years, which is 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)1.75%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
WMT pays out 41.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.18%
EPS Next 2Y11.41%
EPS Next 3Y11.39%
WALMART INC
NYSE:WMT (11/21/2024, 1:54:10 PM)
88.48
+1.3 (+1.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap711.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 32.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.09
PEG (5Y)5.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 18.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.25% | ||
| PM (TTM) | 2.34% | ||
| GM | 24.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.21%
EPS 3Y6.22%
EPS 5Y
EPS Q2Q%
EPS Next Y11.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y