WALMART INC (WMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMT - US9311421039 - Common Stock
115.11 USD
+0.27 (+0.24%)
115.21 USD
+0.1 (+0.09%)
We assign a fundamental rating of 5 out of 10 to WMT. WMT was compared to 39 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
WMT had positive earnings in the past year.
WMT had a positive operating cash flow in the past year.
Each year in the past 5 years WMT has been profitable.
In the past 5 years WMT always reported a positive cash flow from operatings.
1.2 Ratios
WMT's Return On Assets of 7.94% is amongst the best of the industry. WMT outperforms 82.05% of its industry peers.
Looking at the Return On Equity, with a value of 23.84%, WMT is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
WMT's Return On Invested Capital of 12.07% is amongst the best of the industry. WMT outperforms 82.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 8.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 23.84% | ||
| ROIC | 12.07% |
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 3.26% is fine compared to the rest of the industry. WMT outperforms 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's Operating Margin of 4.12% is fine compared to the rest of the industry. WMT outperforms 71.79% of its industry peers.
In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
WMT has a Gross Margin (24.91%) which is comparable to the rest of the 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 | 4.12% | ||
| PM (TTM) | 3.26% | ||
| GM | 24.91% |
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.
WMT has less shares outstanding than it did 1 year ago.
WMT has less shares outstanding than it did 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 6.02. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
WMT's Altman-Z score of 6.02 is amongst the best of the industry. WMT outperforms 87.18% of its industry peers.
The Debt to FCF ratio of WMT is 3.48, which is a good value as it means it would take WMT, 3.48 years of fcf income to pay off all of its debts.
WMT has a better Debt to FCF ratio (3.48) than 61.54% of its industry peers.
WMT has a Debt/Equity ratio of 0.51. This is a neutral value indicating WMT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, WMT perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 6.02 |
ROIC/WACC1.41
WACC8.54%
2.3 Liquidity
A Current Ratio of 0.80 indicates that WMT may have some problems paying its short term obligations.
WMT has a Current ratio of 0.80. This is amonst the worse of the industry: WMT underperforms 82.05% of its industry peers.
A Quick Ratio of 0.24 indicates that WMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.24, WMT is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
WMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.90%.
WMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
The Revenue has been growing slightly by 4.34% in the past year.
The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)4.9%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%6.9%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%5.84%
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 8.38% on average per year.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.47% on average per year.
EPS Next Y6.11%
EPS Next 2Y9.12%
EPS Next 3Y9.95%
EPS Next 5Y8.38%
Revenue Next Year4.73%
Revenue Next 2Y4.82%
Revenue Next 3Y4.73%
Revenue Next 5Y4.47%
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
WMT is valuated quite expensively with a Price/Earnings ratio of 44.79.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
WMT is valuated expensively when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 38.51, the valuation of WMT can be described as expensive.
WMT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WMT is more expensive than 61.54% of the companies in the same industry.
WMT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.79 | ||
| Fwd PE | 38.51 |
4.2 Price Multiples
WMT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WMT is more expensive than 64.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WMT is valued a bit more expensive than the industry average as 74.36% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.11 | ||
| EV/EBITDA | 22.23 |
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)7.33
PEG (5Y)5.09
EPS Next 2Y9.12%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, WMT is not a good candidate for dividend investing.
WMT's Dividend Yield is a higher than the industry average which is at 2.01.
With a Dividend Yield of 0.92, WMT pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 31.92% 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.
DP31.92%
EPS Next 2Y9.12%
EPS Next 3Y9.95%
115.11
+0.27 (+0.24%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.55%
Inst Owner Change-3.47%
Ins Owners0.34%
Ins Owner Change-2.06%
Market Cap917.45B
Revenue(TTM)703.06B
Net Income(TTM)22.91B
Analysts85.42
Price Target120.86 (5%)
Short Float %0.91%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.83
Dividend Growth(5Y)3.32%
DP31.92%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.49%
Min EPS beat(2)-9.16%
Max EPS beat(2)2.17%
EPS beat(4)3
Avg EPS beat(4)-0.14%
Min EPS beat(4)-9.16%
Max EPS beat(4)4.88%
EPS beat(8)7
Avg EPS beat(8)3.97%
EPS beat(12)10
Avg EPS beat(12)5.03%
EPS beat(16)13
Avg EPS beat(16)4.31%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.16%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)9
Avg Revenue beat(16)0.28%
PT rev (1m)5.05%
PT rev (3m)5.49%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)1.02%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.79 | ||
| Fwd PE | 38.51 | ||
| P/S | 1.3 | ||
| P/FCF | 60.11 | ||
| P/OCF | 22.39 | ||
| P/B | 9.55 | ||
| P/tB | 13.62 | ||
| EV/EBITDA | 22.23 |
EPS(TTM)2.57
EY2.23%
EPS(NY)2.99
Fwd EY2.6%
FCF(TTM)1.92
FCFY1.66%
OCF(TTM)5.14
OCFY4.47%
SpS88.21
BVpS12.06
TBVpS8.45
PEG (NY)7.33
PEG (5Y)5.09
Graham Number26.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 23.84% | ||
| ROCE | 16.76% | ||
| ROIC | 12.07% | ||
| ROICexc | 12.82% | ||
| ROICexgc | 15.41% | ||
| OM | 4.12% | ||
| PM (TTM) | 3.26% | ||
| GM | 24.91% | ||
| FCFM | 2.17% |
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 Turnover2.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.48 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 185.85% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.71% | ||
| Profit Quality | 66.62% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 6.02 |
F-Score7
WACC8.54%
ROIC/WACC1.41
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)4.9%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%6.9%
EPS Next Y6.11%
EPS Next 2Y9.12%
EPS Next 3Y9.95%
EPS Next 5Y8.38%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%5.84%
Revenue Next Year4.73%
Revenue Next 2Y4.82%
Revenue Next 3Y4.73%
Revenue Next 5Y4.47%
EBIT growth 1Y0.81%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year51.77%
EBIT Next 3Y21.96%
EBIT Next 5Y14.37%
FCF growth 1Y20.3%
FCF growth 3Y-0.68%
FCF growth 5Y-2.74%
OCF growth 1Y27.43%
OCF growth 3Y11.87%
OCF growth 5Y7.61%
WALMART INC / WMT FAQ
What is the fundamental rating for WMT stock?
ChartMill assigns a fundamental rating of 5 / 10 to WMT.
What is the valuation status for WMT stock?
ChartMill assigns a valuation rating of 1 / 10 to WALMART INC (WMT). This can be considered as Overvalued.
What is the profitability of WMT stock?
WALMART INC (WMT) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for WMT stock?
The Price/Earnings (PE) ratio for WALMART INC (WMT) is 44.79 and the Price/Book (PB) ratio is 9.55.
Can you provide the financial health for WMT stock?
The financial health rating of WALMART INC (WMT) is 5 / 10.