WALMART INC (WMT) Stock Fundamental Analysis
USA - NYSE:WMT - US9311421039 - Common Stock
103.6 USD
-0.67 (-0.64%)
103.49 USD
-0.11 (-0.11%)
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. WMT scores excellent on profitability, 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
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
The Return On Assets of WMT (7.88%) is better than 80.00% of its industry peers.
WMT's Return On Equity of 23.69% is fine compared to the rest of the industry. WMT outperforms 75.00% of its industry peers.
WMT has a Return On Invested Capital of 12.80%. This is amongst the best in the industry. WMT outperforms 92.50% of its industry peers.
WMT had an Average Return On Invested Capital over the past 3 years of 12.73%. This is above the industry average of 8.47%.
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
With a decent Profit Margin value of 3.08%, WMT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
WMT's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 4.18%, WMT is doing good in the industry, outperforming 77.50% of the companies in the same industry.
In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
The Gross Margin of WMT (38.66%) is better than 82.50% 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 | 4.18% | ||
| PM (TTM) | 3.08% | ||
| GM | 38.66% |
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
WMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WMT has been reduced compared to 1 year ago.
The number of shares outstanding for WMT has been reduced compared to 5 years ago.
Compared to 1 year ago, WMT has an improved debt to assets ratio.
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 87.50% 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 has a Debt to FCF ratio of 3.65. This is in the better half of the industry: WMT outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that WMT is somewhat dependend on debt financing.
WMT's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. WMT outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 6.07 |
ROIC/WACC1.52
WACC8.44%
2.3 Liquidity
WMT has a Current Ratio of 0.79. 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 Current ratio (0.79) than 87.50% of its industry peers.
WMT has a Quick Ratio of 0.79. This is a bad value and indicates that WMT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WMT (0.23) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
WMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.30%.
WMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
WMT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.23%.
The Revenue has been growing slightly by 5.38% on average over the past years.
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.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.31% on average per year.
EPS Next Y5.3%
EPS Next 2Y8.58%
EPS Next 3Y9.54%
EPS Next 5Y9.19%
Revenue Next Year4.29%
Revenue Next 2Y4.47%
Revenue Next 3Y4.48%
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 40.95, the valuation of WMT can be described as expensive.
72.50% of the companies in the same industry are cheaper than WMT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WMT to the average of the S&P500 Index (27.41), we can say WMT is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 35.01, 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 rather expensive valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.95 | ||
| Fwd PE | 35.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than 72.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WMT is valued a bit more expensive than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.06 | ||
| EV/EBITDA | 20.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WMT may justify a higher PE ratio.
PEG (NY)7.73
PEG (5Y)4.66
EPS Next 2Y8.58%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 2.01, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 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.
WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.3%
EPS Next 2Y8.58%
EPS Next 3Y9.54%
103.6
-0.67 (-0.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.09%
Inst Owner Change3.6%
Ins Owners0.36%
Ins Owner Change-2.59%
Market Cap825.99B
Analysts85.42
Price Target114.71 (10.72%)
Short Float %0.9%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)1.71%
PT rev (3m)2.7%
EPS NQ rev (1m)4.83%
EPS NQ rev (3m)5.19%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.95 | ||
| Fwd PE | 35.01 | ||
| P/S | 1.19 | ||
| P/FCF | 60.06 | ||
| P/OCF | 21.49 | ||
| P/B | 9.17 | ||
| P/tB | 13.53 | ||
| EV/EBITDA | 20.44 |
EPS(TTM)2.53
EY2.44%
EPS(NY)2.96
Fwd EY2.86%
FCF(TTM)1.72
FCFY1.67%
OCF(TTM)4.82
OCFY4.65%
SpS86.94
BVpS11.3
TBVpS7.66
PEG (NY)7.73
PEG (5Y)4.66
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 | 38.66% | ||
| 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%
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 Turnover2.56
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 | 6.07 |
F-Score7
WACC8.44%
ROIC/WACC1.52
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 Y5.3%
EPS Next 2Y8.58%
EPS Next 3Y9.54%
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 3Y4.48%
Revenue Next 5Y4.31%
EBIT growth 1Y2.66%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year50.97%
EBIT Next 3Y21.38%
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%