WALMART INC (WMT) Stock Fundamental Analysis
USA - NYSE:WMT - US9311421039 - Common Stock
102.59 USD
+0.91 (+0.89%)
102.69 USD
+0.1 (+0.1%)
Taking everything into account, WMT scores 5 out of 10 in our fundamental rating. 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. WMT is quite expensive at the moment. 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.
In the past 5 years WMT has always 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 82.05% of its industry peers.
The Return On Equity of WMT (23.69%) is better than 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 8.75%.
The 3 year average ROIC (12.73%) for WMT is below the current ROIC(12.80%), indicating increased profibility in the last year.
| 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.
WMT's Profit Margin has been stable in the last couple of years.
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.
WMT has a Gross Margin of 24.90%. This is comparable to the rest of the industry: WMT outperforms 53.85% 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 | 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.
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
An Altman-Z score of 6.01 indicates that WMT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.01, WMT belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
WMT has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as WMT would need 3.65 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.65, WMT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
WMT has a Debt/Equity ratio of 0.50. This is a neutral value indicating WMT is somewhat dependend on debt financing.
The Debt to Equity ratio of WMT (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.51
WACC8.48%
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's Current ratio of 0.79 is on the low side compared to the rest of the industry. WMT is outperformed by 84.62% 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.
WMT's Quick ratio of 0.23 is on the low side compared to the rest of the industry. WMT is outperformed by 84.62% of its industry peers.
| 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.
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%.
WMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
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.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
EPS Next Y5.03%
EPS Next 2Y8.64%
EPS Next 3Y9.63%
EPS Next 5Y9.19%
Revenue Next Year4.28%
Revenue Next 2Y4.45%
Revenue Next 3Y4.45%
Revenue Next 5Y4.31%
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.
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
WMT is valuated quite expensively with a Price/Earnings ratio of 40.55.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than 64.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, WMT is valued quite expensively.
The Price/Forward Earnings ratio is 34.63, which means the current valuation is very expensive for WMT.
The rest of the industry has a similar Price/Forward Earnings ratio as WMT.
When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (32.68), we can say WMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.55 | ||
| Fwd PE | 34.63 |
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 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.47 | ||
| EV/EBITDA | 19.96 |
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.
WMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.06
PEG (5Y)4.61
EPS Next 2Y8.64%
EPS Next 3Y9.63%
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 1.99.
Compared to an average S&P500 Dividend Yield of 2.39, WMT's dividend is way lower than the S&P500 average.
| 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 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
33.30% 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.
DP33.3%
EPS Next 2Y8.64%
EPS Next 3Y9.63%
102.59
+0.91 (+0.89%)
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-4.68%
Ins Owners0.37%
Ins Owner Change-2.91%
Market Cap817.93B
Revenue(TTM)693.15B
Net Income(TTM)21.34B
Analysts85.71
Price Target115.05 (12.15%)
Short Float %0.9%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)0.3%
PT rev (3m)2.01%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)4.94%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.55 | ||
| Fwd PE | 34.63 | ||
| P/S | 1.18 | ||
| P/FCF | 59.47 | ||
| P/OCF | 21.28 | ||
| P/B | 9.08 | ||
| P/tB | 13.4 | ||
| EV/EBITDA | 19.96 |
EPS(TTM)2.53
EY2.47%
EPS(NY)2.96
Fwd EY2.89%
FCF(TTM)1.72
FCFY1.68%
OCF(TTM)4.82
OCFY4.7%
SpS86.94
BVpS11.3
TBVpS7.66
PEG (NY)8.06
PEG (5Y)4.61
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 | 6.01 |
F-Score7
WACC8.48%
ROIC/WACC1.51
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 Y5.03%
EPS Next 2Y8.64%
EPS Next 3Y9.63%
EPS Next 5Y9.19%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.76%
Revenue Next Year4.28%
Revenue Next 2Y4.45%
Revenue Next 3Y4.45%
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%
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 40.55 and the Price/Book (PB) ratio is 9.08.
Can you provide the financial health for WMT stock?
The financial health rating of WALMART INC (WMT) is 5 / 10.