WALMART INC (WMT) Stock Fundamental Analysis
NYSE:WMT - New York Stock Exchange, Inc. - US9311421039 - Common Stock
Overall WMT gets a fundamental rating of 6 out of 10. We evaluated WMT against 41 industry peers in the Consumer Staples Distribution & Retail industry. While WMT has a great profitability rating, 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.
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
WMT's Return On Assets of 7.47% is fine compared to the rest of the industry. WMT outperforms 80.00% of its industry peers.
WMT's Return On Equity of 22.33% is amongst the best of the industry. WMT outperforms 82.50% of its industry peers.
WMT's Return On Invested Capital of 12.31% is amongst the best of the industry. WMT outperforms 85.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 8.38%.
The last Return On Invested Capital (12.31%) for WMT is above the 3 year average (11.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 22.33% | ||
| ROIC | 12.31% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)11.97%
ROIC(5y)11.45%
1.3 Margins
The Profit Margin of WMT (2.92%) is better than 82.50% of its industry peers.
In the last couple of years the Profit Margin of WMT has grown nicely.
WMT has a better Operating Margin (4.27%) than 80.00% of its industry peers.
WMT's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 24.70%, WMT perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
WMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.27% | ||
| PM (TTM) | 2.92% | ||
| GM | 24.7% |
OM growth 3Y-4.73%
OM growth 5Y-0.48%
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
WMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WMT has less shares outstanding
The number of shares outstanding for WMT has been reduced compared to 5 years ago.
WMT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.88 indicates that WMT is not in any danger for bankruptcy at the moment.
WMT's Altman-Z score of 5.88 is amongst the best of the industry. WMT outperforms 85.00% of its industry peers.
WMT has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as WMT would need 2.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.78, WMT is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
WMT has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, WMT is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 5.88 |
ROIC/WACC1.38
WACC8.94%
2.3 Liquidity
A Current Ratio of 0.85 indicates that WMT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, WMT is doing worse than 82.50% of the companies in the same industry.
WMT has a Quick Ratio of 0.85. 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 80.00% of its industry peers.
The current and quick ratio evaluation for WMT is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
WMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.21%, which is quite good.
The Earnings Per Share has been growing slightly by 6.18% on average over the past years.
Looking at the last year, WMT shows a small growth in Revenue. The Revenue has grown by 5.48% in the last year.
Measured over the past years, WMT shows a small growth in Revenue. The Revenue has been growing by 4.73% on average per year.
EPS 1Y (TTM)12.21%
EPS 3Y6.22%
EPS 5Y6.18%
EPS Q2Q%13.73%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%5.46%
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 11.96% on average per year.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y13.35%
EPS Next 2Y12.19%
EPS Next 3Y12.17%
EPS Next 5Y11.96%
Revenue Next Year5.56%
Revenue Next 2Y4.84%
Revenue Next 3Y4.63%
Revenue Next 5Y4.93%
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.
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
Based on the Price/Earnings ratio of 37.99, the valuation of WMT can be described as expensive.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
WMT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 33.41, which means the current valuation is very expensive for WMT.
WMT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WMT is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (24.44), we can say WMT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.99 | ||
| Fwd PE | 33.41 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as WMT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.98 | ||
| EV/EBITDA | 18.63 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
WMT's earnings are expected to grow with 12.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.85
PEG (5Y)6.15
EPS Next 2Y12.19%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, WMT is not a good candidate for dividend investing.
WMT's Dividend Yield is a higher than the industry average which is at 2.47.
Compared to an average S&P500 Dividend Yield of 2.28, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of WMT has a limited annual growth rate of 1.75%.
WMT has been paying a dividend for at least 10 years, so it has a reliable track record.
WMT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.75%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
WMT pays out 33.23% of its income as dividend. This is a sustainable payout ratio.
The dividend of WMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.23%
EPS Next 2Y12.19%
EPS Next 3Y12.17%
WALMART INC
NYSE:WMT (1/21/2025, 8:04:00 PM)
After market: 93.19 +0.11 (+0.12%)93.08
+1.14 (+1.24%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners35.07%
Inst Owner Change-0.21%
Ins Owners0.4%
Ins Owner Change-0.43%
Market Cap747.75B
Analysts83.33
Price Target101.02 (8.53%)
Short Float %0.8%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.76
Dividend Growth(5Y)1.75%
DP33.23%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.28%
Min EPS beat(2)2.75%
Max EPS beat(2)7.81%
EPS beat(4)4
Avg EPS beat(4)8.09%
Min EPS beat(4)2.75%
Max EPS beat(4)13.47%
EPS beat(8)7
Avg EPS beat(8)7.61%
EPS beat(12)10
Avg EPS beat(12)5.79%
EPS beat(16)13
Avg EPS beat(16)7.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)0.11%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)0.57%
Revenue beat(8)5
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)0.54%
Revenue beat(16)12
Avg Revenue beat(16)1.01%
PT rev (1m)2.34%
PT rev (3m)20.79%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)0%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.99 | ||
| Fwd PE | 33.41 | ||
| P/S | 1.11 | ||
| P/FCF | 43.98 | ||
| P/OCF | 18.87 | ||
| P/B | 8.49 | ||
| P/tB | 12.43 | ||
| EV/EBITDA | 18.63 |
EPS(TTM)2.45
EY2.63%
EPS(NY)2.79
Fwd EY2.99%
FCF(TTM)2.12
FCFY2.27%
OCF(TTM)4.93
OCFY5.3%
SpS83.88
BVpS10.97
TBVpS7.49
PEG (NY)2.85
PEG (5Y)6.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 22.33% | ||
| ROCE | 17.87% | ||
| ROIC | 12.31% | ||
| ROICexc | 13.11% | ||
| ROICexgc | 16.01% | ||
| OM | 4.27% | ||
| PM (TTM) | 2.92% | ||
| GM | 24.7% | ||
| FCFM | 2.52% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)11.97%
ROIC(5y)11.45%
ROICexc(3y)12.9%
ROICexc(5y)12.42%
ROICexgc(3y)16.03%
ROICexgc(5y)15.51%
ROCE(3y)17.06%
ROCE(5y)16.31%
ROICexcg growth 3Y-2.58%
ROICexcg growth 5Y1.6%
ROICexc growth 3Y-1.87%
ROICexc growth 5Y2.57%
OM growth 3Y-4.73%
OM growth 5Y-0.48%
PM growth 3Y-0.32%
PM growth 5Y13.04%
GM growth 3Y-0.61%
GM growth 5Y-0.58%
F-Score8
Asset Turnover2.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 177.95% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.59% | ||
| Profit Quality | 86.41% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 5.88 |
F-Score8
WACC8.94%
ROIC/WACC1.38
Cap/Depr(3y)150.28%
Cap/Depr(5y)128.06%
Cap/Sales(3y)2.74%
Cap/Sales(5y)2.42%
Profit Quality(3y)98.2%
Profit Quality(5y)116.68%
High Growth Momentum
Growth
EPS 1Y (TTM)12.21%
EPS 3Y6.22%
EPS 5Y6.18%
EPS Q2Q%13.73%
EPS Next Y13.35%
EPS Next 2Y12.19%
EPS Next 3Y12.17%
EPS Next 5Y11.96%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%5.46%
Revenue Next Year5.56%
Revenue Next 2Y4.84%
Revenue Next 3Y4.63%
Revenue Next 5Y4.93%
EBIT growth 1Y10.05%
EBIT growth 3Y0.08%
EBIT growth 5Y4.23%
EBIT Next Year59.56%
EBIT Next 3Y23.64%
EBIT Next 5Y16.35%
FCF growth 1Y142.57%
FCF growth 3Y-16.33%
FCF growth 5Y-2.78%
OCF growth 1Y68.01%
OCF growth 3Y-0.32%
OCF growth 5Y5.18%