WALMART INC (WMT) Stock Fundamental Analysis
USA - NYSE:WMT - US9311421039 - Common Stock
102.48 USD
-0.06 (-0.06%)
102.35 USD
-0.13 (-0.13%)
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. While WMT has a great profitability rating, 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.
In the past year WMT had a positive cash flow from operations.
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
WMT's Return On Assets of 7.88% is amongst the best of the industry. WMT outperforms 82.05% of its industry peers.
With a decent Return On Equity value of 23.69%, WMT is doing good in the industry, outperforming 74.36% of the companies in the same industry.
WMT has a Return On Invested Capital of 12.80%. This is amongst the best in the industry. WMT outperforms 89.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WMT is above the industry average of 8.72%.
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
Looking at the Profit Margin, with a value of 3.08%, WMT is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
WMT's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 4.18%, WMT is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
WMT's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 24.90%, WMT perfoms like the industry average, outperforming 53.85% 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 | 4.18% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WMT is creating some value.
Compared to 1 year ago, WMT has less shares outstanding
Compared to 5 years ago, WMT has less shares outstanding
The debt/assets ratio for WMT has been reduced compared to a year ago.
2.2 Solvency
WMT has an Altman-Z score of 6.03. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WMT (6.03) is better than 87.18% of its industry peers.
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.
WMT has a better Debt to FCF ratio (3.65) than 64.10% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that WMT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.50, WMT perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 6.03 |
ROIC/WACC1.5
WACC8.51%
2.3 Liquidity
A Current Ratio of 0.79 indicates that WMT may have some problems paying its short term obligations.
The Current ratio of WMT (0.79) is worse than 84.62% of its industry peers.
A Quick Ratio of 0.23 indicates that WMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.23, WMT is doing worse than 84.62% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.23% in the past year.
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
Based on estimates for the next years, WMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.21% on average per year.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y5.04%
EPS Next 2Y8.61%
EPS Next 3Y9.66%
EPS Next 5Y8.21%
Revenue Next Year4.28%
Revenue Next 2Y4.45%
Revenue Next 3Y4.13%
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.
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 40.51, 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 64.10% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.89, WMT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 34.61, 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.51 | ||
| Fwd PE | 34.61 |
4.2 Price Multiples
64.10% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
69.23% of the companies in the same industry are cheaper than WMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.41 | ||
| EV/EBITDA | 20.11 |
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)8.04
PEG (5Y)4.6
EPS Next 2Y8.61%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, WMT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.98, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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 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 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 2Y8.61%
EPS Next 3Y9.66%
102.48
-0.06 (-0.06%)
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-3.54%
Ins Owners0.37%
Ins Owner Change-7.23%
Market Cap817.06B
Revenue(TTM)693.15B
Net Income(TTM)21.34B
Analysts85.71
Price Target115.05 (12.27%)
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)-0.23%
PT rev (3m)2.01%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)4.95%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.51 | ||
| Fwd PE | 34.61 | ||
| P/S | 1.18 | ||
| P/FCF | 59.41 | ||
| P/OCF | 21.26 | ||
| P/B | 9.07 | ||
| P/tB | 13.38 | ||
| EV/EBITDA | 20.11 |
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)8.04
PEG (5Y)4.6
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 | 6.03 |
F-Score7
WACC8.51%
ROIC/WACC1.5
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 Y5.04%
EPS Next 2Y8.61%
EPS Next 3Y9.66%
EPS Next 5Y8.21%
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 3Y4.13%
Revenue Next 5Y4.31%
EBIT growth 1Y2.66%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year50.5%
EBIT Next 3Y21.39%
EBIT Next 5Y14.11%
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 40.51 and the Price/Book (PB) ratio is 9.07.
Can you provide the financial health for WMT stock?
The financial health rating of WALMART INC (WMT) is 5 / 10.