WALMART INC (WMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMT - US9311421039 - Common Stock
111.53 USD
+1.02 (+0.92%)
111.58 USD
+0.05 (+0.04%)
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 39 industry peers in the Consumer Staples Distribution & Retail industry. While WMT belongs to the best of the industry regarding profitability, 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.
WMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WMT has a Return On Assets of 7.94%. This is amongst the best in the industry. WMT outperforms 82.05% of its industry peers.
The Return On Equity of WMT (23.84%) is better than 74.36% of its industry peers.
WMT has a better Return On Invested Capital (12.07%) than 82.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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 has a Operating Margin of 4.12%. This is in the better half 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 in line with its industry peers.
WMT's Gross Margin has been stable in the last couple of years.
| 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
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
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
An Altman-Z score of 5.91 indicates that WMT is not in any danger for bankruptcy at the moment.
WMT has a better Altman-Z score (5.91) than 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's Debt to FCF ratio of 3.48 is fine compared to the rest of the industry. WMT outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that WMT is somewhat dependend on debt financing.
WMT has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: WMT outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 5.91 |
ROIC/WACC1.43
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.80 indicates that WMT may have some problems paying its short term obligations.
The Current ratio of WMT (0.80) is worse than 82.05% of its industry peers.
A Quick Ratio of 0.24 indicates that WMT may have some problems paying its short term obligations.
With a Quick ratio value of 0.24, WMT is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
| 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.
Looking at the last year, WMT shows a small growth in Revenue. The Revenue has grown by 4.34% in the last 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
WMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
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 Y5.04%
EPS Next 2Y8.61%
EPS Next 3Y10.07%
EPS Next 5Y8.38%
Revenue Next Year4.28%
Revenue Next 2Y4.45%
Revenue Next 3Y4.49%
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
A Price/Earnings ratio of 43.40 indicates a quite expensive valuation of WMT.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than 64.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. WMT is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 37.67 indicates a quite expensive valuation of WMT.
Based on the Price/Forward Earnings ratio, WMT is valued a bit more expensive than 61.54% of the companies in the same industry.
WMT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.4 | ||
| Fwd PE | 37.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 64.10% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WMT is valued a bit more expensive than 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.26 | ||
| EV/EBITDA | 21.38 |
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)8.61
PEG (5Y)4.93
EPS Next 2Y8.61%
EPS Next 3Y10.07%
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 1.99, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, 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
31.92% of the earnings are spent on dividend by WMT. This is a low number and sustainable payout ratio.
WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.92%
EPS Next 2Y8.61%
EPS Next 3Y10.07%
111.53
+1.02 (+0.92%)
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-3.47%
Ins Owners0.37%
Ins Owner Change-2.06%
Market Cap889.21B
Revenue(TTM)703.06B
Net Income(TTM)22.91B
Analysts85.71
Price Target115.95 (3.96%)
Short Float %0.89%
Short Ratio2.53
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)0.54%
PT rev (3m)2.23%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.4 | ||
| Fwd PE | 37.67 | ||
| P/S | 1.26 | ||
| P/FCF | 58.26 | ||
| P/OCF | 21.7 | ||
| P/B | 9.25 | ||
| P/tB | 13.2 | ||
| EV/EBITDA | 21.38 |
EPS(TTM)2.57
EY2.3%
EPS(NY)2.96
Fwd EY2.65%
FCF(TTM)1.91
FCFY1.72%
OCF(TTM)5.14
OCFY4.61%
SpS88.18
BVpS12.05
TBVpS8.45
PEG (NY)8.61
PEG (5Y)4.93
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 | 5.91 |
F-Score7
WACC8.42%
ROIC/WACC1.43
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 Y5.04%
EPS Next 2Y8.61%
EPS Next 3Y10.07%
EPS Next 5Y8.38%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%5.84%
Revenue Next Year4.28%
Revenue Next 2Y4.45%
Revenue Next 3Y4.49%
Revenue Next 5Y4.47%
EBIT growth 1Y0.81%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year50.5%
EBIT Next 3Y21.81%
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 43.4 and the Price/Book (PB) ratio is 9.25.
Can you provide the financial health for WMT stock?
The financial health rating of WALMART INC (WMT) is 5 / 10.