WALMART INC (WMT) Stock Fundamental Analysis
USA - NYSE:WMT - US9311421039 - Common Stock
101.39 USD
-1.56 (-1.52%)
101.32 USD
-0.07 (-0.07%)
WMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
WMT had positive earnings in the past year.
In the past year WMT had a positive cash flow from operations.
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
WMT has a better Return On Assets (7.88%) than 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 better Return On Invested Capital (12.80%) than 89.74% 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 8.72%.
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
WMT has a Profit Margin of 3.08%. This is in the better half 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.
With a decent Operating Margin value of 4.18%, WMT is doing good in 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.
WMT's Gross Margin of 24.90% is in line compared 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
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
The number of shares outstanding for WMT has been reduced compared to 5 years ago.
The debt/assets ratio for WMT has been reduced compared to a year ago.
2.2 Solvency
WMT has an Altman-Z score of 6.00. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WMT (6.00) 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's Debt to FCF ratio of 3.65 is fine compared to the rest of the industry. WMT outperforms 64.10% of its industry peers.
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 |
ROIC/WACC1.51
WACC8.5%
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.
With a Current ratio value of 0.79, WMT is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
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.
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
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
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
Based on the Price/Earnings ratio of 40.08, the valuation of WMT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 64.10% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WMT to the average of the S&P500 Index (25.51), we can say WMT is valued expensively.
Based on the Price/Forward Earnings ratio of 34.24, the valuation of WMT can be described as expensive.
Based on the Price/Forward Earnings ratio, WMT is valued a bit more expensive than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, WMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.08 | ||
| Fwd PE | 34.24 |
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 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.78 | ||
| EV/EBITDA | 19.9 |
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.
The decent profitability rating of WMT may justify a higher PE ratio.
PEG (NY)7.95
PEG (5Y)4.56
EPS Next 2Y8.61%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.92%, which is pretty low.
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 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.
The dividend of WMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.3%
EPS Next 2Y8.61%
EPS Next 3Y9.66%
101.39
-1.56 (-1.52%)
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 Cap808.37B
Revenue(TTM)693.15B
Net Income(TTM)21.34B
Analysts85.71
Price Target115.05 (13.47%)
Short Float %0.89%
Short Ratio2.53
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 | 40.08 | ||
| Fwd PE | 34.24 | ||
| P/S | 1.17 | ||
| P/FCF | 58.78 | ||
| P/OCF | 21.03 | ||
| P/B | 8.97 | ||
| P/tB | 13.24 | ||
| EV/EBITDA | 19.9 |
EPS(TTM)2.53
EY2.5%
EPS(NY)2.96
Fwd EY2.92%
FCF(TTM)1.72
FCFY1.7%
OCF(TTM)4.82
OCFY4.76%
SpS86.94
BVpS11.3
TBVpS7.66
PEG (NY)7.95
PEG (5Y)4.56
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 |
F-Score7
WACC8.5%
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 Y5.04%
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 40.08 and the Price/Book (PB) ratio is 8.97.
Can you provide the financial health for WMT stock?
The financial health rating of WALMART INC (WMT) is 5 / 10.