WALMART INC (WMT)
US9311421039 - Common Stock
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 43 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.
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 (6.11%) than 74.42% of its industry peers.
WMT's Return On Equity of 18.42% is fine compared to the rest of the industry. WMT outperforms 76.74% of its industry peers.
WMT has a Return On Invested Capital of 12.25%. This is amongst the best in the industry. WMT outperforms 83.72% of its industry peers.
WMT had an Average Return On Invested Capital over the past 3 years of 12.57%. This is above the industry average of 8.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 18.42% | ||
| ROIC | 12.25% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)12.57%
ROIC(5y)11.73%
1.3 Margins
WMT has a Profit Margin of 2.34%. This is in the better half of the industry: WMT outperforms 72.09% of its industry peers.
In the last couple of years the Profit Margin of WMT has grown nicely.
The Operating Margin of WMT (4.25%) is better than 79.07% of its industry peers.
WMT's Operating Margin has improved in the last couple of years.
WMT has a Gross Margin (24.63%) which is in line with 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 | 4.25% | ||
| PM (TTM) | 2.34% | ||
| GM | 24.63% |
OM growth 3Y-0.13%
OM growth 5Y2.38%
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WMT is still creating some value.
Compared to 1 year ago, WMT has less shares outstanding
WMT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WMT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.04 indicates that WMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.04, WMT belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
The Debt to FCF ratio of WMT is 3.92, which is a good value as it means it would take WMT, 3.92 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.92, WMT is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
WMT has a Debt/Equity ratio of 0.53. This is a neutral value indicating WMT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, WMT perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 6.04 |
ROIC/WACC1.38
WACC8.9%
2.3 Liquidity
WMT has a Current Ratio of 0.80. This is a bad value and indicates that WMT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.80, WMT is doing worse than 79.07% of the companies in the same industry.
A Quick Ratio of 0.22 indicates that WMT may have some problems paying its short term obligations.
With a Quick ratio value of 0.22, WMT is not doing good in the industry: 81.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.21% over the past year.
WMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.18% yearly.
The Revenue has been growing slightly by 6.03% in the past 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)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%5.46%
3.2 Future
The Earnings Per Share is expected to grow by 11.96% on average over the next years. This is quite good.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.93% on average per year.
EPS Next Y13.4%
EPS Next 2Y12.14%
EPS Next 3Y11.95%
EPS Next 5Y11.96%
Revenue Next Year5.41%
Revenue Next 2Y4.75%
Revenue Next 3Y4.53%
Revenue Next 5Y4.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 37.65, which means the current valuation is very expensive for WMT.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.73. WMT is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 33.14, the valuation of WMT can be described as expensive.
WMT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, WMT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.65 | ||
| Fwd PE | 33.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than 60.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.86 | ||
| EV/EBITDA | 19.32 |
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)2.81
PEG (5Y)6.09
EPS Next 2Y12.14%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 2.38, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.75%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
41.18% of the earnings are spent on dividend by WMT. This is a bit on the high side, but may be sustainable.
The dividend of WMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.18%
EPS Next 2Y12.14%
EPS Next 3Y11.95%
WALMART INC
NYSE:WMT (12/20/2024, 9:39:42 PM)
After market: 92.48 +0.24 (+0.26%)92.24
-1.16 (-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 Change1.85%
Ins Owners0.4%
Ins Owner Change-0.03%
Market Cap741.00B
Analysts83.33
Price Target98.71 (7.01%)
Short Float %0.88%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Dividend Growth(5Y)1.75%
DP41.18%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.11%
Min EPS beat(2)2.75%
Max EPS beat(2)13.47%
EPS beat(4)3
Avg EPS beat(4)5.98%
Min EPS beat(4)-0.62%
Max EPS beat(4)13.47%
EPS beat(8)7
Avg EPS beat(8)8.2%
EPS beat(12)10
Avg EPS beat(12)5.33%
EPS beat(16)13
Avg EPS beat(16)7.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)0.57%
Revenue beat(8)5
Avg Revenue beat(8)0.66%
Revenue beat(12)8
Avg Revenue beat(12)0.75%
Revenue beat(16)12
Avg Revenue beat(16)1.05%
PT rev (1m)14.24%
PT rev (3m)20.03%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)1.54%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.65 | ||
| Fwd PE | 33.14 | ||
| P/S | 1.11 | ||
| P/FCF | 61.86 | ||
| P/OCF | 21.88 | ||
| P/B | 8.78 | ||
| P/tB | 13.12 | ||
| EV/EBITDA | 19.32 |
EPS(TTM)2.45
EY2.66%
EPS(NY)2.78
Fwd EY3.02%
FCF(TTM)1.49
FCFY1.62%
OCF(TTM)4.22
OCFY4.57%
SpS82.73
BVpS10.5
TBVpS7.03
PEG (NY)2.81
PEG (5Y)6.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 18.42% | ||
| ROCE | 17.74% | ||
| ROIC | 12.25% | ||
| ROICexc | 12.95% | ||
| ROICexgc | 15.83% | ||
| OM | 4.25% | ||
| PM (TTM) | 2.34% | ||
| GM | 24.63% | ||
| FCFM | 1.8% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)12.57%
ROIC(5y)11.73%
ROICexc(3y)13.53%
ROICexc(5y)12.72%
ROICexgc(3y)16.82%
ROICexgc(5y)15.88%
ROCE(3y)17.92%
ROCE(5y)16.71%
ROICexcg growth 3Y2.12%
ROICexcg growth 5Y4.51%
ROICexc growth 3Y2.86%
ROICexc growth 5Y5.51%
OM growth 3Y-0.13%
OM growth 5Y2.38%
PM growth 3Y-0.32%
PM growth 5Y13.04%
GM growth 3Y-0.61%
GM growth 5Y-0.58%
F-Score8
Asset Turnover2.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.92 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 175.99% | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.29% | ||
| Profit Quality | 77.06% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 6.04 |
F-Score8
WACC8.9%
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 Y13.4%
EPS Next 2Y12.14%
EPS Next 3Y11.95%
EPS Next 5Y11.96%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%5.46%
Revenue Next Year5.41%
Revenue Next 2Y4.75%
Revenue Next 3Y4.53%
Revenue Next 5Y4.93%
EBIT growth 1Y12.44%
EBIT growth 3Y4.91%
EBIT growth 5Y7.22%
EBIT Next Year59.53%
EBIT Next 3Y23.37%
EBIT Next 5Y16.35%
FCF growth 1Y121.17%
FCF growth 3Y-16.33%
FCF growth 5Y-2.78%
OCF growth 1Y61.36%
OCF growth 3Y-0.32%
OCF growth 5Y5.18%