117.64 USD
-0.09 (-0.08%)
117.45 USD
-0.19 (-0.16%)
We assign a fundamental rating of 5 out of 10 to WMT. WMT was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. WMT has an average financial health and profitability rating. 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's Return On Assets of 7.94% is amongst the best of the industry. WMT outperforms 81.58% of its industry peers.
- The Return On Equity of WMT (23.84%) is better than 73.68% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.07%, WMT belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
- WMT had an Average Return On Invested Capital over the past 3 years of 12.73%. This is significantly below the industry average of 28.30%.
| 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 has a better Profit Margin (3.26%) than 78.95% of its industry peers.
- WMT's Profit Margin has been stable in the last couple of years.
- WMT has a better Operating Margin (4.12%) than 71.05% of its industry peers.
- WMT's Operating Margin has been stable in the last couple of years.
- WMT has a Gross Margin of 24.91%. This is comparable to the rest of the industry: WMT outperforms 57.89% 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 | 4.12% | ||
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WMT is still creating some value.
- WMT has less shares outstanding than it did 1 year ago.
- 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 6.09. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.09, WMT belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- WMT has a debt to FCF ratio of 3.48. This is a good value and a sign of high solvency as WMT would need 3.48 years to pay back of all of its debts.
- WMT has a better Debt to FCF ratio (3.48) than 65.79% of its industry peers.
- WMT has a Debt/Equity ratio of 0.51. This is a neutral value indicating WMT is somewhat dependend on debt financing.
- WMT has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.4
WACC8.64%
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.
- The Current ratio of WMT (0.80) is worse than 84.21% of its industry peers.
- WMT has a Quick 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.
- With a Quick ratio value of 0.24, WMT is not doing good in the industry: 84.21% 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
- The Earnings Per Share has been growing slightly by 4.90% over the past year.
- 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 4.34% 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)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
- Based on estimates for the next years, WMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.71% on average per year.
- The Revenue is expected to grow by 4.96% on average over the next years.
EPS Next Y6.14%
EPS Next 2Y9.28%
EPS Next 3Y10.08%
EPS Next 5Y8.71%
Revenue Next Year4.73%
Revenue Next 2Y4.82%
Revenue Next 3Y4.78%
Revenue Next 5Y4.96%
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.
- 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
- With a Price/Earnings ratio of 45.77, WMT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, WMT is valued a bit more expensive than the industry average as 68.42% of the companies are valued more cheaply.
- WMT is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 39.25 indicates a quite expensive valuation of WMT.
- WMT's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. WMT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.77 | ||
| Fwd PE | 39.25 |
4.2 Price Multiples
- 68.42% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
- 73.68% 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 | 61.43 | ||
| EV/EBITDA | 22.7 |
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)7.45
PEG (5Y)5.2
EPS Next 2Y9.28%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.79%, WMT is not a good candidate for dividend investing.
- WMT's Dividend Yield is a higher than the industry average which is at 0.73.
- With a Dividend Yield of 0.79, WMT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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
- 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 2Y9.28%
EPS Next 3Y10.08%
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 of WALMART INC (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 6 / 10.
How financially healthy is WALMART INC?
The financial health rating of WALMART INC (WMT) is 5 / 10.
What is the expected EPS growth for WALMART INC (WMT) stock?
The Earnings per Share (EPS) of WALMART INC (WMT) is expected to grow by 6.14% in the next year.