WALMART INC (WMT) Stock Fundamental Analysis
NYSE:WMT - New York Stock Exchange, Inc. - US9311421039 - Common Stock - Currency: USD
WMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 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 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.
WMT had positive earnings in 4 of the past 5 years.
Of the past 5 years WMT 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.47%, WMT is doing good in the industry, outperforming 79.49% of the companies in the same industry.
The Return On Equity of WMT (22.33%) is better than 82.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.31%, WMT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 8.35%.
The last Return On Invested Capital (12.31%) for WMT is above the 3 year average (11.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 22.33% | ||
| ROIC | 12.31% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)11.97%
ROIC(5y)11.45%
1.3 Margins
Looking at the Profit Margin, with a value of 2.92%, WMT belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
In the last couple of years the Profit Margin of WMT has grown nicely.
The Operating Margin of WMT (4.27%) is better than 79.49% of its industry peers.
In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
With a Gross Margin value of 24.70%, WMT perfoms like the industry average, outperforming 56.41% of the companies in the same industry.
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 | 4.27% | ||
| PM (TTM) | 2.92% | ||
| GM | 24.7% |
OM growth 3Y-4.73%
OM growth 5Y-0.48%
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
WMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for WMT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
WMT has an Altman-Z score of 6.02. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.02, WMT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Debt to FCF ratio of WMT is 2.78, which is a good value as it means it would take WMT, 2.78 years of fcf income to pay off all of its debts.
WMT's Debt to FCF ratio of 2.78 is fine compared to the rest of the industry. WMT outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that WMT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.49, WMT is in line with its industry, outperforming 51.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 6.02 |
ROIC/WACC1.39
WACC8.84%
2.3 Liquidity
WMT has a Current Ratio of 0.85. 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 0.85, WMT is doing worse than 82.05% of the companies in the same industry.
WMT has a Quick Ratio of 0.85. 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 0.23, WMT is not doing good in the industry: 79.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
WMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.40%, which is quite good.
WMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
EPS 1Y (TTM)13.4%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%10%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.13%
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 11.64% yearly.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
EPS Next Y10.94%
EPS Next 2Y11.53%
EPS Next 3Y11.58%
EPS Next 5Y11.64%
Revenue Next Year3.9%
Revenue Next 2Y4.15%
Revenue Next 3Y2.27%
Revenue Next 5Y3.98%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.76 indicates a quite expensive valuation of WMT.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of WMT to the average of the S&P500 Index (29.63), we can say WMT is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 34.04, the valuation of WMT can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as WMT.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, WMT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 34.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than the industry average as 64.10% of the companies are valued more cheaply.
WMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.78 | ||
| EV/EBITDA | 19.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.45
PEG (5Y)4.29
EPS Next 2Y11.53%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, WMT is not a good candidate for dividend investing.
WMT's Dividend Yield is a higher than the industry average which is at 2.53.
With a Dividend Yield of 0.97, WMT pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.75%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
33.23% of the earnings are spent on dividend by WMT. This is a low number and sustainable payout ratio.
The dividend of WMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.23%
EPS Next 2Y11.53%
EPS Next 3Y11.58%
94.78
-2.43 (-2.5%)
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 Change1.64%
Ins Owners0.4%
Ins Owner Change-0.47%
Market Cap761.40B
Analysts83.4
Price Target109.89 (15.94%)
Short Float %0.83%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.76
Dividend Growth(5Y)1.75%
DP33.23%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.28%
Min EPS beat(2)2.75%
Max EPS beat(2)7.81%
EPS beat(4)4
Avg EPS beat(4)8.09%
Min EPS beat(4)2.75%
Max EPS beat(4)13.47%
EPS beat(8)7
Avg EPS beat(8)7.61%
EPS beat(12)10
Avg EPS beat(12)5.79%
EPS beat(16)13
Avg EPS beat(16)7.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)0.11%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)0.57%
Revenue beat(8)5
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)0.54%
Revenue beat(16)12
Avg Revenue beat(16)1.01%
PT rev (1m)0.98%
PT rev (3m)18.06%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 34.04 | ||
| P/S | 1.13 | ||
| P/FCF | 44.78 | ||
| P/OCF | 19.21 | ||
| P/B | 8.64 | ||
| P/tB | 12.66 | ||
| EV/EBITDA | 19.65 |
EPS(TTM)2.51
EY2.65%
EPS(NY)2.78
Fwd EY2.94%
FCF(TTM)2.12
FCFY2.23%
OCF(TTM)4.93
OCFY5.2%
SpS83.88
BVpS10.97
TBVpS7.49
PEG (NY)3.45
PEG (5Y)4.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 22.33% | ||
| ROCE | 17.87% | ||
| ROIC | 12.31% | ||
| ROICexc | 13.11% | ||
| ROICexgc | 16.01% | ||
| OM | 4.27% | ||
| PM (TTM) | 2.92% | ||
| GM | 24.7% | ||
| FCFM | 2.52% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)11.97%
ROIC(5y)11.45%
ROICexc(3y)12.9%
ROICexc(5y)12.42%
ROICexgc(3y)16.03%
ROICexgc(5y)15.51%
ROCE(3y)17.06%
ROCE(5y)16.31%
ROICexcg growth 3Y-2.58%
ROICexcg growth 5Y1.6%
ROICexc growth 3Y-1.87%
ROICexc growth 5Y2.57%
OM growth 3Y-4.73%
OM growth 5Y-0.48%
PM growth 3Y-0.32%
PM growth 5Y13.04%
GM growth 3Y-0.61%
GM growth 5Y-0.58%
F-Score8
Asset Turnover2.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 177.95% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.59% | ||
| Profit Quality | 86.41% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 6.02 |
F-Score8
WACC8.84%
ROIC/WACC1.39
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)13.4%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%10%
EPS Next Y10.94%
EPS Next 2Y11.53%
EPS Next 3Y11.58%
EPS Next 5Y11.64%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.13%
Revenue Next Year3.9%
Revenue Next 2Y4.15%
Revenue Next 3Y2.27%
Revenue Next 5Y3.98%
EBIT growth 1Y10.05%
EBIT growth 3Y0.08%
EBIT growth 5Y4.23%
EBIT Next Year59.64%
EBIT Next 3Y23.67%
EBIT Next 5Y16.35%
FCF growth 1Y142.57%
FCF growth 3Y-16.33%
FCF growth 5Y-2.78%
OCF growth 1Y68.01%
OCF growth 3Y-0.32%
OCF growth 5Y5.18%