WALMART INC (WMT)
US9311421039 - Common Stock
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 40 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 valied quite expensively at the moment, while 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.
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 better Return On Assets (6.15%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 18.50%, WMT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
WMT has a Return On Invested Capital of 11.82%. This is amongst the best in the industry. WMT outperforms 85.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 10.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 18.5% | ||
| ROIC | 11.82% |
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
With a decent Profit Margin value of 2.39%, WMT is doing good in the industry, outperforming 72.50% of the companies in the same industry.
In the last couple of years the Profit Margin of WMT has grown nicely.
WMT's Operating Margin of 4.17% is fine compared to the rest of the industry. WMT outperforms 77.50% of its industry peers.
WMT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.38%, WMT is in line with its industry, outperforming 60.00% of the companies in the same industry.
WMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.17% | ||
| PM (TTM) | 2.39% | ||
| GM | 24.38% |
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
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
Compared to 5 years ago, WMT has less shares outstanding
Compared to 1 year ago, WMT has a worse debt to assets ratio.
2.2 Solvency
WMT has an Altman-Z score of 5.06. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
WMT's Altman-Z score of 5.06 is fine compared to the rest of the industry. WMT outperforms 80.00% of its industry peers.
The Debt to FCF ratio of WMT is 3.10, which is a good value as it means it would take WMT, 3.10 years of fcf income to pay off all of its debts.
WMT has a Debt to FCF ratio of 3.10. This is in the better half of the industry: WMT outperforms 72.50% 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 of 0.51. This is comparable to the rest of the industry: WMT outperforms 47.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 5.06 |
ROIC/WACC1.36
WACC8.67%
2.3 Liquidity
WMT has a Current Ratio of 0.83. This is a bad value and indicates that WMT is not financially healthy enough and could expect problems in meeting its short term obligations.
WMT has a Current ratio of 0.83. This is amonst the worse of the industry: WMT underperforms 80.00% of its industry peers.
A Quick Ratio of 0.24 indicates that WMT may have some problems paying its short term obligations.
WMT has a worse Quick ratio (0.24) than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| 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 5.73%.
Measured over the past 5 years, WMT shows a small growth in Earnings Per Share. The EPS has been growing by 6.18% on average per year.
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)5.73%
EPS 3Y6.22%
EPS 5Y6.18%
EPS growth Q2Q5.26%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Revenue growth Q2Q5.69%
3.2 Future
The Earnings Per Share is expected to grow by 9.44% on average over the next years. This is quite good.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
EPS Next Y7.47%
EPS Next 2Y8.63%
EPS Next 3Y9.33%
EPS Next 5Y9.44%
Revenue Next Year4.36%
Revenue Next 2Y4.18%
Revenue Next 3Y4.02%
Revenue Next 5Y4.58%
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.
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
A Price/Earnings ratio of 27.09 indicates a quite expensive valuation of WMT.
The rest of the industry has a similar Price/Earnings ratio as WMT.
The average S&P500 Price/Earnings ratio is at 28.53. WMT is around the same levels.
WMT is valuated quite expensively with a Price/Forward Earnings ratio of 25.17.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (20.31), we can say WMT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.09 | ||
| Fwd PE | 25.17 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WMT is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.91 | ||
| EV/EBITDA | 13.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WMT may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)4.38
EPS Next 2Y8.63%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
WMT has a Yearly Dividend Yield of 1.37%.
Compared to an average industry Dividend Yield of 2.50, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
WMT pays out 39.58% of its income as dividend. This is a sustainable payout ratio.
WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.58%
EPS Next 2Y8.63%
EPS Next 3Y9.33%
WALMART INC
NYSE:WMT (5/14/2024, 7:09:29 PM)
Premarket: 59.89 +0.03 (+0.05%)59.86
-0.55 (-0.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap482.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.09 | ||
| Fwd PE | 25.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.63
PEG (5Y)4.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 18.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.17% | ||
| PM (TTM) | 2.39% | ||
| GM | 24.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.73%
EPS 3Y6.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y