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 scores excellent on profitability, 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.
In the past 5 years WMT always reported a positive cash flow from operatings.
1.2 Ratios
WMT has a Return On Assets of 6.15%. This is in the better half of the industry: WMT outperforms 77.50% 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.
With an excellent Return On Invested Capital value of 11.82%, WMT belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WMT is significantly below the industry average of 46.01%.
| 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
WMT has a better Profit Margin (2.39%) than 72.50% of its industry peers.
WMT's Profit Margin has improved in the last couple of years.
WMT has a better Operating Margin (4.17%) than 80.00% of its industry peers.
WMT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.38%, WMT perfoms like the industry average, 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.
WMT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WMT has less shares outstanding
WMT has a worse debt/assets ratio than last year.
2.2 Solvency
WMT has an Altman-Z score of 5.27. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
WMT has a better Altman-Z score (5.27) than 77.50% 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.
The Debt to FCF ratio of WMT (3.10) is better than 72.50% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that WMT is somewhat dependend on debt financing.
The Debt to Equity ratio of WMT (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 5.27 |
ROIC/WACC1.4
WACC8.45%
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.
The Current ratio of WMT (0.83) is worse than 77.50% of its industry peers.
WMT has a Quick 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.
The Quick ratio of WMT (0.24) is worse than 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
WMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.06%, which is quite good.
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.
WMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.73% yearly.
EPS 1Y (TTM)8.06%
EPS 3Y6.22%
EPS 5Y6.18%
EPS Q2Q%22.45%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Sales Q2Q%6.05%
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 9.44% yearly.
The Revenue is expected to grow by 4.58% on average over the next years.
EPS Next Y10.99%
EPS Next 2Y10.5%
EPS Next 3Y10.41%
EPS Next 5Y9.44%
Revenue Next Year4.88%
Revenue Next 2Y4.44%
Revenue Next 3Y4.19%
Revenue Next 5Y4.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 28.89, the valuation of WMT can be described as expensive.
WMT's Price/Earnings is on the same level as the industry average.
WMT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.42.
With a Price/Forward Earnings ratio of 24.80, WMT is valued on the expensive side.
WMT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (20.02), we can say WMT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.89 | ||
| Fwd PE | 24.8 |
4.2 Price Multiples
WMT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WMT is more expensive than 65.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WMT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.73 | ||
| EV/EBITDA | 14.83 |
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)2.63
PEG (5Y)4.67
EPS Next 2Y10.5%
EPS Next 3Y10.41%
5. Dividend
5.1 Amount
WMT has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
WMT's Dividend Yield is a higher than the industry average which is at 2.63.
Compared to an average S&P500 Dividend Yield of 2.39, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
39.58% 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.
DP39.58%
EPS Next 2Y10.5%
EPS Next 3Y10.41%
WALMART INC
NYSE:WMT (6/14/2024, 7:04:00 PM)
After market: 66.95 -0.07 (-0.1%)67.02
+0.32 (+0.48%)
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 Cap540.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
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 | 28.89 | ||
| Fwd PE | 24.8 | ||
| 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)2.63
PEG (5Y)4.67
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)
High Growth Momentum
Growth
EPS 1Y (TTM)8.06%
EPS 3Y6.22%
EPS 5Y
EPS Q2Q%
EPS Next Y10.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y
Sales 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