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. While WMT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, WMT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WMT had positive earnings in the past year.
WMT had a positive operating cash flow in the past year.
WMT had positive earnings in each of the past 5 years.
In the past 5 years WMT always reported a positive cash flow from operatings.
1.2 Ratios
WMT's Return On Assets of 6.15% is fine compared to the rest of the industry. WMT outperforms 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 better Return On Invested Capital (11.82%) than 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 10.27%.
| 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 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of WMT has grown nicely.
WMT has a Operating Margin of 4.17%. This is in the better half of the industry: WMT outperforms 77.50% of its industry peers.
In the last couple of years the Operating Margin of WMT has grown nicely.
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.
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
WMT has an Altman-Z score of 5.08. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
WMT's Altman-Z score of 5.08 is fine compared to the rest of the industry. WMT outperforms 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.
WMT has a better Debt to FCF ratio (3.10) than 72.50% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that 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 | 5.08 |
ROIC/WACC1.37
WACC8.66%
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's Current ratio of 0.83 is on the low side compared to the rest of the industry. WMT is outperformed by 82.50% of its industry peers.
A Quick Ratio of 0.24 indicates that WMT may have some problems paying its short term obligations.
The Quick ratio of WMT (0.24) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.73% 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.
WMT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.03%.
The Revenue has been growing slightly by 4.73% on average over the past years.
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.
The Revenue is expected to grow by 4.58% on average over the next years.
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.
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
With a Price/Earnings ratio of 27.29, WMT can be considered very expensive at the moment.
WMT's Price/Earnings ratio is in line with the industry average.
WMT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.35 indicates a quite expensive valuation of WMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMT is on the same level as its industry peers.
WMT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 25.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than 62.50% 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 | 32.14 | ||
| EV/EBITDA | 13.44 |
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.
WMT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.65
PEG (5Y)4.42
EPS Next 2Y8.63%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, WMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.53, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of WMT has a limited annual growth rate of 1.75%.
WMT has paid a dividend for at least 10 years, which is 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
39.58% 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.
DP39.58%
EPS Next 2Y8.63%
EPS Next 3Y9.33%
WALMART INC
NYSE:WMT (5/8/2024, 9:30:41 PM)
Premarket: 60.29 -0.01 (-0.02%)60.3
-0.32 (-0.53%)
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 Cap486.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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 | 27.29 | ||
| Fwd PE | 25.35 | ||
| 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)3.65
PEG (5Y)4.42
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