WALMART INC (WMT) Stock Fundamental Analysis
NYSE:WMT - New York Stock Exchange, Inc. - US9311421039 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to WMT. WMT was compared to 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WMT was profitable.
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
With a decent Return On Assets value of 7.17%, WMT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
WMT has a better Return On Equity (22.46%) than 77.50% of its industry peers.
With an excellent Return On Invested Capital value of 13.57%, WMT belongs to the best of the industry, outperforming 92.50% 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 8.23%.
The 3 year average ROIC (12.73%) for WMT is below the current ROIC(13.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 22.46% | ||
| ROIC | 13.57% |
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
The Profit Margin of WMT (2.75%) is better than 70.00% of its industry peers.
WMT's Profit Margin has been stable in the last couple of years.
WMT has a Operating Margin of 4.33%. This is in the better half of the industry: WMT outperforms 80.00% of its industry peers.
WMT's Operating Margin has been stable in the last couple of years.
WMT has a Gross Margin (24.88%) which is comparable to the rest of the 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 | 4.33% | ||
| PM (TTM) | 2.75% | ||
| GM | 24.88% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WMT 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
The debt/assets ratio for WMT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.01 indicates that WMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.01, WMT belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
WMT has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as WMT would need 3.91 years to pay back of all of its debts.
The Debt to FCF ratio of WMT (3.91) is better than 67.50% of its industry peers.
WMT has a Debt/Equity ratio of 0.57. This is a neutral value indicating WMT is somewhat dependend on debt financing.
WMT has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: WMT outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.57
WACC8.64%
2.3 Liquidity
A Current Ratio of 0.78 indicates that WMT may have some problems paying its short term obligations.
WMT's Current ratio of 0.78 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 0.22 indicates that WMT may have some problems paying its short term obligations.
The Quick ratio of WMT (0.22) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.47% over the past year.
The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
WMT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.22%.
Measured over the past years, WMT shows a small growth in Revenue. The Revenue has been growing by 5.38% on average per year.
EPS 1Y (TTM)8.47%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%1.67%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%2.54%
3.2 Future
The Earnings Per Share is expected to grow by 9.02% on average over the next years. This is quite good.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y4.92%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
EPS Next 5Y9.02%
Revenue Next Year3.7%
Revenue Next 2Y4.08%
Revenue Next 3Y4.19%
Revenue Next 5Y4.53%
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
Based on the Price/Earnings ratio of 39.03, the valuation of WMT can be described as expensive.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than 67.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, WMT is valued a bit more expensive.
With a Price/Forward Earnings ratio of 33.51, WMT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMT is on the same level as its industry peers.
WMT is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.03 | ||
| Fwd PE | 33.51 |
4.2 Price Multiples
67.50% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
67.50% 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 | 58.24 | ||
| EV/EBITDA | 19.25 |
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)7.94
PEG (5Y)4.44
EPS Next 2Y8.13%
EPS Next 3Y9.07%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 2.08, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of WMT has a limited annual growth rate of 3.32%.
WMT has paid a dividend for at least 10 years, which is a reliable track record.
WMT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.32%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
WMT pays out 36.65% of its income as dividend. This is a sustainable payout ratio.
The dividend of WMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.65%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
98.36
+0.75 (+0.77%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.1%
Inst Owner Change0.83%
Ins Owners0.37%
Ins Owner Change-2.7%
Market Cap786.97B
Analysts84.58
Price Target112.23 (14.1%)
Short Float %0.89%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend0.83
Dividend Growth(5Y)3.32%
DP36.65%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)1.55%
Max EPS beat(2)4.88%
EPS beat(4)4
Avg EPS beat(4)4.25%
Min EPS beat(4)1.55%
Max EPS beat(4)7.81%
EPS beat(8)7
Avg EPS beat(8)5.63%
EPS beat(12)11
Avg EPS beat(12)7.33%
EPS beat(16)14
Avg EPS beat(16)5.65%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.24%
Revenue beat(12)7
Avg Revenue beat(12)0.32%
Revenue beat(16)10
Avg Revenue beat(16)0.57%
PT rev (1m)2.47%
PT rev (3m)0.54%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)3.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.03 | ||
| Fwd PE | 33.51 | ||
| P/S | 1.15 | ||
| P/FCF | 58.24 | ||
| P/OCF | 20.93 | ||
| P/B | 9.39 | ||
| P/tB | 14.33 | ||
| EV/EBITDA | 19.25 |
EPS(TTM)2.52
EY2.56%
EPS(NY)2.93
Fwd EY2.98%
FCF(TTM)1.69
FCFY1.72%
OCF(TTM)4.7
OCFY4.78%
SpS85.63
BVpS10.47
TBVpS6.87
PEG (NY)7.94
PEG (5Y)4.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 22.46% | ||
| ROCE | 18.59% | ||
| ROIC | 13.57% | ||
| ROICexc | 14.38% | ||
| ROICexgc | 17.65% | ||
| OM | 4.33% | ||
| PM (TTM) | 2.75% | ||
| GM | 24.88% | ||
| FCFM | 1.97% |
ROA(3y)6.13%
ROA(5y)5.87%
ROE(3y)18.36%
ROE(5y)17.64%
ROIC(3y)12.73%
ROIC(5y)12.9%
ROICexc(3y)13.5%
ROICexc(5y)13.96%
ROICexgc(3y)16.63%
ROICexgc(5y)17.34%
ROCE(3y)17%
ROCE(5y)17.18%
ROICexcg growth 3Y-3.11%
ROICexcg growth 5Y4.63%
ROICexc growth 3Y-2.28%
ROICexc growth 5Y5.29%
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%
F-Score7
Asset Turnover2.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 182.33% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.75% | ||
| Profit Quality | 71.8% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 6.01 |
F-Score7
WACC8.64%
ROIC/WACC1.57
Cap/Depr(3y)170.4%
Cap/Depr(5y)145.24%
Cap/Sales(3y)3.14%
Cap/Sales(5y)2.71%
Profit Quality(3y)88.41%
Profit Quality(5y)110.16%
High Growth Momentum
Growth
EPS 1Y (TTM)8.47%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%1.67%
EPS Next Y4.92%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
EPS Next 5Y9.02%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%2.54%
Revenue Next Year3.7%
Revenue Next 2Y4.08%
Revenue Next 3Y4.19%
Revenue Next 5Y4.53%
EBIT growth 1Y7.35%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year51.17%
EBIT Next 3Y21.5%
EBIT Next 5Y14.74%
FCF growth 1Y-30.65%
FCF growth 3Y-0.68%
FCF growth 5Y-2.74%
OCF growth 1Y1%
OCF growth 3Y11.87%
OCF growth 5Y7.61%