WALMART INC (WMT) Stock Fundamental Analysis
NYSE:WMT - New York Stock Exchange, Inc. - US9311421039 - Common Stock - Currency: USD
Taking everything into account, WMT scores 5 out of 10 in our fundamental rating. WMT was compared to 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. 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.
In the past year WMT had a positive cash flow from operations.
Each year in the past 5 years WMT has 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 (7.17%) than 80.00% of its industry peers.
WMT has a better Return On Equity (22.46%) than 77.50% of its industry peers.
WMT's Return On Invested Capital of 13.57% is amongst the best of the industry. WMT outperforms 92.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 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
WMT's Profit Margin of 2.75% is fine compared to the rest of the industry. WMT outperforms 70.00% of its industry peers.
WMT's Profit Margin has been stable in the last couple of years.
The Operating Margin of WMT (4.33%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
The Gross Margin of WMT (24.88%) is comparable to the rest of the industry.
WMT's Gross Margin has been stable in the last couple of years.
| 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
WMT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WMT has been reduced compared to 1 year ago.
WMT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WMT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.98 indicates that WMT is not in any danger for bankruptcy at the moment.
WMT has a Altman-Z score of 5.98. This is amongst the best in the industry. WMT outperforms 82.50% of its industry peers.
The Debt to FCF ratio of WMT is 3.91, which is a good value as it means it would take WMT, 3.91 years of fcf income to pay off all of its debts.
WMT has a Debt to FCF ratio of 3.91. This is in the better half of the industry: WMT outperforms 67.50% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that WMT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, WMT is in line with its industry, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 5.98 |
ROIC/WACC1.55
WACC8.74%
2.3 Liquidity
WMT has a Current Ratio of 0.78. 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 Current ratio value of 0.78, WMT is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
WMT has a Quick Ratio of 0.78. 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 Quick ratio of 0.22. This is amonst the worse of the industry: WMT underperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
WMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.47%, which is quite good.
Measured over the past years, WMT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.80% on average per year.
Looking at the last year, WMT shows a small growth in Revenue. The Revenue has grown by 4.22% in the last year.
WMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
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.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.53% yearly.
EPS Next Y4.95%
EPS Next 2Y8.13%
EPS Next 3Y9.14%
EPS Next 5Y9.02%
Revenue Next Year3.7%
Revenue Next 2Y4.04%
Revenue Next 3Y4.09%
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.
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
A Price/Earnings ratio of 38.68 indicates a quite expensive valuation of WMT.
Based on the Price/Earnings ratio, WMT is valued a bit more expensive than 67.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.04. WMT is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 33.21, which means the current valuation is very expensive for WMT.
The rest of the industry has a similar Price/Forward Earnings ratio as WMT.
WMT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 33.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than the industry average as 67.50% of the companies are valued more cheaply.
72.50% 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 | 57.57 | ||
| EV/EBITDA | 19.04 |
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)7.82
PEG (5Y)4.4
EPS Next 2Y8.13%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, WMT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.03, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, 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 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)3.32%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
36.65% 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.
DP36.65%
EPS Next 2Y8.13%
EPS Next 3Y9.14%
97.47
+0.87 (+0.9%)
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 Change3.39%
Ins Owners0.37%
Ins Owner Change-2.72%
Market Cap777.85B
Analysts85.11
Price Target112.78 (15.71%)
Short Float %0.84%
Short Ratio2.12
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)0.49%
PT rev (3m)3.38%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)4.23%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 33.21 | ||
| P/S | 1.14 | ||
| P/FCF | 57.57 | ||
| P/OCF | 20.68 | ||
| P/B | 9.28 | ||
| P/tB | 14.16 | ||
| EV/EBITDA | 19.04 |
EPS(TTM)2.52
EY2.59%
EPS(NY)2.93
Fwd EY3.01%
FCF(TTM)1.69
FCFY1.74%
OCF(TTM)4.71
OCFY4.83%
SpS85.85
BVpS10.5
TBVpS6.88
PEG (NY)7.82
PEG (5Y)4.4
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 | 5.98 |
F-Score7
WACC8.74%
ROIC/WACC1.55
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 Y4.95%
EPS Next 2Y8.13%
EPS Next 3Y9.14%
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 2Y4.04%
Revenue Next 3Y4.09%
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%