WALMART INC (WMT)
US9311421039 - Common Stock
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 42 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
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.
WMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WMT has a better Return On Assets (5.50%) than 70.73% of its industry peers.
WMT has a Return On Equity of 17.65%. This is amongst the best in the industry. WMT outperforms 80.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.03%, WMT belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WMT is above the industry average of 7.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 17.65% | ||
| ROIC | 11.03% |
ROA(3y)5.25%
ROA(5y)5.01%
ROE(3y)16.12%
ROE(5y)15.5%
ROIC(3y)11.99%
ROIC(5y)11.12%
1.3 Margins
The Profit Margin of WMT (2.23%) is better than 70.73% of its industry peers.
WMT's Profit Margin has been stable in the last couple of years.
WMT's Operating Margin of 3.98% is fine compared to the rest of the industry. WMT outperforms 70.73% 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 (24.20%) 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 | 3.98% | ||
| PM | 2.23% | ||
| GM | 24.2% |
OM growth 3Y0.73%
OM growth 5Y-0.36%
PM growth 3Y-12.38%
PM growth 5Y-0.62%
GM growth 3Y-0.75%
GM growth 5Y-0.99%
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.
WMT has a worse debt/assets ratio than last year.
2.2 Solvency
WMT has an Altman-Z score of 4.67. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.67, WMT is doing good in the industry, outperforming 75.61% of the companies in the same industry.
WMT has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as WMT would need 2.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.62, WMT belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that WMT is somewhat dependend on debt financing.
WMT has a Debt to Equity ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.67 |
ROIC/WACC1.73
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 has a Current ratio of 0.83. This is in the lower half of the industry: WMT underperforms 75.61% of its industry peers.
A Quick Ratio of 0.26 indicates that WMT may have some problems paying its short term obligations.
WMT has a worse Quick ratio (0.26) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
WMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.77%.
Measured over the past 5 years, WMT shows a small growth in Earnings Per Share. The EPS has been growing by 7.33% on average per year.
The Revenue has been growing slightly by 7.31% in the past year.
Measured over the past years, WMT shows a small growth in Revenue. The Revenue has been growing by 4.09% on average per year.
EPS 1Y7.77%
EPS 3Y8.33%
EPS 5Y7.33%
EPS growth Q2Q3.95%
Revenue growth 1Y7.31%
Revenue growth 3Y5.27%
Revenue growth 5Y4.09%
Revenue growth Q2Q5.74%
3.2 Future
WMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.12% yearly.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.56% yearly.
EPS Next Y3.77%
EPS Next 2Y6.67%
EPS Next 3Y7.8%
EPS Next 5Y6.12%
Revenue Next Year5.79%
Revenue Next 2Y4.66%
Revenue Next 3Y4.23%
Revenue Next 5Y3.56%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 24.92, which indicates a rather expensive current valuation of WMT.
Compared to the rest of the industry, the Price/Earnings ratio of WMT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.59, WMT is valued at the same level.
WMT is valuated rather expensively with a Price/Forward Earnings ratio of 22.74.
The rest of the industry has a similar Price/Forward Earnings ratio as WMT.
WMT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 18.75, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 22.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 60.98% of the companies listed in the same industry.
65.85% of the companies in the same industry are more expensive than WMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.75 | ||
| EV/EBITDA | 12.83 |
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.
The decent profitability rating of WMT may justify a higher PE ratio.
PEG (NY)6.61
PEG (5Y)3.4
EPS Next 2Y6.67%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
WMT has a Yearly Dividend Yield of 1.41%. 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 3.23.
With a Dividend Yield of 1.41, WMT pays less dividend than the S&P500 average, which is at 2.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of WMT has a limited annual growth rate of 1.89%.
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)1.89%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
43.48% of the earnings are spent on dividend by WMT. This is a bit on the high side, but may be sustainable.
The dividend of WMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.48%
EPS Next 2Y6.67%
EPS Next 3Y7.8%
WALMART INC
NYSE:WMT (9/28/2023, 10:12:09 AM)
162.479
+0.76 (+0.47%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)08-17 2023-08-17/bmo
Earnings (Next)11-16 2023-11-16/bmo
Inst Owners64.56%
Inst Owner Change95.84%
Ins Owners0.92%
Ins Owner Change-0.35%
Market Cap437.32B
Analysts82.5
Price Target181.38 (11.63%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Dividend Growth(5Y)1.89%
DP43.48%
Div Incr Years20
Div Non Decr Years20
Ex-Date12-07 2023-12-07 (0.57)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.58%
Min EPS beat(2)6.85%
Max EPS beat(2)10.32%
EPS beat(4)4
Avg EPS beat(4)10.41%
Min EPS beat(4)6.85%
Max EPS beat(4)12.52%
Revenue beat(2)2
Avg Revenue beat(2)100502%
Min Revenue beat(2)99753%
Max Revenue beat(2)101252%
Revenue beat(4)4
Avg Revenue beat(4)101221%
Min Revenue beat(4)99753%
Max Revenue beat(4)102308%
PT rev (1m)3.88%
PT rev (3m)6.01%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)3.29%
EPS NY rev (3m)5.46%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.9%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 22.74 | ||
| P/S | 0.69 | ||
| P/FCF | 22.75 | ||
| P/OCF | 11.57 | ||
| P/B | 5.5 | ||
| P/tB | 8.53 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)6.52
EY4.01%
EPS(NY)7.15
Fwd EY4.4%
FCF(TTM)7.14
FCFY4.4%
OCF(TTM)14.04
OCFY8.64%
SpS234.36
BVpS29.56
TBVpS19.06
PEG (NY)6.61
PEG (5Y)3.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 17.65% | ||
| ROCE | 16.11% | ||
| ROIC | 11.03% | ||
| ROICexc | 12.07% | ||
| ROICexgc | 14.96% | ||
| OM | 3.98% | ||
| PM | 2.23% | ||
| GM | 24.2% | ||
| FCFM | 3.05% |
ROA(3y)5.25%
ROA(5y)5.01%
ROE(3y)16.12%
ROE(5y)15.5%
ROIC(3y)11.99%
ROIC(5y)11.12%
ROICexc(3y)13.15%
ROICexc(5y)12.05%
ROICexgc(3y)16.47%
ROICexgc(5y)15.18%
ROCE(3y)17.05%
ROCE(5y)15.92%
ROICexcg growth 3Y7.32%
ROICexcg growth 5Y2.22%
ROICexc growth 3Y7.77%
ROICexc growth 5Y0.97%
OM growth 3Y0.73%
OM growth 5Y-0.36%
PM growth 3Y-12.38%
PM growth 5Y-0.62%
GM growth 3Y-0.75%
GM growth 5Y-0.99%
F-Score5
Asset Turnover2.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 164.2% | ||
| Cap/Sales | 2.95% | ||
| Profit Quality | 136.89% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 4.67 |
F-Score5
WACC8.66%
ROIC/WACC1.73
Cap/Depr(3y)123.01%
Cap/Depr(5y)112.67%
Cap/Sales(3y)2.29%
Cap/Sales(5y)2.19%
Profit Quality(3y)129.39%
Profit Quality(5y)149.39%
Growth
EPS 1Y7.77%
EPS 3Y8.33%
EPS 5Y7.33%
EPS growth Q2Q3.95%
EPS Next Y3.77%
EPS Next 2Y6.67%
EPS Next 3Y7.8%
EPS Next 5Y6.12%
Revenue growth 1Y7.31%
Revenue growth 3Y5.27%
Revenue growth 5Y4.09%
Revenue growth Q2Q5.74%
Revenue Next Year5.79%
Revenue Next 2Y4.66%
Revenue Next 3Y4.23%
Revenue Next 5Y3.56%
EBIT growth 1Y2.29%
EBIT growth 3Y6.04%
EBIT growth 5Y3.72%
EBIT Next Year59.32%
EBIT Next 3Y21.58%
EBIT Next 5Y13.61%
FCF growth 1Y-2.31%
FCF growth 3Y-6.26%
FCF growth 5Y-8.1%
OCF growth 1Y20.43%
OCF growth 3Y4.53%
OCF growth 5Y0.35%