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 41 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
Looking at the Return On Assets, with a value of 7.17%, WMT belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
WMT's Return On Equity of 22.46% is amongst the best of the industry. WMT outperforms 80.49% of its industry peers.
The Return On Invested Capital of WMT (13.57%) is better than 90.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 8.02%.
The last Return On Invested Capital (13.57%) for WMT is above the 3 year average (12.73%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 2.75%. This is in the better half of the industry: WMT outperforms 75.61% of its industry peers.
WMT's Profit Margin has been stable in the last couple of years.
WMT's Operating Margin of 4.33% is amongst the best of the industry. WMT outperforms 80.49% of its industry peers.
In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
WMT has a Gross Margin (24.88%) which 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WMT is destroying value.
WMT has less shares outstanding than it did 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
WMT has an Altman-Z score of 6.00. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
WMT has a better Altman-Z score (6.00) than 85.37% of its industry peers.
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.
WMT has a Debt to FCF ratio of 3.91. This is in the better half of the industry: WMT outperforms 65.85% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that WMT is somewhat dependend on debt financing.
The Debt to Equity ratio of WMT (0.57) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 6 |
ROIC/WACC0.88
WACC15.37%
2.3 Liquidity
A Current Ratio of 0.78 indicates that WMT may have some problems paying its short term obligations.
WMT has a worse Current ratio (0.78) than 82.93% of its industry peers.
A Quick Ratio of 0.22 indicates that WMT may have some problems paying its short term obligations.
WMT has a worse Quick ratio (0.22) than 82.93% 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%.
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
Based on estimates for the next years, WMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.30% on average per year.
WMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
EPS Next Y4.91%
EPS Next 2Y8.61%
EPS Next 3Y9.67%
EPS Next 5Y9.3%
Revenue Next Year3.64%
Revenue Next 2Y4.05%
Revenue Next 3Y4.23%
Revenue Next 5Y4.08%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 38.81, which means the current valuation is very expensive for WMT.
63.41% of the companies in the same industry are cheaper than WMT, based on the Price/Earnings ratio.
WMT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 33.03 indicates a quite expensive valuation of WMT.
WMT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.43. WMT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.81 | ||
| Fwd PE | 33.03 |
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 65.85% of the companies listed in the same industry.
65.85% 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 | 57.91 | ||
| EV/EBITDA | 19.2 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.9
PEG (5Y)4.41
EPS Next 2Y8.61%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, WMT is not a good candidate for dividend investing.
WMT's Dividend Yield is a higher than the industry average which is at 2.30.
Compared to an average S&P500 Dividend Yield of 2.36, WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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 Years20
Div Non Decr Years20
5.3 Sustainability
WMT pays out 36.65% of its income as dividend. This is a sustainable payout ratio.
WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.65%
EPS Next 2Y8.61%
EPS Next 3Y9.67%
97.8
-0.32 (-0.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners35.65%
Inst Owner Change0.81%
Ins Owners0.39%
Ins Owner Change-1.29%
Market Cap782.49B
Analysts84.08
Price Target109.53 (11.99%)
Short Float %1.1%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend0.83
Dividend Growth(5Y)3.32%
DP36.65%
Div Incr Years20
Div Non Decr Years20
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)-0.91%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.23%
Revenue beat(12)7
Avg Revenue beat(12)0.33%
Revenue beat(16)10
Avg Revenue beat(16)0.57%
PT rev (1m)-1.59%
PT rev (3m)7.37%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-10.79%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-5.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.81 | ||
| Fwd PE | 33.03 | ||
| P/S | 1.14 | ||
| P/FCF | 57.91 | ||
| P/OCF | 20.81 | ||
| P/B | 9.34 | ||
| P/tB | 14.25 | ||
| EV/EBITDA | 19.2 |
EPS(TTM)2.52
EY2.58%
EPS(NY)2.96
Fwd EY3.03%
FCF(TTM)1.69
FCFY1.73%
OCF(TTM)4.7
OCFY4.81%
SpS85.63
BVpS10.47
TBVpS6.87
PEG (NY)7.9
PEG (5Y)4.41
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 |
F-Score7
WACC15.37%
ROIC/WACC0.88
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 Y4.91%
EPS Next 2Y8.61%
EPS Next 3Y9.67%
EPS Next 5Y9.3%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%2.54%
Revenue Next Year3.64%
Revenue Next 2Y4.05%
Revenue Next 3Y4.23%
Revenue Next 5Y4.08%
EBIT growth 1Y7.35%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year52.44%
EBIT Next 3Y21.5%
EBIT Next 5Y14.97%
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%