WALMART INC (WMT) Stock Fundamental Analysis
NYSE:WMT - US9311421039 - Common Stock
100.51 USD
-0.42 (-0.42%)
100.42 USD
-0.09 (-0.09%)
Taking everything into account, WMT scores 5 out of 10 in our fundamental rating. WMT was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. While WMT has a great profitability rating, 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.
In the past year WMT had a positive cash flow from operations.
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
The Return On Assets of WMT (7.88%) is better than 80.49% of its industry peers.
With a decent Return On Equity value of 23.69%, WMT is doing good in the industry, outperforming 75.61% of the companies in the same industry.
WMT has a Return On Invested Capital of 12.80%. This is amongst the best in the industry. WMT outperforms 92.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 8.38%.
The last Return On Invested Capital (12.80%) for WMT is above the 3 year average (12.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 23.69% | ||
| ROIC | 12.8% |
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 better Profit Margin (3.08%) than 75.61% of its industry peers.
In the last couple of years the Profit Margin of WMT has remained more or less at the same level.
The Operating Margin of WMT (4.18%) is better than 78.05% 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 of 38.66%. This is amongst the best in the industry. WMT outperforms 82.93% of its industry peers.
WMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.18% | ||
| PM (TTM) | 3.08% | ||
| GM | 38.66% |
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.
Compared to 1 year ago, WMT has less shares outstanding
The number of shares outstanding for WMT has been reduced compared to 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 5.98. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
WMT has a better Altman-Z score (5.98) than 85.37% of its industry peers.
The Debt to FCF ratio of WMT is 3.65, which is a good value as it means it would take WMT, 3.65 years of fcf income to pay off all of its debts.
WMT has a Debt to FCF ratio of 3.65. This is in the better half of the industry: WMT outperforms 65.85% of its industry peers.
WMT has a Debt/Equity ratio of 0.50. This is a neutral value indicating WMT is somewhat dependend on debt financing.
The Debt to Equity ratio of WMT (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 5.98 |
ROIC/WACC1.51
WACC8.47%
2.3 Liquidity
A Current Ratio of 0.79 indicates that WMT may have some problems paying its short term obligations.
WMT has a Current ratio of 0.79. This is amonst the worse of the industry: WMT underperforms 85.37% of its industry peers.
WMT has a Quick Ratio of 0.79. 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 worse Quick ratio (0.23) than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.30% over the past year.
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.
The Revenue has been growing slightly by 4.23% in the past 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)6.3%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%1.49%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.76%
3.2 Future
The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y5.3%
EPS Next 2Y8.58%
EPS Next 3Y9.54%
EPS Next 5Y9.19%
Revenue Next Year3.78%
Revenue Next 2Y4.17%
Revenue Next 3Y4.34%
Revenue Next 5Y4.31%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.73 indicates a quite expensive valuation of WMT.
Compared to the rest of the industry, the Price/Earnings ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 73.17% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. WMT is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 33.97, which means the current valuation is very expensive for WMT.
WMT's Price/Forward Earnings ratio is in line with the industry average.
WMT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.73 | ||
| Fwd PE | 33.97 |
4.2 Price Multiples
73.17% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
70.73% 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 | 58.32 | ||
| EV/EBITDA | 19.75 |
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)7.5
PEG (5Y)4.52
EPS Next 2Y8.58%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, WMT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.93, WMT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.93, WMT pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 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
33.30% 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.
DP33.3%
EPS Next 2Y8.58%
EPS Next 3Y9.54%
100.51
-0.42 (-0.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.09%
Inst Owner Change3.6%
Ins Owners0.36%
Ins Owner Change-2.81%
Market Cap802.11B
Analysts85.42
Price Target114.57 (13.99%)
Short Float %0.9%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.83
Dividend Growth(5Y)3.32%
DP33.3%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.14%
Min EPS beat(2)-9.16%
Max EPS beat(2)4.88%
EPS beat(4)3
Avg EPS beat(4)1.27%
Min EPS beat(4)-9.16%
Max EPS beat(4)7.81%
EPS beat(8)6
Avg EPS beat(8)3.63%
EPS beat(12)10
Avg EPS beat(12)5.89%
EPS beat(16)13
Avg EPS beat(16)4.32%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.26%
Revenue beat(12)6
Avg Revenue beat(12)0.27%
Revenue beat(16)9
Avg Revenue beat(16)0.43%
PT rev (1m)1.59%
PT rev (3m)2.58%
EPS NQ rev (1m)4.73%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.73 | ||
| Fwd PE | 33.97 | ||
| P/S | 1.16 | ||
| P/FCF | 58.32 | ||
| P/OCF | 20.87 | ||
| P/B | 8.9 | ||
| P/tB | 13.14 | ||
| EV/EBITDA | 19.75 |
EPS(TTM)2.53
EY2.52%
EPS(NY)2.96
Fwd EY2.94%
FCF(TTM)1.72
FCFY1.71%
OCF(TTM)4.82
OCFY4.79%
SpS86.86
BVpS11.29
TBVpS7.65
PEG (NY)7.5
PEG (5Y)4.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 23.69% | ||
| ROCE | 17.33% | ||
| ROIC | 12.8% | ||
| ROICexc | 13.54% | ||
| ROICexgc | 16.51% | ||
| OM | 4.18% | ||
| PM (TTM) | 3.08% | ||
| GM | 38.66% | ||
| FCFM | 1.98% |
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 Turnover2.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 182.99% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.49% | ||
| Profit Quality | 64.44% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 5.98 |
F-Score7
WACC8.47%
ROIC/WACC1.51
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)6.3%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%1.49%
EPS Next Y5.3%
EPS Next 2Y8.58%
EPS Next 3Y9.54%
EPS Next 5Y9.19%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.76%
Revenue Next Year3.78%
Revenue Next 2Y4.17%
Revenue Next 3Y4.34%
Revenue Next 5Y4.31%
EBIT growth 1Y2.66%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year50.97%
EBIT Next 3Y21.38%
EBIT Next 5Y14.69%
FCF growth 1Y-28.45%
FCF growth 3Y-0.68%
FCF growth 5Y-2.74%
OCF growth 1Y1.68%
OCF growth 3Y11.87%
OCF growth 5Y7.61%