WALMART INC (WMT)
US9311421039 - Common Stock
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 41 industry peers in the Consumer Staples Distribution & Retail industry. While WMT belongs to the best of the industry regarding profitability, 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.
In the past 5 years WMT has always been profitable.
WMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WMT (6.15%) is better than 80.49% of its industry peers.
Looking at the Return On Equity, with a value of 18.50%, WMT belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
WMT has a better Return On Invested Capital (11.82%) than 87.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WMT is above the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 18.5% | ||
| ROIC | 11.82% |
ROA(3y)5.51%
ROA(5y)5.64%
ROE(3y)16.72%
ROE(5y)17.35%
ROIC(3y)12.57%
ROIC(5y)11.73%
1.3 Margins
Looking at the Profit Margin, with a value of 2.39%, WMT is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
In the last couple of years the Profit Margin of WMT has grown nicely.
WMT has a Operating Margin of 4.17%. This is in the better half of the industry: WMT outperforms 78.05% of its industry peers.
WMT's Operating Margin has improved in the last couple of years.
The Gross Margin of WMT (24.38%) 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 | 4.17% | ||
| PM (TTM) | 2.39% | ||
| GM | 24.38% |
OM growth 3Y-0.13%
OM growth 5Y2.38%
PM growth 3Y-0.32%
PM growth 5Y13.04%
GM growth 3Y-0.61%
GM growth 5Y-0.58%
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.
The number of shares outstanding for WMT has been reduced compared to 5 years ago.
WMT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.05 indicates that WMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.05, WMT is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
The Debt to FCF ratio of WMT is 3.10, which is a good value as it means it would take WMT, 3.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.10, WMT is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that WMT is somewhat dependend on debt financing.
WMT's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. WMT outperforms 51.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 5.05 |
ROIC/WACC1.34
WACC8.81%
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.
Looking at the Current ratio, with a value of 0.83, WMT is doing worse than 80.49% of the companies in the same industry.
WMT has a Quick 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.
The Quick ratio of WMT (0.24) is worse than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.73% over the past year.
WMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.18% yearly.
The Revenue has been growing slightly by 6.03% in the past year.
Measured over the past years, WMT shows a small growth in Revenue. The Revenue has been growing by 4.73% on average per year.
EPS 1Y (TTM)5.73%
EPS 3Y6.22%
EPS 5Y6.18%
EPS growth Q2Q5.26%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y4.73%
Revenue growth Q2Q5.69%
3.2 Future
Based on estimates for the next years, WMT will show a very strong growth in Earnings Per Share. The EPS will grow by 31.96% on average per year.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 3.48% on average per year.
EPS Next Y7.47%
EPS Next 2Y8.63%
EPS Next 3Y8.96%
EPS Next 5Y31.96%
Revenue Next Year4.36%
Revenue Next 2Y4.18%
Revenue Next 3Y4.06%
Revenue Next 5Y3.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 26.94, the valuation of WMT can be described as expensive.
WMT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.76, WMT is valued at the same level.
The Price/Forward Earnings ratio is 25.03, which means the current valuation is very expensive for WMT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WMT to the average of the S&P500 Index (21.26), we can say WMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.94 | ||
| Fwd PE | 25.03 |
4.2 Price Multiples
65.85% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WMT is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.73 | ||
| EV/EBITDA | 13.22 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)4.36
EPS Next 2Y8.63%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
WMT has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 3.02, WMT pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.38, WMT pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of WMT has a limited annual growth rate of 1.75%.
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)1.75%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
39.58% 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.
DP39.58%
EPS Next 2Y8.63%
EPS Next 3Y8.96%
WALMART INC
NYSE:WMT (4/19/2024, 4:46:32 PM)
After market: 59.3806 -0.15 (-0.25%)59.53
+0.27 (+0.46%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap479.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.94 | ||
| Fwd PE | 25.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.61
PEG (5Y)4.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 18.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.17% | ||
| PM (TTM) | 2.39% | ||
| GM | 24.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.73%
EPS 3Y6.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.03%
Revenue growth 3Y5.05%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y