WALMART INC (WMT) Stock Fundamental Analysis
NYSE:WMT - New York Stock Exchange, Inc. - US9311421039 - Common Stock - Currency: USD
Overall WMT gets a fundamental rating of 5 out of 10. We evaluated WMT against 40 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
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.
Each year in the past 5 years WMT had a positive operating cash flow.
1.2 Ratios
WMT has a better Return On Assets (7.17%) than 82.50% of its industry peers.
WMT has a better Return On Equity (22.46%) than 77.50% of its industry peers.
WMT has a better Return On Invested Capital (13.57%) than 92.50% of its industry peers.
WMT had an Average Return On Invested Capital over the past 3 years of 12.73%. This is above the industry average of 8.21%.
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 has a better Profit Margin (2.75%) than 70.00% of its industry peers.
WMT's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 4.33%, WMT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
WMT's Operating Margin has been stable in the last couple of years.
WMT's Gross Margin of 24.88% is in line compared to the rest of the industry. WMT outperforms 57.50% of its industry peers.
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 | 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.
WMT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WMT has been reduced compared to 5 years ago.
Compared to 1 year ago, WMT has an improved debt to assets ratio.
2.2 Solvency
WMT has an Altman-Z score of 6.05. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.05, WMT belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
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.
The Debt to FCF ratio of WMT (3.91) is better than 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 | 6.05 |
ROIC/WACC1.56
WACC8.69%
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.
WMT's Current ratio of 0.78 is on the low side compared to the rest of the industry. WMT is outperformed by 82.50% of its industry peers.
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 worse Quick ratio (0.22) than 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.
The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.22% in the past year.
The Revenue has been growing slightly by 5.38% on average over the past years.
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 9.02% on average per year.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y4.95%
EPS Next 2Y8.13%
EPS Next 3Y9.44%
EPS Next 5Y9.02%
Revenue Next Year3.72%
Revenue Next 2Y4.05%
Revenue Next 3Y4.05%
Revenue Next 5Y4.23%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.68, the valuation of WMT can be described as expensive.
70.00% of the companies in the same industry are cheaper than WMT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.87. WMT is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 34.08, WMT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as WMT.
WMT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.68 | ||
| Fwd PE | 34.08 |
4.2 Price Multiples
WMT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WMT is more expensive than 72.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 72.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.06 | ||
| EV/EBITDA | 19.51 |
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)8.02
PEG (5Y)4.51
EPS Next 2Y8.13%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 2.04, WMT pays a bit more dividend than its industry peers.
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 | 0.94% |
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 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 3Y9.44%
100
-0.85 (-0.84%)
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 Change3.24%
Ins Owners0.36%
Ins Owner Change-2.67%
Market Cap798.04B
Analysts85.11
Price Target112.78 (12.78%)
Short Float %0.76%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)2.97%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)4.73%
EPS NY rev (1m)0%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.68 | ||
| Fwd PE | 34.08 | ||
| P/S | 1.16 | ||
| P/FCF | 59.06 | ||
| P/OCF | 21.22 | ||
| P/B | 9.52 | ||
| P/tB | 14.53 | ||
| EV/EBITDA | 19.51 |
EPS(TTM)2.52
EY2.52%
EPS(NY)2.93
Fwd EY2.93%
FCF(TTM)1.69
FCFY1.69%
OCF(TTM)4.71
OCFY4.71%
SpS85.85
BVpS10.5
TBVpS6.88
PEG (NY)8.02
PEG (5Y)4.51
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 | 6.05 |
F-Score7
WACC8.69%
ROIC/WACC1.56
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 3Y9.44%
EPS Next 5Y9.02%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%2.54%
Revenue Next Year3.72%
Revenue Next 2Y4.05%
Revenue Next 3Y4.05%
Revenue Next 5Y4.23%
EBIT growth 1Y7.35%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year50.97%
EBIT Next 3Y21.71%
EBIT Next 5Y14.75%
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%