WALMART INC (WMT) Stock Fundamental Analysis
USA - NYSE:WMT - US9311421039 - Common Stock
101.84 USD
+0.07 (+0.07%)
101.321 USD
-0.52 (-0.51%)
WMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 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
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.
In the past 5 years WMT always reported a positive cash flow from operatings.
1.2 Ratios
WMT has a better Return On Assets (7.88%) than 79.49% of its industry peers.
WMT has a better Return On Equity (23.69%) than 74.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.80%, WMT belongs to the top of the industry, outperforming 89.74% 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 8.75%.
The 3 year average ROIC (12.73%) for WMT is below the current ROIC(12.80%), indicating increased profibility in the last year.
| 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 Profit Margin of 3.08%. This is in the better half of the industry: WMT outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of WMT has remained more or less at the same level.
WMT has a Operating Margin of 4.18%. This is in the better half of the industry: WMT outperforms 74.36% of its industry peers.
WMT's Operating Margin has been stable in the last couple of years.
WMT has a Gross Margin (24.90%) which is in line with 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 | 4.18% | ||
| PM (TTM) | 3.08% | ||
| GM | 24.9% |
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.
Compared to 5 years ago, WMT has less shares outstanding
Compared to 1 year ago, WMT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.01 indicates that WMT is not in any danger for bankruptcy at the moment.
The Altman-Z score of WMT (6.01) is better than 87.18% 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 66.67% 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.
WMT has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: WMT outperforms 48.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.52
WACC8.42%
2.3 Liquidity
WMT has a Current 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's Current ratio of 0.79 is on the low side compared to the rest of the industry. WMT is outperformed by 87.18% 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 Quick ratio of 0.23. This is amonst the worse of the industry: WMT underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
WMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.30%.
The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
Looking at the last year, WMT shows a small growth in Revenue. The Revenue has grown by 4.23% in the last year.
Measured over the past years, WMT shows a small growth in Revenue. The Revenue has been growing by 5.38% on average per year.
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
Based on estimates for the next years, WMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.19% on average per year.
Based on estimates for the next years, WMT will show a small growth in Revenue. The Revenue will grow by 4.31% on average per year.
EPS Next Y5.01%
EPS Next 2Y8.66%
EPS Next 3Y9.74%
EPS Next 5Y9.19%
Revenue Next Year4.29%
Revenue Next 2Y4.47%
Revenue Next 3Y4.18%
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.
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
WMT is valuated quite expensively with a Price/Earnings ratio of 40.25.
64.10% 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 27.02.
Based on the Price/Forward Earnings ratio of 34.36, the valuation of WMT can be described as expensive.
WMT's Price/Forward Earnings is on the same level as the industry average.
WMT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.25 | ||
| Fwd PE | 34.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMT is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
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 71.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.04 | ||
| EV/EBITDA | 19.97 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.04
PEG (5Y)4.58
EPS Next 2Y8.66%
EPS Next 3Y9.74%
5. Dividend
5.1 Amount
WMT has a yearly dividend return of 0.92%, which is pretty low.
WMT's Dividend Yield is a higher than the industry average which is at 1.99.
With a Dividend Yield of 0.92, WMT pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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
WMT pays out 33.30% 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.
DP33.3%
EPS Next 2Y8.66%
EPS Next 3Y9.74%
101.84
+0.07 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner Change0.01%
Ins Owners0.37%
Ins Owner Change-2.91%
Market Cap811.96B
Analysts85.42
Price Target115.32 (13.24%)
Short Float %0.94%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)1.68%
PT rev (3m)2.75%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)5.12%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.25 | ||
| Fwd PE | 34.36 | ||
| P/S | 1.17 | ||
| P/FCF | 59.04 | ||
| P/OCF | 21.12 | ||
| P/B | 9.01 | ||
| P/tB | 13.3 | ||
| EV/EBITDA | 19.97 |
EPS(TTM)2.53
EY2.48%
EPS(NY)2.96
Fwd EY2.91%
FCF(TTM)1.72
FCFY1.69%
OCF(TTM)4.82
OCFY4.73%
SpS86.94
BVpS11.3
TBVpS7.66
PEG (NY)8.04
PEG (5Y)4.58
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 | 24.9% | ||
| 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 | 6.01 |
F-Score7
WACC8.42%
ROIC/WACC1.52
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 Y5.01%
EPS Next 2Y8.66%
EPS Next 3Y9.74%
EPS Next 5Y9.19%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.76%
Revenue Next Year4.29%
Revenue Next 2Y4.47%
Revenue Next 3Y4.18%
Revenue Next 5Y4.31%
EBIT growth 1Y2.66%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year50.5%
EBIT Next 3Y21.49%
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%