WALMART INC (WMT) Stock Fundamental Analysis
USA - NYSE:WMT - US9311421039 - Common Stock
102.33 USD
-1.27 (-1.23%)
102.32 USD
-0.01 (-0.01%)
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. 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
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.
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 7.88%, WMT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With a decent Return On Equity value of 23.69%, WMT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
WMT's Return On Invested Capital of 12.80% is amongst the best of the industry. WMT outperforms 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 8.47%.
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
Looking at the Profit Margin, with a value of 3.08%, WMT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
WMT's Profit Margin has been stable in the last couple of years.
WMT has a better Operating Margin (4.18%) than 77.50% of its industry peers.
In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
With an excellent Gross Margin value of 38.66%, WMT belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WMT is creating some value.
Compared to 1 year ago, WMT has less shares outstanding
Compared to 5 years ago, WMT has less shares outstanding
WMT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.06 indicates that WMT is not in any danger for bankruptcy at the moment.
WMT has a Altman-Z score of 6.06. This is amongst the best in the industry. WMT outperforms 87.50% of its industry peers.
WMT has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as WMT would need 3.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.65, WMT is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
WMT has a Debt/Equity ratio of 0.50. This is a neutral value indicating WMT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.50, WMT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 6.06 |
ROIC/WACC1.5
WACC8.51%
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.
Looking at the Current ratio, with a value of 0.79, WMT is doing worse than 87.50% of the companies in the same industry.
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.
The Quick ratio of WMT (0.23) is worse than 87.50% 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.
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
The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
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 Y5.3%
EPS Next 2Y8.58%
EPS Next 3Y9.54%
EPS Next 5Y9.19%
Revenue Next Year4.29%
Revenue Next 2Y4.47%
Revenue Next 3Y4.48%
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
With a Price/Earnings ratio of 40.45, WMT can be considered very expensive at the moment.
WMT's Price/Earnings 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.
WMT is valuated rather expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 34.58 indicates a quite expensive valuation of 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 (22.86), we can say WMT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.45 | ||
| Fwd PE | 34.58 |
4.2 Price Multiples
72.50% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
72.50% 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 | 59.32 | ||
| EV/EBITDA | 20.32 |
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)7.63
PEG (5Y)4.6
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 2.01, WMT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, WMT's dividend is way lower than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has 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 2Y8.58%
EPS Next 3Y9.54%
102.33
-1.27 (-1.23%)
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-2.59%
Market Cap815.86B
Analysts85.42
Price Target114.71 (12.1%)
Short Float %0.9%
Short Ratio2.44
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)1.71%
PT rev (3m)2.7%
EPS NQ rev (1m)4.83%
EPS NQ rev (3m)5.19%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.45 | ||
| Fwd PE | 34.58 | ||
| P/S | 1.18 | ||
| P/FCF | 59.32 | ||
| P/OCF | 21.23 | ||
| P/B | 9.05 | ||
| P/tB | 13.36 | ||
| EV/EBITDA | 20.32 |
EPS(TTM)2.53
EY2.47%
EPS(NY)2.96
Fwd EY2.89%
FCF(TTM)1.72
FCFY1.69%
OCF(TTM)4.82
OCFY4.71%
SpS86.94
BVpS11.3
TBVpS7.66
PEG (NY)7.63
PEG (5Y)4.6
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 | 6.06 |
F-Score7
WACC8.51%
ROIC/WACC1.5
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 Year4.29%
Revenue Next 2Y4.47%
Revenue Next 3Y4.48%
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%