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. WMT has an excellent profitability rating, but 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
In the past year WMT was profitable.
In the past year WMT had a positive cash flow from operations.
Each year in the past 5 years WMT has been profitable.
In the past 5 years WMT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.17%, WMT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
WMT's Return On Equity of 22.46% is fine compared to the rest of the industry. WMT outperforms 77.50% of its industry peers.
With an excellent Return On Invested Capital value of 13.57%, WMT belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WMT is above the industry average of 8.23%.
The last Return On Invested Capital (13.57%) for WMT is above the 3 year average (12.73%), which is a sign of increasing profitability.
| 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
The Profit Margin of WMT (2.75%) is better than 70.00% of its industry peers.
WMT's Profit Margin has been stable in the last couple of years.
WMT has a better Operating Margin (4.33%) than 80.00% of its industry peers.
In the last couple of years the Operating Margin of WMT has remained more or less at the same level.
Looking at the Gross Margin, with a value of 24.88%, WMT is in line with its industry, outperforming 57.50% 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 | 4.33% | ||
| 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.
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.
WMT has a better debt/assets ratio than last year.
2.2 Solvency
WMT has an Altman-Z score of 5.99. This indicates that WMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WMT (5.99) is better than 85.00% of its industry peers.
The Debt to FCF ratio of WMT is 3.91, which is a good value as it means it would take WMT, 3.91 years of fcf income to pay off all of its debts.
WMT has a Debt to FCF ratio of 3.91. This is in the better half of the industry: WMT outperforms 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 | 5.99 |
ROIC/WACC1.57
WACC8.64%
2.3 Liquidity
A Current Ratio of 0.78 indicates that WMT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, WMT is doing worse than 82.50% of the companies in the same industry.
A Quick Ratio of 0.22 indicates that WMT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.22, WMT is doing worse than 85.00% of the companies in the same industry.
| 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.
WMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
The Revenue has been growing slightly by 4.22% in the past 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)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 4.53% on average per year.
EPS Next Y4.92%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
EPS Next 5Y9.02%
Revenue Next Year3.7%
Revenue Next 2Y4.08%
Revenue Next 3Y4.19%
Revenue Next 5Y4.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 38.80.
Compared to the rest of the industry, the Price/Earnings ratio of WMT indicates a slightly more expensive valuation: WMT is more expensive than 67.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. WMT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 33.32 indicates a quite expensive valuation of WMT.
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 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.8 | ||
| Fwd PE | 33.32 |
4.2 Price Multiples
70.00% of the companies in the same industry are cheaper than WMT, based on the Enterprise Value to EBITDA ratio.
70.00% 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 | 57.9 | ||
| EV/EBITDA | 19.14 |
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)7.89
PEG (5Y)4.41
EPS Next 2Y8.13%
EPS Next 3Y9.07%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, WMT is not a good candidate for dividend investing.
WMT's Dividend Yield is a higher than the industry average which is at 2.08.
With a Dividend Yield of 0.98, WMT pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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
WMT pays out 36.65% 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.
DP36.65%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
97.78
+0.51 (+0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.1%
Inst Owner Change0.83%
Ins Owners0.37%
Ins Owner Change-2.7%
Market Cap782.33B
Analysts84.58
Price Target112.23 (14.78%)
Short Float %0.89%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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)2.47%
PT rev (3m)0.54%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)3.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.8 | ||
| Fwd PE | 33.32 | ||
| P/S | 1.14 | ||
| P/FCF | 57.9 | ||
| P/OCF | 20.8 | ||
| P/B | 9.34 | ||
| P/tB | 14.24 | ||
| EV/EBITDA | 19.14 |
EPS(TTM)2.52
EY2.58%
EPS(NY)2.93
Fwd EY3%
FCF(TTM)1.69
FCFY1.73%
OCF(TTM)4.7
OCFY4.81%
SpS85.63
BVpS10.47
TBVpS6.87
PEG (NY)7.89
PEG (5Y)4.41
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 | 5.99 |
F-Score7
WACC8.64%
ROIC/WACC1.57
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 Y4.92%
EPS Next 2Y8.13%
EPS Next 3Y9.07%
EPS Next 5Y9.02%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%2.54%
Revenue Next Year3.7%
Revenue Next 2Y4.08%
Revenue Next 3Y4.19%
Revenue Next 5Y4.53%
EBIT growth 1Y7.35%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year51.17%
EBIT Next 3Y21.5%
EBIT Next 5Y14.74%
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%