NYSE:WMT

Stock Analysis Report

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Market Cap

US$399.4b

Last Updated

2021/07/31 05:37 UTC

Data Sources

Company Financials +

Executive Summary

Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Walmart's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WMT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: WMT's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.08%

WMT

0.9%

US Consumer Retailing

-0.5%

US Market


1 Year Return

10.2%

WMT

18.2%

US Consumer Retailing

35.9%

US Market

Return vs Industry: WMT underperformed the US Consumer Retailing industry which returned 18.2% over the past year.

Return vs Market: WMT underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

WMTIndustryMarket
7 Day0.08%0.9%-0.5%
30 Day2.3%1.3%0.3%
90 Day1.9%2.9%3.1%
1 Year11.9%10.2%20.7%18.2%38.0%35.9%
3 Year68.2%59.1%57.2%48.0%62.9%52.7%
5 Year115.2%93.3%87.4%68.1%121.7%97.3%

Long-Term Price Volatility Vs. Market

How volatile is Walmart's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Walmart undervalued compared to its fair value and its price relative to the market?

22.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMT ($142.55) is trading below our estimate of fair value ($184.57)

Significantly Below Fair Value: WMT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WMT is poor value based on its PE Ratio (32.9x) compared to the US Consumer Retailing industry average (16.7x).

PE vs Market: WMT is poor value based on its PE Ratio (32.9x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: WMT is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: WMT is overvalued based on its PB Ratio (5.1x) compared to the US Consumer Retailing industry average (2x).


Future Growth

How is Walmart forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMT's forecast earnings growth (7.6% per year) is above the savings rate (2%).

Earnings vs Market: WMT's earnings (7.6% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: WMT's earnings are forecast to grow, but not significantly.

Revenue vs Market: WMT's revenue (3.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: WMT's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WMT's Return on Equity is forecast to be high in 3 years time (20.3%)


Past Performance

How has Walmart performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMT has a large one-off loss of $7.5B impacting its April 30 2021 financial results.

Growing Profit Margin: WMT's current net profit margins (2.2%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: WMT's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: WMT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WMT had negative earnings growth (-18.5%) over the past year, making it difficult to compare to the Consumer Retailing industry average (36.3%).


Return on Equity

High ROE: WMT's Return on Equity (14.7%) is considered low.


Financial Health

How is Walmart's financial position?


Financial Position Analysis

Short Term Liabilities: WMT's short term assets ($76.6B) do not cover its short term liabilities ($80.8B).

Long Term Liabilities: WMT's short term assets ($76.6B) exceed its long term liabilities ($71.1B).


Debt to Equity History and Analysis

Debt Level: WMT's debt to equity ratio (52.7%) is considered high.

Reducing Debt: WMT's debt to equity ratio has reduced from 56.2% to 52.7% over the past 5 years.

Debt Coverage: WMT's debt is well covered by operating cash flow (71.7%).

Interest Coverage: WMT's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet


Dividend

What is Walmart current dividend yield, its reliability and sustainability?

1.54%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 31 2021Ex Dividend DateAug 12 2021Dividend Pay DateSep 07 202126 days from Ex DividendBuy in the next 11 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WMT's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: WMT's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

Stable Dividend: WMT's dividends per share have been stable in the past 10 years.

Growing Dividend: WMT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.1%), WMT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WMT's dividends in 3 years are forecast to be well covered by earnings (35.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Doug McMillon (55 yo)

7.33yrs

Tenure

US$22,574,358

Compensation

Mr. C. Douglas McMillon, also known as Doug, has been the Chief Executive Officer and President of Walmart Inc. (formerly known as Wal-Mart Stores, Inc.) since February 1, 2014. Mr. McMillon served as the ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD22.57M) is above average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WMT's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: WMT's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WMT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Walmart Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Walmart Inc.
  • Ticker: WMT
  • Exchange: NYSE
  • Founded: 1945
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: US$399.446b
  • Shares outstanding: 2.80b
  • Website: https://www.stock.walmart.com

Number of Employees


Location

  • Walmart Inc.
  • 702 SW 8th Street
  • Bentonville
  • Arkansas
  • 72716
  • United States

Listings


Biography

Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 05:37
End of Day Share Price2021/07/30 00:00
Earnings2021/04/30
Annual Earnings2021/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.