NYSE:WMT

Stock Analysis Report

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Executive Summary

Walmart Inc. engages in the retail and wholesale operations in various formats worldwide. More Details


Snowflake Analysis

Proven track record average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.007%

WMT

-0.1%

US Consumer Retailing

1.8%

US Market


1 Year Return

16.8%

WMT

11.2%

US Consumer Retailing

14.2%

US Market

Return vs Industry: WMT exceeded the US Consumer Retailing industry which returned 11.2% over the past year.

Return vs Market: WMT exceeded the US Market which returned 14.2% over the past year.


Shareholder returns

WMTIndustryMarket
7 Day-0.007%-0.1%1.8%
30 Day3.2%-0.4%0.04%
90 Day14.1%11.2%9.8%
1 Year18.9%16.8%13.1%11.2%16.7%14.2%
3 Year82.8%71.9%60.6%51.6%41.6%32.2%
5 Year141.4%114.3%83.2%64.5%90.9%69.5%

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?

13.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMT ($136.69) is trading below our estimate of fair value ($158.68)

Significantly Below Fair Value: WMT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WMT is poor value based on its PE Ratio (21.7x) compared to the US Consumer Retailing industry average (14.6x).

PE vs Market: WMT is poor value based on its PE Ratio (21.7x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: WMT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (1.7x).


Next Steps

Future Growth

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

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMT's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: WMT's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: WMT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WMT's revenue (1.9% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: WMT's revenue (1.9% 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 (20.6%)


Next Steps

Past Performance

How has Walmart performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMT has high quality earnings.

Growing Profit Margin: WMT's current net profit margins (3.3%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: WMT's earnings have declined by 3.7% per year over the past 5 years.

Accelerating Growth: WMT's earnings growth over the past year (39.1%) exceeds its 5-year average (-3.7% per year).

Earnings vs Industry: WMT earnings growth over the past year (39.1%) underperformed the Consumer Retailing industry 39.5%.


Return on Equity

High ROE: WMT's Return on Equity (22.3%) is considered high.


Next Steps

Financial Health

How is Walmart's financial position?


Financial Position Analysis

Short Term Liabilities: WMT's short term assets ($65.0B) do not cover its short term liabilities ($82.0B).

Long Term Liabilities: WMT's short term assets ($65.0B) do not cover its long term liabilities ($74.2B).


Debt to Equity History and Analysis

Debt Level: WMT's debt to equity ratio (58.6%) is considered high.

Reducing Debt: WMT's debt to equity ratio has increased from 54.8% to 58.6% over the past 5 years.

Debt Coverage: WMT's debt is well covered by operating cash flow (69.4%).

Interest Coverage: WMT's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.58%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: WMT's dividend (1.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: WMT's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (4.65%).


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 reasonably low payout ratio (33.9%), WMT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WMT's dividends in 3 years are forecast to be well covered by earnings (39.4% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Doug McMillon (54 yo)

6.58yrs

Tenure

US$22,105,350

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. He is Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD22.11M) is above average for companies of similar size in the US market ($USD11.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
C. McMillon
President6.58yrsUS$22.11m0.053%
$ 204.5m
M. Biggs
Executive VP & CFO4.67yrsUS$8.80m0.011%
$ 41.4m
Suresh Kumar
CTO, Chief Development Officer & Executive VP1.33yrsUS$45.90m0.0041%
$ 15.9m
Judith McKenna
Executive VP2.58yrsUS$12.21m0.0075%
$ 29.2m
John Furner
Executive VP7.67yrsUS$9.87m0.0031%
$ 11.9m
Kathryn McLay
Executive VP1.58yrsUS$13.51m0.0014%
$ 5.3m
Kary Brunner
Director of Investor Relationsno datano datano data
Daniel Trujillo
Executive VP1.67yrsno datano data
Rachel Brand
Executive VP of Global Governance2.08yrsno data0.0051%
$ 19.7m
Tim Peterson
Head of Sales2.25yrsno datano data
William White
Chief Marketing Officer0.33yrno datano data
Donna Morris
Executive VP of Global People & Chief People Officer0.58yrno data0.00014%
$ 542.3k

2.1yrs

Average Tenure

52yo

Average Age

Experienced Management: WMT's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. McMillon
President6.58yrsUS$22.11m0.053%
$ 204.5m
Thomas Horton
Lead Independent Director2.25yrsUS$333.15k0.00047%
$ 1.8m
Steven Reinemund
Independent Director10.67yrsUS$302.20k0.00095%
$ 3.7m
S. Walton
Director42.67yrsUS$275.01k0.091%
$ 352.6m
Gregory Penner
Chairman5.25yrsUS$500.06k0.019%
$ 74.9m
Cesar Conde
Independent Director1.58yrsUS$317.95k0.00015%
$ 581.0k
Timothy Flynn
Independent Director8.17yrsUS$300.63k0.0017%
$ 6.7m
Sarah Friar
Independent Director2.58yrsUS$293.03k0.00032%
$ 1.2m
Marissa Mayer
Independent Director8.67yrsUS$274.94k0.0011%
$ 4.3m
Carla Harris
Independent Director3.25yrsUS$275.98k0.00031%
$ 1.2m
Steuart Walton
Director4.25yrsUS$295.07k0.0060%
$ 23.1m

5.3yrs

Average Tenure

54yo

Average Age

Experienced Board: WMT's board of directors are considered experienced (5.3 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$387.346b
  • Shares outstanding: 2.83b
  • Website: https://www.stock.walmart.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMTNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1972
WMTBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDApr 1972
WMTDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1972
WMT *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNApr 1972
WMTSWX (SIX Swiss Exchange)YesCommon SharesCHCHFApr 1972
WMTXTRA (XETRA Trading Platform)YesCommon SharesDEEURApr 1972
0R1WLSE (London Stock Exchange)YesCommon SharesGBUSDApr 1972
WMTBVC (Bolsa de Valores de Colombia)YesCommon SharesCOCOPApr 1972
WMTSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDApr 1972
WMT-UETLX (Eurotlx)YesCommon SharesITEURApr 1972
WMTWBAG (Wiener Boerse AG)YesCommon SharesATEURApr 1972
WMTBASE (Buenos Aires Stock Exchange)CEDEARS 3 REP 1 COM USD0.10ARARSJul 2001
WALM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/4 COM STK NPVBRBRLDec 2011

Biography

Walmart Inc. engages in the retail and wholesale operations in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercente ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 06:14
End of Day Share Price2020/09/17 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.