NYSE:WMT

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer with proven track record.


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

-6.9%

WMT

-8.0%

US Consumer Retailing

-10.6%

US Market


1 Year Return

12.7%

WMT

9.6%

US Consumer Retailing

5.2%

US Market

Return vs Industry: WMT exceeded the US Consumer Retailing industry which returned 9.6% over the past year.

Return vs Market: WMT exceeded the US Market which returned 5.2% over the past year.


Shareholder returns

WMTIndustryMarket
7 Day-6.9%-8.0%-10.6%
30 Day-4.7%-6.0%-8.5%
90 Day-7.3%-7.7%-4.6%
1 Year15.0%12.7%11.8%9.6%7.4%5.2%
3 Year68.9%57.6%41.1%31.9%31.7%23.2%
5 Year51.5%33.7%38.1%23.7%56.4%39.3%

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?

29.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMT ($110.4) is trading below our estimate of fair value ($155.69)

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 (21.1x) compared to the Consumer Retailing industry average (20.2x).

PE vs Market: WMT is poor value based on its PE Ratio (21.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: WMT is poor value based on its PEG Ratio (6.3x)


Price to Book Ratio

PB vs Industry: WMT is overvalued based on its PB Ratio (4.2x) compared to the US Consumer Retailing industry average (1.9x).


Next Steps

Future Growth

How is Walmart forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMT's forecast earnings growth (3.4% per year) is above the savings rate (1.7%).

Earnings vs Market: WMT's earnings (3.4% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: WMT's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WMT's revenue (2.6% 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 low in 3 years time (18.3%).


Next Steps

Past Performance

How has Walmart performed over the past 5 years?

-10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMT has high quality earnings.

Growing Profit Margin: WMT's current net profit margins (2.8%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: WMT's earnings have declined by -10.6% per year over the past 5 years.

Accelerating Growth: WMT's earnings growth over the past year (123.1%) exceeds its 5-year average (-10.6% per year).

Earnings vs Industry: WMT earnings growth over the past year (123.1%) exceeded the Consumer Retailing industry -6%.


Return on Equity

High ROE: WMT's Return on Equity (18.6%) is considered low.


Next Steps

Financial Health

How is Walmart's financial position?


Financial Position Analysis

Short Term Liabilities: WMT's short term assets ($61.8B) do not cover its short term liabilities ($77.8B).

Long Term Liabilities: WMT's short term assets ($61.8B) do not cover its long term liabilities ($77.2B).


Debt to Equity History and Analysis

Debt Level: WMT's debt to equity ratio (60.9%) is considered high.

Reducing Debt: WMT's debt to equity ratio has increased from 55.7% to 60.9% over the past 5 years.

Debt Coverage: WMT's debt is well covered by operating cash flow (50.9%).

Interest Coverage: WMT's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet

Inventory Level: WMT has a high level of physical assets or inventory.

Debt Coverage by Assets: WMT's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

1.96%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 28 2020Ex Dividend DateMar 19 2020Dividend Pay DateApr 06 202018 days from Ex DividendBuy in the next 19 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: WMT's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: WMT's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (4.09%).


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 (40.6%), 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 (42.5% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Doug McMillon (53yo)

6yrs

Tenure

US$23,618,233

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 ($USD23.62M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
C. McMillon
President6yrsUS$23.62m0.053% $170.3m
M. Biggs
Executive VP & CFO4.1yrsUS$9.42m0.0099% $32.0m
Judith McKenna
Executive VP2yrsUS$12.92m0.0069% $22.3m
John Furner
Executive VP7.1yrsUS$9.29m0.0050% $16.1m
Suresh Kumar
Chief Technology Officer0.8yrsno data0.0022% $7.0m
Daniel Binder
Vice President of Investor Relations1.6yrsno datano data
Daniel Trujillo
Executive VP1.1yrsno datano data
Rachel Brand
Executive VP of Global Governance1.5yrsno data0.0024% $7.7m
Tim Peterson
Head of Sales1.7yrsno datano data
Donna Morris
Executive VP & Chief People Officer0.08yrsno data0.00014% $451.9k

1.6yrs

Average Tenure

51yo

Average Age

Experienced Management: WMT's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
C. McMillon
President6yrsUS$23.62m0.053% $170.3m
Thomas Horton
Lead Independent Director1.7yrsUS$369.04k0.00042% $1.4m
Steven Reinemund
Independent Director10.1yrsUS$296.63k0.00090% $2.9m
S. Walton
Director42.1yrsUS$272.39k0.092% $295.9m
Gregory Penner
Chairman4.7yrsUS$490.79k0.019% $61.9m
Timothy Flynn
Independent Director7.6yrsUS$387.14k0.0016% $5.3m
Sarah Friar
Independent Director2yrsUS$361.67k0.00024% $774.8k
Marissa Mayer
Independent Director8.1yrsUS$270.81k0.0010% $3.3m
Carla Harris
Independent Director2.7yrsUS$270.74k0.00026% $839.3k
Steuart Walton
Director3.7yrsUS$282.53k0.0059% $18.9m

5.5yrs

Average Tenure

54.5yo

Average Age

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: Insufficient data to determine if insiders have bought more shares than they have sold 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$322.814b
  • Shares outstanding: 2.84b
  • 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 through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; e-commerce Websites, such as walmart.com, jet.com, shoes.com, and samsclub.com; and mobile commerce applications. The company offers grocery products, including meat, produce, natural and organics, deli and bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, floral and dry grocery, as well as consumables, such as health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; and health and wellness products. It also provides electronics, cameras and supplies, photo processing services, wireless, movies, music, video games, and books; stationery, automotive, hardware and paint, sporting goods, and outdoor living and horticulture; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home decor, toys, fabrics, crafts, and seasonal merchandise, as well as brand name merchandise. In addition, the company offers fuel and financial services and related products, including money orders, prepaid cards, wire and money transfers, check cashing, and bill payment. It operates approximately 11,300 stores and various e-commerce Websites under the 58 banners in 27 countries. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:19
End of Day Share Price2020/02/27 00:00
Earnings2020/01/31
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.