NYSE:WMT

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 24.1% below its fair value

Earnings are forecast to grow 3.44% per year

Earnings grew by 179.7% over the past year

Pays a high and reliable dividend of 1.77%

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Established dividend payer with acceptable 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

0.6%

WMT

0.07%

US Consumer Retailing

0.3%

US Market


1 Year Return

28.5%

WMT

18.7%

US Consumer Retailing

18.5%

US Market

Return vs Industry: WMT exceeded the US Consumer Retailing industry which returned 18.7% over the past year.

Return vs Market: WMT exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

WMTIndustryMarket
7 Day0.6%0.07%0.3%
30 Day0.3%0.01%1.5%
90 Day3.0%2.7%5.7%
1 Year31.1%28.5%21.0%18.7%21.1%18.5%
3 Year83.1%70.9%50.2%40.7%45.9%36.4%
5 Year62.0%42.9%55.4%38.5%71.4%52.5%

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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMT ($119.78) is trading below our estimate of fair value ($157.84)

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 (23.8x) compared to the Consumer Retailing industry average (22.4x).

PE vs Market: WMT is poor value based on its PE Ratio (23.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: WMT is poor value based on its PEG Ratio (6.9x)


Price to Book Ratio

PB vs Industry: WMT is overvalued based on its PB Ratio (4.8x) compared to the US Consumer Retailing industry average (2.3x).


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 (14.2% per year).

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

Revenue vs Market: WMT's revenue (3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: WMT's revenue (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 low in 3 years time (18.2%).


Next Steps

Past Performance

How has Walmart performed over the past 5 years?

-13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMT has a large one-off loss of $8.5B impacting its October 31 2019 financial results.

Growing Profit Margin: WMT's current net profit margins (2.8%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: WMT's earnings have declined by -13.1% per year over the past 5 years.

Accelerating Growth: WMT's earnings growth over the past year (179.7%) exceeds its 5-year average (-13.1% per year).

Earnings vs Industry: WMT earnings growth over the past year (179.7%) exceeded the Consumer Retailing industry -20.1%.


Return on Equity

High ROE: WMT's Return on Equity (18.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Walmart's financial position?


Financial Position Analysis

Short Term Liabilities: WMT's short term assets ($67.9B) do not cover its short term liabilities ($83.8B).

Long Term Liabilities: WMT's short term assets ($67.9B) do not cover its long term liabilities ($77.7B).


Debt to Equity History and Analysis

Debt Level: WMT's debt to equity ratio (68.9%) is considered high.

Reducing Debt: WMT's debt to equity ratio has increased from 62.7% to 68.9% over the past 5 years.

Debt Coverage: WMT's debt is well covered by operating cash flow (46.3%).

Interest Coverage: WMT's interest payments on its debt are well covered by EBIT (8.9x 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 1.3x debt).


Next Steps

Dividend

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

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: WMT's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: WMT's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (41.9%), 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 (45.9% payout ratio).


Next Steps

Management

What is the CEO of Walmart's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Doug McMillon (53yo)

5.8yrs

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 ($USD23.62M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

2.4yrs

Average Tenure

51yo

Average Age

Experienced Management: WMT's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: WMT's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$989,46219 Nov 19
Judith McKenna
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares8,300
Max PriceUS$119.21
SellUS$703,39419 Nov 19
John Furner
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares5,902
Max PriceUS$119.18
SellUS$424,61006 Sep 19
David Chojnowski
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Controller
Shares3,680
Max PriceUS$115.38
SellUS$906,28620 Aug 19
John Furner
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares7,900
Max PriceUS$114.72
SellUS$327,42028 Jun 19
Daniel Bartlett
EntityIndividual
Shares3,000
Max PriceUS$109.14
SellUS$85,407,22724 May 19
Walton Family
EntityCompany
Shares841,920
Max PriceUS$101.44
SellUS$216,469,93023 May 19
Walton Family
EntityCompany
Shares2,129,150
Max PriceUS$102.21
SellUS$247,710,42921 May 19
Walton Family
EntityCompany
Shares2,447,587
Max PriceUS$101.55
SellUS$425,10617 May 19
Judith McKenna
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares4,243
Max PriceUS$100.19
SellUS$1,018,19417 May 19
John Furner
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares10,000
Max PriceUS$101.82
SellUS$76,872,86829 Mar 19
Walton Family
EntityCompany
Shares792,038
Max PriceUS$97.62
SellUS$194,33429 Mar 19
David Chojnowski
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Controller
Shares2,000
Max PriceUS$97.17
SellUS$269,436,49228 Mar 19
Walton Family
EntityCompany
Shares2,751,360
Max PriceUS$98.42
SellUS$213,338,14326 Mar 19
Walton Family
EntityCompany
Shares2,168,768
Max PriceUS$99.20
SellUS$163,060,47822 Mar 19
Walton Family
EntityCompany
Shares1,649,023
Max PriceUS$99.54
SellUS$65,041,89205 Mar 19
Walton Family
EntityCompany
Shares664,328
Max PriceUS$98.54
SellUS$246,042,51402 Mar 19
Walton Family
EntityCompany
Shares2,488,625
Max PriceUS$99.22
SellUS$158,706,05301 Mar 19
Walton Family
EntityCompany
Shares1,614,118
Max PriceUS$99.02
SellUS$143,160,92126 Feb 19
Walton Family
EntityCompany
Shares1,437,489
Max PriceUS$100.09
SellUS$184,778,99022 Feb 19
Walton Family
EntityCompany
Shares1,855,869
Max PriceUS$101.97
SellUS$1,061,57322 Feb 19
John Furner
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares10,427
Max PriceUS$101.81
SellUS$97,04622 Feb 19
Jacqueline Canney
EntityIndividual
Shares980
Max PriceUS$99.03
SellUS$67,968,64531 Dec 18
Walton Family
EntityCompany
Shares734,950
Max PriceUS$93.11
SellUS$46,191,54521 Dec 18
Walton Family
EntityCompany
Shares500,500
Max PriceUS$92.29
SellUS$46,00019 Dec 18
Walton Family
EntityCompany
Shares500
Max PriceUS$92.00
SellUS$67,191,51117 Dec 18
Walton Family
EntityCompany
Shares724,886
Max PriceUS$93.01

Ownership Breakdown

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


Management Team

  • Greg Foran (58yo)

    Executive Vice President

    • Tenure: 5.3yrs
    • Compensation: US$13.49m
  • Doug McMillon (53yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$23.62m
  • Daniel Binder

    Vice President of Investor Relations

    • Tenure: 1.4yrs
  • David Chojnowski (49yo)

    Senior VP & Controller

    • Tenure: 2.9yrs
  • Judith McKenna (52yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$12.92m
  • M. Biggs (51yo)

    Executive VP & CFO

    • Tenure: 3.9yrs
    • Compensation: US$9.42m
  • Daniel Trujillo

    Executive VP

    • Tenure: 0.9yrs
  • John Furner (44yo)

    Executive VP

    • Tenure: 6.9yrs
    • Compensation: US$9.29m
  • Rachel Brand (45yo)

    Executive VP of Global Governance

    • Tenure: 1.3yrs
  • Suresh Kumar

    Chief Technology Officer

    • Tenure: 0.6yrs

Board Members

  • Tom Horton (57yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$369.04k
  • Steve Reinemund (71yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$296.63k
  • Rob Walton (74yo)

    Director

    • Tenure: 41.9yrs
    • Compensation: US$272.39k
  • Greg Penner (50yo)

    Chairman

    • Tenure: 4.5yrs
    • Compensation: US$490.79k
  • Tim Flynn (62yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$387.14k
  • Doug McMillon (53yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$23.62m
  • Sarah Friar (46yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$361.67k
  • Marissa Mayer (44yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$270.81k
  • Carla Harris (56yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$270.74k
  • Steuart Walton (37yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$282.53k

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$337.531b
  • 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
WMTXTRA (XETRA Trading Platform)YesCommon SharesDEEURApr 1972
WMTNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1972
WMT-UETLX (Eurotlx)YesCommon SharesITEURApr 1972
WMTDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1972
WMT *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNApr 1972
WMTSWX (SIX Swiss Exchange)YesCommon SharesCHCHFApr 1972
WMTBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDApr 1972
0R1WLSE (London Stock Exchange)YesCommon SharesGBUSDApr 1972
WMTSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDApr 1972
WMTBVC (Bolsa de Valores de Colombia)YesCommon SharesCOCOPApr 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 super ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:45
End of Day Share Price2019/12/06 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.