NYSE:WMT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

2.4%

NYSE:WMT

1.6%

US Consumer Retailing

1.3%

US Market


1 Year Return

24.1%

NYSE:WMT

15.0%

US Consumer Retailing

2.0%

US Market

WMT outperformed the Consumer Retailing industry which returned 15% over the past year.

WMT outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

WMTIndustryMarket
7 Day2.4%1.6%1.3%
30 Day3.9%5.6%3.9%
90 Day7.6%8.7%3.4%
1 Year26.8%24.1%17.2%15.0%4.2%2.0%
3 Year73.1%61.2%49.4%39.8%47.2%37.6%
5 Year73.4%52.8%67.2%49.1%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Walmart's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Walmart's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Walmart is overvalued based on earnings compared to the US Consumer Retailing industry average.

Walmart is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Walmart is poor value based on expected growth next year.


Price Based on Value of Assets

Walmart is overvalued based on assets compared to the US Consumer Retailing industry average.


Next Steps

Future Growth

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

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Walmart's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Walmart's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Walmart's revenue growth is positive but not above the United States of America market average.

Walmart's earnings growth is positive but not above the United States of America market average.

Walmart's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Walmart is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Walmart performed over the past 5 years?

-15.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Walmart's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Walmart's 1-year earnings growth exceeds its 5-year average (147.2% vs -15.3%)

Walmart's earnings growth has exceeded the US Consumer Retailing industry average in the past year (147.2% vs -14.2%).


Return on Equity

Walmart has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Walmart used its assets more efficiently than the US Consumer Retailing industry average last year based on Return on Assets.


Return on Capital Employed

Walmart's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Walmart's financial position?


Financial Position Analysis

Walmart's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Walmart's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Walmart's level of debt (68.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (61.8% vs 68.8% today).

Debt is well covered by operating cash flow (52.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.89%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Walmart before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Walmart's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Walmart's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Doug McMillon (53yo)

5.6yrs

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

Doug's remuneration is higher than average for companies of similar size in United States of America.

Doug's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

51yo

Average Age

The tenure for the Walmart management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

54.5yo

Average Age

The tenure for the Walmart board of directors is about average.


Insider Trading

Walmart individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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
SellUS$108,609,81306 Dec 18
Walton Family
EntityCompany
Shares1,109,156
Max PriceUS$98.70
SellUS$389,36029 Nov 18
John Furner
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares4,000
Max PriceUS$97.34
SellUS$260,178,18028 Nov 18
Walton Family
EntityCompany
Shares2,731,356
Max PriceUS$96.49
SellUS$60,643,24023 Nov 18
Walton Family
EntityCompany
Shares644,405
Max PriceUS$94.59
SellUS$280,336,18420 Nov 18
Walton Family
EntityCompany
Shares2,899,239
Max PriceUS$98.14
SellUS$394,34720 Nov 18
Jacqueline Canney
EntityIndividual
Shares4,026
Max PriceUS$97.95
SellUS$904,96428 Sep 18
John Furner
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares9,623
Max PriceUS$94.04
SellUS$190,183,10428 Sep 18
Walton Family
EntityCompany
Shares2,009,792
Max PriceUS$95.54
SellUS$57,223,14020 Sep 18
Walton Family
EntityCompany
Shares600,000
Max PriceUS$95.37

Ownership Breakdown


Management Team

  • Greg Foran (58yo)

    Executive VP

    • Tenure: 5.1yrs
    • Compensation: US$13.49m
  • Doug McMillon (53yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$23.62m
  • Daniel Binder

    Vice President of Investor Relations

    • Tenure: 1.2yrs
  • David Chojnowski (49yo)

    Senior VP & Controller

    • Tenure: 2.7yrs
  • Judith McKenna (52yo)

    Executive VP

    • Tenure: 1.6yrs
    • Compensation: US$12.92m
  • M. Biggs (51yo)

    Executive VP & CFO

    • Tenure: 3.7yrs
    • Compensation: US$9.42m
  • Daniel Trujillo

    Executive VP

    • Tenure: 0.7yrs
  • John Furner (44yo)

    Executive VP

    • Tenure: 6.7yrs
    • Compensation: US$9.29m
  • Rachel Brand (45yo)

    Executive VP of Global Governance

    • Tenure: 1.1yrs
  • Suresh Kumar

    Chief Technology Officer

    • Tenure: 0.3yrs

Board Members

  • Tom Horton (57yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$369.04k
  • Steve Reinemund (71yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$296.63k
  • Rob Walton (74yo)

    Director

    • Tenure: 41.7yrs
    • Compensation: US$272.39k
  • Greg Penner (50yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: US$490.79k
  • Tim Flynn (62yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$387.14k
  • Doug McMillon (53yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$23.62m
  • Sarah Friar (46yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$361.67k
  • Marissa Mayer (44yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$270.81k
  • Carla Harris (56yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$270.74k
  • Steuart Walton (37yo)

    Director

    • Tenure: 3.3yrs
    • 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$334.004b
  • 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
WMTSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDApr 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
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 Analysis2019/09/15 23:45
End of Day Share Price2019/09/13 00:00
Earnings2019/07/31
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.