About Walmart Inc.
Walmart Inc. engages in the operation of retail and wholesale stores and clubs, ecommerce websites, and mobile applications worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club U.S. It operates supercenters, supermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; and ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites. It offers grocery items, including dry grocery, snacks, dairy, meat, produce, deli and bakery, frozen foods, alcoholic and nonalcoholic beverages, as well as consumables, such as health and beauty aids, pet supplies, household chemicals, paper goods, and baby products; and fuel and other categories. In addition, it is involved in the provision of health and wellness products covering pharmacy, optical and hearing services, over-the-counter drugs, and protein and nutrition products; and home, hardlines, and seasonal items, including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, and mattresses. Further, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Additionally, it operates digital payment platforms; offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access; and markets lines of merchandise under private and licensed brands. 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.
Walmart Inc. (WMT) is a Consumer Defensive company in the Discount Stores industry with a market capitalisation of $1T. The stock trades at 46.18x trailing earnings and yields 0.78%.
- Sector
- Consumer Defensive
- Industry
- Discount Stores
- Market cap
- $1T
- P/E ratio
- 46.18
- Forward P/E
- 39.56
- EPS (TTM)
- $2.76
- Revenue (TTM)
- $735.8B
- Free cash flow
- $7.1B
- Profit margin
- 3.0%
- Dividend yield
- 0.78%
- Beta
- 0.53
- Shares outstanding
- 7.9B
Financial health: Fair5.5/10
5 strengths, 4 concerns. Weakest points: current ratio, net margin, earnings growth and 1 more.
- Debt to equity: 0.38 (Strong, benchmark < 0.5) — Debt of 0.38x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 1.8y (Strong, benchmark < 4 years) — Net debt of $27.4B is 1.8x annual free cash flow — about 2 years of cash flow to repay.
- Current ratio: 0.79 (Concern, benchmark > 1.5) — Short-term assets cover only 0.79x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
- Return on equity: 22.3% (Strong, benchmark > 15%) — Earns 22.3% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 24.8% (Watch, benchmark > 40%) — Keeps 24.8% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 3.0% (Concern, benchmark > 10%) — Turns 3.0% of revenue into profit, well short of the > 10% mark.
- Free cash flow: $14.9B (Strong, benchmark positive) — Generated $14.9B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 5.9% (Watch, benchmark > 10%) — Revenue changed 5.9% year on year, short of the > 10% mark.
- Earnings growth: -9.1% (Concern, benchmark > 10%) — Earnings changed -9.1% year on year, well short of the > 10% mark.
- PEG ratio: 4.29 (Concern, benchmark < 1) — At 4.29, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 35.0% (Strong, benchmark < 60%) — Pays out 35.0% of earnings as dividends, leaving room to keep paying.