Walmart Inc.
Walmart Inc. Fundamental Analysis
Walmart Inc. (WMT) shows moderate financial fundamentals with a PE ratio of 45.89, profit margin of 3.07%, and ROE of 23.69%. The company generates $713.3B in annual revenue with moderate year-over-year growth of 5.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WMT's fundamental strength across five key dimensions:
Efficiency Score
WeakWMT struggles to generate sufficient returns from assets.
Valuation Score
ModerateWMT shows balanced valuation metrics.
Growth Score
ExcellentWMT delivers strong and consistent growth momentum.
Financial Health Score
ModerateWMT shows balanced financial health with some risks.
Profitability Score
ModerateWMT maintains healthy but balanced margins.
Key Financial Metrics
Is WMT Expensive or Cheap?
P/E Ratio
WMT trades at 45.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WMT's PEG of -10.94 indicates potential undervaluation.
Price to Book
The market values Walmart Inc. at 10.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.27 times EBITDA. This signals the market has high growth expectations.
How Well Does WMT Make Money?
Net Profit Margin
For every $100 in sales, Walmart Inc. keeps $3.07 as profit after all expenses.
Operating Margin
Core operations generate 4.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.69 in profit for every $100 of shareholder equity.
ROA
Walmart Inc. generates $7.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Walmart Inc. generates limited operating cash flow of $41.57B, signaling weaker underlying cash strength.
Free Cash Flow
Walmart Inc. generates weak or negative free cash flow of $14.93B, restricting financial flexibility.
FCF Per Share
Each share generates $1.87 in free cash annually.
FCF Yield
WMT converts 1.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-10.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How WMT Stacks Against Its Sector Peers
| Metric | WMT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.89 | 23.01 | Worse (Expensive) |
| ROE | 23.69% | 1228.00% | Weak |
| Net Margin | 3.07% | -4010.00% (disorted) | Weak |
| Debt/Equity | 0.81 | 0.78 | Neutral |
| Current Ratio | 0.79 | 2.35 | Weak Liquidity |
| ROA | 7.69% | -157546.00% (disorted) | Weak |
WMT outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Walmart Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.19%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
38.88%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
53.43%
Industry Style: Defensive, Dividend, Low Volatility
High Growth