Wal-Mart de Mexico (WMMVY) AI Stock Analysis

• Market Cap: $50.69B
• Dividend Yield: 3.1%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.47
• Revenue Growth: 4.53%
• EPS Growth: 0.84%
• Country: US
• Employees: 241,172
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Discount Stores
• EPS (TTM): 1.68
• Shares Outstanding: 1,744,632,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,586
• PEG Ratio: 21.15
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.20
• Price to Cash Flow (P/CF): 18.70
• P/FCF Ratio: 29.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Wal-Mart de Mexico demonstrates robust financial performance with consistent revenue growth and solid profitability metrics, supporting a strong financial foundation. While the current technical indicators suggest caution due to short-term bearish trends, the stock's valuation remains fair with a healthy dividend yield. The recent earnings call highlights strategic growth initiatives, although challenges in margin pressures and inventory management need attention. Overall, the company's strong market positioning in the retail sector and strategic investments provide a solid basis for future growth, resulting in a favorable stock score.

Wal-Mart de Mexico Business Overview & Revenue Model

Company Description

Wal-Mart de México, S.A.B. de C.V. owns and operates self-service stores in Mexico and Central America. The company operates discount warehouses and stores, hypermarkets, supermarkets, and membership self-service wholesale stores. It operates 2,198 Bodega Aurrerá discount stores, 294 Walmart hypermarkets, 14 Superama supermarkets, 85 Walmart Express supermarkets, and 165 Sam's Club membership self-service wholesale stores. The company also operates 572 Despensa Familiar and Palí discount stores; 98 Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; 158 Bodegas, Maxi Bodega, and Maxi Palí stores; and 36 Walmart hypermarkets in Costa Rica, Guatemala, Honduras, Nicaragua, and El Salvador. In addition, it imports and sells goods; develops properties; and manages real estate companies. The company was founded in 1958 and is headquartered in Mexico City, Mexico. Wal-Mart de México, S.A.B. de C.V. is a subsidiary of Intersalt, S. De R.l. De C.v.

How the Company Makes Money

Wal-Mart de Mexico generates revenue primarily through the sale of goods across its various retail formats. The company capitalizes on its extensive network of physical stores and its growing e-commerce platform to reach a broad customer base. Key revenue streams include direct sales of merchandise, membership fees from its wholesale format, and financial services offered to consumers, such as credit cards. Strategic partnerships with suppliers and an efficient supply chain also play critical roles in maintaining competitive pricing and product availability, contributing to higher sales volumes and profitability.

Wal-Mart de Mexico Financial Statement Overview

Summary

Wal-Mart de Mexico exhibits strong financial health with consistent growth in revenue and profitability, supported by solid margins and efficient operations. The balance sheet is stable with manageable leverage, and the cash flow generation remains robust. The company is well-positioned in the retail sector, but careful monitoring of debt levels and cash flow trends will be crucial for sustaining its financial performance.

Income Statement

Wal-Mart de Mexico has demonstrated strong performance with consistent revenue growth, achieving a revenue increase of 8.1% from 2023 to 2024. The gross profit margin is healthy at 24.1%, and the net profit margin stands at 5.6%, indicating solid profitability. EBIT and EBITDA margins are also strong at 8.1% and 9.6% respectively, showcasing effective cost management. The steady growth in revenue and profitability metrics reflects robust operational efficiency and market positioning.

Balance Sheet

The company maintains a solid financial structure with a debt-to-equity ratio of 0.34, indicating a balanced use of debt and equity financing. The return on equity is commendable at 23.1%, highlighting efficient utilization of shareholder funds. The equity ratio is 47.1%, showing a strong equity base relative to total assets. While the financial leverage is manageable, a slight increase in total debt warrants monitoring to ensure continued financial stability.

Cash Flow

Cash flow generation remains robust, with free cash flow reaching MXN 37.9 billion. However, there was a decline in operating cash flow from the previous year. The free cash flow to net income ratio is 0.70, indicating healthy cash generation relative to earnings. The operating cash flow to net income ratio is 1.35, reflecting strong cash conversion. Despite a decrease in capital expenditures, the company continues to maintain a positive cash flow trajectory, supporting its growth investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
958.51B	886.52B	819.17B	736.04B	701.73B
	Gross Profit
231.47B	210.56B	191.40B	171.84B	162.04B
	EBIT
77.36B	73.81B	68.01B	62.91B	57.45B
	EBITDA
91.57B	97.06B	89.78B	82.08B	73.81B
	Net Income Common Stockholders
53.83B	51.59B	48.97B	44.14B	33.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.51B	40.67B	47.43B	42.82B	35.67B
	Total Assets
493.89B	436.55B	418.81B	394.39B	361.88B
	Total Debt
79.73B	75.25B	73.35B	64.69B	59.74B
	Net Debt
43.22B	34.58B	25.92B	21.87B	24.07B
	Total Liabilities
261.02B	237.46B	216.34B	208.51B	192.76B
	Stockholders Equity
232.88B	199.09B	202.47B	185.88B	169.12B
Cash Flow		Free Cash Flow
37.87B	56.33B	43.17B	44.42B	44.64B
	Operating Cash Flow
72.64B	85.12B	64.47B	64.88B	61.37B
	Investing Cash Flow
-30.53B	-29.76B	-20.32B	-19.13B	-16.53B
	Financing Cash Flow
-49.80B	-58.55B	-39.64B	-37.50B	-39.70B

Wal-Mart de Mexico Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMMVY, the sentiment is Negative. The current price of 27.65 is above the 20-day moving average (MA) of 27.60, above the 50-day MA of 27.38, and below the 200-day MA of 29.11, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 58.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WMMVY.

Wal-Mart de Mexico Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMMVY	77 Outperform	$50.69B	17.72	25.62%	3.10%	4.53%	0.84%
KR	73 Outperform	$46.75B	19.26	26.59%	1.77%	-1.94%	24.13%
WMT	73 Outperform	$699.55B	36.28	22.23%	0.98%	5.07%	25.86%
COST	71 Outperform	$429.08B	56.46	32.89%	0.48%	6.13%	12.14%
DG	65 Neutral	$20.77B	18.46	15.89%	2.50%	4.96%	-32.41%
Sector *	63 Neutral	$20.94B	14.39	-10.05%	3.13%	1.25%	3.11%
TGT	54 Neutral	$42.95B	10.64	29.12%	4.73%	-0.79%	-0.90%