Walmart (WMT) AI Stock Analysis

• Market Cap: $718.31B
• Dividend Yield: 0.95%
• Average Volume (3M): 25.76M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.57
• Revenue Growth: 5.07%
• EPS Growth: 25.86%
• Country: US
• Employees: 2,100,000
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Discount Stores
• EPS (TTM): 2.41
• Shares Outstanding: 8,016,849,600
• 10 Day Avg. Volume: 27,097,703
• 30 Day Avg. Volume: 25,755,577
• PEG Ratio: 1.44
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.01
• Price to Cash Flow (P/CF): 12.70
• P/FCF Ratio: 12.60
• 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: $108.59
• Price Target Upside: 17.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 31

Walmart's overall score reflects its robust financial performance and positive earnings call sentiment, which are slightly tempered by mixed technical indicators and a potentially overvalued stock price. Strategic advancements and growth strategies further support the score.

Positive Factors

Market Position

Walmart remains committed to being the price leader in the market to drive continued share gains.

Profitability

Walmart's e-commerce business is expected to reach its first year of fiscal year profitability, driven by investments and a significant contribution to top-line growth over the past five years.

Technological Advancements

Walmart's automated distribution center can process pallets significantly faster than a non-automated center, and the fulfillment center was simplified to increase speed and inventory accuracy.

Negative Factors

Operating Income

Operating income growth outlook has widened due to less favorable category mix and higher casualty claims.

Tariff Exposure

Tariff exposure could result in billions in higher costs due to imports from China and Mexico.

Walmart Business Overview & Revenue Model

Company Description

Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications. The company offers grocery and consumables, including dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; fuel, tobacco and other categories. It is also involved in the provision of health and wellness products covering pharmacy, optical and hearing services, and over-the-counter drugs and other medical products; and home and apparel including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses and tire and battery centers. In addition, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Further, it operates digital payment platforms; and 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. Additionally, the company markets lines of merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly. 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.

How the Company Makes Money

Walmart makes money primarily through the sale of goods and services across its various segments. The Walmart U.S. segment, which is its largest revenue generator, includes the operations of discount stores, supercenters, and neighborhood markets, as well as e-commerce platforms. Walmart International operates retail units in numerous countries outside the U.S., offering similar product ranges adapted to local markets. Sam's Club, a membership-only warehouse club, generates revenue from membership fees and the sale of bulk merchandise. Additionally, Walmart has significant revenue streams from its online marketplace and advertising sales. The company benefits from economies of scale, strategic supplier relationships, and an extensive distribution network that enhances its supply chain efficiency.

Walmart Financial Statement Overview

Summary

Walmart exhibits a strong financial position with consistent revenue growth, effective cost management, and solid profitability margins. The balance sheet reflects a stable capital structure with moderate leverage, while the cash flow statement indicates efficient cash management and strong cash generation.

Income Statement

Walmart has demonstrated strong financial performance with consistent revenue growth, increasing from $572.75 billion in 2022 to $680.99 billion in 2025, indicating a healthy growth trajectory. The gross profit margin improved slightly from 25.10% in 2022 to 24.86% in 2025, and net profit margin rose from 2.39% to 2.86% over the same period. The EBIT margin increased from 4.53% to 4.31%, while EBITDA margin remained stable. These metrics reflect Walmart's effective cost management and operational efficiency, which contribute to its robust profitability.

Balance Sheet

Walmart's balance sheet is solid with a debt-to-equity ratio of 0.66 in 2025, reflecting a moderate level of leverage. The equity ratio improved from 34.00% in 2022 to 34.89% in 2025, indicating a stable capital structure. Return on equity (ROE) increased from 16.42% to 21.36%, showcasing effective utilization of equity to generate profits. The company's relatively high total debt is offset by strong equity and asset positions, but continued focus on debt management is advisable.

Cash Flow

Walmart's cash flow position is strong, with operating cash flow rising from $24.18 billion in 2022 to $36.44 billion in 2025, indicating improved cash generation capabilities. Free cash flow to net income ratio remains robust, demonstrating efficient capital expenditure management. The operating cash flow to net income ratio improved significantly, suggesting enhanced operational efficiency. The company has managed its investing and financing activities effectively, contributing to a solid cash flow position.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
680.99B	648.13B	611.29B	572.75B	559.15B
	Gross Profit
169.23B	157.98B	147.57B	143.75B	138.84B
	EBIT
29.35B	27.01B	20.43B	25.94B	22.55B
	EBITDA
29.35B	38.87B	30.09B	36.60B	34.03B
	Net Income Common Stockholders
19.44B	15.51B	11.68B	13.67B	13.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.04B	9.87B	8.88B	14.76B	17.74B
	Total Assets
260.82B	252.40B	243.46B	244.86B	252.50B
	Total Debt
60.11B	61.32B	58.92B	57.32B	63.25B
	Net Debt
51.08B	51.45B	50.04B	42.56B	45.51B
	Total Liabilities
169.81B	161.83B	159.47B	152.97B	164.97B
	Stockholders Equity
91.01B	83.86B	76.69B	83.25B	81.30B
Cash Flow		Free Cash Flow
36.44B	15.12B	11.98B	11.07B	25.81B
	Operating Cash Flow
36.44B	35.73B	28.84B	24.18B	36.07B
	Investing Cash Flow
-21.38B	-21.29B	-17.72B	-6.01B	-10.07B
	Financing Cash Flow
-14.82B	-13.41B	-16.21B	-22.83B	-16.12B

Walmart Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMT, the sentiment is Positive. The current price of 92.8 is above the 20-day moving average (MA) of 86.70, above the 50-day MA of 92.74, and above the 200-day MA of 84.02, indicating a bullish trend. The MACD of -2.09 indicates Negative momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 67.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WMT.

Walmart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMT	79 Outperform	$718.31B	37.25	22.23%	0.95%	5.07%	25.86%
KR	73 Outperform	$43.51B	17.92	26.59%	1.90%	-1.94%	23.94%
COST	71 Outperform	$428.24B	56.35	32.89%	0.48%	6.13%	12.14%
DG	65 Neutral	$18.92B	16.82	15.89%	2.74%	4.96%	-32.41%
Sector *	63 Neutral	$20.53B	14.04	-16.01%	3.27%	1.30%	4.55%
DLTR	61 Neutral	$15.61B	―	18.88%	―	-9.88%	-205.57%
TGT	54 Neutral	$44.51B	11.03	29.12%	4.81%	-0.79%	-0.90%

Walmart Corporate Events

Walmart Emphasizes Growth Strategy at Investment Meeting

On April 9, 2025, Walmart held its Investment Community Meeting, emphasizing its strategy to drive growth and shareholder value through a people-led, tech-powered omnichannel approach. Walmart reaffirmed its Q1 sales guidance and shared its vision for enhancing customer experiences and strengthening its business model. The company highlighted its achievements over the past two years, including significant eCommerce growth, expanded delivery capabilities, and strategic investments in technology and store renovations. Despite challenges in the operating environment, Walmart remains confident in its ability to deliver strong financial returns and maintain its market position.

Spark’s Take on WMT Stock

According to Spark, TipRanks’ AI Analyst, WMT is a Outperform.

Walmart’s strong financial performance and positive earnings call sentiment are key strengths, showcasing robust revenue growth and strategic advancements. However, technical indicators suggest potential short-term volatility, and the valuation metrics indicate the stock may be overvalued. These factors combine to give Walmart a solid but tempered overall score.

To see Spark’s full report on WMT stock, click here.