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Walmart (WMT)
NYSE:WMT
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Walmart
(NYSE:WMT)77Outperform
Positive Factors
Market Share Expansion
Walmart continues to gain market share across countries and income levels, fueled by transaction count and unit volume strength across all segments.
Membership Growth
Walmart+ membership counts remain strong and at or near record levels, attracting middle-to-high income shoppers and supporting eCommerce engagement.
Negative Factors
Earnings Outlook
Despite strong 4Q FY25 results, the FY26 outlook misses consensus as management remains cautious.
Walmart (WMT) vs. S&P 500 (SPY)
Market Cap
$762.93B
Dividend Yield0.85%
Average Volume (3M)19.23M
Price to Earnings (P/E)39.4
Beta (1Y)0.54
Revenue Growth5.07%
EPS Growth25.86%
CountryUS
Employees2,100,000
SectorConsumer Defensive
Sector Strength73
IndustryRetailers - Staples
Share Statistics
EPS (TTM)2.41
Shares Outstanding8,033,386,000
10 Day Avg. Volume27,226,976
30 Day Avg. Volume19,232,315
Financial Highlights & Ratios
PEG Ratio1.52
Price to Book (P/B)N/A
Price to Sales (P/S)1.16
Price to Cash Flow (P/CF)29.90
P/FCF Ratio234.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$112.33Price Target Upside18.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering29
Walmart Business Overview & Revenue Model
Company DescriptionWalmart Inc. is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, Walmart is one of the largest retailers in the world, offering a wide range of products including groceries, electronics, apparel, home goods, and more. The company operates through various segments including Walmart U.S., Walmart International, and Sam's Club, providing a combination of in-store and online shopping experiences.
How the Company Makes MoneyWalmart 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's financial performance is strong, with healthy revenue growth, stable margins, and effective capital management. The income statement reflects robust profit margins despite the retail industry's competitive nature. The balance sheet indicates a sound capital structure and strong equity position, while cash flows underscore operational efficiency and effective cash generation.Income Statement
Walmart's income statement shows strong revenue growth with a TTM revenue increase of approximately 3.96% compared to the previous annual period. Gross profit and net profit margins are healthy, with the TTM gross profit margin at 24.7% and net profit margin at 2.92%. EBIT and EBITDA margins are stable, reflecting efficient operations and cost management.85
Very Positive
Balance Sheet
The balance sheet indicates a solid equity base with a debt-to-equity ratio of 0.70, highlighting a balanced capital structure. The equity ratio stands at 33.45%, suggesting a stable financial footing. Return on equity is commendable at 22.33%, indicating effective use of shareholder funds.80
Positive
Cash Flow
Cash flow analysis reveals a strong operating cash flow to net income ratio of 2.01, underscoring effective cash generation from operations. Free cash flow has grown by 12.44% TTM, showcasing robust cash flows despite significant capital expenditures.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 673.82B | 648.13B | 611.29B | 572.75B | 559.15B | 523.96B | Gross Profit |
| 166.41B | 157.98B | 147.57B | 143.75B | 138.84B | 129.36B | EBIT |
| 28.74B | 27.01B | 20.43B | 25.94B | 22.55B | 20.57B | EBITDA |
| 38.20B | 38.87B | 30.09B | 36.60B | 34.03B | 33.70B | Net Income Common Stockholders |
| 19.68B | 15.51B | 11.68B | 13.67B | 13.51B | 14.88B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 9.87B | 9.87B | 8.88B | 14.76B | 17.74B | 9.46B | Total Assets |
| 252.40B | 252.40B | 243.46B | 244.86B | 252.50B | 236.50B | Total Debt |
| 61.32B | 61.32B | 58.92B | 57.32B | 63.25B | 72.43B | Net Debt |
| 51.45B | 51.45B | 50.04B | 42.56B | 45.51B | 62.97B | Total Liabilities |
| 161.83B | 161.83B | 159.47B | 152.97B | 164.97B | 154.94B | Stockholders Equity |
| 83.86B | 83.86B | 76.69B | 83.25B | 81.30B | 74.67B |
| Cash Flow | Free Cash Flow | ||||
| 17.00B | 15.12B | 11.98B | 11.07B | 25.81B | 14.55B | Operating Cash Flow |
| 39.63B | 35.73B | 28.84B | 24.18B | 36.07B | 25.25B | Investing Cash Flow |
| -18.57B | -21.29B | -17.72B | -6.01B | -10.07B | -9.13B | Financing Cash Flow |
| -22.91B | -13.41B | -16.21B | -22.83B | -16.12B | -14.30B |
Walmart Technical Analysis
Negative
94.97
Price Trends
95.93
Negative
91.11
Positive
81.18
Positive
Market Momentum
-0.13
Positive
42.85
Neutral
44.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMT, the sentiment is Negative. The current price of 94.97 is below the 20-day moving average (MA) of 100.03, below the 50-day MA of 95.93, and above the 200-day MA of 81.18, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 44.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WMT.
Walmart Risk Analysis
Walmart disclosed 11 risk factors in its most recent earnings report. Walmart reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Walmart Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.16T | 36.91 | 20.72% | ― | 10.99% | 91.61% | |
78 Outperform | $460.27B | 60.89 | 30.98% | 0.44% | 5.35% | 16.22% | |
77 Outperform | $762.93B | 39.41 | 22.33% | 0.85% | 5.07% | 25.86% | |
73 Outperform | $13.35B | 24.28 | 31.64% | ― | 5.32% | 10.61% | |
70 Outperform | $53.67B | 12.41 | 30.16% | 3.69% | 0.64% | 20.16% | |
68 Neutral | $45.51B | 16.64 | 21.45% | 1.99% | 1.41% | 46.58% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% |
* Consumer Defensive Sector Average
Performance Comparison
WMT
Walmart
94.97
35.64
60.07%
AMZN
Amazon
203.80
29.68
17.05%
COST
Costco
1,036.87
281.06
37.19%
KR
Kroger Company
63.18
14.76
30.48%
TGT
Target
117.14
-46.40
-28.37%
BJ
Bj's Wholesale Club Holdings
101.09
27.87
38.06%
Walmart Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -8.68% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Positive
Walmart had a strong quarter with significant sales and profit growth, driven by e-commerce improvements, membership gains, and technology investments. Despite facing currency headwinds and SG&A expense pressures, the company increased dividends and announced PhonePe's IPO preparation. The sentiment is positive due to the strong financial performance and strategic advancements.Highlights
Strong Sales and Profit Growth
Walmart reported sales growth of 5.2% and adjusted operating income increased by 9.4% in constant currency for the quarter.
E-commerce Growth and Improvement
E-commerce sales grew 20% in the U.S., with improved economics and a 20% reduction in net delivery cost per order.
Record Membership Growth
Global membership income grew 21% to about $3.8 billion, with strong growth in Sam's Club and Walmart Plus memberships.
Expansion of Fast Delivery Options
Walmart expanded store-fulfilled delivery catchment areas to reach 93% of U.S. households, with more than 30% of orders for expedited delivery.
Investment in Technology and Automation
Walmart is investing in supply chain automation and AI tools, saving 4 million developer hours last year, and plans to expand these tools.
Dividend Increase
Walmart announced a 13% increase in dividends, the largest in over a decade, reflecting strong cash returns to shareholders.
PhonePe IPO Announcement
Walmart's fintech business, PhonePe, is preparing for an IPO in India, marking a significant milestone.
Lowlights
SG&A Expense Deleveraging
SG&A expenses deleveraged by 46 basis points in the quarter due to tech investments, variable pay, and higher marketing and utilities costs.
Currency Headwinds
Currency exchange rates negatively impacted reported sales by $3.2 billion and EPS by $0.02.
Impact of VIZIO Acquisition Costs
Transaction-related expenses for the VIZIO acquisition impacted the quarter and were not considered in guidance.
Company Guidance
During Walmart's Fourth Quarter Fiscal Year 2025 Earnings Call, the company reported robust metrics, showcasing strong business performance. Sales growth was 5.2%, while adjusted operating income rose by 9.4% in constant currency. Walmart U.S. saw low single-digit growth in general merchandise, and the company's global advertising business expanded by 27%, contributing to a total revenue increase of 5.6% for the fiscal year. E-commerce sales grew by 16% during the quarter, with Walmart U.S. achieving a 20% increase. The company's consolidated gross margin improved by 53 basis points, driven by inventory management and business mix optimization. Walmart also highlighted international growth, with sales up 5.7% in constant currency and strong performances in markets such as China and India. The company announced plans for PhonePe's IPO in India and highlighted a 2.8% increase in inventory levels. For fiscal year 2026, Walmart projects a consolidated net sales growth of 3% to 4% and operating income growth of 3.5% to 5.5%, with adjusted EPS expected between $2.50 and $2.60.Walmart Corporate Events
Legal Proceedings
Walmart Reaches $123M Settlement Over Opioid Oversight
Neutral
Oct 18, 2024
Walmart Inc. announced a settlement agreement to resolve shareholder derivative actions relating to allegations that certain directors and officers failed to oversee the company’s opioid distribution. If approved by the Delaware Court, the settlement will include a $123 million payment from insurance carriers and the adoption of corporate governance practices for five years. This move aims to address investor concerns without admitting liability, offering a resolution to ongoing legal disputes.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.