Walmart Stock Analysis, Valuation (NYSE:WMT)

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$79.53 $0.48 (0.6%) WMT stock closing price Sep 22, 2017 (Closing)
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Walmart
Updated on : Sep 22, 2017
previous close
WMT 79.5 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Supermarkets
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
1.2%
Operating Profit
Operating Margin:
4.6%
Sector Average:
5.6%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
47.64B
Debt/Equity Ratio:
 0.6
Compared to the industry
Cash Flow
Operating cash flow:
$5.98B
Net Income:
$2.9B
Dividend Yield
WMT dividend yield:
2.54%
PROS      CONS
Cash Flow
ROIC
ROE
PS Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WMT PS :
0.5
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13%
Return on Equity:
16.1%
Free Cash Flow Margin:
2.9%
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Walmart Stock Analysis

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View Walmart stock analysis video. This is our analyst opinion covering the buy and sell arguments for WMT stock.

Wal-Mart Stores, Inc. Stock Rating 2.7/5

Our Walmart stock opinion is based on fundamentals of the company. This Walmart stock analysis is based on latest 2018 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy WMT stock?

  • The company has an operating cash flow which is 2.1 times the net income.
  • WMT stock is trading at a favorable price to sales multiple of 0.5 as against the Retail-Supermarkets industry average multiple of 0.7.
  • Walmart generates a high return on invested capital of 13%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Walmart at 16.1%.

Should you sell WMT stock?

  • Long term revenue growth of 1.2% over the past 5 years has been disappointing.
  • With a debt/equity ratio of  0.6, Walmart is highly leveraged in comparison to Retail-Wholesale peers.

Comments on this video and Walmart stock

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