Walmart Inc.

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WMT : NYSE : Retail Trade
$94.11 -10.67 | -10.18%
Today's Range: 94.1 - 97.94
Avg. Daily Volume: 8872900.0
02/20/18 - 4:00 PM ET

Financial Analysis


WALMART INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. WALMART INC has very weak liquidity. Currently, the Quick Ratio is 0.16 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.99% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)123179.0118179.0
EBITDA ($mil)7710.07617.0
EBIT ($mil)5052.05148.0
Net Income ($mil)1749.03034.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)7026.05939.0
Total Assets ($mil)209414.0206857.0
Total Debt ($mil)49927.050005.0
Equity ($mil)76145.077693.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin27.8428.06
EBITDA Margin6.256.44
Operating Margin4.14.36
Sales Turnover2.362.34
Return on Assets5.466.99
Return on Equity15.0218.61
Debt Q3 FY17 Q3 FY16
Current Ratio0.810.86
Debt/Capital0.40.39
Interest Expense586.0617.0
Interest Coverage8.628.34


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)2968.03079.0
Div / share0.510.5
EPS0.580.98
Book value / share25.6625.23
Institutional Own % n/a n/a
Avg Daily Volume9038502.09060651.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 24.43 for the Food & Staples Retailing industry and a value on par with the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 4.02 indicates a premium versus the S&P 500 average of 3.26 and a discount versus the industry average of 4.55. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. The valuation analysis reveals that, WALMART INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WMT 27.45 Peers 24.43   WMT 10.63 Peers 10.67

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

WMT is trading at a premium to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WMT is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WMT 20.88 Peers 20.62   WMT 17.26 Peers 10.93

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

WMT is trading at a premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WMT trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WMT 4.02 Peers 4.55   WMT -18.27 Peers 6.11

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WMT is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WMT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WMT 0.62 Peers 0.56   WMT 2.18 Peers 4.32

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WMT is trading at a premium to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WMT significantly trails its peers on the basis of sales growth

 

 

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