Wal-Mart Stores Inc

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WMT : NYSE : Services
$79.96 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 9017300.0
08/23/17 - 4:03 PM ET

Financial Analysis

WAL-MART STORES INC's gross profit margin for the second 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. WAL-MART STORES 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 decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q2 FY17 Q2 FY16
Net Sales ($mil)123355.0120319.0
EBITDA ($mil)8599.08175.0
EBIT ($mil)5981.05658.0
Net Income ($mil)2899.03773.0

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)6469.07676.0
Total Assets ($mil)201566.0197886.0
Total Debt ($mil)47643.047491.0
Equity ($mil)76389.076525.0

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin27.9327.72
EBITDA Margin6.976.79
Operating Margin4.854.7
Sales Turnover2.432.44
Return on Assets6.317.44
Return on Equity16.6619.24
Debt Q2 FY17 Q2 FY16
Current Ratio0.780.85
Interest Expense0.0596.0
Interest Coverage0.09.49

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)3023.03097.0
Div / share0.510.5
Book value / share25.2724.71
Institutional Own % n/a n/a
Avg Daily Volume9029257.08574536.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.63 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 3.15 indicates valuation on par with the S&P 500 average of 3.02 and a discount versus the industry average of 3.86. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, WAL-MART STORES INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WMT 19.16 Peers 20.63   WMT 8.59 Peers 9.60

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

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


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WMT 17.30 Peers 18.71   WMT NA Peers 2.18

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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


Neutral. 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.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WMT 3.15 Peers 3.86   WMT -10.54 Peers 11.39

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WMT 0.49 Peers 0.52   WMT 1.38 Peers 6.71

Average. 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 valuation on par with 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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