Wal-Mart Stores Inc

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WMT : NYSE : Services
$70.08 | %
Today's Range: 69.74 - 70.43
Avg. Daily Volume: 8617100.0
12/09/16 - 4:00 PM ET

Financial Analysis

WAL-MART STORES INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. WAL-MART STORES INC has very weak liquidity. Currently, the Quick Ratio is 0.15 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 virtually unchanged only decreasing by 2.36% 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 FY16 Q3 FY15
Net Sales ($mil)118179.0117408.0
EBITDA ($mil)7617.08109.0
EBIT ($mil)5148.05744.0
Net Income ($mil)3034.03304.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)5939.06990.0
Total Assets ($mil)206857.0205144.0
Total Debt ($mil)50005.052462.0
Equity ($mil)77693.079571.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin28.0627.53
EBITDA Margin6.446.9
Operating Margin4.364.89
Sales Turnover2.342.36
Return on Assets6.997.35
Return on Equity18.6118.95
Debt Q3 FY16 Q3 FY15
Current Ratio0.860.92
Interest Expense617.0583.0
Interest Coverage8.349.85

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)3079.03210.0
Div / share0.50.49
Book value / share25.2324.79
Institutional Own % n/a n/a
Avg Daily Volume8753013.08442053.0


HOLD. This stock's P/E ratio indicates a discount compared to an average of 21.97 for the Food & Staples Retailing industry and a significant discount compared to the S&P 500 average of 25.45. To use another comparison, its price-to-book ratio of 2.79 indicates valuation on par with the S&P 500 average of 2.82 and a discount versus the industry average of 3.69. 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 15.30 Peers 21.97   WMT 6.79 Peers 9.91

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WMT is trading at a significant discount to 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 significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WMT 16.23 Peers 18.44   WMT NM Peers 1.82

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WMT is trading at a discount to 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.

WMT's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WMT 2.79 Peers 3.69   WMT -1.50 Peers 1.24

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 0.45 Peers 0.54   WMT 0.00 Peers 3.05

Discount. 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 discount to its industry on this measurement.


Neutral. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

The growth rate for WMT is not available.



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