Walmart logged a -0.71% change during today's afternoon session, and is now trading at a price of $141.46 per share. The S&P 500 index moved 0.51% and the Nasdaq posted a 0.92% change.
Walmart shares moved 6.11% over the last 52 weeks, with a high of $159.88 and a low of $116.32. During this time, the stock outperformed the S&P 500 index by 15.34%. As of January 2022, the company's 50-day average price is $144.0. Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. The large-cap Consumer Cyclical company is based in Bentonville, AR. Walmart has returned a 1.6% dividend yield over the last 12 months.
Snapshot of the Company's Consistently Thin Margins:
| 2019-01-31 | 2020-01-31 | 2021-01-31 | 2022-01-31 | |
|---|---|---|---|---|
| Revenue (MM) | $514,405 | $523,964 | $559,151 | $572,754 |
| Revenue Growth | n/a | 1.86% | 6.72% | 2.43% |
| Gross Margins | 25.1% | 24.69% | 24.83% | 25.1% |
| Gross Margins Growth | n/a | -1.63% | 0.57% | 1.09% |
| Operating Margins | 4.27% | 3.93% | 4.03% | 4.53% |
| Operating Margins Growth | n/a | -7.96% | 2.54% | 12.41% |
| Earnings Per Share | $2.3 | $5.25 | $4.78 | $4.93 |
| EPS Growth | n/a | 128.26% | -8.95% | 3.14% |
| Free Cash Flow (MM) | $17,409 | $14,550 | $25,810 | $11,075 |
| FCF Growth | n/a | -16.42% | 77.39% | -57.09% |
| Capital Expenditures (MM) | $10,344 | $10,705 | $10,264 | $13,106 |
| Net Debt / EBITDA | 1.79 | 1.76 | 1.15 | 1.12 |
Walmart Is Overpriced:
Compared to the Consumer Cyclical sector's average of 22.33, Walmart has a trailing twelve month P/E ratio of 33.13.
Walmart's P/B ratio is 5.47 compared to its sector average of 3.12. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 175.47% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 4.12 * 28.45) = $51.35
39 analysts are following Walmart and have set target prices ranging from $144.0 to $180.0 per share. On average, they have given the company a rating of buy. At the current price of $141.46, WMT is trading -12.76% away from its average analyst target price of $162.15 per share, implying an analyst consensus of some upside potential for the stock.
