The Most Important Facts About Walmart

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.