Now trading at a price of $154.04, Walmart has moved -1.1% so far today.
Over the last year, Walmart logged a 4.0% change, with its stock price reaching a high of $169.94 and a low of $136.09. Over the same period, the stock underperformed the S&P 500 index by -13.0%. As of April 2023, the company's 50-day average price was $160.46. Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. Based in Bentonville, AR, the large-cap Consumer Discretionary company has 2,100,000 full time employees. Walmart has offered a 1.5% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $500,343 | $514,405 | $523,964 | $559,151 | $572,754 | $611,289 |
| Revenue Growth | n/a | 2.81% | 1.86% | 6.72% | 2.43% | 6.73% |
| Gross Margins | 25% | 25% | 25% | 25% | 25% | 24% |
| Operating Margins | 4% | 4% | 4% | 4% | 5% | 3% |
| Net Margins | 2% | 1% | 3% | 2% | 2% | 2% |
| Net Income (MM) | $10,523 | $7,179 | $15,201 | $13,706 | $13,940 | $11,680 |
| Net Interest Expense (MM) | $1,978 | $1,975 | $2,262 | $1,976 | $1,674 | $1,787 |
| Depreciation & Amort. (MM) | $10,529 | $10,678 | $10,987 | $11,152 | $10,658 | $10,945 |
| Earnings Per Share | $3.28 | $2.26 | $5.19 | $4.75 | $4.87 | $4.27 |
| EPS Growth | n/a | -31.1% | 129.65% | -8.48% | 2.53% | -12.32% |
| Diluted Shares (MM) | 3,010 | 2,945 | 2,868 | 2,847 | 2,805 | 2,734 |
| Free Cash Flow (MM) | $18,286 | $17,409 | $14,550 | $25,810 | $11,075 | $11,984 |
| Capital Expenditures (MM) | $10,051 | $10,344 | $10,705 | $10,264 | $13,106 | $16,857 |
| Current Ratio | 0.81 | 0.81 | 0.84 | 0.95 | 0.86 | 0.83 |
| Long Term Debt (MM) | $49,896 | $44,912 | $40,849 | $36,425 | $33,935 | $36,806 |
| Net Debt / EBITDA | 1.67 | 1.39 | 1.0 | 0.68 | 0.96 | 0.99 |
Walmart's Valuation Is in Line With Its Sector Averages:
Walmart has a trailing twelve month P/E ratio of 26.7, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $7.06, the company has a forward P/E ratio of 22.7. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 4.5%. On this basis, the company's PEG ratio is 5.94, which suggests that it is overpriced. Furthermore, Walmart is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.22 is higher than the sector average of 4.24. The company's shares are currently trading 190.6% above their Graham number.
Analysts Give Walmart an Average Rating of Buy:
The 39 analysts following Walmart have set target prices ranging from $163.0 to $210.0 per share, for an average of $179.94 with a buy rating. As of April 2023, the company is trading -10.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Walmart has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 33.5% of the company's shares, and the insider ownership rate stands at 47.24%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 5% stake in the company is worth $21,136,567,949.
