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Walmart Inc WMT Stock Quote

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NYSE: WMT

Morningstar‘s Stock Analysis WMT

Valuation
Currency in USD
WMT is Fairly Valued at a 8% Premium.
WMT is 3 at a 8% 8.

1-Star Price

> 187.65

5-Star Price

< 97.30

Economic Moat

Wide

Trend: Stable

Capital Allocation

Standard

Walmart's Strong Third Quarter Shows Consumers Are Looking for Value; Shares Trade Fairly

Zain Akbari Equity Analyst

Analyst Note

| Zain Akbari |

We plan to raise our $139 fair value estimate for wide-moat Walmart by a mid-single-digit percentage (like the trading price reaction) after the firm announced strong third-quarter results that benefited from consumers’ heightened focus on its value proposition. We still expect low-single-digit annual top-line growth and mid-single-digit operating margins over the long term. With the shares trading near our valuation, we suggest investors await a greater margin of safety.

Revenue rose 8.7%, with all divisions contributing to the strong result (8.2% adjusted comparable sales increase at Walmart U.S. and a 10.0% rise at Sam’s Club; 7.1% net sales growth at Walmart International). Management said consumers across the income spectrum are looking to Walmart for savings in light of high prices throughout the economy, with most of the company’s market share gains in the quarter coming from higher-income consumers. As was the case in the first and second quarters, product mix was a headwind as consumers refocused on everyday essentials, but the company benefited from higher sales in its more lucrative private-label assortment. We believe all these developments suggest Walmart’s value-oriented competitive positioning is intact despite an unsettled retail landscape.

Although its fourth-quarter outlook is largely the same, management updated its full-year guidance to reflect the third-quarter outperformance, calling for a 6%-7% adjusted EPS decline (previously 9%-11%). Our roughly 10% estimated decline, excluding forecast share repurchases, should rise to a level somewhat above 6%, as we believe the fourth quarter could be better than expected, considering that Walmart has addressed many of the inventory challenges that led to above-normal discounting earlier in the year. We also suspect Walmart’s omnichannel capabilities (Walmart U.S. e-commerce up 16%) will draw more shoppers looking for value and convenience, as it has invested to improve its standard of service.

Key Statistics WMT

Company Profile WMT

Business Description

America’s largest retailer by sales, Walmart operated over 10,500 stores under 46 banners at the end of fiscal 2022, selling a variety of general merchandise and grocery items. Its home market accounted for 82% of sales in fiscal 2022, with Mexico and Central America (6%) and Canada (4%) its largest external markets. In the United States at the namesake banner, around 56% of sales come from grocery, 32% from general merchandise, and 11% from health and wellness items. The company operates several e-commerce properties apart from its eponymous site, including Flipkart and shoes.com (it also owns a roughly 10% stake in Chinese online retailer JD.com). Combined, e-commerce accounted for about 13% of fiscal 2022 sales.

Contact
702 Southwest 8th Street
Bentonville, AR, 72716
Industry Discount Stores
Employees 2,300,000

Related Articles WMT

FAQs for Walmart Inc Stock

Yes. WMT has a forward dividend yield of 1.49%. See WMT’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

WMT’s market cap is 402.56 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

WMT’s stock style is Large Core.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

WMT’s price/sales is 0.69.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

WMT’s price/forward earnings is 23.04.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

WMT’s price/book is 5.59.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See WMT’s valuation ratios compared to the Market Index.

WMT’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare WMT’s historical performance against its industry peers and the overall market.