Is Walmart Stock a Good Investment?
Walmart Investment Advice | WMT |
- Examine Walmart's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Walmart's leadership team and their track record. Good management can help Walmart navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Staples Distribution & Retail space and any emerging trends that could impact Walmart's business and its evolving consumer preferences.
- Compare Walmart's performance and market position to its competitors. Analyze how Walmart is positioned in terms of product offerings, innovation, and market share.
- Check if Walmart pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Walmart's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Walmart stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Walmart is a good investment.
Sell | Buy |
Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Walmart Stock
Researching Walmart's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 46.0% of the company outstanding shares are owned by insiders. The company has Price/Earnings To Growth (PEG) ratio of 2.76. Walmart last dividend was issued on the 12th of December 2024. The entity had 3:1 split on the 26th of February 2024.
To determine if Walmart is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Walmart's research are outlined below:
| Walmart is unlikely to experience financial distress in the next 2 years | |
| Walmart has 60.44 B in debt with debt to equity (D/E) ratio of 0.81, which is OK given its current industry classification. Walmart has a current ratio of 0.85, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Walmart to invest in growth at high rates of return. | |
| About 46.0% of Walmart outstanding shares are owned by insiders | |
| Latest headline from finance.yahoo.com: Target Stock Just Lost Over 20. What Can We Expect From the Stock Going Forward |
Walmart Quarterly Accounts Payable |
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Walmart uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Walmart. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Walmart's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 16th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Walmart's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Walmart's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1998-05-12 | 1998-04-30 | 0.17 | 0.19 | 0.02 | 11 | ||
1999-08-10 | 1999-07-31 | 0.28 | 0.31 | 0.03 | 10 | ||
1999-05-11 | 1999-04-30 | 0.22 | 0.25 | 0.03 | 13 | ||
2024-05-16 | 2024-04-30 | 0.52 | 0.6 | 0.08 | 15 | ||
2016-05-19 | 2016-04-30 | 0.88 | 0.98 | 0.1 | 11 | ||
2019-05-16 | 2019-04-30 | 1.02 | 1.13 | 0.11 | 10 | ||
2023-05-18 | 2023-04-30 | 1.32 | 1.47 | 0.15 | 11 | ||
2020-11-17 | 2020-10-31 | 1.18 | 1.34 | 0.16 | 13 |
Know Walmart's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Walmart is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Walmart backward and forwards among themselves. Walmart's institutional investor refers to the entity that pools money to purchase Walmart's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2024-09-30 | 40.1 M | State Farm Mutual Automobile Ins Co | 2024-09-30 | 39.2 M | Legal & General Group Plc | 2024-06-30 | 36.3 M | Ameriprise Financial Inc | 2024-06-30 | 33.7 M | Jpmorgan Chase & Co | 2024-06-30 | 33.6 M | Charles Schwab Investment Management Inc | 2024-09-30 | 31.2 M | Nuveen Asset Management, Llc | 2024-06-30 | 29.6 M | Bank Of New York Mellon Corp | 2024-06-30 | 28.7 M | Amvescap Plc. | 2024-06-30 | 27 M | Vanguard Group Inc | 2024-09-30 | 420.7 M | Blackrock Inc | 2024-06-30 | 296.9 M |
Walmart's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 743.54 B.Market Cap |
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Walmart's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.10 | |
| Return On Capital Employed | 0.17 | 0.23 | |
| Return On Assets | 0.06 | 0.09 | |
| Return On Equity | 0.18 | 0.23 |
Determining Walmart's profitability involves analyzing its financial statements and using various financial metrics to determine if Walmart is a good buy. For example, gross profit margin measures Walmart's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Walmart's profitability and make more informed investment decisions.
Walmart's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Walmart's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Walmart. Check Walmart's Beneish M Score to see the likelihood of Walmart's management manipulating its earnings.
Evaluate Walmart's management efficiency
Walmart has Return on Asset of 0.0695 % which means that on every $100 spent on assets, it made $0.0695 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1853 %, implying that it generated $0.1853 on every 100 dollars invested. Walmart's management efficiency ratios could be used to measure how well Walmart manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to gain to 0.1 in 2024. Return On Capital Employed is likely to gain to 0.23 in 2024. At this time, Walmart's Total Current Liabilities is comparatively stable compared to the past year. Non Current Liabilities Other is likely to gain to about 15.4 B in 2024, whereas Liabilities And Stockholders Equity is likely to drop slightly above 132.1 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 11.21 | 11.77 | |
| Tangible Book Value Per Share | 7.73 | 8.12 | |
| Enterprise Value Over EBITDA | 12.77 | 13.88 | |
| Price Book Value Ratio | 5.30 | 5.57 | |
| Enterprise Value Multiple | 12.77 | 13.88 | |
| Price Fair Value | 5.30 | 5.57 | |
| Enterprise Value | 496.3 B | 521.2 B |
Walmart has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Dividend Yield 0.0099 | Forward Dividend Yield 0.0099 | Forward Dividend Rate 0.83 | Beta 0.516 |
Basic technical analysis of Walmart Stock
As of the 30th of November, Walmart maintains the Downside Deviation of 1.04, market risk adjusted performance of 3.15, and Mean Deviation of 0.8218. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Walmart, as well as the relationship between them.Walmart's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Walmart insiders, such as employees or executives, is commonly permitted as long as it does not rely on Walmart's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Walmart insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Christopher Nicholas over three months ago Disposition of tradable shares by Christopher Nicholas of Walmart at 76.03 subject to Rule 16b-3 | ||
Daniel Bartlett over three months ago Disposition of 755 shares by Daniel Bartlett of Walmart subject to Rule 16b-3 | ||
Walton Alice L over three months ago Disposition of 750000 shares by Walton Alice L of Walmart at 66.5224 subject to Rule 16b-3 | ||
Walton Jim C over three months ago Disposition of 40974 shares by Walton Jim C of Walmart at 66.7905 subject to Rule 16b-3 |
Walmart's Outstanding Corporate Bonds
Walmart issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Walmart uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Walmart bonds can be classified according to their maturity, which is the date when Walmart has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| WALMART INC 755 Corp BondUS931142BF98 | View | |
| WALMART INC 5875 Corp BondUS931142CH46 | View | |
| WALMART INC 525 Corp BondUS931142CB75 | View | |
| WALMART INC 62 Corp BondUS931142CM31 | View | |
| WALMART INC 65 Corp BondUS931142CK74 | View | |
| WALMART INC 5 Corp BondUS931142CY78 | View | |
| WALMART INC 4875 Corp BondUS931142CV30 | View |
Understand Walmart's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Walmart's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2225 | |||
| Market Risk Adjusted Performance | 3.15 | |||
| Mean Deviation | 0.8218 | |||
| Semi Deviation | 0.7195 | |||
| Downside Deviation | 1.04 | |||
| Coefficient Of Variation | 347.87 | |||
| Standard Deviation | 1.05 | |||
| Variance | 1.1 | |||
| Information Ratio | 0.1565 | |||
| Jensen Alpha | 0.2801 | |||
| Total Risk Alpha | 0.1166 | |||
| Sortino Ratio | 0.1587 | |||
| Treynor Ratio | 3.14 | |||
| Maximum Drawdown | 4.33 | |||
| Value At Risk | (1.27) | |||
| Potential Upside | 1.9 | |||
| Downside Variance | 1.07 | |||
| Semi Variance | 0.5177 | |||
| Expected Short fall | (0.97) | |||
| Skewness | (0.23) | |||
| Kurtosis | 0.3769 |
| Risk Adjusted Performance | 0.2225 | |||
| Market Risk Adjusted Performance | 3.15 | |||
| Mean Deviation | 0.8218 | |||
| Semi Deviation | 0.7195 | |||
| Downside Deviation | 1.04 | |||
| Coefficient Of Variation | 347.87 | |||
| Standard Deviation | 1.05 | |||
| Variance | 1.1 | |||
| Information Ratio | 0.1565 | |||
| Jensen Alpha | 0.2801 | |||
| Total Risk Alpha | 0.1166 | |||
| Sortino Ratio | 0.1587 | |||
| Treynor Ratio | 3.14 | |||
| Maximum Drawdown | 4.33 | |||
| Value At Risk | (1.27) | |||
| Potential Upside | 1.9 | |||
| Downside Variance | 1.07 | |||
| Semi Variance | 0.5177 | |||
| Expected Short fall | (0.97) | |||
| Skewness | (0.23) | |||
| Kurtosis | 0.3769 |
Consider Walmart's intraday indicators
Walmart intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Walmart stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Walmart Corporate Filings
F4 | 29th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 22nd of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 16th of September 2024 An amended filing to the original Schedule 13G | ViewVerify |
Walmart Stock media impact
Far too much social signal, news, headlines, and media speculation about Walmart that are available to investors today. That information is available publicly through Walmart media outlets and privately through word of mouth or via Walmart internal channels. However, regardless of the origin, that massive amount of Walmart data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Walmart news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Walmart relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Walmart's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Walmart alpha.
Walmart Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Walmart can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Walmart Historical Investor Sentiment
Investor biases related to Walmart's public news can be used to forecast risks associated with an investment in Walmart. The trend in average sentiment can be used to explain how an investor holding Walmart can time the market purely based on public headlines and social activities around Walmart. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Walmart's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Walmart and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Walmart news discussions. The higher the estimate score, the more favorable the investor's outlook on Walmart.
Walmart Corporate Directors
| Sarah Friar | Independent Director | Profile | |
| Randall Stephenson | Independent Director | Profile | |
| Steven Reinemund | Independent Director | Profile | |
| Cesar Conde | Independent Director | Profile |
Already Invested in Walmart?
The danger of trading Walmart is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Walmart is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Walmart. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Walmart is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Walmart Stock Analysis
When running Walmart's price analysis, check to measure Walmart's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walmart is operating at the current time. Most of Walmart's value examination focuses on studying past and present price action to predict the probability of Walmart's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Walmart's price. Additionally, you may evaluate how the addition of Walmart to your portfolios can decrease your overall portfolio volatility.