Company Overview
Walmart Inc is a leading player in the retail industry, operating globally with a significant presence in the United States. The company generates revenue primarily through its extensive network of retail stores and e-commerce platforms. Known for its wide range of products, including groceries, apparel, and electronics, Walmart serves millions of customers worldwide. With a market capitalization of approximately $1,028 billion, Walmart is a dominant force in retail, but the competitive landscape remains dynamic.
Analysis of recent data
FundamentalsWalmart's recent financial performance shows stability with a revenue of $674.54 billion (usd) for the year ending January 31, 2025. The company's EBIT was $29.35 billion (usd), and it achieved a net income of $20.16 billion (usd).
Revenue growth year-over-year was 4.96%, indicating steady expansion. The gross margin of 24.93% and operating margin of 4.18% suggest that Walmart maintains efficiency in its operations.
The company's ROE of 23.69% reflects strong profitability and efficient use of equity. However, cash flow specifics are not provided, leaving some uncertainty regarding cash generation.
Valuation
DCF / MultiplesThe current stock price of $124.42 is compared against a DCF fair value range. The bear scenario estimates a fair value of $67.90, the base case at $99.96, and the bull case at $137.50.
The price is within the bull scenario, indicating that the market may be pricing in optimistic growth or margin improvements. The high PE ratio implies that investors expect continued robust performance or improvement in key financial metrics.
Conclusion
TakeawayToday, Walmart appears to be priced on the higher side of its fair value range. The market seems to be expecting strong growth or margin improvements. The biggest risk is if these expectations are not met, which could lead to a price adjustment.