Walmart Stores Nears Its Historical Low P/S Ratio

Company's P/S ratio of 0.47 is close to 10-year low of 0.38

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Jun 23, 2016
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Walmart Stores Inc. (WMT, Financial) is trading at a P/S ratio of 0.47, close to its 10-year low of 0.38. The company is owned by 32 gurus.

Walmart has a market cap of $224.49 billion; its shares were traded around $72.03 with a P/E ratio of 15.89 and P/S ratio of 0.47. Walmart's trailing 12-month dividend yield is 2.75%. The forward dividend yield is 2.79%. Walmart had an annual average earnings growth of 7.20% over the past 10 years. GuruFocus rated Walmart the business predictability rank of 3.5-star.

Walmart's stock price has increased over the past 10 years. This is most likely due to the company’s growing revenue and gross profit.

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Walmart's business strategy includes selling products at discounted prices and giving its customers a great experience. The company also provides online websites and mobile applications to compete with ecommerce businesses.

Walmart Stores includes Walmart and Sam’s Club. Walmart operates in all 50 states and also in several other countries. Walmart competes with local, national and international discount, grocery, department, ecommerce, etc., businesses. Sam’s Club also operates physically and digitally and competes primarily with other wholesale businesses such as Costco (COST, Financial) Wholesale and BJ’s Wholesale Club.

GuruFocus has found one severe warning sign for Walmart:

  • Declining operating margin.

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Recent trades

Joel Greenblatt (Trades, Portfolio) increased his position in Walmart Stores. He owns 434,643 shares. Barrow, Hanley, Mewhinney & Strauss, Dodge & Cox, First Eagle Investment (Trades, Portfolio), Ruane Cunniff, Donald Yacktman (Trades, Portfolio), Bill Gates (Trades, Portfolio), Warren Buffett (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Yacktman Fund (Trades, Portfolio), Yacktman Focused Fund (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), HOTCHKIS & WILEY and John Rogers (Trades, Portfolio) all kept their positions in the company unchanged. David Dreman (Trades, Portfolio) and George Soros (Trades, Portfolio) both sold out their holdings in Walmart.

Senior Vice President Steven P. Whaley sold 3,000 shares on March 1 at the price of $66.39. EVP Rollin L. Ford sold 740 shares on Feb. 25 at the average price of $67.65.

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