Wal-Mart Stores Inc (WMT) Stock Analysis

Market Cap	251.9 B	P/E(ttm)	15.20
Enterprise Value	297.67 B	P/B	3.33

Financial Strength : 7/10

		vs industry	vs history
Cash to Debt	0.144	WMT's Cash to Debt is ranked lower than 83% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 0.91 vs. WMT: 0.144 )	WMT' s 10-Year Cash to Debt Range Min: 0.08 Max: 0.2 Current: 0.14 0.08 0.2
Equity to Asset	0.275	WMT's Equity to Asset is ranked lower than 73% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 0.45 vs. WMT: 0.275 )	WMT' s 10-Year Equity to Asset Range Min: 0.23 Max: 0.42 Current: 0.28 0.23 0.42
Interest Coverage	13.5	WMT's Interest Coverage is ranked lower than 56% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 17.20 vs. WMT: 13.5 )	WMT' s 10-Year Interest Coverage Range Min: 7 Max: 18 Current: 13.5 7 18

F-Score: 5
Z-Score: 4.25
M-Score: -2.52

Profitability & Growth : 7/10

		vs industry	vs history
Operating margin (%)	5.90	WMT's Operating margin (%) is ranked higher than 77% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 3.10 vs. WMT: 5.90 )	WMT' s 10-Year Operating margin (%) Range Min: 4.8 Max: 6.1 Current: 5.9 4.8 6.1
Net-margin (%)	3.6	WMT's Net-margin (%) is ranked higher than 75% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 2.00 vs. WMT: 3.6 )	WMT' s 10-Year Net-margin (%) Range Min: 3 Max: 3.9 Current: 3.6 3 3.9
ROE (%)	22.3	WMT's ROE (%) is ranked higher than 89% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 7.30 vs. WMT: 22.3 )	WMT' s 10-Year ROE (%) Range Min: 18.3 Max: 23.9 Current: 22.3 18.3 23.9
ROA (%)	8.4	WMT's ROA (%) is ranked higher than 84% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 3.50 vs. WMT: 8.4 )	WMT' s 10-Year ROA (%) Range Min: 7.5 Max: 9.1 Current: 8.4 7.5 9.1
ROC (Joel Greenblatt) (%)	25.30	WMT's ROC (Joel Greenblatt) (%) is ranked higher than 62% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 18.20 vs. WMT: 25.30 )	WMT' s 10-Year ROC (Joel Greenblatt) (%) Range Min: 21.8 Max: 26.5 Current: 25.3 21.8 26.5
Revenue Growth (%)	7.1	WMT's Revenue Growth (%) is ranked higher than 87% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 0.00 vs. WMT: 7.1 )	WMT' s 10-Year Revenue Growth (%) Range Min: 5.4 Max: 12.4 Current: 7.1 5.4 12.4
EBITDA Growth (%)	7.5	WMT's EBITDA Growth (%) is ranked higher than 85% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 0.00 vs. WMT: 7.5 )	WMT' s 10-Year EBITDA Growth (%) Range Min: 6.5 Max: 16.2 Current: 7.5 6.5 16.2
EPS Growth (%)	7.9	WMT's EPS Growth (%) is ranked higher than 85% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 0.00 vs. WMT: 7.9 )	WMT' s 10-Year EPS Growth (%) Range Min: 6.1 Max: 12.8 Current: 7.9 6.1 12.8

» WMT's 10-Y Financials

Financials

Revenue & Net Income

Cash & Debt

Oprt. Cash Flow & Free Cash Flow

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Guru Trades

Q2 2012

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Q4 2012

Q1 2013

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Insider Trades

Latest Guru Trades with WMT

Select Gurus | Default List of Gurus | All Investors | Mutual Fund Gurus | Hedge Fund Gurus

Guru	Date	Trades	Impact to Portfolio	Price Range * (?)	Current Price	Change from Average	Current Shares
John Hussman	2013-03-31	Reduce -44.2%	0.71%	$68.23 - $74.85	$ 77.31	9%	502700
George Soros	2013-03-31	Reduce -34.4%	0.34%	$68.23 - $74.85	$ 77.31	9%	820000
Warren Buffett	2013-03-31	Add 3.68%	0.15%	$68.23 - $74.85	$ 77.31	9%	49247235
Joel Greenblatt	2013-03-31	Add 140.47%	0.04%	$68.23 - $74.85	$ 77.31	9%	15991
PRIMECAP Management	2013-03-31	Sold Out	0.04%	$68.23 - $74.85	$ 77.31	9%	0
Ray Dalio	2013-03-31	Reduce -41.08%	0.03%	$68.23 - $74.85	$ 77.31	9%	72004
George Soros	2012-12-31	Reduce -49.75%	1.49%	$67.61 - $77.15	$ 77.31	7%	1250000
Tweedy Browne	2012-12-31	Add 7.97%	0.18%	$67.61 - $77.15	$ 77.31	7%	1259653
Charles Brandes	2012-12-31	Sold Out	0.06%	$67.61 - $77.15	$ 77.31	7%	0
Joel Greenblatt	2012-12-31	Reduce -46.96%	0.03%	$67.61 - $77.15	$ 77.31	7%	6650
Ray Dalio	2012-12-31	Add 37.3%	0.02%	$67.61 - $77.15	$ 77.31	7%	122204
Arnold Van Den Berg	2012-09-30	Sold Out	2.5%	$69.72 - $75.13	$ 77.31	6%	0
George Soros	2012-09-30	Reduce -48.51%	2.38%	$69.72 - $75.13	$ 77.31	6%	2487719
Jean-Marie Eveillard	2012-09-30	Reduce -23.13%	0.19%	$69.72 - $75.13	$ 77.31	6%	2315548
Ray Dalio	2012-09-30	Reduce -34.75%	0.05%	$69.72 - $75.13	$ 77.31	6%	89004
Joel Greenblatt	2012-09-30	Add 184.18%	0.04%	$69.72 - $75.13	$ 77.31	6%	12538
George Soros	2012-06-30	New Buy	4.9%	$57.77 - $68.86	$ 77.31	23%	4831800
Arnold Van Den Berg	2012-06-30	Reduce -51.85%	2.28%	$57.77 - $68.86	$ 77.31	23%	377732
John Hussman	2012-06-30	Add 100000%	1.3%	$57.77 - $68.86	$ 77.31	23%	1001000
Wallace Weitz	2012-06-30	Sold Out	0.86%	$57.77 - $68.86	$ 77.31	23%	0
Dodge & Cox	2012-06-30	Reduce -28.34%	0.51%	$57.77 - $68.86	$ 77.31	23%	16441049
Ray Dalio	2012-06-30	Add 48.91%	0.05%	$57.77 - $68.86	$ 77.31	23%	136404
Richard Perry	2012-06-30	Sold Out	0.04%	$57.77 - $68.86	$ 77.31	23%	0
Charles Brandes	2012-06-30	Reduce -32.16%	0.02%	$57.77 - $68.86	$ 77.31	23%	82545

More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Wal-Mart Stores Inc

Steve Romick Comments on Walmart - Oct 30, 2012

Walmart: Walmart's earnings met or exceeded expectations in the last year a nd concerns about its ability to grow dissipated, triggering renewed investor interest in the company. Not much changed in Walmart's fundamentals, but the stock price and P/E 2 moved higher. With our investment having exceeded our return expectations and greater downside risk accompanying the higher stock price, we scaled back our stake. We'll use Walmart to illustrate how an investment can come full circle – from buy to sell. Our original thesis, laidout in our 2010 Q4 commentary, is reprinted below.

Walmart (WMT) seems anomalous in a world where stocks have rebounded so dramatically from the stock market's 2009 bottom. Walmart's stock averaged $48.59 in February 2009…. At that price, it traded at a TTM 3 and Forward P/E 4 of 14.5 and 13.0x, respectively. Walmart closed 2010 at $53.93 per share – more dear in price but cheaper in valuation – trading at a lower TTM and Forward P/E of 13.3 and 12.1x, respectively.

With more than 8,000 stores in 15 countries, in excess of 2 million employees, and more than 200 million customers each week, most everyone has heard of Walmart. And yet it seems relatively ignored by investors – a big change from a decade ago, when the market deemed its growth expansive enough to justify it trading ~40x earnings (both trailing forward). Investors may be disappointe d in its stock price over the last decade, but we don't feel there's much to complain about as far as its revenues and earnings growth go. Revenues grew at a 9.4% rate, while earnings per share compounded at 11.5%.

So where does that leave us, and how do you make money in a company that already has revenues exceeding $400billion and a market capitalization approaching $200 billion? We now feel that Walmart has grown its way (via earnings) into its stock price. We view Walmart as an infinite duration bond with a rising coupon – a "bond -like equity." We believe Walmart can grow at an acceptable rate well into the future and that the company will pay a fair dividend, as well as opportunistically repurchase shares, which should provide a high single-digit to low double- digit total return over time – not bad in the context of low single-digit interest rates.

We do not know if the above scenario will play out as exhibited, but we take comfort in the following:

Revenues have grown 5%, 8% and 9% in the last 3, 5, and 10 years, respectively. More than 25% of Walmart's sales come from overseas, and we expect foreign economies to continue to grow better than our own.
After dividends and share repurchases, we expect there to be additional free cash flow that will be used to drive the top line.
 Operating margins are unusually stable, ranging between 5.6% and 6.1% over the past decade. Walmart has exhibited tremendous margin stability, in part due to their stated goal of delivering cost savings to their customers in the form of lower prices. By not taking price into margin, we expect they will be able to pass through price increases in an inflationary environment – an advantage vis-à-vis competitors that keep efficiencies for themselves.We also note that extremely high inflation would hurt unit sales.
 Shares outstanding have declined by an average 2.2% per year since 2001 and have accelerated in recent years. In the first nine months of 2010, shares outstanding declined by 5.4%.
 The dividend payout ratio has increased in each of the last 10 years, from 17% in 2001 to 29% today.
 Incremental returns on capital have been quite good as management proudly exhibited in the company's most recent 10-Q. 6 Return on investment for the trailing twelve month period, adjusted to include rent, increased from 18.4%to 18.6%, and return on assets increased from 8.2% to 8.8%.

We continued to build our position in Walmart into the early fall of 2011. The stock price declined, reflecting a weak stock market, fears of dollar store competition at the low end, and concerns that Walmart's customers were among the hardest hit by the continued economic weakness. Ultimately, Walmart became a 3.8% 7 position because we believed the company was an excellent "compounder" as we communicated at the end of 2010. Since then, its business has continued to perform as expected, but its stock price has increased ~50% – a significant jump for the largest retailer in the world and a company with a market value now ~$250 billion.

In the last year, operating income has grown 5.7% and the company has repurchased 2.6% of their shares,allowing earnings per share to increase 7.5%. In addition, the company has paid dividends that provided a 3.0% dividend yield on the 2011 Q3 ending price. The sum of these metrics fell into the range of expectations listed in the table included in our 2010 Q4 commentary. Our original estimate of a 9% to 14%compounded return did not include P/E expansion (or contraction). A higher P/E was always the free option, and that option ended up in the money, with Walmart's forward P/E increasing from 11.8x to 14.9xtoday. 8 However, with a higher P/E comes greater risk of multiple contraction, and we therefore believe it's prudent to maintain a smaller position. Walmart is now just 1.6% of Crescent's portfolio. 9

From Steve Romick's third quarter commentary.
Check out Steven Romick latest stock trades

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» More Articles for WMT

		vs industry	vs history
P/E(ttm)	15.20	WMT's P/E(ttm) is ranked higher than 58% of the 227 Companies in the Global Discount Stores industry. ( Industry Median: 16.60 vs. WMT: 15.20 )	WMT' s 10-Year P/E(ttm) Range Min: 10.56 Max: 57.08 Current: 15.2 10.56 57.08
P/B	3.33	WMT's P/B is ranked lower than 82% of the 253 Companies in the Global Discount Stores industry. ( Industry Median: 1.29 vs. WMT: 3.33 )	WMT' s 10-Year P/B Range Min: 2.55 Max: 11.87 Current: 3.33 2.55 11.87
P/S	0.55	WMT's P/S is ranked lower than 66% of the 262 Companies in the Global Discount Stores industry. ( Industry Median: 0.40 vs. WMT: 0.55 )	WMT' s 10-Year P/S Range Min: 0.41 Max: 1.86 Current: 0.55 0.41 1.86
PFCF	22.47	WMT's PFCF is ranked lower than 58% of the 191 Companies in the Global Discount Stores industry. ( Industry Median: 17.77 vs. WMT: 22.47 )	WMT' s 10-Year PFCF Range Min: 12.6 Max: 1088.76 Current: 22.47 12.6 1088.76
EV-to-EBIT	10.68	WMT's EV-to-EBIT is ranked higher than 55% of the 238 Companies in the Global Discount Stores industry. ( Industry Median: 11.84 vs. WMT: 10.68 )	WMT' s 10-Year EV-to-EBIT Range Min: 8.6 Max: 39.3 Current: 10.68 8.6 39.3
PEG	1.55	WMT's PEG is ranked higher than 62% of the 84 Companies in the Global Discount Stores industry. ( Industry Median: 2.10 vs. WMT: 1.55 )	WMT' s 10-Year PEG Range Min: 1.09 Max: 57.11 Current: 1.55 1.09 57.11
Shiller P/E	17.76	WMT's Shiller P/E is ranked lower than 100% of the Companies in the Global Discount Stores industry. ( Industry Median: vs. WMT: 17.76 )	WMT' s 10-Year Shiller P/E Range Min: 13.52 Max: 38.13 Current: 17.76 13.52 38.13

		vs industry	vs history
Dividend Yield	2.24	WMT's Dividend Yield is ranked higher than 72% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 1.40 vs. WMT: 2.24 )	WMT' s 10-Year Dividend Yield Range Min: 0.29 Max: 2.69 Current: 2.24 0.29 2.69
Dividend Payout	0.3	WMT's Dividend Payout is ranked lower than 51% of the 169 Companies in the Global Discount Stores industry. ( Industry Median: 0.32 vs. WMT: 0.3 )	WMT' s 10-Year Dividend Payout Range Min: 0.16 Max: 0.32 Current: 0.3 0.16 0.32
Dividend growth (3y)	9.9	WMT's Dividend growth (3y) is ranked higher than 91% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 0.00 vs. WMT: 9.9 )	WMT' s 10-Year Dividend growth (3y) Range Min: 8.3 Max: 18.9 Current: 9.9 8.3 18.9
Yield on cost (5-Year)	4.45	WMT's Yield on cost (5-Year) is ranked higher than 87% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 1.52 vs. WMT: 4.45 )	WMT' s 10-Year Yield on cost (5-Year) Range Min: 0.56 Max: 5.2 Current: 4.45 0.56 5.2
Share Buyback Rate	3.3	WMT's Share Buyback Rate is ranked higher than 97% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 0.00 vs. WMT: 3.3 )	WMT' s 10-Year Share Buyback Rate Range Min: 3.3 Max: 0 Current: 3.3

		vs industry	vs history
Price/Net Current Asset Value	9.4	WMT's Price/Net Current Asset Value is ranked lower than 57% of the 230 Companies in the Global Discount Stores industry. ( Industry Median: 8.00 vs. WMT: 9.4 )	WMT' s 10-Year Price/Net Current Asset Value Range Min: 8.6 Max: 22.5 Current: 9.4 8.6 22.5
Price/Tangible Book	4.5	WMT's Price/Tangible Book is ranked lower than 81% of the 236 Companies in the Global Discount Stores industry. ( Industry Median: 1.50 vs. WMT: 4.5 )	WMT' s 10-Year Price/Tangible Book Range Min: 3.7 Max: 14.9 Current: 4.5 3.7 14.9
Price/DCF (Projected)	1.3	WMT's Price/DCF (Projected) is ranked lower than 51% of the 84 Companies in the Global Discount Stores industry. ( Industry Median: 1.30 vs. WMT: 1.3 )	WMT' s 10-Year Price/DCF (Projected) Range Min: 1.2 Max: 2.9 Current: 1.3 1.2 2.9
Price/Median PS Value	0.9	WMT's Price/Median PS Value is ranked higher than 72% of the 256 Companies in the Global Discount Stores industry. ( Industry Median: 1.10 vs. WMT: 0.9 )	WMT' s 10-Year Price/Median PS Value Range Min: 0.8 Max: 2.5 Current: 0.9 0.8 2.5
Price/Peter Lynch Fair Value	1.5	WMT's Price/Peter Lynch Fair Value is ranked lower than 57% of the 47 Companies in the Global Discount Stores industry. ( Industry Median: 1.50 vs. WMT: 1.5 )	WMT' s 10-Year Price/Peter Lynch Fair Value Range Min: 1.2 Max: 7.6 Current: 1.5 1.2 7.6
Price/Graham Number	1.7	WMT's Price/Graham Number is ranked lower than 67% of the 217 Companies in the Global Discount Stores industry. ( Industry Median: 1.20 vs. WMT: 1.7 )	WMT' s 10-Year Price/Graham Number Range Min: 1.5 Max: 5.4 Current: 1.7 1.5 5.4
Earnings Yield (Greenblatt)	9.40	WMT's Earnings Yield (Greenblatt) is ranked higher than 59% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 8.00 vs. WMT: 9.40 )	WMT' s 10-Year Earnings Yield (Greenblatt) Range Min: 2.5 Max: 11.6 Current: 9.4 2.5 11.6
Forward Rate of Return (Yacktman)	13.16	WMT's Forward Rate of Return (Yacktman) is ranked higher than 87% of the 264 Companies in the Global Discount Stores industry. ( Industry Median: 0.00 vs. WMT: 13.16 )	WMT' s 10-Year Forward Rate of Return (Yacktman) Range Min: 1.4 Max: 20.1 Current: 13.16 1.4 20.1

Industry:	Discount Stores
Compare:	WMMVY, DG, FDO, DLTR, COST
Traded in other countries:	WMT.Germany

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Financial Strength : 7/10

Profitability & Growth : 7/10

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WMT Guru Trades in Q2 2012

WMT Guru Trades in Q3 2012

WMT Guru Trades in Q4 2012

WMT Guru Trades in Q1 2013

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Latest Guru Trades with WMT

Guru Investment Theses on Wal-Mart Stores Inc

Steve Romick Comments on Walmart - Oct 30, 2012

Top Ranked Articles about Wal-Mart Stores Inc

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