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Also traded in: Argentina, Austria, Brazil, Chile, Germany, Mexico, Peru, Switzerland, UK

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash-to-Debt 0.14
NYSE:WMT's Cash-to-Debt is ranked lower than
78% of the 364 Companies
in the Global Discount Stores industry.

( Industry Median: 0.53 vs. NYSE:WMT: 0.14 )
Ranked among companies with meaningful Cash-to-Debt only.
NYSE:WMT' s Cash-to-Debt Range Over the Past 10 Years
Min: 0  Med: 0.12 Max: 0.21
Current: 0.14
0
0.21
Equity-to-Asset 0.38
NYSE:WMT's Equity-to-Asset is ranked lower than
61% of the 359 Companies
in the Global Discount Stores industry.

( Industry Median: 0.42 vs. NYSE:WMT: 0.38 )
Ranked among companies with meaningful Equity-to-Asset only.
NYSE:WMT' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.34  Med: 0.39 Max: 0.48
Current: 0.38
0.34
0.48
Debt-to-Equity 0.62
NYSE:WMT's Debt-to-Equity is ranked lower than
56% of the 308 Companies
in the Global Discount Stores industry.

( Industry Median: 0.52 vs. NYSE:WMT: 0.62 )
Ranked among companies with meaningful Debt-to-Equity only.
NYSE:WMT' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.37  Med: 0.69 Max: 1.33
Current: 0.62
0.37
1.33
Interest Coverage 9.37
NYSE:WMT's Interest Coverage is ranked lower than
67% of the 328 Companies
in the Global Discount Stores industry.

( Industry Median: 19.81 vs. NYSE:WMT: 9.37 )
Ranked among companies with meaningful Interest Coverage only.
NYSE:WMT' s Interest Coverage Range Over the Past 10 Years
Min: 9.37  Med: 11.23 Max: 12.33
Current: 9.37
9.37
12.33
Piotroski F-Score: 7
Altman Z-Score: 4.43
Beneish M-Score: -2.73
WACC vs ROIC
2.66%
12.97%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating Margin % 4.60
NYSE:WMT's Operating Margin % is ranked higher than
66% of the 364 Companies
in the Global Discount Stores industry.

( Industry Median: 2.88 vs. NYSE:WMT: 4.60 )
Ranked among companies with meaningful Operating Margin % only.
NYSE:WMT' s Operating Margin % Range Over the Past 10 Years
Min: 4.6  Med: 5.72 Max: 6.05
Current: 4.6
4.6
6.05
Net Margin % 2.60
NYSE:WMT's Net Margin % is ranked higher than
62% of the 365 Companies
in the Global Discount Stores industry.

( Industry Median: 1.94 vs. NYSE:WMT: 2.60 )
Ranked among companies with meaningful Net Margin % only.
NYSE:WMT' s Net Margin % Range Over the Past 10 Years
Min: 2.6  Med: 3.37 Max: 3.89
Current: 2.6
2.6
3.89
ROE % 16.66
NYSE:WMT's ROE % is ranked higher than
81% of the 357 Companies
in the Global Discount Stores industry.

( Industry Median: 8.73 vs. NYSE:WMT: 16.66 )
Ranked among companies with meaningful ROE % only.
NYSE:WMT' s ROE % Range Over the Past 10 Years
Min: 16.66  Med: 20.88 Max: 23.58
Current: 16.66
16.66
23.58
ROA % 6.33
NYSE:WMT's ROA % is ranked higher than
77% of the 368 Companies
in the Global Discount Stores industry.

( Industry Median: 3.40 vs. NYSE:WMT: 6.33 )
Ranked among companies with meaningful ROA % only.
NYSE:WMT' s ROA % Range Over the Past 10 Years
Min: 6.33  Med: 8.14 Max: 9.34
Current: 6.33
6.33
9.34
ROC (Joel Greenblatt) % 19.04
NYSE:WMT's ROC (Joel Greenblatt) % is ranked higher than
62% of the 365 Companies
in the Global Discount Stores industry.

( Industry Median: 14.30 vs. NYSE:WMT: 19.04 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
NYSE:WMT' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 19.04  Med: 24.3 Max: 24.5
Current: 19.04
19.04
24.5
3-Year Revenue Growth Rate 2.50
NYSE:WMT's 3-Year Revenue Growth Rate is ranked lower than
60% of the 331 Companies
in the Global Discount Stores industry.

( Industry Median: 4.10 vs. NYSE:WMT: 2.50 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
NYSE:WMT' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: 2.5  Med: 12.7 Max: 28.6
Current: 2.5
2.5
28.6
3-Year EBITDA Growth Rate -1.00
NYSE:WMT's 3-Year EBITDA Growth Rate is ranked lower than
68% of the 299 Companies
in the Global Discount Stores industry.

( Industry Median: 6.70 vs. NYSE:WMT: -1.00 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
NYSE:WMT' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -1  Med: 12.3 Max: 24.6
Current: -1
-1
24.6
3-Year EPS without NRI Growth Rate -3.30
NYSE:WMT's 3-Year EPS without NRI Growth Rate is ranked lower than
71% of the 265 Companies
in the Global Discount Stores industry.

( Industry Median: 7.60 vs. NYSE:WMT: -3.30 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
NYSE:WMT' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -3.3  Med: 12.9 Max: 27.5
Current: -3.3
-3.3
27.5
GuruFocus has detected 4 Warning Signs with Wal-Mart Stores Inc $NYSE:WMT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» NYSE:WMT's 30-Y Financials

Financials (Next Earnings Date: 2017-11-17 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q3 2016

WMT Guru Trades in Q3 2016

Paul Tudor Jones 39,093 sh (New)
Ray Dalio 90,100 sh (New)
John Hussman 102,000 sh (+5000.00%)
Jim Simons 2,794,500 sh (+300.88%)
Steven Cohen 100,000 sh (+100.00%)
Joel Greenblatt 623,713 sh (+29.94%)
Ken Fisher 5,051,125 sh (+2.44%)
Pioneer Investments 447,283 sh (+1.34%)
David Dreman 12,240 sh (unchged)
T Rowe Price Equity Income Fund 2,790,800 sh (unchged)
Bill Gates 11,603,000 sh (unchged)
Caxton Associates 15,000 sh (unchged)
Manning & Napier Advisors, Inc 329,265 sh (-1.09%)
John Buckingham 77,659 sh (-1.27%)
Jeff Auxier 89,067 sh (-2.09%)
Richard Pzena 5,216,832 sh (-2.83%)
HOTCHKIS & WILEY 2,829,847 sh (-3.37%)
Mario Gabelli 65,700 sh (-4.89%)
Charles Brandes 111,890 sh (-5.14%)
Barrow, Hanley, Mewhinney & Strauss 4,392,193 sh (-5.54%)
Richard Snow 607,722 sh (-8.36%)
Donald Yacktman 1,096,927 sh (-9.32%)
Yacktman Fund 800,000 sh (-11.11%)
Tom Russo 22,775 sh (-14.62%)
Tweedy Browne 263,389 sh (-14.80%)
Dodge & Cox 22,893,958 sh (-18.90%)
Mairs and Power 5,157 sh (-26.72%)
Ruane Cunniff 895,823 sh (-46.23%)
First Eagle Investment 1,137,416 sh (-56.37%)
Warren Buffett 12,971,574 sh (-67.75%)
Jeremy Grantham 274,141 sh (-70.16%)
NWQ Managers 56,997 sh (-88.55%)
» More
Q4 2016

WMT Guru Trades in Q4 2016

Ray Dalio 206,400 sh (+129.08%)
Jeremy Grantham 426,830 sh (+55.70%)
Jim Simons 3,959,100 sh (+41.67%)
Manning & Napier Advisors, Inc 358,045 sh (+8.74%)
Charles Brandes 117,486 sh (+5.00%)
Mairs and Power 5,345 sh (+3.65%)
Ken Fisher 5,143,509 sh (+1.83%)
Pioneer Investments 449,316 sh (+0.45%)
Bill Gates 11,603,000 sh (unchged)
Yacktman Fund 800,000 sh (unchged)
Caxton Associates 150,000 sh (unchged)
Ruane Cunniff Sold Out
Steven Cohen Sold Out
NWQ Managers 56,942 sh (-0.10%)
T Rowe Price Equity Income Fund 2,785,000 sh (-0.21%)
Barrow, Hanley, Mewhinney & Strauss 4,366,002 sh (-0.60%)
Tweedy Browne 260,025 sh (-1.28%)
John Buckingham 76,578 sh (-1.39%)
Donald Yacktman 1,069,740 sh (-2.48%)
HOTCHKIS & WILEY 2,735,147 sh (-3.35%)
Jeff Auxier 85,517 sh (-3.99%)
Dodge & Cox 21,758,126 sh (-4.96%)
Richard Pzena 4,955,044 sh (-5.02%)
Joel Greenblatt 590,537 sh (-5.32%)
Richard Snow 544,087 sh (-10.47%)
Mario Gabelli 57,450 sh (-12.56%)
Tom Russo 14,725 sh (-35.35%)
Paul Tudor Jones 5,600 sh (-85.68%)
Warren Buffett 1,393,513 sh (-89.26%)
David Dreman 615 sh (-94.98%)
John Hussman 1,800 sh (-98.24%)
First Eagle Investment 7,686 sh (-99.32%)
» More
Q1 2017

WMT Guru Trades in Q1 2017

George Soros 4,100 sh (New)
John Hussman 51,800 sh (+2777.78%)
Jeremy Grantham 622,436 sh (+45.83%)
Charles Brandes 167,292 sh (+42.39%)
Jim Simons 5,043,400 sh (+27.39%)
Manning & Napier Advisors, Inc 378,818 sh (+5.80%)
Joel Greenblatt 611,395 sh (+3.53%)
Richard Pzena 5,115,038 sh (+3.23%)
Ken Fisher 5,308,983 sh (+3.22%)
T Rowe Price Equity Income Fund 2,850,000 sh (+2.33%)
Mairs and Power 5,445 sh (+1.87%)
HOTCHKIS & WILEY 2,766,434 sh (+1.14%)
Jeff Auxier 86,192 sh (+0.79%)
John Buckingham 76,875 sh (+0.39%)
Warren Buffett 1,393,513 sh (unchged)
First Eagle Investment 7,686 sh (unchged)
NWQ Managers 56,942 sh (unchged)
Bill Gates 11,603,000 sh (unchged)
Yacktman Fund 800,000 sh (unchged)
David Dreman Sold Out
Richard Snow Sold Out
Paul Tudor Jones Sold Out
Donald Yacktman 1,066,947 sh (-0.26%)
Pioneer Investments 443,622 sh (-1.27%)
Dodge & Cox 21,385,083 sh (-1.71%)
Tweedy Browne 255,015 sh (-1.93%)
Barrow, Hanley, Mewhinney & Strauss 3,953,806 sh (-9.44%)
Mario Gabelli 47,450 sh (-17.41%)
Tom Russo 10,019 sh (-31.96%)
Ray Dalio 81,964 sh (-60.29%)
» More
Q2 2017

WMT Guru Trades in Q2 2017

Louis Moore Bacon 555,000 sh (New)
Steven Cohen 970,900 sh (New)
Ken Fisher 5,853,675 sh (+10.26%)
Joel Greenblatt 649,563 sh (+6.24%)
Manning & Napier Advisors, Inc 394,033 sh (+4.02%)
John Buckingham 79,612 sh (+3.56%)
Mairs and Power 5,496 sh (+0.94%)
Jim Simons 5,063,100 sh (+0.39%)
Richard Pzena 5,134,336 sh (+0.38%)
Yacktman Fund 800,000 sh (unchged)
Pioneer Investments 443,622 sh (unchged)
Mario Gabelli 47,450 sh (unchged)
First Eagle Investment 7,686 sh (unchged)
Jeremy Grantham 622,436 sh (unchged)
Tom Russo 10,019 sh (unchged)
NWQ Managers 56,942 sh (unchged)
Warren Buffett 1,393,513 sh (unchged)
Steven Cohen 1,250,000 sh (unchged)
George Soros 4,100 sh (unchged)
Bill Gates 11,603,000 sh (unchged)
Ray Dalio Sold Out
Tweedy Browne Sold Out
T Rowe Price Equity Income Fund 2,846,400 sh (-0.13%)
John Hussman 51,700 sh (-0.19%)
Charles Brandes 166,842 sh (-0.27%)
Dodge & Cox 21,249,526 sh (-0.63%)
Donald Yacktman 1,055,470 sh (-1.08%)
HOTCHKIS & WILEY 2,553,534 sh (-7.70%)
Barrow, Hanley, Mewhinney & Strauss 3,427,471 sh (-13.31%)
Jeff Auxier 63,092 sh (-26.80%)
» More
» Details

Insider Trades

Latest Guru Trades with WMT

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Dodge & Cox 2017-06-30 Reduce -0.63%0.01%$71.43 - $80.26 $ 80.506%21,249,526
Ken Fisher 2017-06-30 Add 10.26%0.07%$71.43 - $80.26 $ 80.506%5,853,675
Richard Pzena 2017-06-30 Add 0.38%0.01%$71.43 - $80.26 $ 80.506%5,134,336
Barrow, Hanley, Mewhinney & Strauss 2017-06-30 Reduce -13.31%0.06%$71.43 - $80.26 $ 80.506%3,427,471
T Rowe Price Equity Income Fund 2017-06-30 Reduce -0.13%$71.43 - $80.26 $ 80.506%2,846,400
HOTCHKIS & WILEY 2017-06-30 Reduce -7.70%0.06%$71.43 - $80.26 $ 80.506%2,553,534
Donald Yacktman 2017-06-30 Reduce -1.08%0.01%$71.43 - $80.26 $ 80.506%1,055,470
Joel Greenblatt 2017-06-30 Add 6.24%0.04%$71.43 - $80.26 $ 80.506%649,563
Charles Brandes 2017-06-30 Reduce -0.27%$71.43 - $80.26 $ 80.506%166,842
Tweedy Browne 2017-06-30 Sold Out 0.53%$71.43 - $80.26 $ 80.506%0
Dodge & Cox 2017-03-31 Reduce -1.71%0.02%$65.66 - $72.39 $ 80.5017%21,385,083
Ken Fisher 2017-03-31 Add 3.22%0.02%$65.66 - $72.39 $ 80.5017%5,308,983
Richard Pzena 2017-03-31 Add 3.23%0.07%$65.66 - $72.39 $ 80.5017%5,115,038
Barrow, Hanley, Mewhinney & Strauss 2017-03-31 Reduce -9.44%0.04%$65.66 - $72.39 $ 80.5017%3,953,806
T Rowe Price Equity Income Fund 2017-03-31 Add 2.33%0.02%$65.66 - $72.39 $ 80.5017%2,850,000
HOTCHKIS & WILEY 2017-03-31 Add 1.14%0.01%$65.66 - $72.39 $ 80.5017%2,766,434
Donald Yacktman 2017-03-31 Reduce -0.26%$65.66 - $72.39 $ 80.5017%1,066,947
Joel Greenblatt 2017-03-31 Add 3.53%0.02%$65.66 - $72.39 $ 80.5017%611,395
Tweedy Browne 2017-03-31 Reduce -1.93%0.01%$65.66 - $72.39 $ 80.5017%255,015
Charles Brandes 2017-03-31 Add 42.39%0.05%$65.66 - $72.39 $ 80.5017%167,292
Mario Gabelli 2017-03-31 Reduce -17.41%0.01%$65.66 - $72.39 $ 80.5017%47,450
George Soros 2017-03-31 New Buy0.01%$65.66 - $72.39 $ 80.5017%4,100
David Dreman 2017-03-31 Sold Out 0.02%$65.66 - $72.39 $ 80.5017%0
Dodge & Cox 2016-12-31 Reduce -4.96%0.08%$67.39 - $72.01 $ 80.5015%21,758,126
Ken Fisher 2016-12-31 Add 1.83%0.01%$67.39 - $72.01 $ 80.5015%5,143,509
Richard Pzena 2016-12-31 Reduce -5.02%0.12%$67.39 - $72.01 $ 80.5015%4,955,044
Barrow, Hanley, Mewhinney & Strauss 2016-12-31 Reduce -0.60%$67.39 - $72.01 $ 80.5015%4,366,002
T Rowe Price Equity Income Fund 2016-12-31 Reduce -0.21%$67.39 - $72.01 $ 80.5015%2,785,000
HOTCHKIS & WILEY 2016-12-31 Reduce -3.35%0.03%$67.39 - $72.01 $ 80.5015%2,735,147
Warren Buffett 2016-12-31 Reduce -89.26%0.65%$67.39 - $72.01 $ 80.5015%1,393,513
Donald Yacktman 2016-12-31 Reduce -2.48%0.02%$67.39 - $72.01 $ 80.5015%1,069,740
Joel Greenblatt 2016-12-31 Reduce -5.32%0.03%$67.39 - $72.01 $ 80.5015%590,537
Tweedy Browne 2016-12-31 Reduce -1.28%0.01%$67.39 - $72.01 $ 80.5015%260,025
Charles Brandes 2016-12-31 Add 5.00%0.01%$67.39 - $72.01 $ 80.5015%117,486
Mario Gabelli 2016-12-31 Reduce -12.56%$67.39 - $72.01 $ 80.5015%57,450
NWQ Managers 2016-12-31 Reduce -0.10%$67.39 - $72.01 $ 80.5015%56,942
First Eagle Investment 2016-12-31 Reduce -99.32%0.21%$67.39 - $72.01 $ 80.5015%7,686
David Dreman 2016-12-31 Reduce -94.98%0.51%$67.39 - $72.01 $ 80.5015%615
Ruane Cunniff 2016-12-31 Sold Out 0.61%$67.39 - $72.01 $ 80.5015%0
Dodge & Cox 2016-09-30 Reduce -18.90%0.39%$70.3 - $74.3 $ 80.5011%22,893,958
Warren Buffett 2016-09-30 Reduce -67.75%1.53%$70.3 - $74.3 $ 80.5011%12,971,574
Richard Pzena 2016-09-30 Reduce -2.83%0.07%$70.3 - $74.3 $ 80.5011%5,216,832
Ken Fisher 2016-09-30 Add 2.44%0.02%$70.3 - $74.3 $ 80.5011%5,051,125
Barrow, Hanley, Mewhinney & Strauss 2016-09-30 Reduce -5.54%0.03%$70.3 - $74.3 $ 80.5011%4,392,193
HOTCHKIS & WILEY 2016-09-30 Reduce -3.37%0.03%$70.3 - $74.3 $ 80.5011%2,829,847
First Eagle Investment 2016-09-30 Reduce -56.37%0.28%$70.3 - $74.3 $ 80.5011%1,137,416
Donald Yacktman 2016-09-30 Reduce -9.32%0.07%$70.3 - $74.3 $ 80.5011%1,096,927
Ruane Cunniff 2016-09-30 Reduce -46.23%0.54%$70.3 - $74.3 $ 80.5011%895,823
Yacktman Fund 2016-09-30 Reduce -11.11%0.1%$70.3 - $74.3 $ 80.5011%800,000
Joel Greenblatt 2016-09-30 Add 29.94%0.14%$70.3 - $74.3 $ 80.5011%623,713
Tweedy Browne 2016-09-30 Reduce -14.80%0.09%$70.3 - $74.3 $ 80.5011%263,389
Charles Brandes 2016-09-30 Reduce -5.14%0.01%$70.3 - $74.3 $ 80.5011%111,890
Mario Gabelli 2016-09-30 Reduce -4.89%$70.3 - $74.3 $ 80.5011%65,700
NWQ Managers 2016-09-30 Reduce -88.55%0.55%$70.3 - $74.3 $ 80.5011%56,997
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Business Description

Industry: Retail - Defensive » Discount Stores    NAICS: 452112    SIC: 5331
Compare:NAS:COST, NYSE:TGT, NYSE:DG, NAS:DLTR, NYSE:BURL, NAS:OLLI, NAS:PSMT, NYSE:BIG, NAS:FRED, NAS:TUES, OTCPK:SSOK » details
Traded in other countries:WMT.Argentina, WMT.Austria, WALM34.Brazil, WMT.Chile, WMT.Germany, WMT.Mexico, WMT.Peru, WMT.Switzerland, 0R1W.UK,
Headquarter Location:USA
Wal-Mart Stores Inc operates retail stores in various formats under various banners. Its operations comprise of three reportable business segments, Walmart U.S., Walmart International and Sam's Club in three categories retail, wholesale and others.

Wal-Mart is the largest retailer in the world with around $490 billion in annual revenue and about 11,700 stores (including supercenters, wholesale warehouse clubs, and small-format stores). The firm is also expanding into the e-commerce realm (as evidenced by its recent acquisition of Jet.com), but sales through this channel represent less than 5% of its total. Groceries and consumables account for roughly half of sales, with the remainder from general merchandise, including fuel, hardlines, apparel, entertainment, and home goods.

Guru Investment Theses on Wal-Mart Stores Inc

Ruane Cunniff Comments on Walmart - Oct 13, 2016

We reduced our holding in Walmart (NYSE:WMT) during the quarter, and exited the stock in early October. Over our 11-year holding period, Walmart generated a positive total shareholder return but modestly underperformed the S&P 500 Index. Walmart remains a formidable company, but over the past decade its dominance has waned. International expansion has never generated good returns for shareholders, while Walmart has struggled to develop a winning e-commerce strategy. We think higher wages for its entry level workers, continued growth at Amazon and the need to invest heavily in e-commerce will put pressure on Walmart’s earnings over the next few years.

From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund third quarter 2016 letter to shareholders.

Check out Ruane Cunniff latest stock trades

Walmart and the Importance of Capacity to Reinvest - Oct 08, 2015

Walmart (NYSE:WMT) is owned by many value investors, or at least has been on many value investor’s target list. I’ve followed Walmart, studied the history of the business as well as the stock and admired Sam Walton for what he achieved. At this point, while the stock looks cheap, it lacks one important characteristic of a compounding machine – capacity to reinvest. In my previous article, I posted my notes on Chuck Akre (Trades, Portfolio)’s interview on Wealth Track where he talked about what he calls the compounding machines. When answering the question of why not favor dividends-paying companies, Akre offered the following insight:



“Our goal is to compound our capital. There is no free lunch. Management only has three to four choices to do with all the free cash they generate. They can pay dividends, they can buy back stocks, they can invest back in the business or they can acquire other business. In order to compound their capital, the most efficient way is to invest in their own business or other businesses where they earn above average rate of return. If they pay dividends, they no longer have the dividend to do that. So it’s a marginally less efficient way for us to compound our capital.”



He then talked about the requirements of a great business:



“The requirement for a great business for us has three components. First of all, we spend a lot of time trying to understand what’s causing this above average rate of return to occur. Is it getting better or worse? Secondly, we want to see a shareholder friendly management. Lastly, we look for a history of reinvesting the free cash flow as well as the opportunities to reinvest the free cash flow at above average rates. None of these is constant. Business models get better or worse. People’s behavior changes from time to time. The ability to reinvest varies from time to time.”



Walmart almost passes all the requirements. The company earns a very high return on equity, has a shareholder-friendly management and has a history of reinvesting the free cash flow. However, it lacks the most important ingredients of a compounding machine – the opportunity to reinvest the free cash flow at above average rates.



How do I know that? This is not perfect but a very simple yet effective way is to look at the statement of cash flows. Fifteen years ago, Walmart generated $9.6 billion operating cash flows that it can redeploy. Of this $9.6 billion, Walmart reinvested $8 billion, or almost 85%, in the business and returned only $1.2 billion, or 13%, to shareholders through dividends and share repurchases. For the next few years until 2007, Walmart was able to reinvest most of the operating cash flows in the business and generate higher than average returns.



Things started to change in 2008 when Walmart only reinvested 70% of the operating cash flow in the business and returned the rest to the shareholders through dividends and share repurchases. The reinvest ratio has steadily declined from 85% in 2001 to 70% in 2007 and only 43% in 2015. Meanwhile, Walmart has been deploying capital in less efficient ways such as paying down debt and returning capital to shareholders. For instance, in 2011, Walmart returned a whopping $19 billion or almost 80% of operating cash flow to shareholders. In 2014, Walmart returned $13 billion, or almost 55%, of operating cash flow to shareholders.



With the reinvesting opportunities between 2001 and 2007 came faster revenue growth, earnings growth and the compounding of shareholders equity. Walmart revenue almost doubled and earnings more than tripled during those years. The lack of reinvesting opportunities since 2007 coincides with the much slower revenue growth and earnings growth, which ultimately translated into slower compounding of shareholders’ capital.



Some may cheer for Walmart’s management decision to return a massive amount of capital to shareholders and argue that it deserves a higher valuation. I think as long as the lack of reinvesting opportunities exists, Walmart deserves a low multiple.



I am not saying that Walmart is not a good investment from here. The risk of permanent loss of capital is low and the dividend yield may be attractive to income seekers. Personally I am much more willing to invest in businesses with higher multiples, lower dividend yield and much better reinvestment opportunities. In the future, Walmart may become a compounding machine again when it finds a way to rekindle its capacity to reinvest.



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Top Ranked Articles about Wal-Mart Stores Inc

US Market Indexes Mostly Lower Friday With Losses for the Week Nasdaq down 1.13% for the week
U.S. market indexes were mostly lower on Friday. The Dow Jones Industrial Average closed at 21,797.79 for a gain of 13.01 points or 0.06%. The S&P 500 closed at 2,461.43 for a loss of -3.67 points or -0.15%. Read more...
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American e-commerce giant Amazon.com Inc. (NASDAQ:AMZN) looks all set to compete against arch-rival Wal-Mart Stores Inc. (NYSE:WMT). Amazon acquired Whole Foods in June for $13.7 billion. From the start, the online retailer announced it would be slashing prices for various grocery items, including bananas, organic avocados, organic large brown eggs, kale and ground beef. This means an intensified price war will break out among other grocery businesses. If the Amazon-Whole Foods combination works, it can well and truly shake the grocery industry. Read more...
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Amazon Swiftly Addresses Walmart with Whole Foods Shake-up Other players are going to have their margins squeezed even further because of Amazon’s decisive price cuts at WFM
Retail stocks were routed on Thursday, August 24, as Amazon announced its plans to cut prices at Whole Foods, the grocery chain which the company bought for $13.7 billion. The Whole Foods acquisition is expected to close by Monday. Shares of retailers Walmart, Costco, Target and Kroger were hit hard, and the rout may continue as Amazon moves decisively into the grocery market. Read more...
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Time for US Retailers to Start Consolidating? With Amazon and Walmart on growth rampages, what is to become of the others?
The steady rise of Amazon’s (NASDAQ:AMZN) market share in the North American retail market at one end and the slowly growing Walmart (NYSE:WMT) sales numbers at the other end have put all the retailers in the U.S. on notice. Amazon is growing at double-digit rates, and it is just a few quarters away from hitting a morale-boosting $100 billion in annual retail sales from North America, and Walmart is a few years away from hitting $100 billion in quarterly sales. Read more...
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Ratios

vs
industry
vs
history
PE Ratio 19.35
WMT's PE Ratio is ranked higher than
63% of the 304 Companies
in the Global Discount Stores industry.

( Industry Median: 20.17 vs. WMT: 19.35 )
Ranked among companies with meaningful PE Ratio only.
WMT' s PE Ratio Range Over the Past 10 Years
Min: 10.61  Med: 15.09 Max: 19.36
Current: 19.35
10.61
19.36
Forward PE Ratio 18.35
WMT's Forward PE Ratio is ranked higher than
54% of the 65 Companies
in the Global Discount Stores industry.

( Industry Median: 17.76 vs. WMT: 18.35 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 19.35
WMT's PE Ratio without NRI is ranked higher than
65% of the 302 Companies
in the Global Discount Stores industry.

( Industry Median: 20.55 vs. WMT: 19.35 )
Ranked among companies with meaningful PE Ratio without NRI only.
WMT' s PE Ratio without NRI Range Over the Past 10 Years
Min: 11.28  Med: 15.11 Max: 19.35
Current: 19.35
11.28
19.35
Price-to-Owner-Earnings 13.26
WMT's Price-to-Owner-Earnings is ranked higher than
76% of the 203 Companies
in the Global Discount Stores industry.

( Industry Median: 21.21 vs. WMT: 13.26 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
WMT' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 8.9  Med: 15.42 Max: 31.46
Current: 13.26
8.9
31.46
PB Ratio 3.18
WMT's PB Ratio is ranked lower than
70% of the 352 Companies
in the Global Discount Stores industry.

( Industry Median: 1.77 vs. WMT: 3.18 )
Ranked among companies with meaningful PB Ratio only.
WMT' s PB Ratio Range Over the Past 10 Years
Min: 2.28  Med: 3.06 Max: 3.71
Current: 3.18
2.28
3.71
PS Ratio 0.50
WMT's PS Ratio is ranked higher than
51% of the 356 Companies
in the Global Discount Stores industry.

( Industry Median: 0.49 vs. WMT: 0.50 )
Ranked among companies with meaningful PS Ratio only.
WMT' s PS Ratio Range Over the Past 10 Years
Min: 0.38  Med: 0.5 Max: 0.63
Current: 0.5
0.38
0.63
Price-to-Free-Cash-Flow 14.06
WMT's Price-to-Free-Cash-Flow is ranked higher than
71% of the 143 Companies
in the Global Discount Stores industry.

( Industry Median: 20.04 vs. WMT: 14.06 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
WMT' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 9.75  Med: 17.81 Max: 85.03
Current: 14.06
9.75
85.03
Price-to-Operating-Cash-Flow 8.82
WMT's Price-to-Operating-Cash-Flow is ranked higher than
64% of the 187 Companies
in the Global Discount Stores industry.

( Industry Median: 10.78 vs. WMT: 8.82 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
WMT' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 6.47  Med: 8.77 Max: 11.7
Current: 8.82
6.47
11.7
EV-to-EBIT 13.00
WMT's EV-to-EBIT is ranked higher than
67% of the 316 Companies
in the Global Discount Stores industry.

( Industry Median: 16.11 vs. WMT: 13.00 )
Ranked among companies with meaningful EV-to-EBIT only.
WMT' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.7  Med: 10.8 Max: 13.1
Current: 13
8.7
13.1
EV-to-EBITDA 8.83
WMT's EV-to-EBITDA is ranked higher than
74% of the 324 Companies
in the Global Discount Stores industry.

( Industry Median: 11.79 vs. WMT: 8.83 )
Ranked among companies with meaningful EV-to-EBITDA only.
WMT' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.6  Med: 8.1 Max: 9.8
Current: 8.83
6.6
9.8
EV-to-Revenue 0.58
WMT's EV-to-Revenue is ranked higher than
52% of the 361 Companies
in the Global Discount Stores industry.

( Industry Median: 0.58 vs. WMT: 0.58 )
Ranked among companies with meaningful EV-to-Revenue only.
WMT' s EV-to-Revenue Range Over the Past 10 Years
Min: 0.5  Med: 0.6 Max: 0.7
Current: 0.58
0.5
0.7
PEG Ratio 27.71
WMT's PEG Ratio is ranked lower than
96% of the 179 Companies
in the Global Discount Stores industry.

( Industry Median: 2.12 vs. WMT: 27.71 )
Ranked among companies with meaningful PEG Ratio only.
WMT' s PEG Ratio Range Over the Past 10 Years
Min: 1.05  Med: 1.46 Max: 49.97
Current: 27.71
1.05
49.97
Shiller PE Ratio 17.14
WMT's Shiller PE Ratio is ranked higher than
71% of the 86 Companies
in the Global Discount Stores industry.

( Industry Median: 22.04 vs. WMT: 17.14 )
Ranked among companies with meaningful Shiller PE Ratio only.
WMT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 12.91  Med: 18.92 Max: 27.27
Current: 17.14
12.91
27.27
Current Ratio 0.78
WMT's Current Ratio is ranked lower than
80% of the 360 Companies
in the Global Discount Stores industry.

( Industry Median: 1.22 vs. WMT: 0.78 )
Ranked among companies with meaningful Current Ratio only.
WMT' s Current Ratio Range Over the Past 10 Years
Min: 0.77  Med: 0.93 Max: 1.86
Current: 0.78
0.77
1.86
Quick Ratio 0.18
WMT's Quick Ratio is ranked lower than
95% of the 360 Companies
in the Global Discount Stores industry.

( Industry Median: 0.76 vs. WMT: 0.18 )
Ranked among companies with meaningful Quick Ratio only.
WMT' s Quick Ratio Range Over the Past 10 Years
Min: 0.1  Med: 0.19 Max: 0.28
Current: 0.18
0.1
0.28
Days Inventory 44.69
WMT's Days Inventory is ranked lower than
58% of the 355 Companies
in the Global Discount Stores industry.

( Industry Median: 39.51 vs. WMT: 44.69 )
Ranked among companies with meaningful Days Inventory only.
WMT' s Days Inventory Range Over the Past 10 Years
Min: 40  Med: 43.83 Max: 45.3
Current: 44.69
40
45.3
Days Sales Outstanding 4.02
WMT's Days Sales Outstanding is ranked higher than
78% of the 274 Companies
in the Global Discount Stores industry.

( Industry Median: 13.78 vs. WMT: 4.02 )
Ranked among companies with meaningful Days Sales Outstanding only.
WMT' s Days Sales Outstanding Range Over the Past 10 Years
Min: 3.51  Med: 4.39 Max: 5.27
Current: 4.02
3.51
5.27
Days Payable 42.45
WMT's Days Payable is ranked lower than
52% of the 269 Companies
in the Global Discount Stores industry.

( Industry Median: 43.02 vs. WMT: 42.45 )
Ranked among companies with meaningful Days Payable only.
WMT' s Days Payable Range Over the Past 10 Years
Min: 34.63  Med: 38.79 Max: 41.86
Current: 42.45
34.63
41.86

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 2.54
WMT's Dividend Yield % is ranked higher than
68% of the 477 Companies
in the Global Discount Stores industry.

( Industry Median: 1.95 vs. WMT: 2.54 )
Ranked among companies with meaningful Dividend Yield % only.
WMT' s Dividend Yield % Range Over the Past 10 Years
Min: 1.29  Med: 2.22 Max: 3.46
Current: 2.54
1.29
3.46
Dividend Payout Ratio 0.49
WMT's Dividend Payout Ratio is ranked lower than
51% of the 289 Companies
in the Global Discount Stores industry.

( Industry Median: 0.33 vs. WMT: 0.49 )
Ranked among companies with meaningful Dividend Payout Ratio only.
WMT' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.28  Med: 0.32 Max: 0.46
Current: 0.49
0.28
0.46
3-Year Dividend Growth Rate 2.10
WMT's 3-Year Dividend Growth Rate is ranked lower than
73% of the 184 Companies
in the Global Discount Stores industry.

( Industry Median: 7.40 vs. WMT: 2.10 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
WMT' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 2.1  Med: 17.7 Max: 32.6
Current: 2.1
2.1
32.6
Forward Dividend Yield % 2.55
WMT's Forward Dividend Yield % is ranked higher than
63% of the 464 Companies
in the Global Discount Stores industry.

( Industry Median: 2.20 vs. WMT: 2.55 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 3.50
WMT's 5-Year Yield-on-Cost % is ranked higher than
65% of the 526 Companies
in the Global Discount Stores industry.

( Industry Median: 2.96 vs. WMT: 3.50 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
WMT' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.78  Med: 3.06 Max: 4.76
Current: 3.5
1.78
4.76
3-Year Average Share Buyback Ratio 1.90
WMT's 3-Year Average Share Buyback Ratio is ranked higher than
86% of the 207 Companies
in the Global Discount Stores industry.

( Industry Median: -0.70 vs. WMT: 1.90 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
WMT' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -0.5  Med: 1.2 Max: 4.7
Current: 1.9
-0.5
4.7

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 4.16
WMT's Price-to-Tangible-Book is ranked lower than
73% of the 314 Companies
in the Global Discount Stores industry.

( Industry Median: 2.07 vs. WMT: 4.16 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
WMT' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 2.94  Med: 4.91 Max: 17.49
Current: 4.16
2.94
17.49
Price-to-Intrinsic-Value-Projected-FCF 1.20
WMT's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
62% of the 228 Companies
in the Global Discount Stores industry.

( Industry Median: 1.47 vs. WMT: 1.20 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
WMT' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.93  Med: 1.91 Max: 42.43
Current: 1.2
0.93
42.43
Price-to-Intrinsic-Value-DCF (Earnings Based) 1.81
WMT's Price-to-Intrinsic-Value-DCF (Earnings Based) is ranked lower than
59% of the 54 Companies
in the Global Discount Stores industry.

( Industry Median: 1.36 vs. WMT: 1.81 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-DCF (Earnings Based) only.
WMT' s Price-to-Intrinsic-Value-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.67  Med: 1.11 Max: 2.14
Current: 1.81
0.67
2.14
Price-to-Median-PS-Value 1.01
WMT's Price-to-Median-PS-Value is ranked higher than
66% of the 334 Companies
in the Global Discount Stores industry.

( Industry Median: 1.10 vs. WMT: 1.01 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
WMT' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.76  Med: 1.38 Max: 3.28
Current: 1.01
0.76
3.28
Price-to-Graham-Number 1.89
WMT's Price-to-Graham-Number is ranked lower than
56% of the 265 Companies
in the Global Discount Stores industry.

( Industry Median: 1.48 vs. WMT: 1.89 )
Ranked among companies with meaningful Price-to-Graham-Number only.
WMT' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.27  Med: 2.07 Max: 6.14
Current: 1.89
1.27
6.14
Earnings Yield (Greenblatt) % 7.69
WMT's Earnings Yield (Greenblatt) % is ranked higher than
72% of the 368 Companies
in the Global Discount Stores industry.

( Industry Median: 5.52 vs. WMT: 7.69 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
WMT' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 7.6  Med: 9.3 Max: 11.5
Current: 7.69
7.6
11.5
Forward Rate of Return (Yacktman) % 5.45
WMT's Forward Rate of Return (Yacktman) % is ranked lower than
56% of the 244 Companies
in the Global Discount Stores industry.

( Industry Median: 7.90 vs. WMT: 5.45 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
WMT' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 5.4  Med: 13.6 Max: 16.2
Current: 5.45
5.4
16.2

More Statistics

Revenue (TTM) (Mil) $490,012.00
EPS (TTM) $ 4.16
Beta0.05
Short Percentage of Float3.21%
52-Week Range $65.28 - 81.99
Shares Outstanding (Mil)2,987.20

Analyst Estimate

Jan18 Jan19 Jan20
Revenue (Mil $) 496,429 510,674 524,871
EPS ($) 4.33 4.63 4.87
EPS without NRI ($) 4.33 4.63 4.87
EPS Growth Rate
(Future 3Y To 5Y Estimate)
5.61%
Dividends per Share ($) 2.04 2.14 2.15
» More Articles for WMT

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