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Walmart (WMT) Owner Earnings per Share (TTM) : 2.58 (As of Apr. 2024)


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What is Walmart Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Walmart's Owner Earnings per Share (TTM) ended in Apr. 2024 was $2.58. It's Price-to-Owner-Earnings ratio for today is 25.36.


The historical rank and industry rank for Walmart's Owner Earnings per Share (TTM) or its related term are showing as below:

WMT' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 8.74   Med: 18.35   Max: 118.98
Current: 25.32


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Walmart was 118.98. The lowest was 8.74. And the median was 18.35.


WMT's Price-to-Owner-Earnings is ranked worse than
82.72% of 162 companies
in the Retail - Defensive industry
Industry Median: 10.065 vs WMT: 25.32

Walmart's Earnings per Share (Diluted) for the three months ended in Apr. 2024 was $0.63. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2024 was $2.34. It's PE Ratio ratio for today is 28.00.

Walmart's EPS without NRI for the three months ended in Apr. 2024 was $0.60. Its EPS without NRI for the trailing twelve months (TTM) ended in Apr. 2024 was $4.57. It's PE Ratio without NRI ratio for today is 14.32.


Walmart Owner Earnings per Share (TTM) Historical Data

The historical data trend for Walmart's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Walmart Owner Earnings per Share (TTM) Chart

Walmart Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.21 3.27 1.14 2.07 2.26

Walmart Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.85 3.30 2.38 2.26 2.58

Competitive Comparison of Walmart's Owner Earnings per Share (TTM)

For the Discount Stores subindustry, Walmart's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Walmart's Price-to-Owner-Earnings Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Walmart's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Walmart's Price-to-Owner-Earnings falls into.



Walmart Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Walmart's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 18,942
Depreciation, Depletion and Amortization 12,136
Change In Deferred Tax 652
5Y Average of Maintenance Capital Expenditure 11,322
Change In Working Capital 481
Shares Outstanding (Diluted Average) 8,084

1. Start with "Net Income" from income statement. Walmart's Net Income for the trailing twelve months (TTM) ended in Apr. 2024 was $18,942 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Walmart's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Apr. 2024 was $12,136 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Walmart's Change In Deferred Tax for the trailing twelve months (TTM) ended in Apr. 2024 was $652 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $11,322 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Walmart's 5-Year Average Maintenance Capital Expenditure = $11,322 Mil

5. "Change In Working Capital" is from cashflow statement. Walmart's Change In Working Capital for the trailing twelve months (TTM) ended in Apr. 2024 was $481 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Walmart's Shares Outstanding (Diluted Average) for the months ended in Apr. 2024 was 8084.000 Mil.

Walmart's Onwer Earnings Per Share for Apr. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 18942 +12136+652
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-11322.046290707+481)/8084.000
=2.58

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=65.425/2.58
=25.36

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Walmart Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Walmart's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Walmart (WMT) Business Description

Address
702 S.W. 8th Street, Bentonville, AR, USA, 72716
Walmart serves as the preeminent retailer in the United States, with its strategy predicated on superior operating efficiency and offering the lowest priced goods to consumers to drive robust store traffic and product turnover. Walmart augmented its low-price business strategy by offering a convenient one-stop shopping destination with the opening of its first supercenter in 1988.Today, Walmart operates over 4,700 stores in the United States (5,300 including Sam's Club) and over 10,000 stores globally. Walmart generated over $420 billion in domestic namesake sales last year, with Sam's Club contributing another $84 billion to the firm's top line. Internationally, Walmart generated $100 billion in sales. The company serves around 240 million customers globally each week.
Executives
John D Rainey officer: Executive Vice President C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Jim C Walton director, other: Director C/O WALTON ENTERPRISES, INC., P.O. BOX 1860, BENTONVILLE AR 72712
S Robson Walton director, 10 percent owner, officer: Chairman of the Board C/O WALTON ENTERPRISES, INC., P.O. BOX 1860, BENTONVILLE AR 72716-0105
Alice L Walton 10 percent owner 110 N.W. SECOND STREET, SUITE 300, BENTONVILLE AR 72712
C Douglas Mcmillon officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
John R. Furner officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Rachel L Brand officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
Christopher James Nicholas officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
David Chojnowski officer: Senior Vice President 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Daniel J Bartlett officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Randall L Stephenson director 208 S. AKARD ST., DALLAS TX 75202
Judith J Mckenna officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
M. Brett Biggs officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Marc E. Lore officer: Executive Vice President 443 GREENWICH STREET, PHA, NEW YORK NY 10013
Kathryn J. Mclay officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716