Is It the Right Investment Choice?
Walmart Inc. (WMT) is one of the world’s largest retail companies. Its operations span multiple countries, and it is known for its cost-cutting strategies and robust supply chain. In this article, we will conduct a detailed analysis of Walmart’s stock and determine whether it is a suitable investment option.
Share Statistics
| Metrics | Figures |
|---|---|
| Total Shares | 8.03 billion |
| Share Change (YoY) | -0.33% |
| Share Change (QoQ) | -0.05% |
| Institutional Holding | 35.99% |
| Float | 4.36 billion |
✅ What’s Positive?
- The number of shares has remained stable, ensuring market stability.
- Institutional holding is at 35.99%, indicating that large investors have confidence in the stock.
⚠What’s Negative?
- The slight decline in shares over the past year and quarter may concern investors.
📌 Invest or Not? If institutional investors maintain their confidence, this stock can be a stable option. However, continued decline in shares calls for caution.
Valuation Ratios
| Ratio | Value |
|---|---|
| PE Ratio | 36.28 |
| Forward PE | 33.07 |
| PS Ratio | 1.03 |
| PB Ratio | 7.71 |
| P/FCF Ratio | 55.48 |
| PEG Ratio | 3.80 |
✅ What’s Positive?
- Walmart’s earnings remain strong, as indicated by the Forward PE (33.07).
- PS Ratio (1.03) is relatively low, meaning the company’s sales are fairly valued compared to its market capitalization.
⚠What’s Negative?
- The PE Ratio of 36.28 is higher than the industry average, making the stock expensive.
- The PEG Ratio of 3.80 suggests that the stock is overpriced relative to its growth rate.
📌 Invest or Not? If you’re a long-term investor and willing to buy premium stocks, this can be a good choice. However, for those looking for undervalued stocks, Walmart might be costly.
Income Statement
| Metrics | Figures (Billion $) |
|---|---|
| Total Revenue | 680.99 |
| Gross Profit | 169.23 |
| Operating Income | 29.50 |
| Net Income | 19.44 |
| EBITDA | 42.48 |
| EPS | 2.41 |
✅ What’s Positive?
- Walmart’s total revenue is very strong and growing steadily each year.
- EBITDA and net income are positive, demonstrating financial strength.
⚠What’s Negative?
- EPS ($2.41) is relatively low, meaning investor returns may not be very attractive.
📌 Invest or Not? If you’re looking for a safe and stable investment, Walmart’s stock is a good option. However, investors seeking high-growth stocks may need to explore other alternatives.
Balance Sheet
| Metrics | Figures (Billion $) |
|---|---|
| Total Cash | 9.04 |
| Total Debt | 60.11 |
| Net Cash Position | -51.08 |
| Book Value | 97.69 |
✅ What’s Positive?
- The company has a strong book value, reflecting its stability.
⚠What’s Negative?
- The company carries significant debt ($60.11B), which could be a concern for investors.
📌 Invest or Not? If you’re a long-term investor and trust the company’s ability to manage debt, Walmart could be a safe bet.
Conclusion
✅ Reasons to Buy Walmart:
- Strong revenue growth
- High institutional holding
- Strong brand value
- Analysts’ “Strong Buy” rating
âš Reasons to Avoid Walmart:
- Expensive valuation (High PE Ratio)
- Relatively low EPS
- High debt burden
📌 Should You Invest in Walmart?
- If you’re looking for a stable and well-established company, Walmart is a good option.
- If you’re seeking high-growth opportunities, you may want to consider other alternatives.
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