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1. Company Snapshot

1.a. Company Description

Walmart Inc.engages in the operation of retail, wholesale, and other units worldwide.The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club.


It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores; membership-only warehouse clubs; ecommerce websites, such as walmart.com, walmart.com.mx, walmart.ca, flipkart.com, and samsclub.com; and mobile commerce applications.The company offers grocery and consumables, which includes dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; and health and wellness products covering pharmacy, over-the-counter drugs and other medical products, and optical and hearing services.It also provides gasoline stations and tobacco; home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses, and tire and battery centers; and consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards.


In addition, the company offers fuel and financial services and related products, including money orders, prepaid cards, money transfers, and check cashing and bill payment, as well as various types of installment lending.It operates approximately 10,500 stores and various e-commerce websites under 46 banners in 24 countries.The company was formerly known as Wal-Mart Stores, Inc.


and changed its name to Walmart Inc.in February 2018.The company was founded in 1945 and is based in Bentonville, Arkansas.

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1.b. Last Insights on WMT

Walmart's recent performance was driven by strong e-commerce growth, omnichannel strength, and rising ad revenues. The company's Q4 earnings beat estimates, with e-commerce jumping 24% and advertising revenues surging 37%. Leadership transition to John Furner ensures strategic continuity, reducing execution risk. Resilient cash flows, defensive market positioning, and expanding high-margin businesses shape the outlook. A BTIG Research analyst upgrade and $1 trillion market cap reflect confidence in omnichannel growth and digital momentum.

1.c. Company Highlights

2. Walmart's Q4 Earnings: A Strong Finish to a Record Year

Walmart's Q4 revenue grew 4.9% in constant currency, with eCommerce sales up 24%, and adjusted operating income up 10.5%. The company's full-year revenue was approximately $700 billion, up 5% in constant currency, with adjusted operating income growing 5.4%. The actual EPS came out at $0.74, beating estimates of $0.727. eCommerce sales exceeded $150 billion for the first time, and advertising businesses globally increased 37%, with membership fees exceeding $4.3 billion.

Publication Date: Feb -20

📋 Highlights
  • Q4 Revenue & eCommerce Growth:: Walmart's Q4 revenue rose 4.9% in constant currency, with eCommerce sales surging 24% to exceed $150 billion globally.
  • Adjusted Operating Income Growth:: Full-year adjusted operating income climbed 5.4%, driven by a profitable eCommerce business with double-digit incremental margins.
  • Advertising & Membership Revenue:: Global advertising revenue hit $6.4 billion (up 37%), and membership fees surpassed $4.3 billion, bolstered by Walmart+ adoption.
  • Sparky AI Impact:: Customers engaging with Walmart's AI agent achieved a 35% higher average order value, showcasing agentic commerce's effectiveness.
  • Guidance & Capital Allocation:: Walmart forecasts 3.5-4.5% constant currency sales growth and a $30 billion share repurchase program, maintaining disciplined capital strategy.

Omnichannel Model Driving Growth

Walmart's omnichannel model, which combines online and offline channels, is driving growth. The company's eCommerce business grew 27% in the fourth quarter, with a 24% growth globally. Stores play a crucial role in delivering customer experiences, with 5,200 locations across the US and a strong presence in international markets. The company has made significant investments in its store network, opening 12 new stores and remodeling 674 stores in the past 12 months.

Advertising and Membership Income

Advertising revenue was up 37% globally, with Walmart Connect in the US up 41%. The company's advertising business reached $6.4 billion and is expected to continue growing, driven by the expansion of its marketplace, VIZIO acquisition, and improved advertising capabilities. Membership income saw strong double-digit growth, and the company is pleased with Walmart+ sign-ups, including the credit card offer.

Guidance and Outlook

The company expects full-year constant currency sales growth of 3.5-4.5% and operating income growth of 6-8%, with EPS in the range of $2.75-$2.85. The guidance takes into account potential unknowns, with a measured approach to maintain flexibility. The company is constructive on the economy, and gross margin is expected to improve, driven by business mix, including growth in advertising and membership income.

Valuation and Growth Prospects

With a P/E Ratio of 45.46 and an EV/EBITDA of 21.69, the market is pricing in significant growth prospects for Walmart. The company's ROIC of 11.67% and ROE of 23.69% indicate a strong ability to generate returns on capital. Analysts estimate next year's revenue growth at 5.0%, which is in line with the company's long-term growth prospects. The company's focus on serving customers across income cohorts, investing in automation, and expanding its marketplace and advertising capabilities are expected to drive long-term growth and profitability.

3. NewsRoom

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Walmart digital price labels will be in every store across U.S. by end of 2026

Mar -21

Source: cnbc.com

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Walmart, Ross Stores, and Other ‘Defensive' Retail Stocks

Mar -20

Source: barrons.com

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Cambria Investment Management L.P. Acquires 29,066 Shares of Walmart Inc. $WMT

Mar -20

Source: defenseworld.net

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4 Dividend Stocks to Hold for the Next 10 Years

Mar -20

Source: fool.com

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Walmart Target of Unusually High Options Trading (NASDAQ:WMT)

Mar -20

Source: defenseworld.net

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AI Might Be Coming for Blue‑Collar Work—And These Robotics Stocks Still Look Wildly Underestimated

Mar -19

Source: 247wallst.com

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2 Stocks to Buy in March

Mar -19

Source: fool.com

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3 REITs To Buy Before Their Dividends Are Hiked

Mar -19

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Walmart U.S.

Expected Growth: 3.8%

The U.S. retail industry is expected to grow, driven by increasing consumer spending and e-commerce adoption. Walmart's focus on enhancing its e-commerce capabilities and improving in-store experiences will help it maintain market share and drive growth.

Walmart International

Expected Growth: 3.4%

The international retail market is expected to grow moderately, driven by increasing consumer spending in emerging economies. Walmart's focus on expanding its e-commerce capabilities in international markets will help drive growth, but it may be offset by macroeconomic headwinds in some markets.

Sam's Club

Expected Growth: 3.2%

The warehouse club market is expected to grow moderately, driven by increasing demand for convenient and value-oriented shopping experiences. Sam's Club's focus on enhancing its e-commerce capabilities and improving its membership model will help drive growth, but it may be offset by intense competition in the warehouse club space.

Corporate and Support

Expected Growth: 3.0%

The corporate and support segment is expected to grow at a slower rate, driven by the company's focus on cost savings and efficiency initiatives. The segment's growth will be mainly driven by the company's investments in technology and e-commerce capabilities.

7. Detailed Products

Grocery

Fresh produce, meat, dairy products, and other food items

Electronics

TVs, laptops, smartphones, tablets, and gaming consoles

Clothing and Accessories

Apparel, shoes, handbags, jewelry, and watches

Home and Furniture

Furniture, home decor, kitchenware, and bedding

Health and Wellness

Pharmacy services, health supplements, and personal care products

Sports and Outdoors

Fitness equipment, bicycles, camping gear, and outdoor furniture

Baby and Kids

Toys, strollers, car seats, and nursery furniture

Pet Products

Pet food, toys, and accessories

Walmart Services

Pharmacy services, photo printing, and money services

Sam's Club Membership

Warehouse club membership for bulk shopping

8. Walmart Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Walmart's business model is focused on providing low-cost goods, making it difficult for substitutes to emerge. Additionally, the company's extensive logistics and supply chain network make it challenging for new entrants to replicate.

Bargaining Power Of Customers

Walmart's customers have some bargaining power due to the availability of alternative retailers. However, the company's everyday low prices and convenient locations reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Walmart's massive scale and purchasing power give it significant bargaining power over its suppliers. The company can negotiate low prices and dictate terms to its suppliers.

Threat Of New Entrants

The retail industry has high barriers to entry, including significant capital requirements and the need for an extensive logistics network. These barriers make it difficult for new entrants to compete with Walmart.

Intensity Of Rivalry

The retail industry is highly competitive, with many established players competing for market share. Walmart faces intense competition from other retailers, including Costco, Target, and online retailers like Amazon.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.72%
Debt Cost 5.88%
Equity Weight 66.28%
Equity Cost 6.40%
WACC 6.22%
Leverage 50.88%

11. Quality Control: Walmart Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Altria

A-Score: 7.6/10

Value: 6.8

Growth: 5.8

Quality: 6.5

Yield: 10.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Kraft Heinz

A-Score: 6.1/10

Value: 8.9

Growth: 3.8

Quality: 4.3

Yield: 9.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Target

A-Score: 5.4/10

Value: 6.5

Growth: 5.1

Quality: 4.5

Yield: 7.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Walmart

A-Score: 5.4/10

Value: 2.5

Growth: 5.4

Quality: 5.3

Yield: 2.0

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Dollar General

A-Score: 5.3/10

Value: 4.5

Growth: 5.6

Quality: 3.9

Yield: 3.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Costco Wholesale

A-Score: 5.2/10

Value: 2.0

Growth: 6.8

Quality: 5.7

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

119.02$

Current Price

119.02$

Potential

-0.00%

Expected Cash-Flows