Walmart Inc.WMT
NMS • Consumer Defensive
$114.95
P/E
40.33
PEG
2.15
FCF Yield
1.6%
Rev Growth YoY
+7.3% YoY
Gross Margin
25.1%
Health Score
8/10
D/E Ratio
0.55
Confidence
MEDIUM
Business Snapshot
Walmart operates a global chain of discount stores, hypermarkets, and grocery e-commerce, generating the majority of its revenue from grocery and general merchandise sales across physical and digital channels. It operates in the consumer defensive sector, specifically discount stores, where it is the dominant global player by revenue and store footprint, commanding significant scale advantages over competitors. With a market capitalisation of $914.78B, Walmart is among the largest companies in the world by market cap and reported TTM revenue of $725.30B, reflecting massive financial scale. A defining characteristic is its unparalleled supply chain efficiency and pricing power, which allow it to operate on thin net margins (3.1%) while generating substantial absolute profits and free cash flow.
Financial Health
Gross margin improved modestly to 25.1% from 24.7% in the prior year, while net margin stands at 3.1%, typical for a high-volume, low-margin retailer. The balance sheet is healthy, with a debt/equity ratio of 0.55x indicating conservative leverage, though the current ratio of 0.77x suggests potential short-term liquidity tightness that is common in fast-moving retail inventory cycles...
Risk Assessment
- VALUATION — P/E of 40.33x trades at nearly double the sector average of 21.8x, representing a significant premium that leaves little room for execution missteps.
- REVENUE DECELERATION — Quarterly revenue declined 6.8% versus the prior quarter, a sharp reversal from the 7.3% year-over-year growth rate, flagging potential demand softening or seasonal headwinds.
- DEBT / LIQUIDITY — Current ratio of 0.77x indicates that current liabilities exceed current assets, a potential liquidity concern if supply chains or payment cycles face disruption.
- 52-WEEK POSITION — The current price of $114.95 sits well below the 52-week high of $135.16 and only modestly above the midpoint of the $135.16/$94.43 range ($114.80), indicating the stock has given back a considerable portion of its gains from the high.
- VALUATION DIVERGENCE — The Python DCF estimate of $48.25 suggests significant overvaluation relative to the current price, though no FMP DCF value is available for cross-reference, leaving some model uncertainty.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin improved modestly to 25.1% from 24.7% in the prior year, while net margin stands at 3.1%, typical for a high-volume, low-margin retailer. The balance sheet is healthy, with a debt/equity ratio of 0.55x indicating conservative leverage, though the current ratio of 0.77x suggests potential short-term liquidity tightness that is common in fast-moving retail inventory cycles. Walmart generated $14.92B in free cash flow, yielding 1.6% at the current market cap, demonstrating substantial cash generation capacity. Overall financial health is strong, providing ample capacity for dividends, share buybacks, and reinvestment into operations, with manageable debt levels posing no near-term distress risk.
- VALUATION — P/E of 40.33x trades at nearly double the sector average of 21.8x, representing a significant premium that leaves little room for execution missteps. - REVENUE DECELERATION — Quarterly revenue declined 6.8% versus the prior quarter, a sharp reversal from the 7.3% year-over-year growth rate, flagging potential demand softening or seasonal headwinds. - DEBT / LIQUIDITY — Current ratio of 0.77x indicates that current liabilities exceed current assets, a potential liquidity concern if supply chains or payment cycles face disruption. - 52-WEEK POSITION — The current price of $114.95 sits well below the 52-week high of $135.16 and only modestly above the midpoint of the $135.16/$94.43 range ($114.80), indicating the stock has given back a considerable portion of its gains from the high. - VALUATION DIVERGENCE — The Python DCF estimate of $48.25 suggests significant overvaluation relative to the current price, though no FMP DCF value is available for cross-reference, leaving some model uncertainty. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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