Walmart Inc.WMT
NMS • Consumer Defensive
$103.84
P/E
36.44
PEG
1.94
FCF Yield
1.8%
Rev Growth YoY
+7.3% YoY
Gross Margin
25.1%
Health Score
7/10
D/E Ratio
0.55
Confidence
MEDIUM
Business Snapshot
Walmart operates as a global discount retailer, generating revenue primarily through grocery, general merchandise, and e-commerce sales across its vast store network and digital channels. The company operates in the consumer defensive sector within discount stores, holding a dominant competitive position as the world's largest retailer by revenue. With a market cap of $826.37B, Walmart sits firmly in large-cap territory, supported by trailing twelve-month revenue of $725.30B. The defining characteristic setting Walmart apart is its unparalleled scale and supply-chain efficiency, which enables everyday low pricing that competitors struggle to match. The company's essential-goods focus provides a defensive demand profile that tends to remain resilient across economic cycles.
Financial Health
Gross margin stands at 25.1%, improving modestly from 24.7% in the prior year, while net margin is thin at 3.1%, reflecting the low-margin nature of retail scale operations. The balance sheet is healthy but not fortress-like, with debt/equity of 0.55x and a current ratio of 0.77x, indicating the company relies partly on operational cash flow to cover short-term obligations...
Risk Assessment
VALUATION — P/E of 36.44x represents a substantial 64% premium to the sector average of 22.2x, pricing in significant growth or stability expectations.
DEBT / LIQUIDITY — Current ratio of 0.77x sits below 1.0x, meaning short-term liabilities exceed short-term assets and the company relies on ongoing cash generation to meet obligations.
TECHNICALS — Price of $103.84 sits below both the 50-day MA of $114.24 and the 200-day MA of $118.50, with a death cross confirming a bearish technical trend.
52-WEEK POSITION — Current price is 23% below the 52-week high of $135.16, reflecting meaningful downside from recent peaks.
VALUATION DIVERGENCE — The Python DCF estimate of $48.25 diverges substantially from what the current price implies, with the simplified model showing a 115% premium to intrinsic value estimates....
Gross margin stands at 25.1%, improving modestly from 24.7% in the prior year, while net margin is thin at 3.1%, reflecting the low-margin nature of retail scale operations. The balance sheet is healthy but not fortress-like, with debt/equity of 0.55x and a current ratio of 0.77x, indicating the company relies partly on operational cash flow to cover short-term obligations. Free cash flow is strongly positive at $14.92B, though the FCF yield of 1.8% is modest relative to the company's large market capitalization. Return on equity is robust at 24.1%, demonstrating efficient capital deployment and strong shareholder value creation. Overall, Walmart generates dependable cash flow with manageable leverage, supporting its capacity for dividends, share buybacks, and continued reinvestment in growth initiatives.
VALUATION — P/E of 36.44x represents a substantial 64% premium to the sector average of 22.2x, pricing in significant growth or stability expectations. DEBT / LIQUIDITY — Current ratio of 0.77x sits below 1.0x, meaning short-term liabilities exceed short-term assets and the company relies on ongoing cash generation to meet obligations. TECHNICALS — Price of $103.84 sits below both the 50-day MA of $114.24 and the 200-day MA of $118.50, with a death cross confirming a bearish technical trend. 52-WEEK POSITION — Current price is 23% below the 52-week high of $135.16, reflecting meaningful downside from recent peaks. VALUATION DIVERGENCE — The Python DCF estimate of $48.25 diverges substantially from what the current price implies, with the simplified model showing a 115% premium to intrinsic value estimates.
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