WMT FCF Yield Analysis
Higher than 0% of Consumer Defensive sector peers
Updated 413h ago·SEC filings & market data
Key Takeaway
Walmart’s free cash flow (FCF) yield of 1.6% means that for every $100 of market value, the company generates $1.60 in free cash flow — the cash left after operating expenses and capital spending.
Sector Performance
0th percentileWMT
1.6%
Sector Median
8.0%
Sector Avg
7.6%
Prior Period
1.7%(Aug 2026)
Deep Analysis
Walmart’s free cash flow (FCF) yield of 1.6% means that for every $100 of market value, the company generates $1.60 in free cash flow — the cash left after operating expenses and capital spending.
This sits far below the sector median of 7.7%, and at the 0th percentile among Consumer Defensive peers, indicating Walmart offers the lowest FCF yield in its group. The trend is stable over the last eight quarters, with year-over-year change not available and a quarter-over-quarter decline of 5.9% (from 1.7% to 1.6%). A low, stable yield combined with a slight quarterly drop suggests limited cash-flow return for investors, while the deep discount relative to peers signals higher valuation risk rather than an income opportunity. This metric contradicts an optimistic view and directly supports the overall CAUTIOUS verdict: the stock’s price is high compared to its cash generation, leaving little margin of safety.
Frequently Asked Questions
What does the FCF Yield tell investors about WMT?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does WMT's FCF Yield compare to its sector?
WMT's FCF Yield of 1.6% compares to a Consumer Defensive sector median of 8.0%, placing it in the 0th percentile.
Who are WMT's closest peers by FCF Yield?
The closest Consumer Defensive peers by FCF Yield include: MO (8.0%), ABEV (9.4%), PM (3.7%), ADM (15.1%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master WMT's Valuation
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View full WMT research report →Closest Sector Peers
WMT
1.6%
Sector Median
8.0%
Sector Avg
7.6%
How WMT's FCF Yield compares to sector peers.
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