FCF Yield
Higher than 20% of Consumer Defensive sector peers
Updated 345h ago
Sector Performance
20th percentileWMT
1.7%
Sector Median
5.7%
Sector Avg
4.8%
Deep Analysis
A Free Cash Flow (FCF) Yield of 1.7% means that for every $100 invested in Walmart, the company generates about $1.70 in free cash flow per year — a measure of how much cash is left after capital expenses relative to its stock price.
This is well below the sector median of 5.5%, placing Walmart in the 9th percentile among Consumer Defensive peers. The metric has been stable over the last eight quarters, with the most recent three readings at 1.7%, 1.6%, and 1.7%; year-over-year change is not available, but quarter-over-quarter it improved by 6.2%. The combination of a low, stable yield with a slight recent uptick suggests limited downside risk but also no compelling cash-flow-based opportunity versus the broader sector. This directly supports the overall CAUTIOUS verdict — the low yield and low peer ranking indicate Walmart does not offer attractive free cash flow returns relative to its price.
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 1.7% compares to a Consumer Defensive sector median of 5.7%, placing it in the 20th percentile.
Who are WMT's closest peers by FCF Yield?
The closest Consumer Defensive peers by FCF Yield include: PM (3.7%), MO (7.7%), ABEV (9.4%), ADM (15.1%), DNUT (-9.0%).
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.
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1.7%
Sector Median
5.7%
Sector Avg
4.8%
How WMT's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.