WMT Walmart Inc

Walmart is the world's largest retailer by revenue, operating discount stores, supercenters, and Sam's Club membership warehouses globally. Sector: Consumer Staples.

Walmart Inc (WMT) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 12.53%, WACC is 7.50%, and the economic spread is 5.02%. On balance, the company marginally exceed their cost of capital, suggesting modest but present value creation. Supporting metrics show ROE at 22.80% and ROA at 7.42%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Multiple analysis puts the company at trailing P/E of 45.99, forward P/E of 42.77, PEG of 5.02. Trailing and forward multiples are nearly identical, indicating the market is pricing the company on a relatively static earnings assumption. Growth-adjusted, the company is priced at a premium — a level that demands consistent execution and limits the potential for multiple expansion from here. At 0.79, the aggregate current ratio reflects the company with limited near-term liquidity buffer. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

On the margin front: gross margin sits at 24.93%, operating margin at 4.18%, and free cash flow margin at 2.09%. At this level, gross margins suggest a more competitive or capital-intensive operating environment across the the company. The operating margin reading is weak, suggesting cost structures are outpacing revenue generation across much of the company. Weak free cash flow margins point to the company where near-term cash generation is constrained by investment or operational cash demands. The combined margin read is functional rather than exceptional, which can increase sensitivity to cost pressure or slower demand.

The two main inputs to the near-term picture — TTM revenue growth of 5.60% reflecting consistent if unspectacular revenue expansion. Forecasted EPS growth of 7.5% over the next year is supportive of the current valuation, suggesting the market is not paying for earnings that won't arrive. Analyst price targets suggest the target set points to a fairly constrained upside profile on a 12-month view. Revenue momentum establishes the baseline; analyst price targets reveal how much the market is already paying for future execution on top of that baseline. Delivered returns will ultimately be shaped by the gap — or lack thereof — between operating execution and the expectations embedded in current prices. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Overall, the setup is mixed enough that patience is probably the right posture until clarity improves on the key variables.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.