Walmart Inc. (WMT)
NEUTRALFundamental
55
Price
$105.02
Market Cap
$836.91B
Part 1 · What the company is worth
Overview
Walmart operates supercentres, discount stores and neighbourhood grocery stores under its own name in the United States, plus Sam's Club membership warehouses, and runs a large e-commerce business alongside them. Outside the US it owns retail chains in Mexico, Central America, Canada and China. It sells groceries, general merchandise, apparel and household goods, and has added a growing advertising business that sells shelf space and digital ads to the brands stocked on its shelves.
How it makes money
Revenue is recognized transaction by transaction, every time a customer checks out in a store or online, so sales volume rather than price per item is the main driver of the top line. Sam's Club adds recurring membership fees paid to shop there. Because Walmart buys in enormous volume, it negotiates low wholesale prices from suppliers and keeps a thin margin on each item, relying on scale and inventory turnover — plus the fast-growing, higher-margin advertising business — to generate profit.
Revenue by segment
Supercentres, discount stores and neighbourhood markets across the United States, plus Walmart's US e-commerce and advertising businesses.
Retail operations outside the US, mainly in Mexico, Central America, Canada and China.
Membership warehouse clubs in the US selling groceries and general merchandise in bulk to fee-paying members.
Competitive moat
Cost advantage · WideWalmart's purchase volumes are so large that it can negotiate wholesale prices few competitors can match, and it spreads the fixed costs of its supply chain and distribution network over more sales than almost anyone else. That combination lets it sustain everyday low prices while still turning a profit, which smaller or regional retailers struggle to match without losing money.
What drives demand
DefensiveA large share of Walmart's sales is groceries and everyday household essentials, categories people keep buying in a recession and where Walmart's low prices can even attract more customers trading down from pricier retailers. General merchandise, apparel and electronics are more discretionary and do soften in a downturn, but the grocery-heavy mix keeps overall demand more stable than at a typical discretionary retailer.
Key risks
- Execution risk at massive scale — The company operates at such scale that small operational mistakes in pricing, inventory or logistics can become expensive very quickly once repeated across thousands of stores and clubs.
- Low-price strategy limits margin — Walmart's everyday-low-price positioning constrains how much it can raise prices when its own costs rise, so cost inflation it cannot pass on to customers falls straight onto margin.
- E-commerce investment burden — Growing online and delivery sales requires continuous, heavy investment in fulfilment and logistics, and this channel remains less profitable than in-store sales even as it grows.
- Labor cost inflation and unionization — As one of the largest private employers, Walmart is exposed to wage inflation, benefit costs and unionization efforts that can raise operating costs or disrupt store operations.
The case for
Buyers argue that Walmart's scale and low-price positioning make it a natural destination when shoppers are cautious, that its advertising and membership businesses add higher-margin profit on top of thin retail margins, and that record digital sales show it competing effectively online as well as in stores.
The case against
Sellers worry that Walmart's everyday-low-price model leaves little room to raise prices when its own costs rise, that continued heavy investment is needed to keep e-commerce and delivery competitive with rivals, and that a change in leadership introduces execution uncertainty at a company already operating at enormous scale.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$718.12B
Trailing 12 months (through 4/30/2026)
Net Income
$22.74B
Trailing 12 months (through 4/30/2026)
Free Cash Flow
$14.92B
Total Equity
$99.62B
Total Liabilities
$178.78B
Current Ratio
0.77
Interest Coverage
12.72
Debt/EBITDA
1.68
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$102.50
Current Price
$105.02
Margin of Safety
-2.5%
Fair Value Range
$77.25 - $127.74
Estimation Methods
Valuation Metrics
P/E Ratio
37.50
ROE
22.0%
P/B Ratio
8.98
P/FCF
67.52
Gross Margin
24.2%
ROIC
13.6%
Profitability Radar
Value Creation (Economic Moat)
ROIC
13.6%
WACC
7.6%
ROIC − WACC
+6.0 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (16)
- Price CAGR 16.24%
- ROIC 13.6%
- Debt/Equity ratio
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 23.9%
- Analyst Consensus 90% Buy
- Earnings Surprise avg 2.7%
- Earnings Quality (OCF/NI) 1.80
- Share Dilution -0.6%
- Net Margin Trend 3.2% vs 2.8%
- Piotroski F-Score 6/9
Failed (11)
- EPS shows upward trend
- EPS CAGR -0.76%
- Gross Margin 24.2%
- P/FCF 67.52
- P/B Ratio 8.98
- Operating Margin 4.2%
- CapEx intensity
- Price below Graham Number
- DCF valuation (Overvalued)
- Revenue Growth 5Y 5.0%
- PEG Ratio 3.52
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. John R. Furner | President, CEO & Director | 50 |
| Mr. John David Rainey Jr. | Executive VP & CFO | 55 |
| Mr. Suresh Kumar Ph.D. | Executive VP, Global CTO & Chief Development Officer | 60 |
| Mr. C. Douglas McMillon | Executive Officer | 59 |
| Mr. Daniel Danker | Executive Vice President of AI Acceleration, Product & Design | 44 |
| Mr. Dwayne M. Milum | Senior VP, Controller & Principal Accounting Officer | 49 |
| Ms. Stephanie Wissink | Senior Vice President of Investor Relations | - |
| Ms. Erin Nealy Cox J.D. | Executive VP of Global Governance, Chief Legal Officer & Corporate Secretary | 55 |
| Ms. Allyson Park | Senior VP & Chief Communications Officer | - |
| Ms. Donna Catherine Morris | Executive VP & Chief People Officer | 58 |
Audit Risk
5
Board Risk
8
Compensation Risk
7
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for WMT, sourced from Markets Gazette.
- 3d agoNEGATIVECosa dicono i risultati di Walmart e Target sul consumatore statunitense?
Walmart's stock experienced a significant decline of 9.2% following its latest earnings report, despite beating profit expectations. This drop signals growing consumer caution, attributed to elevated prices, high gasoline costs, and economic uncertainty. While customer traffic remains robust, the purchasing behavior indicates smaller, more deliberate transactions across major retailers like Walmart, Target, and Home Depot. This trend suggests a potential slowdown in consumer spending power, making investors wary of future revenue growth.
- 4d agoNEGATIVEWalmart Shares Extend Decline After Rare US Sales Miss
Walmart Inc. reported a rare miss on US comparable-store sales, with growth of 2.6% excluding fuel in the second quarter falling short of the lowest analyst estimates. This marks the slowest growth rate in over six years, primarily impacted by pricing pressures in its pharmacy segment. The company's shares experienced a significant decline, dropping as much as 10% intraday, wiping out its year-to-date gains. Investors are concerned about the retailer's deceleration, potentially reflecting broader economic slowdowns in the US.
- 5d agoNEGATIVEWalmart Slides 9% as Sales Slow and Stocks Retreat | Closing Bell
Walmart Inc. experienced a significant downturn, with its stock sliding 9% during the trading session. This decline was attributed to a noticeable slowdown in sales growth, which failed to meet market expectations. The broader market also saw a retreat, contributing to the negative sentiment surrounding the retail giant. Investors are closely watching these developments for signs of potential shifts in consumer spending patterns and the company's ability to maintain its market dominance amidst evolving economic conditions.
- 5d agoPOSITIVEFacing weary customers, Walmart will use its nearly $3 billion in tariff refunds to lower prices
Walmart plans to leverage nearly $3 billion in tariff refunds to reduce prices for consumers, a strategic move following a nearly 9% stock decline attributed to a six-year low in U.S. sales growth. This initiative aims to regain customer loyalty and market share by offering more competitive pricing. While the company absorbed tariff costs last year, this refund allocation signals a renewed focus on value proposition. Investors will monitor the impact on sales volume and profit margins, as lower prices could boost demand but potentially compress short-term profitability.
via Markets Gazette