Download PDF

1. Company Snapshot

1.a. Company Description

Walmart Inc.engages in the operation of retail, wholesale, and other units worldwide.The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club.


It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores; membership-only warehouse clubs; ecommerce websites, such as walmart.com, walmart.com.mx, walmart.ca, flipkart.com, and samsclub.com; and mobile commerce applications.The company offers grocery and consumables, which includes dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; and health and wellness products covering pharmacy, over-the-counter drugs and other medical products, and optical and hearing services.It also provides gasoline stations and tobacco; home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses, and tire and battery centers; and consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards.


In addition, the company offers fuel and financial services and related products, including money orders, prepaid cards, money transfers, and check cashing and bill payment, as well as various types of installment lending.It operates approximately 10,500 stores and various e-commerce websites under 46 banners in 24 countries.The company was formerly known as Wal-Mart Stores, Inc.


and changed its name to Walmart Inc.in February 2018.The company was founded in 1945 and is based in Bentonville, Arkansas.

Show Full description

1.b. Last Insights on WMT

Walmart's recent performance was driven by strong Q3 earnings, fueled by e-commerce growth, membership, and advertising momentum. The company's revenue increased 5.8% year-over-year to $179.5 billion, surpassing expectations. Adjusted operating income grew 8%, and e-commerce sales jumped 27% globally. A raised fiscal 2026 outlook further boosted investor confidence. Additionally, the company's focus on affluent customers drove in-store sales and delivery growth. Walmart's industry-leading growth and outperformance relative to competitors like Target also contributed to its success.

1.c. Company Highlights

2. Walmart's Strong Q3 Earnings: A Robust Performance Across Segments

Walmart's third-quarter fiscal year 2026 earnings report was a resounding success, with the company posting a 5.9% increase in overall sales and an 8% growth in adjusted operating income in constant currency. The company's adjusted EPS came in at $0.62, beating estimates of $0.601. E-commerce sales drove a significant portion of this growth, with a 27% increase across all segments. The company's gross profit remained relatively flat year-over-year, while adjusted SG&A expenses leveraged slightly in Q3. The strong cash flow generation was evident, with year-to-date operating cash flow reaching $27 billion, up $4.5 billion compared to last year.

Publication Date: Nov -21

📋 Highlights
  • Leadership Transition:: CEO Doug McMillon announced his transition, with John Furner set to assume the role, signaling strategic continuity focused on value and customer trust.
  • Strong Sales & Profit Growth:: Total sales rose 5.9%, adjusted operating income grew 8% (constant currency), with e-commerce surging 27% across all segments.
  • International Outperformance:: Walmart International delivered 11.4% sales growth and 16.9% adjusted operating income growth, driven by high-growth markets like India and China.
  • Advertising & Membership Surge:: Advertising revenue jumped 53% globally (including VIZIO), and membership income increased 17%, reflecting digital engagement and Walmart+ growth.
  • Guidance Raised:: Full-year sales growth revised to 4.8–5.1% (from 3.75–4.75%) and operating income growth to 4.8–5.5%, with Q4 operating income guidance at 8–11% growth.

Segmental Performance

Walmart International was the standout performer, with an 11.4% sales increase and 16.9% adjusted operating income growth. Walmart U.S. comp sales grew 4.5%, driven by strength in pickup and delivery and advertising, while e-commerce sales rose 28%. Sam's Club U.S. comp sales ex fuel increased 3.8%, with members engaging more digitally. The company's advertising business grew 53% globally, including VIZIO, and membership income increased 17% across the enterprise.

Valuation and Future Prospects

With a P/E Ratio of 37.28 and an ROE of 25.38%, Walmart's valuation appears to be reasonable, considering its strong earnings growth prospects. The company's guidance for full-year sales and operating income has been raised, with expected sales growth between 4.8% and 5.1% and operating income growth between 4.8% and 5.5%. Analysts estimate next year's revenue growth at 4.5%. The company's focus on value, convenience, and execution is expected to drive customer trust and loyalty.

Operational Highlights

The company's same-day delivery grew triple digits for the fourth consecutive quarter, and its VIZIO television and competitive turkey prices are examples of its value proposition. Walmart has maintained a consistent approach to pricing, with over 7,000 rollbacks in place in Walmart U.S., and a focus on unit growth and share in food categories. The company's e-commerce has shifted from lost profitability, and improvements are expected between channels over time.

Category Mix and Elasticity

The merchandise category mix pressure started a couple of years ago due to high single-digit inflation, causing consumers to prioritize necessities over discretionary items. However, Walmart has improved its assortment, with apparel growing over 5% each month of the quarter on a unit basis. The impact of elasticity differs by category, with electronics, toys, and seasonal showing higher average unit prices (AURs) in the high single digits, while units remain flat.

3. NewsRoom

Card image cap

Market Today: WBD Sale Bids, Meta Cuts, Apple Shake-Up

Dec -04

Source: gurufocus.com

Card image cap

Grocery space is tough with Walmart doing so well, says Bernstein's Zhihan Ma

Dec -04

Source: youtube.com

Card image cap

Symbotic Stock Tanks 15%. Why Walmart's Partner Is Falling.

Dec -04

Source: barrons.com

Card image cap

Uniting Wealth Spends Over $20 Million on Dividend-Focused ETFs

Dec -04

Source: fool.com

Card image cap

Battle of the Consumer Staples ETFs: Who Comes Out on Top, XLP or VDC?

Dec -04

Source: fool.com

Card image cap

First Look: Insurers, Auto Rules, AI and Fed Jitters

Dec -04

Source: gurufocus.com

Card image cap

C Douglas Mcmillon Sells 19,416 Shares of Walmart (NYSE:WMT) Stock

Dec -04

Source: defenseworld.net

Card image cap

Read This Before Buying Walmart Stock

Dec -04

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Walmart U.S.

Expected Growth: 3.8%

The U.S. retail industry is expected to grow, driven by increasing consumer spending and e-commerce adoption. Walmart's focus on enhancing its e-commerce capabilities and improving in-store experiences will help it maintain market share and drive growth.

Walmart International

Expected Growth: 3.4%

The international retail market is expected to grow moderately, driven by increasing consumer spending in emerging economies. Walmart's focus on expanding its e-commerce capabilities in international markets will help drive growth, but it may be offset by macroeconomic headwinds in some markets.

Sam's Club

Expected Growth: 3.2%

The warehouse club market is expected to grow moderately, driven by increasing demand for convenient and value-oriented shopping experiences. Sam's Club's focus on enhancing its e-commerce capabilities and improving its membership model will help drive growth, but it may be offset by intense competition in the warehouse club space.

Corporate and Support

Expected Growth: 3.0%

The corporate and support segment is expected to grow at a slower rate, driven by the company's focus on cost savings and efficiency initiatives. The segment's growth will be mainly driven by the company's investments in technology and e-commerce capabilities.

7. Detailed Products

Grocery

Fresh produce, meat, dairy products, and other food items

Electronics

TVs, laptops, smartphones, tablets, and gaming consoles

Clothing and Accessories

Apparel, shoes, handbags, jewelry, and watches

Home and Furniture

Furniture, home decor, kitchenware, and bedding

Health and Wellness

Pharmacy services, health supplements, and personal care products

Sports and Outdoors

Fitness equipment, bicycles, camping gear, and outdoor furniture

Baby and Kids

Toys, strollers, car seats, and nursery furniture

Pet Products

Pet food, toys, and accessories

Walmart Services

Pharmacy services, photo printing, and money services

Sam's Club Membership

Warehouse club membership for bulk shopping

8. Walmart Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Walmart's business model is focused on providing low-cost goods, making it difficult for substitutes to emerge. Additionally, the company's extensive logistics and supply chain network make it challenging for new entrants to replicate.

Bargaining Power Of Customers

Walmart's customers have some bargaining power due to the availability of alternative retailers. However, the company's everyday low prices and convenient locations reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Walmart's massive scale and purchasing power give it significant bargaining power over its suppliers. The company can negotiate low prices and dictate terms to its suppliers.

Threat Of New Entrants

The retail industry has high barriers to entry, including significant capital requirements and the need for an extensive logistics network. These barriers make it difficult for new entrants to compete with Walmart.

Intensity Of Rivalry

The retail industry is highly competitive, with many established players competing for market share. Walmart faces intense competition from other retailers, including Costco, Target, and online retailers like Amazon.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.72%
Debt Cost 5.88%
Equity Weight 66.28%
Equity Cost 6.40%
WACC 6.22%
Leverage 50.88%

11. Quality Control: Walmart Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Altria

A-Score: 8.0/10

Value: 6.8

Growth: 5.8

Quality: 7.5

Yield: 10.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Kraft Heinz

A-Score: 6.0/10

Value: 8.7

Growth: 3.8

Quality: 4.4

Yield: 9.0

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Walmart

A-Score: 5.5/10

Value: 2.4

Growth: 5.4

Quality: 4.8

Yield: 2.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Dollar General

A-Score: 5.4/10

Value: 5.2

Growth: 5.6

Quality: 3.9

Yield: 3.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Costco Wholesale

A-Score: 5.4/10

Value: 1.4

Growth: 7.0

Quality: 5.7

Yield: 2.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Target

A-Score: 5.0/10

Value: 6.8

Growth: 5.1

Quality: 4.7

Yield: 7.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

114.84$

Current Price

114.84$

Potential

-0.00%

Expected Cash-Flows