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Wal-Mart de Mexico (WMMVY)
OTHER OTC:WMMVY
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Wal-Mart de Mexico
(OTC:WMMVY)
Rating:76Outperform
Price Target:―
Wal-Mart de Mexico (WMMVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.09B
Dividend Yield2.95%
Average Volume (3M)3.57K
Price to Earnings (P/E)19.8
Beta (1Y)0.41
Revenue Growth-2.87%
EPS Growth-9.91%
CountryUS
Employees235,132
SectorConsumer Defensive
Sector Strength57
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.36
Shares Outstanding1,744,632,200
10 Day Avg. Volume10,704
30 Day Avg. Volume3,568
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)5.90
Price to Sales (P/S)0.00
P/FCF Ratio27.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Wal-Mart de Mexico Business Overview & Revenue Model
Company DescriptionWal-Mart de México, S.A.B. de C.V. owns and operates self-service stores in Mexico and Central America. The company operates discount warehouses and stores, hypermarkets, supermarkets, and membership self-service wholesale stores. It operates 2,198 Bodega Aurrerá discount stores, 294 Walmart hypermarkets, 14 Superama supermarkets, 85 Walmart Express supermarkets, and 165 Sam's Club membership self-service wholesale stores. The company also operates 572 Despensa Familiar and Palà discount stores; 98 Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; 158 Bodegas, Maxi Bodega, and Maxi Palà stores; and 36 Walmart hypermarkets in Costa Rica, Guatemala, Honduras, Nicaragua, and El Salvador. In addition, it imports and sells goods; develops properties; and manages real estate companies. The company was founded in 1958 and is headquartered in Mexico City, Mexico. Wal-Mart de México, S.A.B. de C.V. is a subsidiary of Intersalt, S. De R.l. De C.v.
How the Company Makes MoneyWal-Mart de Mexico generates revenue primarily through the sale of consumer goods in its physical retail locations and via e-commerce platforms. The company operates a diverse portfolio of store formats catering to different market segments, which helps maximize its reach and customer base. Revenue streams include sales from groceries, clothing, electronics, and other general merchandise. In addition, Walmex benefits from membership fees collected through its Sam's Club warehouse stores, which offer bulk purchasing options to consumers and businesses. Strategic partnerships with suppliers and an extensive supply chain network ensure competitive pricing and product availability, further enhancing its revenue potential. The company's focus on operational efficiency and cost management also contributes to its profitability.
Wal-Mart de Mexico Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -1.28%|
Next Earnings Date:Jul 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with significant achievements in e-commerce growth, new business development, and price leadership. However, challenges remain with declining transaction volumes, category slowdowns, and increased expenses impacting profitability. The company remains optimistic about future improvements and growth opportunities.Q1-2025 Updates
Positive Updates
E-commerce Growth
E-commerce business grew 17% during the quarter, with on-demand growth of 26% and marketplace growth of 8%, though the latter was impacted by a slowdown in key categories.
New Store Openings
Opened 20 new stores in Q1 2025, a 67% increase compared to the same quarter last year, contributing 1.6% to total sales growth.
Growth in Central America
Central America reported a 1.9% same-store sales growth and 54% e-commerce growth, with a 69% increase in Walmart Connect revenue in the region.
New Business Development
New business initiatives like Bait reached 19.8 million active users, generating MXN 2.3 billion in revenue, and Walmart Connect grew 25%.
Gross Margin Expansion
Gross margin expanded by 20 basis points to 24.1%, driven by contributions from new businesses and improved price perception.
Price Leadership
Efforts to reinforce price leadership resulted in positive outcomes, with notable campaigns like Morralla contributing to double-digit growth.
Negative Updates
Negative Same-Store Sales Growth in Transactions
Same-store sales saw a decline of 3.2% in transactions despite a 4.6% growth in ticket size.
Decline in Gaming and Electronics Categories
Key categories like video games, TVs, and video experienced an industry-wide slowdown, impacting marketplace growth.
SG&A Expense Increase
SG&A expenses increased by 12%, representing 16.5% of revenues, with a 70 basis points expansion in Mexico.
Inventory Growth
Inventory levels grew 15%, outpacing sales growth, emphasizing the need for better inventory management.
Operating Income and EBITDA Margin Contraction
Operating income decreased by 1.5%, and EBITDA margin contracted by 50 basis points to 10.4%.
Company Guidance
In the first quarter of 2025, Walmart de México y Centroamérica reported a same-store sales growth of 1.4%, with a 4.6% increase in ticket size but a 3.2% decline in transactions. The company opened 20 new stores, a 67% increase from the previous year, contributing 1.6% to total sales growth. E-commerce grew by 17%, driven by a 26% increase in on-demand services, while the marketplace experienced an 8% growth. Revenue in Central America rose by 3.5%, with e-commerce penetration increasing by 54%. The consolidated total revenue grew by 6.5%, aided by Mexican peso depreciation, while the gross margin expanded by 20 basis points to 24.1%. Despite these gains, SG&A expenses grew by 12%, impacting the EBITDA margin, which contracted by 50 basis points to 10.4%. Cash flow challenges were noted, with a 45% decrease in cash position year-over-year, primarily due to increased inventory and reduced accounts payable. The company remains optimistic about a gradual consumption ramp-up and maintains its annual sales growth guidance of 6% to 7%.Wal-Mart de Mexico Financial Statement Overview
Summary
Wal-Mart de Mexico shows solid financial health with a robust revenue growth of 20.6%. The company maintains stable profit margins and efficient operations, reflected in healthy EBIT and EBITDA margins. A strong balance sheet with moderate leverage and a commendable ROE of 21.8% supports its position. Cash flow generation remains robust, though there are areas for improvement like slight net income decrease and volatile free cash flow.Income Statement
Wal-Mart de Mexico shows robust revenue growth, with TTM revenues increasing by 20.6% since 2020, indicating strong market performance. Gross and net profit margins are stable at 24.2% and 5.4% respectively, showcasing consistent profitability. The EBIT and EBITDA margins are healthy at 7.8% and 9.6%, reflecting efficient operations. However, net income slightly decreased in the TTM compared to the previous year, which may warrant attention.85
Very Positive
Balance Sheet
The company maintains a solid financial position with a debt-to-equity ratio of 0.33, suggesting moderate leverage. The equity ratio is healthy at 50.8%, indicating a strong asset base funded by equity. Return on equity (ROE) is a commendable 21.8%, reflecting effective use of shareholder funds to generate profit. While stockholders' equity has increased, the total liabilities remain substantial, which may pose potential risks if interest rates rise.78
Positive
Cash Flow
Wal-Mart de Mexico has a strong operating cash flow to net income ratio of 1.14, indicating effective cash generation from operations. The free cash flow to net income ratio stands at 0.48, reflecting substantial reinvestment in the business. Free cash flow growth has been volatile, decreasing in the TTM, but the overall cash flow position remains solid. Continued investment in capital expenditures suggests a focus on growth and expansion.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 973.29B | 958.51B | 886.52B | 819.17B | 736.04B | 701.73B |
| Gross Profit | 235.06B | 231.47B | 210.56B | 191.40B | 171.84B | 162.04B |
| EBITDA | 93.77B | 91.57B | 97.06B | 89.90B | 82.07B | 74.20B |
| Net Income | 52.96B | 53.83B | 51.59B | 48.97B | 44.14B | 33.43B |
Balance Sheet | ||||||
| Total Assets | 479.60B | 493.89B | 436.55B | 418.81B | 394.39B | 361.88B |
| Cash, Cash Equivalents and Short-Term Investments | 23.94B | 36.51B | 40.67B | 47.43B | 42.82B | 35.67B |
| Total Debt | 79.67B | 79.73B | 75.25B | 73.35B | 64.69B | 59.74B |
| Total Liabilities | 236.13B | 261.02B | 237.46B | 216.34B | 208.51B | 192.76B |
| Stockholders Equity | 243.47B | 232.88B | 199.09B | 202.47B | 185.88B | 169.12B |
Cash Flow | ||||||
| Free Cash Flow | 25.28B | 37.87B | 56.33B | 43.17B | 44.42B | 44.64B |
| Operating Cash Flow | 60.27B | 72.64B | 85.12B | 64.47B | 64.88B | 61.37B |
| Investing Cash Flow | -31.80B | -30.53B | -29.76B | -20.32B | -19.13B | -16.53B |
| Financing Cash Flow | -51.92B | -49.80B | -58.55B | -39.64B | -37.50B | -39.70B |
Wal-Mart de Mexico Technical Analysis
Neutral
31.50
Price Trends
32.88
Negative
30.41
Positive
29.09
Positive
Market Momentum
-0.12
Positive
39.59
Neutral
14.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMMVY, the sentiment is Neutral. The current price of 31.5 is below the 20-day moving average (MA) of 32.95, below the 50-day MA of 32.88, and above the 200-day MA of 29.09, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 14.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WMMVY.
Wal-Mart de Mexico Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $774.82B | 41.65 | 22.80% | 0.97% | 4.22% | -0.17% | |
77 Outperform | $440.01B | 56.28 | 32.08% | 0.53% | 5.94% | 9.31% | |
77 Outperform | $24.80B | 21.49 | 15.69% | 2.09% | 4.77% | -23.73% | |
76 Outperform | $55.09B | 19.76 | 22.41% | 2.95% | -2.87% | -9.91% | |
70 Outperform | $46.11B | 18.96 | 24.06% | 1.83% | -2.11% | 25.03% | |
66 Neutral | $46.35B | 11.21 | 29.08% | 4.39% | -0.69% | 2.03% | |
54 Neutral | C$4.48B | 4.03 | -20.57% | 3.84% | 8.18% | 1.50% |
* Consumer Defensive Sector Average
Performance Comparison
WMMVY
Wal-Mart de Mexico
31.50
-5.66
-15.23%
COST
Costco
982.09
142.43
16.96%
DG
Dollar General
112.35
-16.63
-12.89%
KR
Kroger Company
70.26
18.87
36.72%
TGT
Target
102.43
-45.18
-30.61%
WMT
Walmart
96.81
28.27
41.25%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.