Wal-Mart de Mexico (WMMVY) AI Stock Analysis

• Market Cap: $57.43B
• Dividend Yield: 2.8%
• Average Volume (3M): 46.99K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.52
• Revenue Growth: -3.82%
• EPS Growth: -15.29%
• Country: US
• Employees: 235,132
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 0.37
• Shares Outstanding: 1,744,632,200
• 10 Day Avg. Volume: 13,235
• 30 Day Avg. Volume: 46,987
• PEG Ratio: 4.06
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 25.35
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.23
• Enterprise Value/Ebitda: 0.61
• 1Y Price Target: $36.36
• Price Target Upside: 8.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $38.00 ▲(13.03% Upside)

Wal-Mart de Mexico's strong financial performance and positive technical indicators are key strengths, supporting its competitive position. However, valuation concerns and cautious sentiment from the earnings call temper the overall outlook.

Positive Factors

E-commerce Development

The successful development of e-commerce initiatives like the One Hallway enhances omnichannel capabilities, driving long-term growth and customer engagement.

Private Label Growth

Growth in private label offerings strengthens brand differentiation and margin potential, supporting sustained profitability and customer loyalty.

Inventory Management

Improved inventory management enhances operational efficiency and working capital, contributing to better cash flow and profitability.

Negative Factors

Traffic Decline

A decline in store traffic could indicate challenges in customer retention and competition, potentially impacting long-term sales growth.

Weaker Store Openings

Slower store openings may hinder expansion plans and market penetration, affecting future revenue growth and competitive positioning.

Gross Margin Pressure

Pressure on gross margins from inventory reductions can affect profitability, necessitating strategic adjustments to maintain financial health.

Wal-Mart de Mexico Business Overview & Revenue Model

Company Description

Wal-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 Palí discount stores; 98 Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; 158 Bodegas, Maxi Bodega, and Maxi Palí 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 Money

Wal-Mart de Mexico generates revenue primarily through the sale of merchandise in its retail stores, which include both physical locations and e-commerce platforms. Key revenue streams include food and consumables, which account for a significant portion of sales, followed by general merchandise and health and wellness products. The company also benefits from strategic partnerships with suppliers that allow for competitive pricing and promotions. Additionally, WMMVY capitalizes on its membership-based warehouse clubs to drive bulk sales and customer loyalty, further enhancing its earnings. The company's focus on cost efficiency and supply chain optimization helps maintain profitability in a highly competitive retail environment.

Wal-Mart de Mexico Financial Statement Overview

Summary

Wal-Mart de Mexico exhibits strong financial performance with consistent revenue growth, stable profitability, and effective cash flow management. The company maintains a solid balance sheet with prudent leverage, though monitoring debt levels is advisable.

Income Statement

Wal-Mart de Mexico demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.94%, building on consistent annual growth. Gross profit margins remain stable around 24%, while net profit margins slightly decreased to 5.21% in the TTM. EBIT and EBITDA margins are healthy, indicating efficient operations. Overall, the company shows robust revenue growth and profitability, though slight pressure on net margins is noted.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.36 in the TTM, indicating prudent leverage. Return on equity remains strong at 22.79%, showcasing effective use of equity capital. The equity ratio is stable, suggesting a balanced asset structure. While the company maintains a healthy balance sheet, monitoring debt levels is advisable.

Cash Flow

Cash flow analysis reveals a significant 29.79% growth in free cash flow in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio is 0.38, indicating solid cash conversion efficiency. The free cash flow to net income ratio of 0.48 suggests effective cash management. Despite a slight decrease in operating cash flow, overall cash flow health is strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	992.13B	958.51B	886.52B	819.17B	736.04B	701.73B
Gross Profit	239.87B	231.47B	210.56B	191.40B	171.84B	162.04B
EBITDA	91.04B	91.57B	97.06B	89.90B	82.07B	73.81B
Net Income	51.68B	53.83B	51.59B	48.97B	44.14B	33.43B
Balance Sheet
Total Assets	480.96B	493.89B	436.55B	418.81B	394.39B	361.88B
Cash, Cash Equivalents and Short-Term Investments	32.44B	36.51B	40.67B	47.43B	42.82B	35.67B
Total Debt	78.78B	79.73B	75.25B	73.35B	64.69B	59.74B
Total Liabilities	263.41B	261.02B	237.46B	216.34B	208.51B	192.76B
Stockholders Equity	217.54B	232.88B	199.09B	202.47B	185.88B	169.12B
Cash Flow
Free Cash Flow	32.81B	37.87B	56.33B	43.17B	44.42B	44.64B
Operating Cash Flow	68.07B	72.64B	85.12B	64.47B	64.88B	61.37B
Investing Cash Flow	-31.79B	-30.53B	-29.76B	-20.32B	-19.13B	-16.53B
Financing Cash Flow	-53.60B	-49.80B	-58.55B	-39.64B	-37.50B	-39.70B

Wal-Mart de Mexico Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMMVY, the sentiment is Positive. The current price of 33.62 is above the 20-day moving average (MA) of 33.06, above the 50-day MA of 32.62, and above the 200-day MA of 30.76, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 49.97 is Neutral, neither overbought nor oversold. The STOCH value of 36.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WMMVY.

Wal-Mart de Mexico Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMT	78 Outperform	$902.06B	39.70	24.87%	0.81%	4.34%	17.27%
WMMVY	75 Outperform	$57.43B	22.23	22.26%	2.80%	-3.82%	-15.29%
DG	73 Outperform	$27.71B	21.74	16.45%	1.88%	4.86%	-4.51%
COST	72 Outperform	$388.20B	48.02	30.32%	0.57%	8.34%	9.58%
TGT	70 Neutral	$42.84B	11.48	25.09%	4.66%	-2.16%	-12.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	61 Neutral	$24.71B	―	20.07%	―	-39.27%	-182.36%

Wal-Mart de Mexico Corporate Events

Walmex Earnings Call: Cautious Optimism Amid Challenges

The recent earnings call of Wal-Mart de Mexico (Walmex) painted a picture of cautious optimism. While the company has made strides in strategic initiatives such as inventory management and private label growth, challenges like slower store openings and a decline in store traffic have tempered enthusiasm. The sentiment during the call was one of careful progress, acknowledging both achievements and areas needing attention.