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Wal-Mart de Mexico (WMMVY)
OTHER OTC:WMMVY
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Wal-Mart de Mexico
(OTC:WMMVY)
Rating:66Neutral
Price Target:
$31.00
â–²(7.42% Upside)
Wal-Mart de Mexico (WMMVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.21B
Dividend Yield3.16%
Average Volume (3M)11.78K
Price to Earnings (P/E)19.5
Beta (1Y)0.43
Revenue Growth-5.92%
EPS Growth-16.86%
CountryUS
Employees235,132
SectorConsumer Defensive
Sector Strength52
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.34
Shares Outstanding1,744,632,200
10 Day Avg. Volume24,630
30 Day Avg. Volume11,778
Financial Highlights & Ratios
PEG Ratio4.06
Price to Book (P/B)4.12
Price to Sales (P/S)1.00
P/FCF Ratio25.35
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.25
Enterprise Value/Ebitda0.65
Forecast
1Y Price Target
$31.00Price Target Upside7.42% Upside
Rating ConsensusHold
Number of Analyst Covering1
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:Jul 16, 2025
(Q2-2025)
| % Change Since: -5.59%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong revenue growth, market share gains, and successful strategic initiatives. However, challenges such as weather impacts on traffic, SG&A pressure, and discrepancies in user numbers for Bait were noted.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
The company reported a growth of 8.3% in revenue, which is 6% in constant currency, ahead of market expectations in both regions.
Market Share Gains
Walmex achieved market share gains, increased price gap, expanded private brands, accelerated e-commerce, and consolidated new businesses.
Positive Consumer Response to Price Investments
Price investments in various formats, including Bodega Aurrera, Walmart Supercenters, and Sam's Club, led to good consumer elasticity and reaction.
Successful Hot Sale Event
The Hot Sale event saw better performance compared to Q1, with strong demand in durable goods, particularly electronics.
One Hallway Initiative On Track
The One Hallway initiative is progressing towards its October launch, with initial rollout to 1% of customers in the coming weeks.
Negative Updates
Impact of Weather on Traffic
Traffic was heavily impacted by weather, particularly in food and beverage categories, affecting Bodega Aurrera and Sam's Club.
SG&A Pressure
The company is experiencing pressure on SG&A due to investments in new stores, remodels, tech, e-commerce, and labor costs.
Cashi Volume Decline
Cashi experienced a decline in volume due to a change in the commercial strategy for the Hot Sale event, focusing on direct price reductions.
Discrepancy in Bait Active Users
There is a discrepancy between reported Bait active users and the numbers from IFT, raising concerns about methodology differences.
Company Guidance
During the call, Walmex's leadership provided guidance and insights on several key metrics. Ignacio Caride, the President and CEO, highlighted a 6% growth in constant currency for the second quarter, aligning with their guidance and surpassing market expectations in both regions. The company emphasized its commitment to expanding market share, increasing the price gap, and accelerating e-commerce and private brand expansion. They reassured investors of their gross margin expansion target for the year, despite variations by quarter due to strategic price investments. Paulo Garcia, the CFO, outlined the stable approach to working capital management and reaffirmed a high single-digit growth rate for SG&A in constant terms. The company also discussed the positive impact of remittances in pesos, which have been growing year-over-year, providing a tailwind. The guidance included plans to complete an MXN 8.8 billion share buyback and the strategic use of AI and technology to improve operations and customer service. Additionally, the One Hallway initiative's rollout is on track, with a focus on enhancing customer experience through significant backend changes.Wal-Mart de Mexico Financial Statement Overview
Summary
Wal-Mart de Mexico demonstrates strong financial health with consistent revenue growth and profitability. The company maintains a solid balance sheet with manageable debt levels and strong equity. Cash flow remains robust, supporting operational and investment activities. While some metrics indicate areas for improvement, overall, the financial position is stable and positions the company well for future growth in the discount retail industry.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 | 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 | 74.20B |
| 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
Negative
28.86
Price Trends
31.77
Negative
30.89
Negative
29.10
Negative
Market Momentum
-0.74
Negative
39.19
Neutral
25.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMMVY, the sentiment is Negative. The current price of 28.86 is below the 20-day moving average (MA) of 29.65, below the 50-day MA of 31.77, and below the 200-day MA of 29.10, indicating a bearish trend. The MACD of -0.74 indicates Negative momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 25.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WMMVY.
Wal-Mart de Mexico Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $24.40B | 21.16 | 15.69% | 2.13% | 4.77% | -23.73% | |
74 Outperform | $785.99B | 42.25 | 22.80% | 0.90% | 4.22% | -0.17% | |
71 Outperform | $422.42B | 54.03 | 32.08% | 0.52% | 5.94% | 9.31% | |
68 Neutral | $47.44B | 19.46 | 24.06% | 1.79% | -2.11% | 25.03% | |
66 Neutral | $51.21B | 19.48 | 23.70% | 3.16% | -5.92% | -16.86% | |
66 Neutral | $0.00 | 10.97 | 29.08% | 4.49% | -0.69% | 2.03% | |
50 Neutral | AU$2.04B | -0.17 | -22.96% | 9.17% | 4.40% | -101.77% |
* Consumer Defensive Sector Average
Performance Comparison
WMMVY
Wal-Mart de Mexico
28.86
-1.83
-5.96%
COST
Costco
943.63
137.47
17.05%
DG
Dollar General
110.86
-4.56
-3.95%
KR
Kroger Company
71.75
18.98
35.97%
TGT
Target
102.43
-26.47
-20.54%
WMT
Walmart
99.31
33.08
49.95%
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.