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Wal-Mart de Mexico (WMMVY)
OTHER OTC:WMMVY
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Wal-Mart de Mexico
(OTC:WMMVY)
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Rating:67Neutral
Price Target:
$34.00
▲(1.13% Upside)
Wal-Mart de Mexico's overall stock score reflects strong financial stability and strategic initiatives in private label and e-commerce. However, recent revenue decline, negative cash flow trends, and bearish technical indicators pose challenges. The valuation is moderate, and the cautious sentiment from the earnings call suggests potential risks ahead.
Positive Factors
Private Label Growth
The increase in private label penetration indicates a strategic focus on higher-margin products, enhancing profitability and customer loyalty over time.
Inventory Management
Improved inventory management reduces holding costs and enhances cash flow, contributing to operational efficiency and financial health.
E-commerce Development
Progress in e-commerce initiatives strengthens the omnichannel strategy, expanding market reach and adapting to consumer shopping trends.
Negative Factors
Revenue Decline
A substantial revenue decline indicates potential market share loss or demand issues, impacting long-term growth prospects and financial stability.
Traffic Decline
Declining store traffic suggests challenges in attracting customers, which could lead to reduced sales and affect store profitability.
Gross Margin Pressure
Pressure on gross margins from inventory reductions can squeeze profitability, affecting the company's ability to invest in growth initiatives.
Wal-Mart de Mexico (WMMVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.68B
Dividend Yield2.51%
Average Volume (3M)57.80K
Price to Earnings (P/E)21.9
Beta (1Y)0.50
Revenue Growth-3.82%
EPS Growth-15.29%
CountryUS
Employees235,132
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.37
Shares Outstanding1,744,632,200
10 Day Avg. Volume43,437
30 Day Avg. Volume57,799
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 Cap0.98
Enterprise Value/Revenue0.07
Enterprise Value/Gross Profit0.30
Enterprise Value/Ebitda0.80
Forecast
1Y Price Target
$36.36Price Target Upside8.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Wal-Mart de Mexico Business Overview & Revenue Model
Company DescriptionWal-Mart de Mexico (WMMVY) is the leading retail chain in Mexico and Central America, operating under various formats including hypermarkets, supermarkets, warehouse clubs, and convenience stores. The company is a subsidiary of Walmart Inc. and serves millions of customers through its extensive network of stores. WMMVY offers a wide range of products, including groceries, electronics, clothing, and household goods, catering to diverse consumer needs across different market segments.
How the Company Makes MoneyWal-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 Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several strategic initiatives and improvements in inventory management and private label growth. However, challenges such as slower store openings, a decline in store traffic, and pressure on gross margin were notable. Although there was significant progress in e-commerce, the overall sentiment remains cautious due to these underlying issues.Q3-2025 Updates
Positive Updates
Private Label Growth
Private label penetration increased by 100 basis points this quarter, indicating strong performance and future opportunities in this segment.
Inventory Management Improvement
Achieved a significant reduction in inventory days by almost 3.5 days, demonstrating improved efficiencies in inventory management.
E-commerce Development
The One Hallway initiative is progressing well with increased customer loyalty and larger baskets, indicating a positive impact on the omnichannel strategy.
SG&A Growth Control
SG&A growth was limited to around 5% this quarter, showing effective cost control measures in place.
Negative Updates
Weaker Store Openings
There was a slower than expected pace in store openings in Q3, which may affect growth projections.
Traffic Decline
Existing stores experienced a decline in traffic, raising concerns about potential cannibalization with new openings.
Gross Margin Pressure
Gross margin faced pressure due to inventory reductions, particularly in general merchandise.
Net Income Impact
A one-off item impacted net income, raising questions about potential recurring issues in future quarters.
Company Guidance
During the call, Walmex's leadership provided detailed guidance on several key metrics. They anticipate maintaining their target of opening 1,500 new stores over the next five years, despite a slower pace in the third quarter. The company expects sales growth in Q4 to be similar to Q2 and Q3, driven by a strong focus on enhancing e-commerce capabilities and private label penetration. SG&A is projected to grow at a high single-digit rate for the year, aligning more closely with sales growth, and aims for further alignment in the mid-to-long term. Inventory days on hand improved by 3.5 days, reflecting better inventory management, which is expected to continue contributing positively to working capital. The company is also focused on maintaining a stable gross margin while investing in everyday low prices (EDLP) and expanding its private label offerings. Finally, they foresee sequential profitability improvements, with Q4 expected to surpass Q3 performance.Wal-Mart de Mexico Financial Statement Overview
Summary
Wal-Mart de Mexico shows strong profitability and financial stability with consistent margins and a solid balance sheet. However, the recent revenue decline and negative free cash flow growth in the TTM period highlight potential challenges.Income Statement
Wal-Mart de Mexico's income statement shows a solid gross profit margin of around 24% consistently over the years, indicating stable profitability. However, the TTM data reveals a significant revenue decline of 21.9%, which is a concern. Net profit margins have slightly decreased in the TTM period compared to previous years. Despite these challenges, the company maintains a reasonable EBIT and EBITDA margin, demonstrating operational efficiency.Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio consistently below 0.38, indicating prudent financial leverage. Return on equity remains robust, although slightly declining in the TTM period. The equity ratio is healthy, suggesting a solid asset base supported by equity. Overall, the balance sheet portrays financial stability with manageable debt levels.Cash Flow
Cash flow analysis shows a decline in free cash flow growth in the TTM period, indicating potential cash generation challenges. However, the operating cash flow to net income ratio remains stable, suggesting efficient cash conversion from operations. The free cash flow to net income ratio is above 0.5, reflecting decent cash flow relative to earnings, but the negative growth trend is a concern.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 774.90B | 958.51B | 886.52B | 819.17B | 736.04B | 701.73B |
| Gross Profit | 185.65B | 231.47B | 210.56B | 191.40B | 171.84B | 162.04B |
| EBITDA | 69.58B | 91.57B | 97.06B | 89.90B | 82.07B | 73.81B |
| Net Income | 39.37B | 53.83B | 51.59B | 48.97B | 44.14B | 33.43B |
Balance Sheet | ||||||
| Total Assets | 27.13B | 493.89B | 436.55B | 418.81B | 394.39B | 361.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.92B | 36.51B | 40.67B | 47.43B | 42.82B | 35.67B |
| Total Debt | 4.31B | 79.73B | 75.25B | 73.35B | 64.69B | 59.74B |
| Total Liabilities | 14.94B | 261.02B | 237.46B | 216.34B | 208.51B | 192.76B |
| Stockholders Equity | 12.19B | 232.88B | 199.09B | 202.47B | 185.88B | 169.12B |
Cash Flow | ||||||
| Free Cash Flow | 32.43B | 37.87B | 56.33B | 43.17B | 44.42B | 44.64B |
| Operating Cash Flow | 57.19B | 72.64B | 85.12B | 64.47B | 64.88B | 61.37B |
| Investing Cash Flow | -22.29B | -30.53B | -29.76B | -20.32B | -19.13B | -16.53B |
| Financing Cash Flow | -50.86B | -49.80B | -58.55B | -39.64B | -37.50B | -39.70B |
Wal-Mart de Mexico Technical Analysis
Positive
33.62
Price Trends
32.32
Positive
31.37
Positive
30.91
Positive
Market Momentum
-0.01
Negative
54.58
Neutral
87.04
Negative
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 31.77, above the 50-day MA of 32.32, and above the 200-day MA of 30.91, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 87.04 is Negative, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $940.24B | 42.22 | 24.87% | 0.85% | 4.34% | 17.27% | |
73 Outperform | $32.77B | 26.11 | 16.45% | 1.88% | 4.86% | -4.51% | |
72 Outperform | $418.60B | 50.46 | 30.32% | 0.59% | 8.34% | 9.58% | |
70 Neutral | $48.06B | 13.18 | 25.09% | 4.79% | -2.16% | -12.66% | |
67 Neutral | $56.68B | 21.92 | 22.26% | 2.51% | -3.82% | -15.29% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $27.29B | -10.20 | 20.07% | ― | -39.27% | -182.36% |
* Consumer Defensive Sector Average
WMMVY
Wal-Mart de Mexico
32.33
4.84
17.63%
COST
Costco
941.93
29.46
3.23%
DG
Dollar General
151.25
83.37
122.81%
DLTR
Dollar Tree
137.37
67.20
95.77%
TGT
Target
108.63
-22.07
-16.89%
WMT
Walmart
120.36
30.43
33.84%
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.