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Wal-Mart de Mexico (WMMVY)
:WMMVY
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Wal-Mart de Mexico
(OTC:WMMVY)
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Select Model
Rating:75Outperform
Price Target:
$38.00
▲(13.23% 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.
Wal-Mart de Mexico (WMMVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.19B
Dividend Yield2.76%
Average Volume (3M)43.56K
Price to Earnings (P/E)22.3
Beta (1Y)0.57
Revenue Growth-5.92%
EPS Growth-16.86%
CountryUS
Employees235,132
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.37
Shares Outstanding1,744,632,200
10 Day Avg. Volume36,135
30 Day Avg. Volume43,564
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Wal-Mart de Mexico Business Overview & Revenue Model
Company DescriptionWal-Mart de Mexico (WMMVY) is a leading retail chain in Mexico and Central America, operating under the umbrella of Walmart Inc. The company offers a wide range of products and services across various formats, including hypermarkets, discount stores, and warehouse clubs. Core offerings include groceries, electronics, clothing, and household goods, catering to a diverse customer base. WMMVY is committed to providing value and convenience, with a strong emphasis on customer service and an ever-expanding e-commerce platform.
How the Company Makes MoneyWalmart de Mexico generates revenue primarily through the sale of retail goods across its various store formats, including grocery, pharmacy, and general merchandise items. The company employs a low-price strategy, leveraging economies of scale and a robust supply chain to maintain competitive pricing. Key revenue streams include in-store sales, online sales through its e-commerce platform, and membership fees from its warehouse clubs. Additionally, partnerships with local suppliers and brands allow WMMVY to offer exclusive products and promotions, enhancing customer loyalty and driving sales. The company's extensive network of stores and its focus on digital transformation further contribute to its strong revenue performance.
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 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.85
Very Positive
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.78
Positive
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.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
Positive
33.56
Price Trends
31.16
Positive
31.07
Positive
30.20
Positive
Market Momentum
0.75
Negative
55.19
Neutral
46.63
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 33.56 is above the 20-day moving average (MA) of 32.26, above the 50-day MA of 31.16, and above the 200-day MA of 30.20, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 55.19 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $42.22B | 10.97 | 26.32% | 4.84% | -1.55% | -11.41% | |
| ― | $57.19B | 22.30 | 23.70% | 2.76% | -5.92% | -16.86% | |
| ― | $815.06B | 38.66 | 24.46% | 0.89% | 4.23% | 38.05% | |
| ― | $21.92B | 18.48 | 15.60% | 2.37% | 4.98% | -15.98% | |
| ― | $404.37B | 50.76 | 30.69% | 0.55% | 8.17% | 9.92% | |
| ― | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
| ― | $20.15B | ― | 20.07% | ― | -29.67% | -178.03% |
* Consumer Defensive Sector Average
WMMVY
Wal-Mart de Mexico
32.80
6.14
23.03%
COST
Costco
920.18
50.46
5.80%
DG
Dollar General
99.58
21.54
27.60%
DLTR
Dollar Tree
98.80
34.16
52.85%
TGT
Target
92.92
-51.55
-35.68%
WMT
Walmart
102.23
21.07
25.96%
Wal-Mart de Mexico Corporate Events
Walmex Earnings Call: Cautious Optimism Amid Challenges
Oct 30, 2025
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.
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.