Wal-Mart de Mexico (WMMVY) AI Stock Analysis

• Market Cap: $54.82B
• Dividend Yield: 2.55%
• Average Volume (3M): 57.80K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.50
• 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: 43,437
• 30 Day Avg. Volume: 57,799
• 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: 1.02
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: 0.80
• 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: 67 Neutral
• 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 Business Overview & Revenue Model

Company Description

Wal-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 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 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

• Technical Analysis Sentiment: Neutral
• Last Price: 33.62
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 33.62 is above the 20-day moving average (MA) of 32.28, above the 50-day MA of 32.42, and above the 200-day MA of 30.52, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 18.71 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMT	78 Outperform	$911.47B	40.11	24.87%	0.82%	4.34%	17.27%
DG	73 Outperform	$30.22B	23.70	16.45%	1.88%	4.86%	-4.51%
COST	72 Outperform	$379.78B	45.83	30.32%	0.59%	8.34%	9.58%
TGT	70 Neutral	$44.38B	11.89	25.09%	4.61%	-2.16%	-12.66%
WMMVY	67 Neutral	$54.82B	21.35	22.26%	2.55%	-3.82%	-15.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	61 Neutral	$25.42B	-9.49	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.