Education
About Us
Working with TipRanks
Follow Us
Wal-Mart de Mexico (WMMVY)
:WMMVY
Top Page
Wal-Mart de Mexico
(OTC:WMMVY)
Select Model
Select Model
Rating:78Outperform
Price Target:
$35.00
▲(12.04% Upside)
Wal-Mart de Mexico's strong financial performance and positive earnings call are the primary drivers of its score. Technical analysis and valuation provide moderate support, while the absence of significant corporate events leaves the focus on core financial and strategic strengths.
Wal-Mart de Mexico (WMMVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.18B
Dividend Yield3%
Average Volume (3M)8.93K
Price to Earnings (P/E)20.8
Beta (1Y)0.44
Revenue Growth-5.92%
EPS Growth-16.86%
CountryUS
Employees235,132
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.34
Shares Outstanding1,744,632,200
10 Day Avg. Volume0
30 Day Avg. Volume8,925
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 Cap1.10
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.25
Enterprise Value/Ebitda0.65
Forecast
1Y Price Target
$35.00Price Target Upside12.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 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 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:Jul 16, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment due to strong growth metrics, successful strategic investments, and technological advancements. However, challenges such as SG&A pressures, Cashi volume decline, and weather impacts on traffic and sales highlight areas for improvement.Q2-2025 Updates
Positive Updates
Strong Growth and Market Performance
Walmex reported a growth of 8.3% in the second quarter, with a 6% increase in constant currency, surpassing market expectations in both regions. The company is focused on doubling the business faster than before while increasing market share.
Successful Price Investments and Customer Response
Price investments across all formats such as Bodega Aurrera, Supercenters, Walmart Express, and Sam's Club resulted in positive consumer elasticity and increased affiliation retention rates.
E-commerce and New Business Acceleration
Walmex is accelerating its e-commerce and consolidation of new businesses, which is contributing to overall growth and market share gains.
Commitment to Share Buyback
Walmex announced a share buyback of MXN 8.8 billion for the year, with the intention to complete it fully, indicating strong capital allocation strategies.
Positive Impact of Remittances in Pesos
Despite a reduction in U.S. dollars, remittances have grown in pesos, providing a tailwind as people receive more pesos than last year.
Advancements in AI and Technology Integration
Walmex is integrating AI into operations, enhancing efficiency and productivity, particularly in store management, customer service, and e-commerce.
Negative Updates
Decrease in Days Payable Outstanding (DPO)
Days payable outstanding decreased due to lower purchases, impacting accounts payables, although this is expected to stabilize in the second half of the year.
SG&A Growth and Expense Pressures
Operating expenses are running ahead of expectations with pressures from labor costs and store openings, though measures are being implemented to bring SG&A growth closer to revenue growth.
Impact of Weather on Traffic and Sales
Heavy weather activity negatively impacted traffic and sales in certain food and beverage categories, affecting Bodega Aurrera and Sam's Club traffic.
Cashi Volume Decline
A change in promotional strategy during the Hot Sale event led to a decrease in Cashi volume. The focus shifted to direct price reductions instead of cashback, impacting Cashi's performance.
Company Guidance
In the recent earnings call, Walmart de Mexico y Centroamerica provided substantial guidance on its performance and strategic focus. The company reported a robust growth of 8.3% in the second quarter, which translates to a 6% increase in constant currency, aligning with their market-leading guidance. Key performance indicators included market share gains, an expanding price gap, and accelerated e-commerce growth. The leadership team highlighted continued investments in price across all formats, with Bodega Aurrera and Sam’s Club seeing significant consumer elasticity. Additionally, the company reaffirmed its guidance for gross margin expansion despite short-term price investments aimed at supporting customers in challenging times. Operationally, Walmart plans to maintain a high single-digit increase in operating expenses while focusing on store openings, remodels, and technological advancements. The leadership also addressed concerns around the discrepancy in Bait active users and elaborated on the strategic integration of AI to enhance efficiency and customer service, reinforcing their commitment to long-term growth and market leadership.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
31.24
Price Trends
29.98
Positive
31.43
Negative
29.62
Positive
Market Momentum
0.21
Negative
60.58
Neutral
94.94
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 31.24 is above the 20-day moving average (MA) of 30.33, above the 50-day MA of 29.98, and above the 200-day MA of 29.62, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 60.58 is Neutral, neither overbought nor oversold. The STOCH value of 94.94 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $54.18B | 20.79 | 23.70% | 3.00% | -5.92% | -16.86% | |
75 Outperform | 421.82B | 54.02 | 28.91% | 0.52% | 5.94% | 9.31% | |
75 Outperform | 815.86B | 39.09 | 23.69% | 0.89% | 4.23% | 38.05% | |
72 Outperform | 40.05B | 10.42 | 25.47% | 5.11% | -1.55% | -11.41% | |
68 Neutral | 22.48B | 19.78 | 14.87% | 2.31% | 4.98% | -15.98% | |
53 Neutral | 19.43B | -7.01 | -82.21% | ― | -29.67% | -178.03% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
WMMVY
Wal-Mart de Mexico
31.24
1.00
3.31%
COST
Costco
951.16
38.76
4.25%
DG
Dollar General
102.11
18.31
21.85%
DLTR
Dollar Tree
95.26
23.50
32.75%
TGT
Target
88.13
-61.39
-41.06%
WMT
Walmart
102.33
22.78
28.64%
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.