Walmart (WMT) AI Stock Analysis

• Market Cap: $666.92B
• Dividend Yield: 1.03%
• Average Volume (3M): 25.35M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.57
• Revenue Growth: 5.07%
• EPS Growth: 25.86%
• Country: US
• Employees: 2,100,000
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Discount Stores
• EPS (TTM): 2.41
• Shares Outstanding: 8,016,849,600
• 10 Day Avg. Volume: 24,553,473
• 30 Day Avg. Volume: 25,350,590
• PEG Ratio: 1.34
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.01
• Price to Cash Flow (P/CF): 12.70
• P/FCF Ratio: 12.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $111.00
• Price Target Upside: 33.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 30

Walmart's strong financial performance and positive earnings call sentiment are key strengths, showcasing robust revenue growth and strategic advancements. However, technical indicators suggest potential short-term volatility, and the valuation metrics indicate the stock may be overvalued. These factors combine to give Walmart a solid but tempered overall score.

Positive Factors

E-commerce Profitability

US e-commerce profitability could arrive thanks to benefits of scale in 1P/3P, Advertising & Membership income, affording WMT control over profit flow.

Market Share

WMT's strong value and convenience continue resonating with consumers, positioning it well to gain share across product categories and income cohorts.

Negative Factors

Margin Pressure

Margins are pressured primarily due to an increase in the Food/Beverage Retail PPI.

Operating Deleverage

Operating deleverage is expected with the current Q1 expectations showing a 4bps reduction.

Walmart Business Overview & Revenue Model

Company Description

Walmart Inc. is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, Walmart is one of the largest retailers in the world, offering a wide range of products including groceries, electronics, apparel, home goods, and more. The company operates through various segments including Walmart U.S., Walmart International, and Sam's Club, providing a combination of in-store and online shopping experiences.

How the Company Makes Money

Walmart makes money primarily through the sale of goods and services across its various segments. The Walmart U.S. segment, which is its largest revenue generator, includes the operations of discount stores, supercenters, and neighborhood markets, as well as e-commerce platforms. Walmart International operates retail units in numerous countries outside the U.S., offering similar product ranges adapted to local markets. Sam's Club, a membership-only warehouse club, generates revenue from membership fees and the sale of bulk merchandise. Additionally, Walmart has significant revenue streams from its online marketplace and advertising sales. The company benefits from economies of scale, strategic supplier relationships, and an extensive distribution network that enhances its supply chain efficiency.

Walmart Financial Statement Overview

Summary

Walmart exhibits a strong financial position with consistent revenue growth, effective cost management, and solid profitability margins. The balance sheet reflects a stable capital structure with moderate leverage, while the cash flow statement indicates efficient cash management and strong cash generation.

Income Statement

Walmart has demonstrated strong financial performance with consistent revenue growth, increasing from $572.75 billion in 2022 to $680.99 billion in 2025, indicating a healthy growth trajectory. The gross profit margin improved slightly from 25.10% in 2022 to 24.86% in 2025, and net profit margin rose from 2.39% to 2.86% over the same period. The EBIT margin increased from 4.53% to 4.31%, while EBITDA margin remained stable. These metrics reflect Walmart's effective cost management and operational efficiency, which contribute to its robust profitability.

Balance Sheet

Walmart's balance sheet is solid with a debt-to-equity ratio of 0.66 in 2025, reflecting a moderate level of leverage. The equity ratio improved from 34.00% in 2022 to 34.89% in 2025, indicating a stable capital structure. Return on equity (ROE) increased from 16.42% to 21.36%, showcasing effective utilization of equity to generate profits. The company's relatively high total debt is offset by strong equity and asset positions, but continued focus on debt management is advisable.

Cash Flow

Walmart's cash flow position is strong, with operating cash flow rising from $24.18 billion in 2022 to $36.44 billion in 2025, indicating improved cash generation capabilities. Free cash flow to net income ratio remains robust, demonstrating efficient capital expenditure management. The operating cash flow to net income ratio improved significantly, suggesting enhanced operational efficiency. The company has managed its investing and financing activities effectively, contributing to a solid cash flow position.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
680.99B	648.13B	611.29B	572.75B	559.15B
	Gross Profit
169.23B	157.98B	147.57B	143.75B	138.84B
	EBIT
29.35B	27.01B	20.43B	25.94B	22.55B
	EBITDA
29.35B	38.87B	30.09B	36.60B	34.03B
	Net Income Common Stockholders
19.44B	15.51B	11.68B	13.67B	13.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.04B	9.87B	8.88B	14.76B	17.74B
	Total Assets
260.82B	252.40B	243.46B	244.86B	252.50B
	Total Debt
60.11B	61.32B	58.92B	57.32B	63.25B
	Net Debt
51.08B	51.45B	50.04B	42.56B	45.51B
	Total Liabilities
169.81B	161.83B	159.47B	152.97B	164.97B
	Stockholders Equity
91.01B	83.86B	76.69B	83.25B	81.30B
Cash Flow		Free Cash Flow
36.44B	15.12B	11.98B	11.07B	25.81B
	Operating Cash Flow
36.44B	35.73B	28.84B	24.18B	36.07B
	Investing Cash Flow
-21.38B	-21.29B	-17.72B	-6.01B	-10.07B
	Financing Cash Flow
-14.82B	-13.41B	-16.21B	-22.83B	-16.12B

Walmart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMT, the sentiment is Negative. The current price of 83.19 is below the 20-day moving average (MA) of 86.03, below the 50-day MA of 93.44, and below the 200-day MA of 83.60, indicating a neutral trend. The MACD of -2.09 indicates Negative momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 67.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WMT.

Walmart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMT	73 Outperform	$666.92B	34.59	22.23%	1.03%	5.07%	25.86%
KR	73 Outperform	$44.40B	18.29	26.59%	1.86%	-1.94%	23.94%
COST	71 Outperform	$406.63B	53.50	32.89%	0.51%	6.13%	12.14%
DG	65 Neutral	$20.37B	18.11	15.89%	2.55%	4.96%	-32.41%
Sector *	62 Neutral	$20.22B	13.99	-16.14%	3.22%	1.15%	3.41%
DLTR	57 Neutral	$14.53B	―	18.88%	―	-9.88%	-205.57%
TGT	54 Neutral	$43.61B	10.81	29.12%	4.66%	-0.79%	-0.90%

Walmart Corporate Events

Walmart Reaches $123M Settlement Over Opioid Oversight

Walmart Inc. announced a settlement agreement to resolve shareholder derivative actions relating to allegations that certain directors and officers failed to oversee the company’s opioid distribution. If approved by the Delaware Court, the settlement will include a $123 million payment from insurance carriers and the adoption of corporate governance practices for five years. This move aims to address investor concerns without admitting liability, offering a resolution to ongoing legal disputes.