Walmart (WMT) AI Stock Analysis

• Market Cap: $766.52B
• Dividend Yield: 0.95%
• Average Volume (3M): 16.37M
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.66
• Revenue Growth: 4.23%
• EPS Growth: 38.05%
• Country: US
• Employees: 2,100,000
• Sector: Consumer Defensive
• Sector Strength: 50
• Industry: Discount Stores
• EPS (TTM): 0.68
• Shares Outstanding: 7,980,418,000
• 10 Day Avg. Volume: 21,256,775
• 30 Day Avg. Volume: 16,373,679
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 20.61
• 1Y Price Target: $113.68
• Price Target Upside: 18.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 30

• Rating: 73 Outperform
• Price Target: $108.00 ▲(12.44% Upside)

Walmart's strong financial performance and strategic initiatives in e-commerce and technology are significant strengths. However, the high P/E ratio and modest dividend yield suggest valuation concerns. The earnings call provided a balanced view of growth prospects and challenges, contributing positively to the overall score.

Positive Factors

Earnings Growth

Walmart US profitability continued to increase, with fewer headwinds expected in the second half from the flow through of higher COGS on margin and earnings.

E-commerce Growth

E-commerce and membership growth remains exceptionally strong, with U.S. E-commerce poised to reach nearly ~$100B.

Market Position and Strategy

Walmart is well positioned to continue driving solid earnings growth, supported by market share gains given its compelling proposition for value and convenience.

Negative Factors

Cost Management

The company experienced a shortfall in EPS due to catch-up insurance claims and broader expense management challenges.

Profitability Challenges

Near-term unevenness in profitability will likely keep valuation range-bound at current elevated levels.

Valuation Concerns

Walmart’s valuation multiple is likely to remain range-bound until short-term headwinds on profitability, and the ultimate impact of tariff costs, abate.

Walmart Business Overview & Revenue Model

Company Description

Walmart Inc. is a leading multinational retail corporation based in the United States, operating a chain of hypermarkets, discount department stores, and grocery stores. Founded in 1962 by Sam Walton, Walmart's core business sectors include retail, wholesale, and ecommerce, providing a wide range of products such as groceries, clothing, electronics, home goods, and health and beauty products. The company operates under various formats including Walmart Supercenters, Walmart Discount Stores, Sam's Club membership warehouses, and its online platform, Walmart.com, catering to customers across diverse demographics.

How the Company Makes Money

Walmart generates revenue primarily through the sale of merchandise in its retail stores and online platforms. The company's revenue model is built on a low-cost leadership strategy, allowing it to offer competitive prices to attract a large customer base. Key revenue streams include sales from Walmart Supercenters, Discount Stores, and Sam's Club, which contribute significantly to its total sales volume. Additionally, Walmart has been expanding its ecommerce segment, which includes online sales and delivery services, contributing to revenue growth. The company also earns income from various services such as financial services, membership fees from Sam's Club, and advertising revenue from its online marketplace. Strategic partnerships with suppliers and logistics companies further enhance its operational efficiency and cost savings, ultimately bolstering its profitability.

Walmart Financial Statement Overview

Summary

Walmart demonstrates strong financial health with robust revenue and profit growth, efficient operations, and effective cost management. The balance sheet is solid, although rising liabilities require monitoring. Cash flow is strong, supporting ongoing operations and investments.

Income Statement

Walmart demonstrates strong revenue growth with a TTM revenue of $685.1B, showing a steady increase from previous years. Gross profit margin and net profit margin remain stable, indicating efficient cost management. The EBIT and EBITDA margins are solid, reflecting strong operational performance. However, the growth rate of these margins is moderate, suggesting potential areas for improvement.

Balance Sheet

The balance sheet is robust with a healthy equity ratio and controlled leverage. The debt-to-equity ratio is manageable, showing disciplined financial management. Return on equity is strong, indicating effective use of shareholder funds. However, the total liabilities have increased, which requires monitoring to maintain financial stability.

Cash Flow

Walmart's cash flow position is strong. Operating cash flow has consistently increased, supporting ongoing operations and investments. Free cash flow growth is healthy, although capital expenditures have also risen. The operating cash flow to net income ratio indicates good cash conversion efficiency, supporting overall liquidity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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
EBITDA	42.01B	36.38B	30.09B	31.35B	34.03B
Net Income	19.44B	15.51B	11.68B	13.67B	13.51B
Balance Sheet
Total Assets	260.82B	252.40B	243.20B	244.86B	252.50B
Cash, Cash Equivalents and Short-Term Investments	9.04B	9.87B	8.63B	14.76B	17.74B
Total Debt	60.11B	61.32B	58.92B	57.32B	63.25B
Total Liabilities	163.13B	161.83B	159.21B	152.97B	164.97B
Stockholders Equity	91.01B	83.86B	76.69B	83.25B	80.92B
Cash Flow
Free Cash Flow	12.66B	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	-11.92B
Financing Cash Flow	-14.82B	-13.41B	-17.04B	-22.83B	-16.12B

Walmart Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 96.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 96.05 is below the 20-day moving average (MA) of 100.06, below the 50-day MA of 97.78, and above the 200-day MA of 94.05, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 3.21 is Positive, 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
COST	80 Outperform	$417.57B	54.37	32.08%	0.52%	5.94%	9.31%
DG	74 Outperform	$24.72B	21.44	15.69%	2.14%	4.77%	-23.73%
WMT	73 Outperform	$766.52B	36.20	24.46%	0.95%	4.23%	38.05%
TGT	72 Outperform	$43.67B	11.33	26.32%	4.68%	-1.55%	-11.41%
KR	70 Outperform	$45.61B	19.06	24.06%	1.90%	-2.11%	25.03%
Sector *	63 Neutral	$20.46B	14.51	-3.60%	3.15%	2.60%	-5.31%
DLTR	60 Neutral	$23.37B	―	19.25%	―	-20.46%	-202.26%

Walmart Corporate Events

Walmart Concludes Annual Shareholders’ Meeting with Key Decisions

On June 5, 2025, Walmart Inc. held its Annual Shareholders’ Meeting where shareholders elected all twelve nominated directors for one-year terms. They also approved the ratification of Ernst & Young LLP as independent accountants, the executive compensation plan, and the Walmart Inc. Stock Incentive Plan of 2025. However, several shareholder proposals, including those related to law enforcement information requests, plastic packaging policies, racial equity audits, and health and safety governance, were rejected.