Walmart WMT
Walmart is a multinational retail chain operating supermarkets, hypermarkets, and discount stores, with a business model based on low prices and large scale. Walmart shows solid financial health (ND/EBITDA 1.44) and high quality (ROE 22.31%), but its valuation is demanding (P/E 39.12) and earnings growth is negative (-9.1%), limiting appeal at these prices.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Walmart is a multinational retail chain operating supermarkets, hypermarkets, and discount stores, with a business model based on low prices and large scale. Walmart shows solid financial health (ND/EBITDA 1.44) and high quality (ROE 22.31%), but its valuation is demanding (P/E 39.12) and earnings growth is negative (-9.1%), limiting appeal at these prices.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.3 |
| Quality / Moat | 5.4 |
| Valuation | 2.8 |
| Growth | 4.5 |
| Dividend | 5.5 |
| Momentum | 4.8 |
| Risk & Context | 7.8 |
OVERALL SCORE: 5.0/10
Context and risks
Moderate regulatory risk in the US due to its dominant scale and antitrust scrutiny over pricing and data practices, though the public commitment not to use personal data for pricing partially mitigates the risk.
News considered in the analysis
- Walmart pledges not to use personal data to set prices — Compromiso que reduce el riesgo regulatorio y de reputación en el uso de datos, un factor positivo moderado para una empresa de consumo masivo.
- Stocktwits Retail Therapy: Defensive Bets Take Off As COST, DG, WMT Lead Weekly Consumer Staples Gains — El liderazgo semanal del sector defensivo refleja una rotación hacia refugio, ya parcialmente descontada en el precio.
- Can New Flavors Actually Fix What’s Wrong at Kraft Heinz (KHC)? — Noticia sobre un competidor sin impacto directo en Walmart.
- Is the Beauty Aisle Becoming Retail’s Next Big Battleground for Walmart (WMT) and Ulta (ULTA)? — La expansión en belleza podría impulsar el tráfico y el ticket medio, pero es una oportunidad aún no materializada.
- In 1980, His Business Became The Fastest Company In History To Reach $1 Billion In Sales. Today, His Heirs Sit On Top a $453 Billion Combined Fortune. Here’s How Sam Walton Built the Biggest Retail Empire in America’s History — Artículo histórico sin información nueva relevante para la valoración.
Verdict: Hold; defensive quality and commercial moat justify a premium, but the P/E of 39.12 already discounts high expectations that current growth does not support.
Main risk: The main risk is the demanding valuation (P/E 39.12) combined with negative earnings growth (-9.1%), which could lead to a correction if defensive momentum reverses.
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