Walmart Inc.
🇺🇸 WMT · NYSE/NASDAQ · US9311421039
Consumer
USD 131.45 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
48.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 131.45 ÷ 2.73 = 48.2
TTM period through: 2026-01-31
Forward P/E (estimated): 44.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 48.5
Yield (Fwd)
0.75%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 0.71%
Div. Growth (5Y CAGR)
5.5%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
1.2x
Latest quarter: 5.4x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-01-31
Latest quarter (2026-01-31): 5.4x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
36.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 34.3%
Cash Flow Payout (TTM): 18.1%
FCF Coverage (TTM): 1.99x
ROE
21.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
23.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Walmart is an undisputed global retail leader offering essential consumer goods with an exceptionally strong balance sheet and proven defensive resilience. While the underlying business quality remains pristine with over 50 years of dividend growth, the extreme valuation (P/E of 48) and sub-1% yield offer limited upside for new capital. Existing shareholders should maintain positions given the underlying business strength, but new investors should wait for a significantly better entry point.
Sector Context
Walmart is a global omnichannel retailer providing groceries, essential consumer goods, and general merchandise. In the consumer staples and retail sector, massive scale advantages and essential product offerings typically translate into highly predictable, recession-resistant cash flows ideal for long-term dividend stability.
📊 Strategy Analysis
- • Unrivaled scale and market dominance in essential consumer goods provides exceptional defensive resilience.
- • Pristine balance sheet with Net Debt/EBITDA at 1.21x and a low cash flow payout ratio of 18.06% ensures dividend safety.
- • Impressive track record of 53 consecutive years of dividend increases, backed by consistent long-term revenue and earnings growth.
⚠ What to Watch
- • Extreme valuation with a P/E (TTM) of 48.17x far exceeds the strategy's target range of 8-15x, offering no margin of safety.
- • Current dividend yield of 0.71% falls significantly below the 3% minimum threshold required for income-focused portfolios.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.