Walmart Inc. Common Stock
🇺🇸 WMT · NYSE/NASDAQ · US9311421039
Consumer
USD 125.79 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
46.1
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: 125.79 ÷ 2.73 = 46.1
TTM period through: 2026-01-31
Forward P/E (estimated): 42.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 46.1
Yield (Fwd)
0.79%
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): 0.75%
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): 5.54x
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
22.6x
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 operating a highly resilient, essential consumer business with pristine financial stability. While the underlying business quality remains exceptional and acts as a safe haven during current macroeconomic volatility, the highly elevated valuation offers limited upside. Existing shareholders should maintain positions given the company's defensive strength, but new investors should wait for a more attractive entry point.
Sector Context
Walmart operates as a dominant global retailer, generating revenue primarily through its massive chain of hypermarkets, discount department stores, and a rapidly growing e-commerce ecosystem. For dividend investors, the consumer defensive sector provides exceptional stability during economic downturns, as grocery and essential household goods maintain consistent demand regardless of broader macroeconomic volatility.
📊 Strategy Analysis
- • Exceptional financial stability with Net Debt/EBITDA at a very safe 1.21x and a robust Free Cash Flow dividend coverage ratio of 5.54x.
- • Proven business resilience with consistent revenue growth (4.5% 5Y CAGR) and a defensive moat in essential goods during periods of inflation and geopolitical uncertainty.
- • Flawless dividend consistency over the past 10 years, supported by a conservative payout ratio of 35.96% that leaves ample room for sustainable growth.
- • Dominant market position enhanced by a successful transition into omni-channel retail, automation, and higher-margin digital advertising segments.
⚠ What to Watch
- • Extremely elevated valuation with a P/E (TTM) of 46.09x, far exceeding the optimal 8-15x target range and offering zero margin of safety.
- • Current dividend yield of 0.75% falls significantly short of the 3% minimum threshold required for optimal income-focused strategies.
- • Recent reports of significant insider selling, including substantial shares offloaded by the Walton family trust and top executives at current price levels.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.