INVESTOR PRESENTATION
David Leonard
FIN/571
University of Phoenix
Overview
Company intro and ticker
Cash flow from operations
Price-to-earnings ratio
Stock dividends and the yield
Earnings per share ratio
Revenue estimates for the next 12 months
Revenue from previous three years
Statement of cash flows and identification of net cash from operating, investing, and financing over the last three years
Average trade volume
Current stock price, 52 week high, and 1-year estimated stock price
Analysts’ recommendations for the stock (buy, sell, hold)
Market cap
WALMART
Walmart is a global retail firm based in the United States that owns and manages a series of hypermarkets.
The Company provides a wide range of products and services at daily affordable costs.
The company was founded in 1962 by Sam Walton (Elhindwan & Nobanee, 2020).
According to fortune 500, Walmart is the world's largest firm by revenue.
As of 2021, the company had over 2,200,500 employees.
Walmart Inc., based in Bentonville, Arkansas, is an American multinational retail firm that runs a network of hypermarkets, cheap department stores, and grocery shops across the United States. Sam Walton launched the corporation in neighboring Rogers, Arkansas in 1962, and it was incorporated on October 31, 1969, under the Delaware General Corporation Law. The Company provides a wide range of products and services at daily affordable costs. Walmart U.S., Walmart International, and Sam's Club are the company's three main sectors. Walmart has 10,593 shops and clubs in 24 countries as of January 31, 2022, operating under 48 distinct names. In 1972, Walmart went public on the New York Stock Exchange. It had become the most profitable retailer in the United States by 1988, and the top in terms of sales by October 1989. According to the Fortune Global 500, Walmart is the world's biggest business by sales, with $548.743 billion.
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CASH FLOW FROM OPERATIONS
Walmart cash flow from operations for the quarter ending January 31, 2022 was $16.291B.
Walmart annual cash flow from operations for 2021 was $36.075B, a 42.83% increase from 2020.
Walmart annual cash flow from operations for 2020 was $25.256B, a 8.9% decline from 2019.
Walmart annual cash flow from operations for 2019 was $27.654B, a 2.05% decline from 2018.
Few would have expected Walmart's (WMT 1.78 percent ) stock's trajectory two years ago. At the time, the firm had bolstered its omnichannel footprint in order to compete more effectively with Amazon (AMZN 2.56 percent ), Costco (COST 1.71 percent ), and other competitors. COVID-19-related shutdowns, on the other hand, provided unanticipated advantages to the firm. As a result, cash flow in 2021 will be higher. It benefited from the demand for consumer basics and the closures of many small rivals, in addition to having the infrastructure to facilitate online orders and pickups. Walmart stayed open in most areas when the virus broke out and civilizations throughout the globe went into lockdown. Walmart's sales increased since it was able to provide fundamental necessities while also servicing online and omnichannel clients who were hesitant to enter a store.
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PRICE-TO-EARNINGS RATIO
Walmart's PE ratio was 22.23 as of March 27, 2022.
As of 2021-10-31, Walmart’s PE ratio was 51.83
Walmart's highest PE Ratio in the last 13 years was 60.67,10.56 being the lowest score. The average was 16.13.
The price to earnings ratio (PE Ratio) is a measure of a company's share price in relation to its yearly net income per share. The current investor demand for a company's stock is represented by the PE ratio. Investors expect future profits growth, therefore a high PE ratio often suggests greater demand. The PE ratio is expressed in years, which may be translated as the number of years it will take for profits to cover the purchase price. The PE ratio aids investors in determining a stock's market value in relation to its profits. In a nutshell, the PE ratio indicates how much the market is ready to pay for a company now based on its previous or projected profits. A high PE indicates that a stock's price is high in comparison to its profits and may be overpriced. A low PE, on the other hand, may imply that the present stock price is cheap in comparison to earnings.
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STOCK DIVIDENDS
The annual cash dividend is 2.20 per share.
This is a 2% increase from the previous year.
Walmart has had an increase in its annual cash dividend from March 1974 (Zhongming et al., 2020).
Walmart Inc.'s (NYSE: WMT) Board of Directors has authorized a $2.20 per share annual cash dividend for fiscal year 2022, up almost 2% from the $2.16 per share given the previous fiscal year. The annual dividend of $2.20 per share for fiscal year 2022 will be paid in four quarterly payments of $0.55 per share. EPS is expected to increase by 38.1 percent in the next year. If the dividend continues on its current path, the payout ratio is expected to reach 33 percent, which is within the range where the firm feels confident in the dividend's long-term viability. The corporation has a long history of providing consistent dividends with minimal variation. In the previous ten years, the first yearly payment was US$1.46 in 2012, while the most recent fiscal year payment was US$2.24. Over that period, it has grown its dividends at a rate of 4.4 percent every year.
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Earnings per share ratio
Walmart's earnings per share (EPS) for the quarter ended January 31, 2022 was $1.28.
Walmart's EPS for the year ended January 31, 2022 was $4.88, up 2.74 percent from the previous year.
Walmart's annual EPS for 2022 was $4.87, up 2.53% from 2021.
Walmart's yearly EPS for 2021 was $4.75, down 8.48 percent from 2020.
Walmart's yearly EPS for 2020 was $5.19, up 129.65% from 2019.
A company's net profits or losses attributable to common shareholders per diluted share base, which includes all convertible securities and debt, options and warrants, may be characterized as earnings per share. Walmart's earnings per share (EPS) for the quarter ended January 31, 2022 was $1.28. Walmart has an Earnings Per Share of 4.87 times, according to the company's filing. This is 183.14 percent more than the Consumer Defensive industry and 83.08 percent more than the Discount Stores industry. The firm's profits per share are 56.09 percent lower than the earnings per share of all US equities. One of the most extensively used and acknowledged techniques of equity analysis is stock peer comparison. It compares Walmart's direct and indirect competitors' earnings per share to identify inexpensive firms with comparable characteristics or stocks that might be a smart addition to a portfolio. Walmart's relative valuation, which is a way of assessing Walmart by comparing value measures of comparable firms, might also benefit from peer study.
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Revenue estimates
Wal-Mart shares surged 4 percent on March to settle at $138.88, despite a dip in the overall market as a result of escalating tensions along the Russia-Ukraine border. The business reaffirmed its guidance, which was higher than the average of analyst expectations. The firm expects to see an increase in the number of consumers visiting its shops for presents and groceries over the next 12 months, which will help it exceed Wall Street's projections for sales growth despite supply chain constraints and increased expenses. Walmart is pursuing new income sources as it expands its focus outside retail, which is projected to improve its revenue in the near future.
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Revenue from the previous 3 years
Walmart reported $152.871 billion in sales for the quarter ended January 31, 2022, up 0.52 percent year over year.
Walmart's yearly sales in 2021 was $559.151 billion, up 6.72 percent from the previous year.
Walmart's annual sales in 2020 was $523.964 billion dollars, up 1.86 percent from 2019.
The amount of money a firm gets from its consumers in return for the sale of products or services is known as revenue. On an income statement, revenue is the top line item from which all expenditures and expenses are removed to arrive at net income. Walmart reported $152.871 billion in sales for the quarter ended January 31, 2022, up 0.52 percent year over year. Walmart's yearly sales in 2021 was $559.151 billion, up 6.72 percent from the previous year. When the epidemic brought millions of people online in 2020, Walmart's e-commerce revenues skyrocketed. The American retailer adapted quickly, creating software and skills to service consumers across its shops and digital platforms, which it now sells to other retailers.
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Statement of cash flows
Net Cash flow from Operations for 2019, 2020 and 2021 were 27.75B, 25.26B and 36.07B.
Net Cash flow from investing activities for 2019, 2020 and 2021 were (24.04B), (9.13B) and (11.92B) (Batista, 2021).
Net Cash flow from financing for 2019, 2020 and 2021 were (2.54 B), (14.3B) and (16.12B).
The amount of money a firm gets in through its continuous, regular business operations, such as producing and selling things or providing a service to consumers, is referred to as cash flow from operational activities (CFO). On a company's cash flow statement, it is the first part. Walmart's operational cash flow for the twelve months ended January 31, 2022 was $67.646 billion, down 8.72 percent year over year. Walmart's yearly cash flow from operational operations was $36.074 billion in 2021, up 42.84 percent from 2020. Walmart's annual cash flow from operational operations was $25.255 billion in 2020, down 9% from 2019.Walmart's annual cash flow from operations in 2019 was $27.753 billion, down 2.06% from 2018.
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Average trade volume
Walmart's average daily volume is 8.216 million.
The amount of shares traded during the day
The average daily trading volume (ADTV) of a stock is the average number of shares traded in a single day. The average daily volume may be calculated by averaging the number of shares traded each day over a period of days. Because high or low trading volume attracts various sorts of traders and investors, the average daily trading volume is an essential measure. Many traders and investors prefer greater average daily trading volume versus low trading volume since it is simpler to enter and exit positions with higher volume. Because low-volume assets have fewer buyers and sellers, it may be more difficult to enter or leave at the right price. When the average daily trading volume (ADTV) rapidly rises or falls, it indicates a significant change in how people value or evaluate the asset. Walmart's average daily volume is 8.216 million.
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Current stock price, 52-week high, and 1-year estimated stock price
Current Stock Price: $146.00
52 Week High: $157.57
The average price target is $166.00
A high forecast of $190.00
A low forecast of $136.00
The most trustworthy measure of a security's present value is the most recent selling price of a stock, currency, commodity, or precious metal that is traded on an exchange. The current stock price at Walmart is $146.00. The 52-week high/low is a technical indicator that represents the highest and lowest price at which a securities has traded over the course of a year. The 52-week high/low is calculated using the security's daily closing price. The 52-week high for Walmart is $157.57. A price target is the level at which an analyst feels a company is reasonably priced in comparison to its predicted and previous profits. When an analyst increases a company's price target, they usually anticipate the stock price to grow as well. The average price objective at Walmart is $166.
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Analysts’ recommendations for the stock (buy, sell, hold)
Walmart Inc. has a consensus price target of 166.00, with a high estimate of 190.00 and a low estimate of 136.00.
This rating has been intact since February.
The current consensus among investment analysts surveyed is to BUY Walmart Inc. stock.
A firm with a hold rating is likely to perform at the same level as similar companies or in line with the market in general. Underperform: A rating implying that a stock's return will be somewhat lower than the overall stock market performance. Analyst recommendations are suggestions and advice offered to customers by financial analysts and investment experts on which assets to invest in and which assets to avoid. A firm with a hold recommendation is predicted to perform in line with the market or at a similar rate to similar companies. This rating is better than sell but worse than buy, indicating that investors holding long positions should not sell but should not buy. The current consensus among investment analysts surveyed is to purchase Walmart Inc. shares. Since March, when it was unaltered from a buy rating, its rating has been stable.
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Market cap for the company
Market cap: $401.75 Billion
Rank: 16th
Country: USA
Share price: $146
Walmart has a market capitalization of $401.75 billion as of March 2022. According to statistics, Walmart is the world's 16th most valuable corporation by market capitalization. The entire market value of a publicly traded business's outstanding shares, also known as market capitalization, is widely used to determine how much a firm is worth. Walmart Inc. is a multinational retail corporation based in the United States that controls a significant portion of the market. Walmart is ranked first in the Fortune Global 500 ranking of the world's best-selling firms. Walmart's current revenue (TTM) is $572.75 billion, according to the company's most recent financial reports. The company's sales in 2021 was $571.96 billion dollars, up from $548.74 billion dollars in 2020. The revenue is the total amount of income that a company generates by the sale of goods or services. Unlike with the earnings no expenses are subtracted.
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References
Elhindwan, A. A., & Nobanee, H. (2020). Working Capital Management Ratios of Walmart. Ratio, 2019(2018), 2017.
Zhongming, Z., Linong, L., Xiaona, Y., Wangqiang, Z., & Wei, L. (2020). Walmart sets goal to become a regenerative company.
Batista, R. A. F. (2021). Equity research-Walmart Inc (Doctoral dissertation, Instituto Superior de Economia e Gestão).
