Taking a look at a recent 8-K filing, you can find a complete report on the fourth quarter for the company. Fourth quarter comps grew 1.8% and Walmart U.S. ecommerce GMV grew 36.1%. The company reported GAAP earnings per share for the fourth quarter of 2017 of $1.22 and full-year GAAP earnings per share of $4.38. The numbers to note is the growth in online sales, as this means they are pushing in the right direction to compete with the Amazons of the world. These are solid numbers for current and potential investors, although the company will be sounds for the near future.
Now, taking a look at the chart using the monthly time frame, we can see that price is recovering from a decent fall starting in December of 2014. It has retraced nicely from the lows, but still has a ways to go before making it back to the top. The chart appears healthy and nothing stands out as a red flag. However, you want to use the chart data in conjunction with fundamental data to give you the most well rounded opinion, because the chart along will not give you enough detail.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Walmart income statement, its balance sheet, and the statement of cash flows. Potential Walmart investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Walmart investors may use each financial statement separately, they are all related. The changes in Walmart's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Walmart's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Walmart
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Walmart performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Walmart shares is the value that is considered the true value of the share. If
the intrinsic value of Walmart is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Walmart. Please read more on our
fundamental analysis page.
How effective is Walmart in utilizing its assets?
Walmart reports assets on its Balance Sheet. It represents the amount of Walmart resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Walmart aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Consumer Staples Distribution & Retail space. To get a better handle on how balance sheet or income statements item affect Walmart volatility, please check the breakdown of all its
fundamentals.
Are Walmart Earnings Expected to grow?
The
future earnings power of Walmart involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Walmart factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Walmart
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Walmart
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Walmart earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Walmart dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Walmart one year expected dividend income is about USD1.51 per share.
Dividends Paid is likely to gain to about (5.8
B) in 2024.
Dividend Yield is likely to drop to 0.01 in 2024.
Investing in dividend-paying stocks, such as Walmart is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Walmart must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Walmart. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Walmart Gross Profit
Walmart Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Walmart previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Walmart Gross Profit growth over the last 10 years. Please check Walmart's
gross profit and other
fundamental indicators for more details.
Breaking it down
Risks
For a full list of risks, take a look at the most recent 10-K report as this will give you risks along with details. For now, here are a couple to keep in mind while completing your research. First, the competition is intense in this market space as companies fight for market share. As stated, the online sales are the biggest competition as companies fight to have the best online sales platform. Secondly, brand image must be maintained and increased in order to retain customers. There are plenty of other options for the consumer to go to if Walmart fails to uphold their brand.
Conclusion
The retail space is tricky to navigate and understand, but Walmart is a stable company and should continue to be up there in the top list of retailers. If you’re looking for a more general exposure to the retail space, look at ETF’s as these could be a great addition to your portfolio. If you still have questions, reach out to an investing professional as they can help point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Walmart. Please refer to our
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