Walmart Inc (WMT:NYE) 17 Analysts Slash targets across the board, $150 average target

STA Research
by: STA Research

Walmart just reported earnings and analysts are slashing their targets across the board in response.

Latest Walmart Analysts Ratings:

 

WMT Stock Forecast & Price:

Based on the Walmart Inc stock forecasts from 27 analysts, the average analyst target price for Walmart Inc is USD 150.98 over the next 12 months. Walmart Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Walmart Inc is Slightly Bearish, which is based on 8 positive signals and 10 negative signals. At the last closing, Walmart Inc’s stock price was USD 132.02Walmart Inc’s stock price has changed by +2.52% over the past week, +6.71% over the past month and -7.31% over the last year.

Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam’s Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores; membership-only warehouse clubs; ecommerce websites, such as walmart.com, walmart.com.mx, walmart.ca, flipkart.com, and samsclub.com; and mobile commerce applications. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. The company was founded in 1945 and is based in Bentonville, Arkansas.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

The walmart stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The walmart stock price history have been stable on annual returns and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to book value

The walmart target stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This walmart target stock price is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Below median total returns

The wmt target price has under performed its peers on annual average total returns in the past 5 years.

 Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The wmt target price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The walmart target stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity

The walmart target stock price has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The walmart target stock price has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets:

The walmart target stock price has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis:

The walmart target price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth:

The walmart target price has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth:

The walmart target price has shown below median dividend growth in the previous 5 years compared to its sector.

Disclaimer

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