Walmart Inc. (NYSE: WMT) has been an outstanding performance year 2024 up to date as the WMT Stocks hit record champs. While the share traded closed at $91.31 on November 26, 2024 it rose 2.02% to end the day and the stock has had a YTD return of 75.45%. This has strengthened its position as the best Dow component this year in terms of performance relative to competitors who are adopting strategies and have good tactics.
Here you will find some vital information about Walmart including a financial report and analysis of its key facts, financial performance, latest news, technical analysis, and investment tips.
Walmart shares are trading close to the 52 week high of $91.88 and it has strongly risen from $49.85 which was the low. The P/E ratio of 37.73 is an indicator of investors’ confidence complemented by good EPS of $ 2.42. However, valuation has not been an issue with Walmart as the retail giant continues to deliver stellar performances year on year and as such should be just the ticket for those investors seeking growth.
The YTD return of 75.45% significantly exceeded the S&P 500 return of 26.24% and Walmart one-year return of 77.9% put it even more irrevocably at the top of the market. This excellent performance is due to the firm’s novelty in the e-commerce business model, Walmart plus and Worldwide Operations.
Revenue (TTM): $665.04 billion
Net Income (TTM): $15.55 billion
Profit Margin: 2.34%
Return on Equity (ROE): 18.53%
Walmart’s profit margin may seem modest, but its massive revenue base highlights its efficiency and resilience in competitive retail. ROE at 18.53% showcases management’s effective use of equity to generate returns.
Total Cash (MRQ): $8.81 billion
Debt/Equity Ratio: 69.57%
Levered Free Cash Flow (TTM): $7.7 billion
Walmart has overall a sustainable level of debt/equity risk in addition to having strong free cash flow which allows the firm to fund growth ventures such as Walmart+ and ecommerce derivations.
More recent changes at Walmart involved important shifts regarding the company’s Diversity, Equity and Inclusion policies. (DEI)
This decision is with other similar corporate strategies that were prompted by political and legal reasons and the recent supreme court ruling on affirmative action of 2023. Key adjustments include:
Ending financial support for certain equity initiatives.
Reviewing supplier diversity practices and LGBTQ+ event sponsorships.
These moves may appeal to some stakeholders but could draw criticism from others, affecting Walmart’s brand perception in the long term.
Walmart’s stock shows a strong bullish trend, making higher highs and higher lows consistently over time. The immediate support level is around $89. This offers a potential entry point for investors just in case prices retrace.
The stock’s momentum shows there is potential further upside, supported by growing revenue streams from e-commerce and Walmart.
Strong Revenue Growth: Analysing the sales and revenue of Walmart of each year, the organisation projected a 4.8-5.1% sales increase for FY2025.
E-Commerce Expansion: International e-commerce sales reached 27% rise and thereby, supported the overall growth.
Recession-Resilience: Walmart’s affordability and scale position it as a safe bet during economic downturns.
High Valuation: Worthy to note is the fact that its P/E of 37.73 makes the stock expensive in relation to the stocks of other companies.
Capex Intensity: Expenses associated with capital expenditures, 111% YoY might prove to be eroding on short-term margins.
Policy Changes: Rollbacks in DEI initiatives could affect public perception and stakeholder confidence.
Hold.
While Walmart’s fundamentals are strong, its high valuation limits immediate upside potential for new investors. Existing shareholders should hold to benefit from continued growth in e-commerce and Walmart+ revenues. Prospective buyers may consider entering on pullbacks near support levels.
Fiscal year ended 2024 reveals exceptional performance in Walmart and proves once more its strategic vision together with efficiency. In other points, its focus on high-return investments such as Walmart+, the internationalization of e-commerce has oversimplified its business model while facing economic headwinds sets them as market leaders.
Nevertheless due to its current elevated stock prices, be very selective and focus more on the timing of entry in these stocks. Walmart remains a solid long-term investment, especially for those seeking a recession-resilient stock with growth potential.