US · Nasdaq · WMT
Walmart (WMT) stock analysis: valuation and financials
Consumer Discretionary · Department/Specialty Retail Stores
$112.81 -0.2% Price as of Oct 12, 2026
Narrow-moat scale retailer: 4.7% revenue growth, 3.0% net margin, low 0.82x net debt/EBITDA; but 40.6x P/E prices 22.2% implied FCF growth — risk/reward negative.
- Market cap
- $897.1B
- P/E
- 40.6x
- EV/Sales
- 1.3x
- FCF yield
- 1.5%
- Dividend yield
- 0.9%
- 52-week range
- $100.61 – $134.20
- Next earnings
- Nov 19, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth36
- Profitability26
- Cash flow69
- Balance sheet60
- Capital allocation79
- Valuation23
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Customers and members pay everyday low prices for grocery, general merchandise, health and wellness and fuel across roughly 10,900 stores and eCommerce, plus membership, advertising and marketplace fees, and Walmart U.S. is the profit engine at 76.9% of FY2026 segment operating income.
Financials by year
| FY2022Feb 2021–Jan 2022 | FY2023Feb 2022–Jan 2023 | FY2024Feb 2023–Jan 2024 | FY2025Feb 2024–Jan 2025 | FY2026Feb 2025–Jan 2026 | |
|---|---|---|---|---|---|
| Revenue | $572.8B | $611.3B | $648.1B | $681.0B | $713.2B |
| Revenue growth | +2.4% | +6.7% | +6.0% | +5.1% | +4.7% |
| Gross margin | 25.1% | 24.1% | 24.4% | 24.9% | 24.9% |
| Operating margin | 4.5% | 3.3% | 4.2% | 4.3% | 4.2% |
| Net income | $13.7B | $11.7B | $15.5B | $19.4B | $21.9B |
| Free cash flow | $11.1B | $12.0B | $15.1B | $12.7B | $14.9B |
| FCF margin | 1.9% | 2.0% | 2.3% | 1.9% | 2.1% |
Amounts in USD · What is free cash flow?
Margins Gross margin FY2026 24.93% vs 24.85% (+8bps); operating margin 4.18% vs 4.31% (-13bps). TTM gross margin 25.23%, operating margin 4.39%. Q2 FY2027 gross margin 26.14% (+98bps y/y) on $2.9B tariff refunds, offset by SG&A inflation.
- Cash flow HealthyFY2026 operating cash flow $41.6B versus net income $21.9B (cash conversion 2.0x); TTM OCF $42.9B versus net income $22.1B. Earnings are fully cash-backed.
- Debt LowNet debt $38.9B and net debt/EBITDA 0.82x; total debt $44.8B at FY2026 and $50.4B TTM, against $10.7B/$11.5B cash. Leverage is modest for the rating profile.
Balance sheet Leverage · Low
- Cash & short-term investments
- $11.5B
- Total debt
- $50.4B
- Net debt
- $38.9B
- Net debt / EBITDA
- 0.8x
- Interest coverage
- 17.4x
- Current ratio
- 0.8x
As of Jul 31, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongExecution: FY2026 revenue $713.2B (+4.7% yoy), net margin 3.07%, EPS +13.3% yoy; ROIC 16.9% and up 4.2pp versus three years earlier, despite flat operating margin (4.18%).
- Credibility HighFY2026 revenue of $713.2B, up 4.7% (5.1% cc), landed inside the final 4.8%-5.1% cc guide after three raises from 3.0%-4.0%; adjusted EPS of $2.64 came in above the $2.58-$2.63 guide.
Of 9 guided figures checked: 9 beat, 0 in range, 0 missed.
Valuation range
Implied value per share · Price when researched: $112.81
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.