Walmart Inc (WMT) Stock Analysis
Verdict: WATCH (do not buy)
High-margin ad and e-commerce scaling offset valuation friction at 42x P/E, but cap-ex intensity limits near-term multiple expansion.
Investment score: 58/100
Analysis as of
Is Walmart Inc stock worth reviewing? AI model thesis
Walmart demonstrates strong operational momentum powered by e-commerce and high-margin retail media (Walmart Connect). However, at 41.94x TTM P/E and a 1.5% FCF yield, the stock trades above FMP DCF fair value ($107.81), leading the model to suggest waiting for a pullback toward technical support.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 72/100 (weight 15%)
- Technical Momentum: 62/100 (weight 15%)
- Earnings Quality: 70/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 78/100 (weight 10%)
- Risk-Adjusted Return: 58/100 (weight 15%)
Walmart Inc opportunities and risks
What speaks for WMT
- Retail Media & Advertising Expansion
What speaks against WMT
- Valuation Multiple Contraction Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| WMT | 42.9x | 1.3x | 21.6x | 25.2% | 3.0% | 1.4% |
| COST | 47.6x | 1.4x | 29.7x | 12.8% | 3.0% | 2.1% |
| TGT | 16.2x | 0.7x | 9.1x | 29.3% | 4.1% | 6.4% |
| DG | 17.2x | 0.7x | 12.3x | 31.2% | 3.9% | 9.2% |
| DLTR | 15.1x | 1.2x | 9.8x | 38.7% | 8.0% | 8.0% |
| BJ | 22.5x | 0.6x | 13.5x | 18.2% | 2.6% | 2.8% |
| Peer median | 17.2x | 0.7x | 12.3x | 29.3% | 3.9% | 6.4% |
Frequently asked questions about Walmart Inc (WMT)
Is WMT stock a good investment?
The cached TradeMates AI model rates Walmart Inc as WATCH (do not buy) with an investment score of 58/100. Walmart demonstrates strong operational momentum powered by e-commerce and high-margin retail media (Walmart Connect). However, at 41.94x TTM P/E and a 1.5% FCF yield, the stock trades above FMP DCF fair value ($107.81), leading the model to suggest waiting for a pullback toward technical support. This is algorithmic model output, not personal investment advice.
Is WMT stock a buy?
The TradeMates model verdict for WMT is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.