Walmart Inc Intrinsic Value Calculation – WALMART INC Reports Strong Second Quarter Earnings for FY2024 Ending August 17 2023
August 25, 2023
☀️Earnings Overview
On July 31 2023, WALMART INC ($NYSE:WMT) announced its earnings results for the 2nd quarter of FY2024, which ended on August 17 2023. Total revenue was USD 161.6 billion, a 5.7% increase year-over-year, while net income grew by 53.2%, totaling USD 7.9 billion.
Price History
On Thursday, WALMART INC reported a strong second quarter earnings for FY2024 ending August 17 2023. On the day of the announcement, the company’s stock opened at $160.9 and closed at $155.7, down by 2.2% from its last closing price of 159.3. The company’s stocks had been on a steady growth since April of this year, but the announcement appears to have impacted the investors’ sentiment towards the company. The Q2 earnings report showed that WALMART INC maintained its momentum in top-line growth while also expanding margins and increasing profitability.
The company also launched a new online shopping platform and is investing heavily in technology and automation to improve the overall customer experience. Overall, the company delivered a strong performance in its latest quarter, beating analysts’ estimates and continuing its trend of profitable growth for the year. Despite the dip in stock price following the earnings report, WALMART INC appears to be well positioned for future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Walmart Inc. More…
| Total Revenues | Net Income | Net Margin |
| 630.79k | 14.04k | 2.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Walmart Inc. More…
| Operations | Investing | Financing |
| 37.8k | -19.05k | -18.95k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Walmart Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 255.12k | 169.56k | 29.54 |
Key Ratios Snapshot
Some of the financial key ratios for Walmart Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | 0.8% | 3.7% |
| FCF Margin | ROE | ROA |
| 3.0% | 19.2% | 5.7% |
Analysis – Walmart Inc Intrinsic Value Calculation
At GoodWhale, we provide an analysis of WALMART INC‘s financials. We have calculated the intrinsic value of WALMART INC share to be around $146.1 using our proprietary Valuation Line. Currently, the stock is traded at $155.7, which is a fair price, but is slightly overvalued by 6.6%. More…
Peers
The retail industry is highly competitive, with Walmart Inc competing against Target Corp, Sprouts Farmers Market Inc, and Costco Wholesale Corp. All four companies are vying for market share in the retail sector. Walmart Inc is the largest company in the group, followed by Target Corp, Sprouts Farmers Market Inc, and Costco Wholesale Corp. All four companies are publicly traded on the stock exchange.
– Target Corp ($NYSE:TGT)
Target Corp is an American retail corporation. The company was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target operates 1,851 stores across the United States. The company’s store format includes Target, Target Greatland, and SuperTarget. Target is the second-largest discount retailer in the United States, behind Walmart. The company’s revenue for 2018 was $75.4 billion, and its operating income was $5.9 billion. Target’s net income for 2018 was $3.6 billion, and its total assets were $42.5 billion as of December 31, 2018.
– Sprouts Farmers Market Inc ($NASDAQ:SFM)
Sprouts Farmers Market Inc is a grocery store chain that specializes in selling fresh, natural, and organic food. The company has a market capitalization of $3 billion as of 2022 and a return on equity of 21.14%. Sprouts Farmers Market operates more than 340 stores in 22 states across the United States. The company was founded in 2002 and is headquartered in Phoenix, Arizona.
– Costco Wholesale Corp ($NASDAQ:COST)
Costco Wholesale Corporation is the largest membership warehouse club in the United States. As of 2022, it had a market capitalization of 209.47 billion and a return on equity of 24.62%. Costco Wholesale Corporation is a bulk retailer of food, electronics, and other merchandise. It operates through a chain of membership warehouses in the United States and other countries. Costco Wholesale Corporation was founded in 1976 and is headquartered in Issaquah, Washington.
Summary
Investors of WALMART INC had a positive outlook when the company reported strong second quarter FY2024 earnings results. Total revenue had increased by 5.7% and net income had grown by 53.2% compared to the same period last year. Despite the challenges of the global pandemic, WALMART INC continued to show impressive growth in both sales and profits, which could continue into future quarters. This demonstrates the company’s financial strength and could lead to increased returns for investors in the near future.
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