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7/27/2019 Walmart Company Analysis Report
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Wal-Mart Company
Analysis
By Jean-Laurent Pelissier,Magdalena Besser, ZhengranZhou, Dai-Ying Wu
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Company Overview
2,100,000 Employees
Founded in 1945 and is based in
Bentonville, Arkansas.
Offers general merchandise: Food,Clothes, Electronics, Jewelry, etc
Ranked first in Fortune 500
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Industry Analysis
market cap income profit margin PE
Wal-Mart (WMT) 225B 12.88B 3.36% 18.04
Costco (COST) 31.7B 1.19B 1.75% 27.18
Target (TGT) 44.6B 2.85B 4.50% 16.46
Industry 314B --- 3.40% 15.4
Discount, Variety Stores
Carrefour (not listed in US) secondlargest retail company in the world (by
revenue)
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Financial
Revenue $378 B
Return on Equity 21.24% (highest in
industry)
Dividend Yield 1.7-% (2nd highest)
WMT TGT COST
Sales Growth +8.60% +6.50% +7.10%
Income Growth +6.90% -8.00% +31.40%
Debt/Equity Ratio 0.76 1.12 0.26
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Technical Analysis
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Technical Analysis (Cont.)
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Technical Analysis (Cont.)
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Economic Outlook
Economic Outlook
Unemployment rate as of May 18, 2008:
National: 5.0%
CA: 6.2% (CA ranks 48 out of 52; 4th worstin the nation).
All of the following information is from CNN Money as ofMay 18, 2008.
Gas hits 11th straight record high: The price for a gallonof gas sets new all-time high at $3.793(nationalaverage), according to AAA.
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Economic Outlook (Cont.)
The indicator The reading Next update
Retail Sales Sales excluding autos top
forecasts in Aprilreport.
June 12
Job Growth Minus 20,000 in April June 6
Manufacturing Unchanged in April. June 2
Consumer Confidence At 5-year low. May 27
Leading Indicators Slight increase
after
months of declines.May 19
Industrial Production Rebounded in March. May 15
Inflation CPI Running at 4% May 14
7 economic indicators
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Economic Outlook (Cont.)
o The sick dollar may begetting a little healthier -but it is far from making a
full recovery.o Wal-mart April sales
went up by 6.5%compared to those of
April 07. This shows that
retail industry is stillstrong despite overalldeclining of the economy.
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Strengths
Wal-Mart is a well known store worldwide and inthis time of economic uncertainty, consumers
must rely on cheap products to maintain theirstandards of living
Very advanced information technology. Wal-Martis able to manage its products around the world
and enables the management to take quick costeffective decisions.
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Weaknesses
Although Wal-Mart has a global presence,it is only concentrated in a few countries.
Wal-Mart does not specialize in anyspecific goods and may not have theneeded expertise on managing some of
these goods.
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Opportunities
Since Wal-Mart only operates in a fewcountries, there is a great opportunity to
expand to other areas. With recent economic uncertainties, Wal-
Mart can no market its good towards a
larger group of consumers.
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