Walmart Stores Case Study
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Wal-Mart Stores, Inc. operates retail stores in various formats in the United States and internationally. It has three segments: The Wal-Mart Stores, The SAMS CLUB, and International. The Wal-Mart Stores segment includes Discount Stores, Supercenters, and Neighborhood Markets in the United States, as well as Walmart.com. It offers apparel for women, girls, men, boys, and infants; domestics, fabrics, and notions; stationery and books; shoes; housewares; hardware; electronics; home furnishings; small appliances; automotive accessories; horticulture and accessories; sporting goods; toys; pet food and accessories; cameras and supplies; health and beauty aids; pharmaceuticals; jewelry; and optical, as well as photo processing services. The Neighborhood Markets include dry grocery, meat, produce, deli, bakery, dairy, frozen foods, pharmaceuticals, photo processing, health and beauty aids, household chemicals, paper goods, general merchandise, and pet supplies departments. The SAMS CLUB segment comprises the warehouse membership clubs in the United States and samsclub.com. It offers hardgoods, softgoods, software, electronics, jewelry, sporting goods, toys, tires, stationery and books, institutional-size grocery items, and selected private labels. As of July 31, 2005, Wal-Mart operated 1,276 Wal-Mart stores, 1,838 Supercenter, 92 Neighborhood Markets, and 556 SAMs Clubs in all the 50 states in the United States. The International segment operates various retail formats in Argentina, Brazil, Canada, Germany, Mexico, Puerto Rico, South Korea, and the United Kingdom. This segment operated 261 Canadian Wal-Mart stores and SAMs Clubs, 11 units in Argentina, 150 units in Brazil, 88 units in Germany, 16 units in South Korea, 697 units in Mexico, 54 units in Puerto Rico, and 292 units in the United Kingdom, as well as 48 units in China under joint venture agreements. The company was incorporated in 1969 and is based in Bentonville, Arkansas.
Wal-Mart Stores has a current Overall Rating of C (Neutral). Appreciation potential (76) is high; Power Rating (38) is low. Relative to the S&P 500 Composite, Wal-Mart Stores Inc has moderate Growth characteristics — its appeal is likely to be to investors neutral towards Income. WMT is of high investment quality. Current annual total return performance of -10.0% is lower quartile. Current 5-year total return performance of 4.1% is slightly below median. Over the full time
Rankings
#1 in FORTUNE 500
S&P 500
Dow Jones Industrials
Dow Jones Global Titans
#6 in FT Global 500
Key Numbers
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Company Type
Public (NYSE: WMT)
Fiscal Year-End
January
2005 Sales (mil.)
$285,222.0
1-Year Sales Growth
11.3%
2005 Net Income (mil.)
$10,267.0
1-Year Net Income Growth
13.4%
2005 Employees
1,700,000
1-Year Employee Growth
13.3%
Get more Key Numbers
Annual Income Statements
All amounts in millions of US Dollars except share amounts
Revenue
Gross Profit
Operating Income
Total Net Income
Diluted EPS (Net Income)
Jan 05
285,222.0
69,834.0
14,324.0
10,267.0
2.41
Jan 04
256,329.0
61,434.0
12,673.0
9,054.0
2.07
Jan 03
244,524.0
56,118.0
11,643.0
8,039.0
1.81
View more detailed Annual Financials, including:
Income Statement, Balance Sheet, and Cash Flow
Quarterly Income Statements
All amounts in millions of US Dollars except share amounts
Revenue
Gross Profit
Operating Income
Total Net Income
Diluted EPS (Net Income)
Jul 05
76,811.0
19,202.0
3,970.0
2,805.0
0.67
Apr 05
70,908.0
17,469.0
3,169.0
2,461.0
0.58
Jan 05
82,217.0
19,737.0
4,696.0
3,164.0
0.75
Oct 04
68,520.0
17,046.0
3,043.0
2,286.0
0.54
Jul 04
69,722.0
17,220.0
3,660.0
2,651.0
0.62
View more detailed Quarterly Financials, including:
Income Statement, Balance Sheet, and Cash Flow
Comparison To Industry & Market
Valuation
Company
Industry1
Market2
Price/Sales Ratio
1.26
Price/Earnings Ratio
17.72
17.94
20.23
Price/Book Ratio
2.62
Price/Cash Flow Ratio
12.20
12.03
10.51
1Industry: Discount, Variety Stores
2Market: Public companies trading on the NYSE, AMEX, and NASDAQ
View more detailed Comparison Data, including:
Side-by-side comparison of Wal-Mart and its top 3 competitors
Top Competitors
Wal-Mart
Costco Wholesale
Kmart
Target
Annual Sales
285,222.0
48,107.0
19,701.0
46,839.0
Employees
1,700,000
113,000
133,000
292,000
Market Cap ($ mil.)
187,321.4
20,691.7
46,624.3
Quarterly Income Statement
All amounts in millions of
except per share amounts.
View: Annual | Quarterly
Quarter Ending Jul 05
Quarter Ending Apr 05
Quarter Ending Jan 05
Quarter Ending Oct 04
Quarter Ending Jul 04
Revenue
76,811.0
70,908.0
82,217.0
68,520.0
69,722.0
Cost