Blue-Chip

This NYSE-Listed Consumer Staples Stock Seems Pricey – WMT

December 17, 2021 | Team Kalkine
This NYSE-Listed Consumer Staples Stock Seems Pricey – WMT

Walmart Inc.

Walmart Inc. (NYSE: WMT) operates retail, wholesale, and other businesses, as well as eCommerce, in the United States, Africa, Canada, Central America, Chile, China, India, and Mexico.

Key Highlights

  • The company reported a growth of 4.32% in total revenue to USD 140.53 billion in Q3FY22 (ended October 31, 2021) compared to USD 134.71 billion in Q3FY21.
  • Net income for Q3FY22 decreased by 39.53% to USD 3.11 billion from USD 5.14 billion in Q3FY21.
  • On December 15, 2021, WMT stated to open an over 1 million-square-foot fulfilment center in Salt Lake City in Utah to support its E-commerce. Previously on December 07, 2021, WMT announced to open a 925,000 square-foot automated fulfilment center in Tennessee.    
  • WMT’ gross margin for Q3FY22 was 25.3%, higher than the industry median of 22.0%.
  • The Debt/Equity ratio as of Q3FY22 was 0.52x; the peer median stood at 0.79x.
  • Stock is currently trading above its crucial short-term as well as long-term 50-day and 200-day DMA support levels, a bullish indicator.
  • Stock is currently leaning towards the higher end of the 52-week range of USD 126.28 to USD 152.57.
  • WMT’ share price has increased 11.95% in the past nine months.

Technical Price Chart (as of December 16, 2021). Analysis by Kalkine

Conclusion: Considering the uptick in the stock price, we feel the current share price adequately reflects the robust business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an “Expensive” rating on the stock at the current price of USD 145.54, down 0.16% as of December 16, 2021, at 11.35 AM ET.

*The reference data in this report has been partly sourced from REFINITIV.


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