Walmart Inc. (WMT) Stock Analysis

Analysis from 10-Q filed 2025-12-03. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 15.3%. FCF margin 2.1%. D/E 0.4x. Source: 10-Q filed 2025-12-03.

Metric	Value	Context
ROIC	15.3%	Solid returns
FCF Margin	2.1%	Cash flow pressure
Debt/Equity	0.4x	Conservative leverage

ROIC 15.3% — Top 50% of sector peers. FCF margin 2.1% — Bottom 50%.

Explore Walmart Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for WMT: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Walmart Inc. earns 15.3% ROIC, Top 50% in Consumer Discretionary

ROIC TTM 15.3%, sector median 8.1%, Top 50%. DuPont: NOPAT margin 3.2% × asset turnover 2.6x. Gross margin 24.9%. Operating margin 4.2%. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
Return on Invested Capital (ROIC)	15.3%	Good	Above sector median of 8.1%
Return on Equity (ROE)	24.0%	Excellent	Efficient use of shareholder equity
Gross Margin	24.9%	Adequate	Competitive pricing environment
Operating Margin	4.2%	Warning	Moderate operational efficiency

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Cash Flow: Walmart Inc. generates $14.9B FCF at 2.1% margin, positive NaN/8 quarters

FCF TTM $14.9B. FCF margin 2.1%, Bottom 50%. OCF/Net income 1.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
Free Cash Flow Margin	2.1%	Warning	Thin cash margins
Free Cash Flow (TTM)	$14.9B	Good	Positive cash generation
OCF/Net Income	1.9x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Walmart Inc. at 0.4x leverage

Debt/Equity 0.4x. Total debt $44.8B, cash & investments $11.3B. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$-33.4B	Warning	Net debt position

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Valuation: Walmart Inc. trades at 43.4x earnings

P/E 43.4x. EV/Sales 1.4x. FCF yield 1.6%. Dividend yield 0.8%. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
P/E Ratio	43.4x	Adequate	Premium valuation
EV/Sales	1.4x	Excellent	Attractive revenue multiple
FCF Yield	1.6%	Warning	Lower cash yield
Dividend Yield	0.8%	Adequate	Growth focus over income

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Capital Allocation: Walmart Inc. returns 1.6% shareholder yield

Total shareholder yield 1.6% (div 0.8% + buyback 0.9%). Capital returned $15.6B TTM. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
Total Shareholder Yield	1.6%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.9%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$15.6B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	15.3%	Top 50%	1.9x above
Free Cash Flow Margin	2.1%	Bottom 50%	0.9x below
Gross Margin	24.9%	Bottom 25%	0.6x below
Operating Margin	4.2%	Bottom 50%	1.0x below
Return on Equity (ROE)	24.0%	Top 50%	2.3x above
P/E Ratio	43.4x	N/A	-

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Financial Scorecard

Metric	WMT	Rating	Sector Context
Return on Invested Capital (ROIC)	15.3%	Good	Top 50% of sector (median: 8.1%)
Free Cash Flow Margin	2.1%	Warning	Bottom 50% of sector (median: 2.2%)
Gross Margin	24.9%	Adequate	Bottom 25% of sector (median: 39.1%)
Debt to Equity Ratio	44.9%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	43.4x	Adequate	High expectations priced in
Free Cash Flow Yield	1.6%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is Walmart Inc.'s Return on Invested Capital (ROIC)?

Walmart Inc. (WMT) has a trailing twelve-month Return on Invested Capital (ROIC) of 15.3%. Sector median 8.1%. Source: 10-Q filed 2025-12-03.

Q: What is Walmart Inc.'s Free Cash Flow Margin?

Walmart Inc. (WMT) has a free cash flow margin of 2.1%, generating $14.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-12-03.

Q: What is Walmart Inc.'s P/E ratio and how does it compare to peers?

Walmart Inc. (WMT) trades at a P/E ratio of 43.4x, which is above the sector median of N/A. EV/Sales 1.4x. FCF yield 1.6%. Source: 10-Q filed 2025-12-03.

Q: Does Walmart Inc. pay a dividend?

Walmart Inc. (WMT) currently pays a dividend yield of 0.8%. Total shareholder yield (dividend + buybacks) 1.6%. Source: 10-Q filed 2025-12-03.

Q: What is Walmart Inc.'s revenue and earnings growth?

Walmart Inc. (WMT) grew revenue by 4.7% year-over-year. EPS +13.5% YoY. Source: 10-Q filed 2025-12-03.

Q: Is Walmart Inc. buying back stock?

Walmart Inc. (WMT) repurchased $8.1 billion of stock over the trailing twelve months. This represents a buyback yield of 0.9%. Source: 10-Q filed 2025-12-03.

Q: How does Walmart Inc. compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, Walmart Inc. (WMT) shows: ROIC 15.3%, sector median 8.1% (Top 50%). FCF margin 2.1%, sector median 2.2% (Bottom 50%). Gross margin 24.9%, 14.2pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with Walmart Inc.?

Quantitative warning flags for Walmart Inc. (WMT): 1) FCF margin 2.1% (below 5%). Source: 10-Q filed 2025-12-03.

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Data Source: Data sourced from 10-Q filed 2025-12-03. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.