Walmart Inc. (WMT) Stock Analysis

Analysis from 10-Q filed 2025-12-03. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 15.1%. FCF margin 1.7%. D/E 0.5x. Source: 10-Q filed 2025-12-03.

Metric	Value	Context
ROIC	15.1%	Solid returns
FCF Margin	1.7%	Cash flow pressure
Debt/Equity	0.5x	Moderate leverage

ROIC 15.1% — Top 25% of sector peers. FCF margin 1.7% — Bottom 50%.

Explore Walmart Inc.: Earnings History | Filings

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.

---

Profitability: Walmart Inc. earns 15.1% ROIC, Top 25% in Consumer Discretionary

ROIC TTM 15.1%, sector median 7.7%, Top 25%. DuPont: NOPAT margin 3.1% × asset turnover 2.6x. Gross margin 25.0%. Operating margin 4.2%. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
Return on Invested Capital (ROIC)	15.1%	Good	Above sector median of 7.7%
Return on Equity (ROE)	24.3%	Excellent	Efficient use of shareholder equity
Gross Margin	25.0%	Adequate	Competitive pricing environment
Operating Margin	4.2%	Warning	Moderate operational efficiency

---

Cash Flow: Walmart Inc. generates $12.6B FCF at 1.7% margin, positive NaN/8 quarters

FCF TTM $12.6B. FCF margin 1.7%, Bottom 50%. OCF/Net income 1.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
Free Cash Flow Margin	1.7%	Warning	Thin cash margins
Free Cash Flow (TTM)	$12.6B	Good	Positive cash generation
OCF/Net Income	1.8x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: Walmart Inc. at 0.5x leverage

Debt/Equity 0.5x. Total debt $51.5B, cash & investments $10.7B. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
Debt to Equity	0.5x	Good	Moderate leverage
Net Cash Position	$-40.7B	Warning	Net debt position

---

Valuation: Walmart Inc. trades at 46.3x earnings

P/E 46.3x. EV/Sales 1.5x. FCF yield 1.2%. Dividend yield 0.7%. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
P/E Ratio	46.3x	Adequate	Premium valuation
EV/Sales	1.5x	Excellent	Attractive revenue multiple
FCF Yield	1.2%	Warning	Lower cash yield
Dividend Yield	0.7%	Adequate	Growth focus over income

---

Capital Allocation: Walmart Inc. returns 1.3% shareholder yield

Total shareholder yield 1.3% (div 0.7% + buyback 0.5%). Capital returned $13.2B TTM. Source: 10-Q filed 2025-12-03.

Metric	WMT	Rating	Context
Total Shareholder Yield	1.3%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.5%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$13.2B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	15.1%	Top 25%	2.0x above
Free Cash Flow Margin	1.7%	Bottom 50%	0.8x below
Gross Margin	25.0%	Bottom 25%	0.6x below
Operating Margin	4.2%	Bottom 50%	1.0x below
Return on Equity (ROE)	24.3%	Top 50%	2.3x above
P/E Ratio	46.3x	N/A	-

---

Financial Scorecard

Metric	WMT	Rating	Sector Context
Return on Invested Capital (ROIC)	15.1%	Good	Top 25% of sector (median: 7.7%)
Free Cash Flow Margin	1.7%	Warning	Bottom 50% of sector (median: 2.3%)
Gross Margin	25.0%	Adequate	Bottom 25% of sector (median: 38.7%)
Debt to Equity Ratio	54.5%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	46.3x	Adequate	High expectations priced in
Free Cash Flow Yield	1.2%	Warning	Growth-focused valuation

---

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 15.1%. Sector median 7.7%. 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 1.7%, generating $12.6 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 46.3x, which is above the sector median of N/A. EV/Sales 1.5x. FCF yield 1.2%. Source: 10-Q filed 2025-12-03.

Q: Does Walmart Inc. pay a dividend?

Walmart Inc. (WMT) currently pays a dividend yield of 0.7%. Total shareholder yield (dividend + buybacks) 1.3%. Source: 10-Q filed 2025-12-03.

Q: How much debt does Walmart Inc. have?

Walmart Inc. (WMT) has a debt-to-equity ratio of 0.5x with total debt of $51.5 billion. Net debt $40.7 billion. Source: 10-Q filed 2025-12-03.

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

Walmart Inc. (WMT) grew revenue by 5.9% year-over-year. EPS +21.8% YoY. Source: 10-Q filed 2025-12-03.

Q: Is Walmart Inc. buying back stock?

Walmart Inc. (WMT) repurchased $5.6 billion of stock over the trailing twelve months. This represents a buyback yield of 0.5%. 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 15.1%, sector median 7.7% (Top 25%). FCF margin 1.7%, sector median 2.3% (Bottom 50%). Gross margin 25.0%, 13.7pp 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 1.7% (below 5%). Source: 10-Q filed 2025-12-03.

---

Data Source: Data sourced from 10-Q filed 2025-12-03. TTM metrics as of Q2 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.