Wal-Mart Save money Live better
Jamshid Shermatov B0900475
Botirkhon Sultonov B0900477
Davron Khudoykulov B0900464
Jasurbek Bozorov B0900457
Hasan Juraev B0900459
Outline
• Overview • Competitor and Industry comparison• Ratio analysis• Prediction • Summary
OverviewWal-Mart Stores, Inc. operates more than 8,000 retail stores in three business segments globally:
•Walmart U.S. 62.1% •Walmart International 26.1% •Sam’s Club. 11.8%
Divisions of WAL-MART
• McLane’s• Neighborhood Markets• International • Sam’s Club• Supercenters• Distribution Centers
Industry Comparison
WMT COST TGT Industry
Market Cap: 200.48B 36.87B 36.60B 6.46B
Employees: 2,100,000 92,000 355,000 31.00K
Revenue Growth 8.10% 12.40% 5.10% 6.90%
Revenue 440.14B 91.30B 69.24B 6.41B
Gross Margin 25.04% 12.48% 29.94% 29.94%
EBITDA (ttm): 34.23B 3.32B 7.51B 839.00M
Operating Margin (ttm): 5.94% 2.69% 7.80% 5.97%
Net Income (ttm): 15.59B 1.47B 2.98B N/A
EPS (ttm): 4.72 3.32 4.30 1.16
P/E (ttm): 12.39 25.52 12.68 23.82
PEG (5 yr expected): 1.33 1.65 1.14 1.38
P/S (ttm): 0.46 0.40 0.53 0.57
Competitor comparison
• Domestic competitor• Cost leadership • Specialized retailer• International competitor• Good supplier relationship (China)
Liquidity ratios
Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Working capital -6,591 -7,511 -6,441
Current ratio 0.89 0.87 0.88
Quick ratio 0.21 0.22 0.20
Cash ratio 0.13 0.14 0.13
Activity ratios
2011 2010
Accounts receivable turnover
90.755100 100.64504
Activity Payable Turnover
9.851487314 10.2751096 times
Inventory turnover 9.13464965 9.00406 times
Fixed asset turnover 4.094486958 4.210457 times
Total asset turnover 2.3867149 2.4244452 times
Leverage ratios
2011 2010 2009
Debt Ratio: 0.6056359 0.5727801 0.5895526
Debt-Equity Ratio 1.5357278 1.340714 1.436366
Times-Interest-Earned Ratio
12.745509 12.712314 11.998947
Cashflow Adequacy
23,643 26,249 23,147
Profitability ratios
Return on Sales
Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Gross profit margin 24.74% 24.78% 23.70%
Operating profit margin 6.10% 5.91% 5.68%
Net profit margin 3.91% 3.54% 3.34%
Profitability ratios
Return on Investment Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Return on equity (ROE) 23.91% 20.26% 20.53%
Return on assets (ROA) 9.07% 8.40% 8.20%
Market tests (ratios)2011 2010 2009
Earnings per Share (EPS)
$4.8 $3.861096 $3.491495
Price/Earnings (P/E)
$15.75 $16.26 $19.19
Dividend Payout 31.00% 28.2303% 27.2089%
Dividend Yield 2.38% 2.16% 2.34%
Book Value per Common Shares
$20.155per share $18.864 per share $17.029 per share
Summary
• World's largest retailer and grocery chain by sales
• Low Cost Leadership• Close customer and supplier relationship